Cabral Gold Announces Positive Prefeasibility Study on the Gold-in-Oxide Starter Operation at the Cuiú Cuiú Gold Project, Brazil with After-Tax IRR of 47.3%
Cabral Gold announced a positive Prefeasibility Study (PFS) for its Cuiú Cuiú gold project in Brazil. The PFS, led by Ausenco do Brasil Engenharia, indicates a strong after-tax IRR of 47.3% and an NPV5 of $25.2 million for a 720,000 tonne/year starter operation using open-pit mining and heap-leach processing. At the current spot gold price of $2,710/oz, the IRR increases to 82.6% and NPV5 to $49.3 million. The project has a 4.5-year mine life with an 18-month payback period. Initial resources include 418,000 tonnes of ore at 1.38 g/t gold. Average annual gold production in the first 2 years is 19,700 ounces at an AISC of $1,003/oz. Development Capex is $37.4 million. The project offers significant expansion potential with further drilling. The company aims to achieve an investment decision by Q2 2025 and start production by mid-2026.
Cabral Gold ha annunciato uno studio di prefattibilità (PFS) positivo per il suo progetto d'oro Cuiú Cuiú in Brasile. Il PFS, condotto da Ausenco do Brasil Engenharia, indica un forte TIR dopo le tasse del 47,3% e un NPV5 di 25,2 milioni di dollari per un'operazione iniziale di 720.000 tonnellate/anno utilizzando mining a cielo aperto e processo di heap-leach. Con il prezzo attuale dell'oro di 2.710 dollari/oz, il TIR aumenta all'82,6% e il NPV5 a 49,3 milioni di dollari. Il progetto ha una vita mineraria di 4,5 anni con un periodo di recupero di 18 mesi. Le risorse iniziali includono 418.000 tonnellate di minerale con 1,38 g/t di oro. La produzione media annuale di oro nei primi 2 anni è di 19.700 once con un AISC di 1.003 dollari/oz. Il capex per lo sviluppo è di 37,4 milioni di dollari. Il progetto offre un significativo potenziale di espansione con ulteriori perforazioni. L'azienda mira a prendere una decisione di investimento entro il secondo trimestre del 2025 e avviare la produzione entro metà 2026.
Cabral Gold anunció un estudio de prefactibilidad (PFS) positivo para su proyecto de oro Cuiú Cuiú en Brasil. El PFS, liderado por Ausenco do Brasil Engenharia, indica una fuerte TIR después de impuestos del 47,3% y un NPV5 de 25,2 millones de dólares para una operación inicial de 720,000 toneladas/año utilizando minería a cielo abierto y procesamiento por lixiviación en pilas. Con el precio actual del oro de 2,710 dólares/oz, la TIR aumenta al 82,6% y el NPV5 a 49,3 millones de dólares. El proyecto tiene una vida útil de mina de 4,5 años con un período de recuperación de 18 meses. Los recursos iniciales incluyen 418,000 toneladas de mineral a 1,38 g/t de oro. La producción anual promedio de oro en los primeros 2 años es de 19,700 onzas con un AISC de 1,003 dólares/oz. El capex de desarrollo es de 37,4 millones de dólares. El proyecto ofrece un significativo potencial de expansión con más perforaciones. La empresa planea tomar una decisión de inversión para el segundo trimestre de 2025 y comenzar la producción a mediados de 2026.
Cabral Gold는 브라질의 Cuiú Cuiú 금 프로젝트에 대한 긍정적인 예비타당성 조사(PFS)를 발표했습니다. Ausenco do Brasil Engenharia가 주도한 이 PFS는 오픈 필드 채굴과 힙 리치 처리를 사용하는 720,000 톤/년의 초기 운영에 대해 세후 내부수익률(IRR)이 47.3%이고 NPV5가 2,520만 달러에 달한다고 나타냅니다. 현재 금 시세인 온스당 2,710달러에서 IRR은 82.6%로, NPV5는 4,930만 달러로 증가합니다. 이 프로젝트는 4.5년의 광산 수명과 18개월의 투자 회수 기간을 가지고 있습니다. 초기 자원에는 418,000 톤의 광석과 1.38 g/t의 금이 포함되어 있습니다. 처음 2년 동안의 평균 연간 금 생산량은 19,700온스이며 AISC는 온스당 1,003달러입니다. 개발 자본 지출은 3,740만 달러입니다. 이 프로젝트는 추가 탐사를 통해 상당한 확장 가능성을 제공합니다. 이 회사는 2025년 2분기까지 투자 결정을 내리고 2026년 중반까지 생산을 시작할 계획입니다.
