Cabral Gold continuing to find gold targets at Cuiú Cuiú project in north-eastern Brazil

• Flagship Cuiú Cuiú project boasts a gold-in-soil anomaly that is 18 kilometers long and largely untested
• Two defined gold deposits found so far - Central and Moreira Gomes (MG), which are 5 km apart
• Management team has a long history of success in Brazil

What Cabral Gold does:

Cabral Gold Inc (CVE:CBR) (OTCMKTS:CBGZF) is unlocking the high-grade gold potential of north-eastern Brazil.

The Vancouver-based company’s flagship asset is the 100%-owned Cuiú Cuiú project in the Tapajos region, an infrastructure-rich area located approximately 20 kilometres (km) NW of Eldorado Gold’s Tocantinzinho precious metals project. 

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. It is the largest placer gold province in Brazil, and the third-largest in the world.

Cuiú Cuiú has Indicated resources of 0.2 million ounces (Moz) and Inferred resources of 0.8 Moz. It boasts a gold-in-soil anomaly that is 18 km long and largely untested. Drill intercepts in six other targets outside of the existing resources include 39 metres (m) at 5.1 grams per ton (g/t) and 27m at 6.9g/t gold. 

Exploration work at Cuiú Cuiú has identified multiple high-grade gold vein target areas outside of the historic resource and gold-in-soil anomaly. This work has so far defined two gold deposits; Central and Moreira Gomes (MG), which are 5 km apart.  Central extends over a strike length of at least 800 m in a northwest-southeast direction, and is 50 to 70 m wide, with a maximum known vertical depth of 450 m; MG extends over a strike length of 1,200 m east-west, is 30 to 50 m wide, and has a vertical depth of 400 m.

In 2019, the exploration company made a new discovery at Cuiú Cuiú, known as the Machichie zone. Earlier drilling at Machichie revealed a significant new mineralized zone that is open along strike and down-dip, with a high-grade vein structure that looks to be continuous over nearly 450 metres. One intercept from the Machichie West zone returned 3.4 metres at nearly 37 g/t of gold.

And another target, Climar is 10 km east of the Central gold deposit and 7 km northeast of the Moreira Gomes deposit on the property.

In addition to Cuiú Cuiú, Cabral Gold has three other projects in the Tapajos Region of Para, Brazil, including the Bom Jardim project which is located about 25 km northwest of the Cuiú Cuiú property and 45 km NW of Eldorado’s Tocantinzinho deposit

Cabral’s management team has a long history in Brazil, having made four previous discoveries. CEO Alan Carter is ex-Rio Tinto and founded Brazil-focused Magellan Minerals Inc, which was acquired by Anfield Gold Corp in 2016.

How is it doing:

Cabral Gold was recently named in the 2021 TSX Venture 50, placing second in the exchange’s mining category having seen its share price increase by 492% and a market cap increase of 1,047% during 2020, and the company is setting itself up for an equally exciting time in 2021.

On February 16, Cabral revealed that a third rig has been added to its 5,000-metre (m) diamond drill program at Cuiú Cuiú. The company said the drill will initially focus on the high-grade zones at both the MG and Central gold deposits where previous drilling has returned over 70 drill intercepts in excess of 10 grams per ton (g/t) of gold. The aim is to further define the size and grade of these high-grade zones.

A week earlier, Cabral had reported assays from the Machichie NE target at the project, which showed another potentially significant mineralized structure just 150m north of the Machichie discovery. Assays from four follow-up holes included 8m at 3.3 grams per ton (g/t) gold, 17m at 0.8 g/t gold, including 4m at 2.9 g/t gold, and 26m at a grade of 0.5 g/t of the precious metal.

Step-out drilling at Machichie, completed in December 2019, had returned 34m at 5.4 g/t gold. Four further holes were completed then, extending drill coverage an additional 200m east.

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, the firm said.

At the end of January, Cabral reported new sample results from the Jerimum Meio (JM) target at Cuiú Cuiú that showed numerous high-grade gold mineralization exposed at surface. Highlights from the results included an outcropping vein structure where channel sampling returned 0.9 metres (m) at 35.5 grams per ton (g/t) gold, and surface grab samples of 23.7, 42.6, 126.4, 145.8, 162.2 and 700.2 g/t gold. 

The JM structure has never been previously drill-tested and will be included in the reconnaissance drill program. However, the company noted that drilling at the target would likely be delayed until mid-late February after an outbreak of coronavirus (COVID-19) at the company’s reconnaissance drill camp, although all of the affected personnel were exhibiting only mild symptoms.

And in the same month Cabral said it had identified what it called a “compelling” new drill target at Indio within the Cuiú Cuiú gold district. The company noted that reconnaissance surface sampling at Indio returned gold values from quartz-sulphide float material of up to 137.8 grams per tonne (g/t) gold.  

The company also said a northeast-trending vein structure had been identified in reconnaissance drilling at the Tracaja target, where a total of seven reconnaissance reverse circulation holes had been completed to date. It noted that 19 surface grab samples collected from the edge of historic placer workings at Tracaja in November 2020, returned gold values of 24.2 g/t to 165.0 g/t gold and averaged 74.9 g/t gold.

On the financing front, Cabral said in November 2020 that it had raised over C$4 million from the exercise of share purchase warrants, which would ensure that an “exploration drill program well into 2021″ can take place. The company said 22,296,832 million warrants were exercised, from a total of 22,796,832 that were issued in connection with an oversubscribed private placing that closed in July 2019 which had itself generated nearly C$4.2 million for the gold exploration company. Cabral had initially planned to raise $2 million when it launched the placement in May 2020 but upsized the financing twice due to increased investor demand.

And in the boardroom in November, Cabral announced the appointment of Brazilian lawyer Carlos Vilhena to its board of directors. Vilhena is a partner at the Brasilia-based law firm of Pinheiro Neto Advogados, where he leads the firm’s mineral resources law and government relations practices. He has repeatedly been recognized as one of the top mining law practitioners in Brazil by a number of publications, including the International Who’s Who of Mining Lawyers published by Who’s Who Legal, the Latin Lawyer, Chambers, and Legal 500.

Inflection points: 

• Further drilling at established MG and Central gold deposits
• Drilling at main Machichie structure to complete several in-fill holes and step-out holes
• News from “compelling” new drill target at Indio within Cuiú Cuiú

What the boss says:

In February’s statement, Alan Carter, Cabral’s CEO said: “The arrival of a third rig at Cuiú Cuiú further expands the current drill program and allows us to address the third aspect of the high-grade potential of the project, namely the high-grade potential of the existing MG and Central deposits.”

“Establishing high-grade resources at Cuiú Cuiú is a key objective for our team in the short to medium term. With follow-up drilling already in progress at Machichie, and reconnaissance drilling of several additional high-grade targets expected to recommence in a few days, the next few weeks and months promises to be a very exciting time in terms of drill results for Cabral Gold and its shareholders,” he added.

Contact the author at [email protected]

Story by ProactiveInvestors