Vancouver, British Columbia--(Newsfile Corp. - June 3, 2021) - Cabral Gold Inc. (TSXV: CBR) (OTC PINK: CBGZF) ("Cabral" or the "Company") is pleased to advise that following the recent identification of a gold-bearing oxide blanket above the MG deposit, Cabral has acquired all of the remaining surface rights which cover the oxide gold blanket and the underlying MG gold deposit. The MG gold deposit is one of two deposits with significant resources which have been identified to date within the Cuiú Cuiú golddistrict in northern Brazil.
Highlights are as follows:
- Cabral has signed a binding agreement to acquire the surface rights to the eastern part of the MG gold deposit and the recently identified gold-bearing oxide blanket where recent drilling returned 60m @ 3.5 g/t gold
- The Company acquired surface rights totaling 184.7 hectares, bringing its total surface land holdings at both MG and Machichie to 256.5 hectares. These surface rights cover the entire gold-bearing oxide blanket and underlying MG gold deposit. Both remain open
- As part of the transaction, the Company also acquired a second area amounting to 186.9 hectares immediately north of the Machichie target and close to the Quebra Bunda target where surface sampling of a high-grade vein in outcrop previously returned a value of 3,727 g/t gold (120 oz/t gold)
- The Company has also been granted Trial Mining License permits over the MG and Machichie areas totaling 85 hectares which gives the Company the right to process up to 100,000t of ore per year, subject to the granting of environmental licenses
Alan Carter, Cabral's President and CEO commented, "The recent drill results from the gold-bearing oxide blanket at MG meant that the acquisition of the surface rights over this part of the Cuiú Cuiú district became an extremely high priority for us. Cabral now controls both the mineral rights and the surface rights to the MG gold deposit and gold-bearing blanket, as well as the recently identified Machichie zone located 500m north of MG. The acquisition of these surface rights, together with the recent granting of two Trial Mining Licenses over the MG deposit and the Machichie zone, enhances Cabral's control of the area and raises the possibility of an accelerated path to production."
Following the recent identification of a significant gold-bearing oxide blanket above the MG gold deposit, Cabral has acquired all of the surface rights, totaling 184.7 hectares (Figure 1), covering the eastern part of the MG deposit and the bulk of the overlying gold-bearing oxide blanket, where recent drilling returned 60m @ 3.5 g/t gold (see press release dated May 19, 2021).
As with most jurisdictions around the world, in Brazil surface rights are separate from mineral rights. Cabral already owns the two contiguous blocks of surface rights at Cuiú Cuiú (totaling 71.7 hectares) which cover the western half of the MG deposit and the parallel Machichie target (located 500m north of MG). It also covers most of the Machichie SW vein array where recent drilling at the Hamilton Novo vein returned 3m @ 13.2 g/t gold (see press release dated April 15, 2021).
This new acquisition brings the Company's surface land holdings at both MG and Machichie to a total of 256.5 hectares.
As part of the transaction the Company also acquired a second area amounting to 186.9 hectares northeast of Machichie, and 1km east of the Quebra Bunda target where surface sampling of a high-grade vein in outcrop previously returned a value of 3,727 g/t gold (120 oz/t gold). The total consideration for both properties was R$474,000 (C$111,720) plus an additional nominal amount relating to compensation for structures and other improvements on the property which will be paid in Q3 2021.
The Company applied for a number Trial Mining Licenses in December 2020 of which two have been granted on the 850/615/2004 and 850.047/2005 tenements. Applications for Trial Mining Licenses over the Central gold deposit and the Pau da Merenda target area are still pending. The two Trial Mining Licenses over the MG and Machichie areas total 85 hectares and give the Company the right to process up to 100,000t of ore per year, subject to the granting of environmental licenses which have been applied for.
Figure 1: Map showing the outline of the MG gold deposit as well as the recently discovered Machichie zone and the NE trending Machichie SW vein array (in yellow) and the recently identified gold-bearing oxide blanket which overlies the MG gold deposit. Cabral's surface rights including the new acquisition are also shown
To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/3900/86363_267ac4d694ecdae1_002full.jpg
Surface access rights are distinct from mineral rights. The Cuiú Cuiú mineral rights held by the Company total 41,576 hectares including all ground comprising and surrounding the 'New Acquisition' and 'Cabral's properties' referred to in Figure 1.
The Company is planning to aggressively determine the size of the gold-bearing oxide blanket at MG in the coming months, whilst continuing to both outline the high-grade zones in the underlying MG gold deposit, and drill test regional targets within the Cuiú Cuiú gold district.
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 estimated 2Moz of placer gold historically.
FOR FURTHER INFORMATION PLEASE CONTACT:
"Alan Carter"
President and Chief Executive Officer
Cabral Gold Inc.
Tel: 604.676.5660
Guillermo Hughes, P. Geo. FAusIMM and AIG., 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 analysis has been conducted by SGS method FAA505 (fire assay of 50g charge), with higher grade samples checked by FAA525. Analytical quality is monitored by certified references and blanks. Until dispatch, samples are stored under the supervision the Company's exploration office. The samples are couriered to the assay laboratory using a commercial contractor. Pulps are returned to the Company and archived. Drill holes results are quoted as down-hole length weighted intersections.
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