Cabral Gold a annoncé une étude de préfaisabilité (PFS) positive pour son projet d’or Cuiú Cuiú au Brésil. La PFS, dirigée par Ausenco do Brasil Engenharia, indique un IRR après impôts solide de 47,3 % et un NPV5 de 25,2 millions de dollars pour une opération de démarrage de 720 000 tonnes/an utilisant l’exploitation à ciel ouvert et le traitement par lixiviation. Avec le prix actuel de l’or de 2 710 dollars/oz, l’IRR passe à 82,6 % et le NPV5 à 49,3 millions de dollars. Le projet a une durée de vie de mine de 4,5 ans avec une période de retour sur investissement de 18 mois. Les ressources initiales comprennent 418 000 tonnes de minerai à 1,38 g/t d’or. La production annuelle moyenne d’or au cours des 2 premières années est de 19 700 onces avec un AISC de 1 003 dollars/oz. Les dépenses d'investissement pour le développement s'élèvent à 37,4 millions de dollars. Le projet offre un potentiel d'expansion significatif avec des forage supplémentaires. L'entreprise vise à prendre une décision d'investissement d'ici le deuxième trimestre 2025 et à commencer la production d'ici le milieu de 2026.
Cabral Gold hat eine positive Machbarkeitsstudie (PFS) für sein Goldprojekt Cuiú Cuiú in Brasilien angekündigt. Die von Ausenco do Brasil Engenharia geleitete PFS zeigt eine starke nachsteuerliche interne Rendite (IRR) von 47,3% und einen NPV5 von 25,2 Millionen US-Dollar für einen Startbetrieb von 720.000 Tonnen/Jahr, der Open-Pit-Bergbau und Heap-Leach-Verarbeitung nutzt. Bei dem aktuellen Goldpreis von 2.710 US-Dollar/oz steigt die IRR auf 82,6% und der NPV5 auf 49,3 Millionen US-Dollar. Das Projekt hat eine Lebensdauer von 4,5 Jahren mit einer Amortisationszeit von 18 Monaten. Die anfänglichen Ressourcen umfassen 418.000 Tonnen Erz mit 1,38 g/t Gold. Die durchschnittliche jährliche Goldproduktion in den ersten 2 Jahren beträgt 19.700 Unzen bei einem AISC von 1.003 US-Dollar/oz. Die Entwicklungsinvestitionen belaufen sich auf 37,4 Millionen US-Dollar. Das Projekt bietet erhebliches Expansionspotenzial durch weitere Bohrungen. Das Unternehmen strebt an, bis zum 2. Quartal 2025 eine Investitionsentscheidung zu treffen und bis Mitte 2026 mit der Produktion zu beginnen.
- After-tax IRR of 47.3% and NPV5 of $25.2 million.
- Current spot gold price IRR of 82.6% and NPV5 of $49.3 million.
- 4.5-year mine life with an 18-month payback period.
- Average annual gold production of 19,700 ounces in the first 2 years.
- AISC of $1,003/oz.
- Development Capex of $37.4 million.
- Potential for significant resource expansion with further drilling.
- Initial mine life of only 4.5 years.
Vancouver, British Columbia--(Newsfile Corp. - October 21, 2024) - Cabral Gold Inc. (TSXV: CBR) (OTC Pink: CBGZF) ("Cabral" or the "Company") is pleased to announce a positive Prefeasibility Study ("PFS") on the development of near-surface gold-in-oxide material at the Cuiú Cuiú gold district in Brazil. The PFS, which was led by Ausenco do Brasil Engenharia Ltda. ("Ausenco") confirms the Cuiú Cuiú gold-in-oxide starter project provides a high return and a low capital entry point to mine gold at the prospective Cuiú Cuiú District.
