Vancouver, British Columbia – August 20, 2020 – Cabral Gold Inc. (“Cabral” or the “Company”) (TSXV: CBR; OTC: CBGZF) is pleased to announce the mobilization of an RC drill rig to the Cuiú Cuiú project in northern Brazil. Highlights are as follows;
Cabral is planning a minimum of 25,000m of RC drilling on multiple targets at the Cuiú Cuiú gold project over the coming months
Drilling will initially focus on the Alonso, Medusa and Cilmar targets located in the eastern part of the project area which have never been drill tested. Surface sampling of boulders at Alonso during February 2020 returned gold values ranging from 11.6 to 200.3 g/t gold and boulders from the Medusa target (which was identified in April 2020) returned gold values of 1.1 to 82.1 g/t gold
Additional drilling is also planned on several targets outside the existing resource base including the Machichie East and Machichie zones which were identified in 2019 and returned 3.4m @ 36.9 g/t gold, Central SE which has four diamond drill holes to date including 27.0m @ 6.9 g/t gold, and Pau de Merenda which has several drill intercepts including 47.0m @ 1.8 g/t gold
Drilling is also planned to further assess the high-grade zones at the two existing deposits at Central and MG where drilling during late 2019 returned 7.6m @ 18.5 g/t and 5.6m @ 13.0 g/t gold, in order to better define the core high-grade zones of both deposits
The objective of the planned drill program is to outline multiple high-grade gold deposits at the Cuiú Cuiú project where previous drilling has already outlined a large low-grade resource with Indicated Resources of 5.9Mt @ 0.9 g/t (200,000oz) and Inferred resources of 19.5Mt @ 1.24 g/t (800,000oz) and comprises the MG and Central deposits. Drilling completed during 2019 clearly demonstrates the presence of high-grade zones within the MG and Central deposits, and also increased the number of peripheral targets with high-grade gold drill intercepts to eight, suggesting the presence of a major district containing multiple gold deposits.
Drilling will initially test several targets which have returned high-grade gold values on surface. These include the Alonso, Medusa and Cilmar targets (Figure 1) which have never been previously drill tested and returned spectacular gold values from surface values earlier this year, including gold values of 11.6 to 200.3 g/t gold from 24 surface boulders at Alonso, and 1.1 to 82.1 g/t gold from 19 surface boulders at Medusa (see press releases dated February 11, 2020 and April 22, 2020).
Following the completion of these initial drill programs, the rig will move to complete further drilling at the Machichie and Machichie East targets (Figure 1) which are located 600m and 800m respectively, north of the MG gold deposit, and where initial diamond drilling during 2019 returned encouraging results including 3.4m @ 36.9 g/t gold.
Additonal drilling is also planned at the Central SE target located 1km SE of the Central deposit (Figure 1) and where previous drilling returned 27.0m @ 6.9 g/t gold and 8.0m @ 8.4 g/t gold. Further drilling is also planned at the Pau de Merenda target located 1.5km NW of Central (Figure 1) where previous surface trenching returned 15.0m @ 4.1g/t gold (open) and limited drilling returned 8.5m @ 5.1 g/t gold, and 47m @ 1.8 g/t including 1.0m @ 12.8 g/t and 1.2m @ 10.9 g/t gold.
Infill drilling is also planned at the high-grade zones within the MG and Central deposits to further define the dimensions of the high-grade core zones which are surrounded by lower grade envelopes. Drilling during late 2019 returned 7.6m @ 18.5 g/t and 5.6m @ 13.0 g/t gold.
Drilling is expected to continue through into mid-2021 and the target sequence is likely to change as drill results become available. It is considered highly likely that ongoing reconnaissance work in the Cuiú Cuiú district will generate additional targets. Turn around times for analytical results are expected to be from 2-4 weeks.
Figure 1: Location of placer workings and the Central and MG deposits and peripheral targets (in yellow) which are currently scheduled for drilling
Issuance of RSUs
Cabral’s Board of Directors has approved the granting of restricted share units (“RSUs”) to five officers and directors pursuant to the Company’s RSU plan. Subject to any necessary or required approval of the TSX Venture Exchange, the RSUs entitle the holders to acquire a total of 575,000 common shares in the capital stock of the Company. Fifty percent of the RSUs will vest 18 months after the date of grant with the remainder vesting after 36 months.
Annual General Meeting
On August 10, 2020, the Company mailed a Notice of Annual General Meeting (the “Notice”) to its registered and (in accordance with the requirements on National Instrument 54-101) unregistered shareholders indicating that its 2020 Annual General Meeting (the “Meeting”) would be held at Suite #1200 – 750 West Pender Street, Vancouver, British Columbia, V6C 2T8 on September 9, 2020 at 10:00 a.m. (Vancouver time).
To ensure the safety of our shareholders and other stakeholders entitled to attend the Meeting amidst the ongoing COVID-19 pandemic, the Company has determined that in-person attendance will not be permitted at the Meeting and that there will be no physical location for the Meeting. The Meeting will be deemed to be held at the Company’s registered office located at Suite #1200 – 750 West Pender Street, Vancouver, British Columbia, V6C 2T8, but the Meeting will be held in virtual only format, which will be conducted via telephone conference. Registered shareholders and validly appointed proxyholders may attend the Meeting by calling the following toll free number in Canada and the United States: 1-800-669-6180, or by calling 1-604-484-1962. All callers will be prompted to enter the following passcode upon entering the teleconference: 585276.
Due to the COVID-19 pandemic and issues related to the verification of shareholder identity via teleconference, in person voting will not be permitted at the Meeting. If you are a registered shareholder of the Company and wish to vote the shares you hold at the Meeting, you will be required to vote your shares by completing the proxy provided with the Notice and delivering it to the Company in accordance with the instructions in the Information Circular and the form of proxy that accompanied the Notice. If you are an unregistered shareholder of the Company and wish to vote the shares you hold at the Meeting, you will be required to vote your shares by completing the voting instruction form provided with the Notice and delivering it to the Company in accordance with the instructions in the Information Circular and voting instruction form that accompanied the Notice.
About Cabral Gold Inc.
The Company is a junior resource company and is engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties located in Brazil. The Company has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in northern Brazil.
The Tapajós Gold Province is the site of the largest gold rush in Brazil’s history producing an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest garimpo in the Tapajós and produced an estimate 2Moz of placer gold historically.
FOR FURTHER INFORMATION PLEASE CONTACT:
President and Chief Executive Officer
Cabral Gold Inc.
Dr Adrian McArthur, B.Sc. Hons, PhD. FAusIMM., a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the words “will”, “expected” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This news release contains forward-looking statements and assumptions pertaining to the following: strategic plans and future operations, and results of exploration. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.
Gold assays have been determined by SGS method FAA505 (fire assay; 50 charge). Analytical quality is monitored by certified references and blanks. Until dispatch, samples are stored in the company’s supervised exploration office. The samples are couriered to the assay laboratory using a commercial contractor. Pulps and rejects are returned to the Company and archived.