Cabral Gold releases update on Brazil project PFS

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Cabral Gold Inc. [TSXV-CBR, OTC-CBGZF] says it is making good progress on a 43-101-compliant prefeasibility study (PFS) that aims to determine the economic viability its Cuiu Cuiu gold project in northern Brazil.

The PFS is examining the economics of mining and heap leach processing of the gold-in-oxide material at the Central and MG gold deposits at Cuiu Cuiu. As part of the PFS, the company is conducting a program of RC drilling at both the MG and Central deposits. It said 69 holes have been completed so far and results have been released on the initial 14 holes (six from MG and eight from Central). Initial results have been highly encouraging, the company said, and include 27 metres at 1.9 g/t gold from surface at MG.

In addition, results are pending on 12 holes which have been completed at the Machichie target, where previous drilling suggests the presence of a significant gold discovery. Previous drilling in the weathered oxide material returned values of 34 metres at 5.4 g/t gold from surface to a depth of 34 metres, including 13 metres of 13.4 g/t gold from a depth of 18 to 31 metres

Cabral is engaged in the identification, exploration and development of mineral properties, with a clear focus on gold projects located in Brazil. The company has a 100% interest in the Cuiu Cuiu gold district, which is located in the Tapajos Region, within the state of Para, northern Brazil.

The Tapajos Gold Province is the site of the largest gold rush in Brazil’s history. It led to the production of an estimated 30-50 million ounces of placer gold between 1978 and 1995, including two million ounces from Cuiu Cuiu.

The Cuiu Cuiu project contains a NI 43-101 compliant indicated resource of 21.6 million tonnes of grade 0.87 g/t gold (604,000 ounces) and an inferred resource of 19.8 million tonnes of 0.84 g/t gold (534,500 ounces). That material is contained in the two main gold deposits (MG and Central), which are located 5.0 kilometres apart.

The known deposits at Cuiu and Cuiu at Central and MG as well as recent hard rock discoveries at PDM and Machichie all contain high-grade zones, the company has said.

Cuiu Cuiu is located next to GMining Ventures 2.0 million-ounce TZ project, which is currently under construction and will be Brazil’s third largest gold mine when it enters production in the second half of 2024. Cuiu Cuiu is a district containing 43 targets that are peripheral to the known deposits.

The company is hoping to generate near-term cash flow by exploiting the near-surface gold-in-oxide blankets, initially on a trial mining basis. It said this will eliminate the need for dilutive equity financings. The PFS is expected to be completed by the first quarter of 2024.

Cabral shares were unchanged at 14 cents on Thursday and trade in a 52-week range of 18.5 cents and $0.095.

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