Highlights
- Base Case after-tax IRR of
47.3% and after-tax NPV5 of US$25.2 million for an initial 720,000 tonne / yr starter operation using open-pit mining of oxidized gold mineralization and heap-leach processing, and assuming a gold price of US$2,250 / oz - In the case of the current Spot Gold1 price - US
$2,710 /oz, the IRR increases to82.6% and the after-tax NPV5 to US$49.3 million - The PFS has a 4.5-year mine life with strong cashflows in the early years and an 18-month payback2
- The initial in-pit resources have very favorable geometry due to the shallow and high-grade nature of the ore. The starter pit (planned for the first seven months) is expected to mine shallow, higher grades with a very good strip ratio, containing an estimated 418,000 tonnes of ore @ 1.38 g/t average gold grade3 with just 56,000 tonnes of waste
- Average annual gold production in the first 2 years of operation after commissioning is 19,700 ounces per year at an all-in sustaining cost ("AISC") of US
$1,003 / oz - Low development Capex of US
$ 37.4 million , including10% allowance on most quantities and20% Contingency - Significant potential exists to add nearby resources of similar high-value oxidized mineralization with further step-out and infill drilling at the nearby Machichie and Machichie NE targets, where recent drilling returned 11m @ 33g/t gold
Beyond the attractive initial financial outcome, the project 1) provides future expansion options for gold-in-oxide production, 2) provides pre-stripping exposing the underlying primary gold mineralization reducing future strip-ratios and mining costs, 3) establishes an initial operating platform to more easily transition into primary ore production, and 4) generates cash to fund an aggressive and sustained drilling program aimed at expanding the oxide resources as well as the larger underlying primary ore resource base at Cuiú Cuiú. The company plans to immediately commence detailed engineering ("DE") and financing activities with the objective of achieving an investment decision and financial close in Q2, 2025 with initial gold production targeted for mid-2026.
During the next six months the company plans to address further potential improvements identified in the course of the PFS and complete further shallow drilling which it expects will add new gold-in-oxide resources. These additions have the potential to materially increase the size, scope and mine life of the project.
Alan Carter, the President and CEO of Cabral commented,
The PFS confirms an economically attractive starter heap-leach and open-pit mining operation targeting the weathered gold-in-oxide mineralization at Cuiú Cuiú and outlines a pathway for funding the evaluation and drill testing of numerous targets within the Cuiú Cuiú district. With capital expenditures of just US
The PFS has identified several areas that should further improve the projected financial returns. Meanwhile, further drilling could lead to significant growth of the gold-in-oxide resource base and hence the mine life. In particular, this may lead to additional Indicated resources from Machichie into the mine sequencing as well as the upgrading of Inferred resources at Central to the Indicated category for inclusion in the mine plan.
The company now plans to move forward with the completion of detailed engineering work, further resource drilling, modelling designed to grow the resource base and securing the necessary project financing, allowing for an investment decision during Q2 2025.
Overview
Cabral Gold has a
In 2021, the company identified the economic potential of several oxide gold-in-oxide blankets directly overlying and resulting from the weathering of the higher-grade primary gold deposits at Cuiú Cuiú. An internal desktop study confirmed that these oxide resources could support the development of an initial simple and low-cost starter production base that could be developed in the short term based on the existing Trial Mining Licenses. Furthermore, this study suggested that such an operation could produce significant cash flows, which could allow the Company to self-fund an aggressive and sustained drill program aimed at significantly expanding the global resource inventory. Due to the strength of the business case, the Company proceeded directly to a PFS level study with a scope to assess short-term pathways to production that were aligned with Cabral's financial capacity.
