2021

Vancouver, British Columbia--(Newsfile Corp. - February 11, 2021) - Cabral Gold Inc.  (TSXV: CBR) (OTC PINK: CBGZF) ("Cabral" or the "Company") is pleased to provide initial assay results from follow-up drilling at the blind Machichie NE target, and to provide an update regarding ongoing follow-up drilling at the main Machichie target within the Cuiú Cuiú gold district in northern Brazil.

Highlights are as follows;

  • Drill results have been returned on four of five follow-up RC holes recently drilled at the Machichie NE target which is located 150m north of the Machichie discovery where step-out drilling completed in December 2020 returned 34m @ 5.4 g/t gold
  • Drill results include 8m @ 3.3 g/t gold, 17m @ 0.8 g/t gold including 4m @ 2.9 g/t gold, and 26m @ 0.5 g/t gold. These holes were designed to follow up a mineralized intercept from a single drill hole completed in 2019 which returned 15.9m @ 1.7 g/t gold including 0.5m @ 21.3 g/t gold
  • This follow-up drilling confirms the presence of another potentially significant mineralized structure just 150m north of Machichie and suggests that the structure has a sub-vertical dip and an E-W orientation, and is sub-parallel to the main Machichie zone
  • Drilling has re-commenced at the main Machichie target where four additional holes have been completed to the east of the recent step-out high-grade drill intercepts. Results are currently pending on four additional holes which extend for an additional 200m further east of the most easterly hole reported on January 7, 2021

Alan Carter, Cabral's President and CEO commented, "The initial follow-up drill results from the Machichie NE target confirm the presence of another mineralized structure just 150m north of the Machichie discovery, which is highly encouraging. Whilst it is early days for this particular target, the close proximity to the recent Machichie discovery, and the fact that gold mineralization continues down-dip and extends along strike for at least 100m, suggests we could be on to another significant mineralized zone. Further drilling will be necessary to determine the size of the mineralized zone at this exciting emerging target. The Cuiú Cuiú district continues to both surprise and deliver exciting new targets, and we look forward to additional drill results on a number of high-grade targets in the coming months outside of the two known deposits of MG and Central".

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Figure 1: Cuiú Cuiú location map showing the location of the Machichie NE target in relation to the 43-101 compliant MG and Central gold deposits, the recent Machichie discovery and other recently identified targets. Background to map is 1VD RTP airborne magnetic data

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Machichie NE Drill Results

Five follow-up drill holes were recently completed at the blind Machichie NE target which is located 150m north of the main Machichie discovery (Figure 1) where recent drilling returned 34m @ 5.4 g/t gold.

A single hole was drilled at Machichie NE in 2019 based on a coincident geophysical - geochemical anomaly and intersected 15.9m @ 1.7 g/t gold including 0.5m @ 21.3 g/t gold and 1.0m @ 10.3 g/t gold (see news release dated March 26, 2019). However, the lack of any outcrop and the presence of just one drill hole meant that the strike and dip of the mineralized zone remained unknown.

Five follow-up drill holes (RC42 - RC46) were completed at Machichie NE during December 2020 and January 2021 and were aimed at establishing the strike, dip and continuity of the mineralized structure.

Results have now been returned on the first four (RC42 - RC45) of five holes drilled, and include the following results:

  • Drill hole RC45 was drilled 50m east of the 2019 discovery hole and returned 8m @ 3.3 g/t gold from 10m depth. The intersection forms part of a broad envelop extending from surface to 28m depth (28m @ 1.0 g/t gold from surface). Similar dispersion halos have been seen at Central and the MG deposit. The mineralized position is open, with a peak response in surface soil geochemistry (217ppb Au) located along the projection of the trend 180m to the east-southeast
  • Drill hole RC42 was drilled directly above the 2019 discovery hole and returned 17m @ 0.80 g/t gold from 15 depth including 4m @ 2.9 g/t gold
  • Drill hole RC43 was drilled 50m west of the 2019 discovery hole and returned 26m @ 0.5 g/t gold from 67m depth

Assay results are currently pending on the final hole RC46 which was drilled to the north of RC45.

These drill results suggest that gold mineralization at Machichie NE is sub-parallel to the main Machichie structure and has a sub-vertical dip and an ESE orientation. There are indications of high-grade gold veins surrounded by a lower grade envelope at Machichie NE, as at Machichie, and the MG and Central gold deposits. The mineralized zone remains open to both the east and the west and will require additional drilling to fully evaluate the extent of this new zone.

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Figure 2: Airborne magnetic map (RTP 1VD) showing location of the Machichie NE target and the E-W trending Machichie discovery 150m to the south.

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Drilling Update

Follow-up Drilling

The larger contracted Prospector W750 RC drill rig is currently back drilling at the main E-W trending Machichie mineralized zone where recent drilling returned 34m @ 5.4 g/t gold and 20m @ 1.2 g/t gold on the eastern extension of the zone (see news release dated January 7, 2021).

Four additional holes have been completed, extending drill coverage an additional 200m east of the aforementioned recent high-grade drill intercepts (Figure 3). Assay results are currently pending.

Following the completion of the next hole, the rig will move further west along the main Machichie structure to complete several in-fill holes and step-out holes. It will then focus on drilling a number of the NE trending high-grade vein structures exposed on surface in the Machichie SW target area located between Machichie and the MG gold deposit.

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Figure 3: Airborne magnetic map (RTP 1VD) showing location of recent step-out drill holes at the Machichie target and the location of follow-up drill results from the Machichie NE target as well as a series of high-grade NE trending veins and the MG gold deposit

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Reconnaissance Drilling

The reconnaissance drilling program which was testing the Indio target has been temporarily suspended due to an outbreak of Covid-19 in late January at the secondary camp which is used as a base for reconnaissance drilling. All employees are recovering and several have returned to site following a negative swab test. The Indio target is located approximately 1.5km SE of the MG gold deposit.

Drilling is expected to recommence at the Indio target within the next one to two weeks once all employees have fully recovered.

About Cabral Gold Inc.

The Company is a junior resource company 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. Two gold deposits have so far been defined at Cuiú Cuiú and contain 43-101 compliant Indicated resources of 5.9Mt @ 0.90g/t (200,000 oz) and Inferred resources of 19.5Mt @ 1.24g/t (800,000 oz).

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:

"Alan Carter"

President and Chief Executive Officer
Cabral Gold Inc.

Tel: 604.676.5660

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.

Forward-looking Statements

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.

Notes

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. RC samples are split using a Jones riffle splitter, and have been recovered in a dry condition using a face-sampling bit, with the program executed by GEOSEDNA - Perfurações Especiais S/A, specialist drilling contractors. Sampling has been conducted in 1-2m intervals, based on geological control.

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