Resources have been determined for two main gold deposits, MG and Central, and three smaller gold deposits, JB, Central North, and the oxidized mineralization at PDM. In late 2022, SLR Consulting (Canada) Ltd. ("SLR") calculated resources for the project which at that time comprised Indicated resources of 21.6Mt @ 0.87 g/t gold (604,000 oz) and Inferred resources of 19.8Mt @ 0.84 g/t gold (534,500 oz). In addition, three more significant gold discoveries (Machichie Main, Machichie NE and PDM primary basement) as well as over 50 other early-stage exploration targets had insufficient drill spacing to determine resources in 2022.
Economic Analysis
The gold-in-oxide project exhibits strong financial metrics across a range of gold price scenarios (Table 1). IRR's highlight the potentially attractive returns and rapid payback of the project (Figures 1 and 2).
| US$M | Low Case | Base Case | High | Spot | 2,750 US$/oz |
| Gold Price (US$/oz) | 2,000 | 2,250 | 2,500 | 2,710 | 2,750 |
| After Tax NPV5 | 11.9 | 25.2 | 38.3 | 49.3 | 51.4 |
| After Tax IRR | |||||
| Payback (years) | 2.0 | 1.5 | 1.1 | 0.9 | 0.9 |
| Average annual EBITDA (First 24 months) | 19.5 | 23.8 | 28.1 | 31.7 | 32.4 |
| LOM EBITDA | 62.1 | 79.5 | 96.9 | 111.5 | 114.3 |
| LOM After Tax Cashflow | 17.0 | 32.8 | 48.3 | 61.3 | 63.8 |
Table 1. Key results of PFS financial analysis and sensitivities to commodity prices
Figure 1. Graph showing gold produced and production costs by year
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Figure 2. Monthly gold production and project payback
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PFS - Detailed Results
The following tables (Tables 2 and 3) provide both key assumptions used to complete the financial analysis and the primary operational statistics for the project.
| Operational Assumptions | UOM | |
| Contained Gold | oz | 83,762 |
| Mill and Heap Leach Capacity | t/annum | 720,000 |
| Monthly Plant Feed | tonnes | 59,685 |
| LOM Mined Grade | g/t | 0.81 |
| Strip Ratio | Waste:Ore | 0.93 |
| LOM Ore Mined | tonnes | 3,225,866 |
| LOM Material Movement | tonnes | 6,217,364 |
| Average Gold recovery | % | |
| Production | UOM | |
| Mine life | Years | 5 |
| Gold Production (First 24 months) | oz | 35,826 |
| LOM Gold Production | oz | 72,478 |
| Average Annual Production (4.5 year mine life) | oz | 16,106 |
| Project Costs | ||
| Pre-production Capital Expenditure | US$ | 37,370,444 |
| Sustaining Capital Expenditure | US$ | 4,305,851 |
| LOM Average Site Operating Costs | US$/tonne ore | 23.2 |
| LOM Average Site Operating Costs | US$/oz | 1034.7 |
| LOM Average AISC | US$/oz | 1,228 |
Table 2. Economic analysis summary
| Commercial Parameters | UOM | |
| Exchange Rate | USD:BRL | 5.6 |
| Corporate Tax Rate | % | |
| Social Tax | % | |
| SUDAM Tax Reduction | % | |
| Gold Royalty Osisko | % | |
| Gold Royalty Sandstorm | % | |
| Selling and Refining Costs | US$/oz | 30.0 |
Table 3. Key assumptions
Resources
Overlying the primary gold mineralization at Cuiú Cuiú is an extensive zone of highly oxidized and weathered intrusive saprolite material ("Saprolite"). Above the Saprolite, gold is present in an erosional blanket of colluvium and other poorly consolidated sediments ("Blanket"). The PFS focuses on the Indicated Resources within the Saprolite and overlying Blanket, where the relatively soft or poorly consolidated material is easily excavated, and gold is highly amenable to heap leaching.
Drilling subsequent to the 2022 SLR estimate within oxidized mineralization has been used to determine an updated resource model for the PFS. This includes Central and MG 2023 infill and step-out drilling as well as infill and step-out drilling to determine an inaugural Machichie oxide resource, and existing inferred resources at PDM.
This resource estimates do not include resources in the primary zone of mineralization, which account for approximately
Inferred Resources are not considered as part of the PFS study. Indicated and Inferred Resources across four known deposits are shown in Table 4.
| Cut-off Grade | Inferred Resources | Indicated Resources | ||||
| 0.1 g/t | Tonnes | Grade | Ounces | Tonnes | Grade | Ounces |
| MG | 3,142,921 | 0.223 | 22,508 | 8,857,901 | 0.477 | 135,855 |
| Central | 3,746,684 | 0.408 | 49,151 | 2,255,288 | 0.497 | 36,028 |
| Machichie | 3,732,000 | 0.498 | 57,849 | - | - | - |
| PDM | 1,600,000 | 0.430 | 22,100 | |||
| Total | 151,608 | 171,883 | ||||
Table 4. Indicated and inferred resources of oxide material only
Notes:
(1) All estimates of Mineral Resources have been prepared in accordance with National Instrument 43 - 101 - Standards of Disclosure for Mineral Projects ("NI 43-101").
(2) The effective date is October 9, 2024.
(3) The independent and qualified persons ("QPs") for the mineral resource estimate, as defined by NI 43-101, are Volodomyr Myadzel (P.Geo) Principal Geological Consultant of VMG Consultoria e Solucoes Ltda. (for MG and Central resources) and Walter Dzick (P.Geo) Principal Geological Consultant of Dzick Geosconsultants (for Machichie)
(4) Resources are pit constrained and presented undiluted. These mineral resources are not mineral reserves.
(5) Mineral Resources are reported at a 0.1 g/t Au cut-off grade and constrained within a
Mining
The PFS contemplates open-pit mining using conventional methods. Initially, ore will be sourced from two mining areas. The Moreira Gomes (MG) pit accounts for approximately
Figure 3. Material movement schedule
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Pit designs were completed at a gold price of
The pit designs incorporated 5m bench heights and ramps of 10 m widths. Geotechnical test work supported inter-ramp angles of 70 degrees with total pit angle of 45 degrees (including ramps).
Mining will be done using an excavator in the overhand position, loading a fleet of 25 to 30-tonne trucks supported by a front-end loader. The oxidized resources occur within loose, weathered, blanket material which can be mined using a dozer ripper without need for drilling and explosives.
Mining activities will likely be outsourced to one of the many full-service contract miners operating in the Para State. Contract mining arrangements will include the provision of the entire mining fleet, including operating labor and relevant maintenance services. Cabral will provide the fuel required to operate the fleet from a mine site storage and dispensing facility.
Ore from the open pits will be delivered to a ROM pad within 200 meters from the exit of the MG pit.
Metallurgical results
Metallurgical test work was completed at Kappes Cassiday and Associates (KCA) in Reno NV on six samples of oxide material from the MG and Central deposits5. KCA ran a series of tests on each composite including coarse and fine milled bottle roll leach tests, compacted permeability tests, and column leach tests.
Gold extractions in the bottle-roll leach tests generally exceeded
Column leach tests were conducted using material crushed to
In general, gold recoveries within the 5-metre columns were excellent, with the majority of ultimate leach extractions achieved within the first 40 days of the cycle. All MG ore types reported high gold extraction rates, all in excess of
| Processing recovery using On/Off pads | % of Resources6 | % Recovery |
| MG Blanket | 49 | 88.0 |
| MG Saprolite | 35 | 90.5 |
| Central Blanket | 6 | 91.0 |
| Central Saprolite | 10 | 72.5 |
Table 5. Processing recoveries by ore type
Processing
An average of 2,000 tpd of mineralized material will be treated by the Cuiú Cuiú processing plant. The process plant will consist of a mineral sizer (MMD Sizer) fed from a ROM pad, producing an ore stream at an
Pregnant leach solution (PLS) will be pumped to the carbon-in-column (CIC) circuit at an average flowrate of 215 m3/h, targeting a loaded carbon Au grade of 2,500 g/t, which will be processed in a 1.5 tonne capacity Adsorption/Desorption and Recovery (ADR) plant. The ADR plant will consist of acid wash column, elution column, carbon regeneration kiln, electrowinning cell, sludge filter press, sludge drying oven and smelting furnace.
Once the leach cycle is complete, the pads will be completely rinsed during a 14-day period, and if required, the solution will be detoxified using lime and hydrogen peroxide prior to initiating the rinsing process. The current flowsheet for the project is shown in Figure 4.
Figure 4. Process flow sheet
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Access and Infrastructure
The Cuiú Cuiú project is located approximately 195 km southwest of Itaituba, a town on the Tapajós River. The Cuiú Cuiú village lies 60km North of the regional road BR-163, which is the main supply route for the world-scale Tocantinzinho Gold Mine. The Cuiú Cuiú access road will require an upgrade to an all-weather gravel road to accommodate year-round servicing of the mine using 20-25 tonne loads.
The Cuiú Cuiú township is serviced by a 1,000-meter-long unpaved airstrip maintained by the company. It provides air access to Itaituba, the project's regional supply/service town.
Cabral's main camp is located in the village of Cuiú Cuiú, adjacent to the project site. The village consists of 80 houses and, in 2022, had a population of up to 200 families. The PFS assumes the addition of additional lodging and other support facilities to accommodate an additional 60 workers during both the construction and production phases.
Power for the village and the project will be provided by a diesel generator bank. One of the benefits of a heap leach operation is the relatively low energy intensity and a lack of need to build grid connection infrastructure at this early stage.
Mining Permits
The Project is predicated on the current Trial Mining Licenses, which include a limit in ore processing of 300,000t/year project area. In late 2023, a request was made to increase the processing rate under the Trial Mining License to 500,000t/year. This request received a positive technical review7 and now awaits final approval through a vote from the Federal Directors of the ANM later in 2024 or early in 2025. Once granted, this Trial Mining License will be valid until November 2027.
Applications for the environmental license on the full mining license were made in December 2020, and SEMAS/PA is expected to finalise this application in early 2025. This will support the issue of the Preliminary Licence (LP) in late 2025 and, subsequently, the Installation Licence (LI) in late 2026 on the full mining license. This will allow for an increase in production volumes as proposed in the PFS production plan from 500,000t/year in 2026 to 720,000t/year in 2027.
Operating Costs
Operating costs were derived using key operating design parameters, unit cost assumptions and estimates for manning and indirect costs. Pricing for reagents and consumables was solicited from qualified local suppliers and reflects the expected pricing for the project.
Mining costs were based on offers received from suitably qualified Civil Engineering companies offering contract mining services. The proposals included a complete service, including equipment hire, operating staff, and mobilization and demobilization. Cabral will supply fuel to the mining fleet. The unitized cost of the complete service is estimated at US
A detailed breakdown of the Mine's operating costs is shown in Table 6.
| Item | LOM US$ M | LOM US$/oz |
| Mining | 25.8 | 356 |
| Processing | 47.1 | 650 |
| Site G & A | 2.0 | 28 |
| Selling Costs | 2.2 | 30 |
| Royalties | 6.4 | 89 |
| Operating Cash Costs | 83.6 | 1,154 |
| Sustaining Capital Expenditure | 5.4 | 75 |
| AISC | 89.0 | 1,228 |
Table 6. Operating costs breakdown
Capital Costs
The capital cost estimate was compiled based on the proposed plant design by Ausenco. Approximately
A priority for the detailed engineering phase is finalizing these costs through detailed engagement and negotiation with preferred suppliers.
The total Initial capital cost estimate is US
| Area | Detail | US$ |
| Process Plant | ||
| Heap Leach Pads | 7,918,623 | |
| Process Equipment | 8,596,291 | |
| Infrastructure | ||
| Onsite | 2,778,340 | |
| Offsite | 1,492,930 | |
| Earthworks | 4,826,716 | |
| Indirect Costs | 4,954,958 | |
| Owners Costs | 574,179 | |
| Project Contingency | 6,228,407 | |
| Total Initial Capital Expenditure | 37,370,440 | |
Table 7. Capital costs breakdown
Upside Opportunities
A further key output of the PFS is the identification of several additional improvement / optimization opportunities that will be addressed through the DE phase. These opportunities have the potential to enhance the already attractive investment returns, increasing Life of Mine (LOM) and NPV5. These opportunities are shown in Table 8.
| Opportunity | Potential Benefits |
| Resource Growth - Existing Inferred Resources | Central Inferred Resources and the inaugural Machichie Inferred Resource may contribute to an increase in Indicated Resources in the detailed engineering phase. Mine life and NPV are very sensitive to increased LOM production |
| Exploration Growth - Identify new resources | The Cuiú Cuiú district has a number of identified oxide targets based on positive trenching and drilling. These targets need to be followed up to quantify the potential to grow the mine life to beyond the current resource inventory |
| More competitive OPEX | The cost of contract mining and cement used in ore agglomeration were sourced from indicative quotations from reputable suppliers. These costs account for approximately |
| Reduction in Capex | Opportunities exist to reduce Capex from the PFS estimate of |
| Project Expansion Pathways | The starter project is expected to remove much of the oxide material, in some cases exposing higher grade primary ore. The existing operating base and the exposure of higher-grade ore at the bottom of the oxide pit provides optionality to expand the operating base into a meaningful annual production rate. |
Table 8. Opportunities for further improvements
The most prospective opportunity is to upgrade the existing Inferred Resources into the Indicated Category. The Central and Machichie deposits contain significant Inferred Resources and are considered the highest priority targets for adding to the current Indicated Resources for the project.
A drilling program is being planned to evaluate the potential for updating these Inferred Resources into the higher-confidence Indicated Resources in time for the finalization of the mine plan used in the development decision in 2025.
Project Sensitivities
Figures 9 and 10 show the sensitivities of project IRR's and NPV5 to key parameters including gold price, initial capital and total operating costs.
| After-Tax | Initial Capital | Total Operating Costs | |||
| Gold Price US$/oz | |||||
| IRR | |||||
| Base Case | - | - | |||
| (US$M) | |||||
| 2,000 | |||||
| 2,250 | |||||
| 2,500 | |||||
| 2,710 (SPOT) | |||||
| 2,750 | |||||
Table 9. After Tax Project IRR sensitivities according to key parameters
| After-Tax | Initial Capital | Total Operating Costs | |||
| Gold Price US$/oz | |||||
| NPV5 | |||||
| Base Case | - | - | |||
| (US$M) | |||||
| 2,000 | 11.9 | 18.6 | 5.0 | 23.2 | 0.2 |
| 2,250 | 25.2 | 31.7 | 18.6 | 36.2 | 13.9 |
| 2,500 | 38.3 | 44.8 | 31.8 | 49.3 | 27.2 |
| 2,710 (SPOT) | 49.3 | 55.7 | 42.8 | 60.0 | 38.2 |
| 2,750 | 51.4 | 57.7 | 44.9 | 62.0 | 40.3 |
Table 10. After Tax Project NPV sensitivities according to key parameters
Next Steps
The Cabral Board has approved the commencement of the next phase of work which will include more detailed engineering on the project design and in-depth engagement with suppliers to formalize terms and pricing of some of the more important inputs to the project. In parallel, the Cabral exploration team will continue to drive growth of the global resource. This work will focus on upgrading the known Inferred Resources as well as additional drilling aimed at further testing a number of exploration targets including Machichie NE where recent drilling returned 11m @ 33g/t gold (see press release dated 30th May 2024).
The Company intends to accelerate discussions with potential financiers who have expressed an interest in participating in the project. The current expectation is for an investment decision in Q2, 2025 and first production from this gold-in-oxide starter project in mid-2026.
Qualified Persons Statement
The PFS Study was authored by independent Qualified Persons and is in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects. The following Qualified Persons ("QPs") are responsible for the PFS Study and have reviewed the information in this news release that is summarized from the PFS Study in their areas of expertise:
- Robert Raponi (P. Eng), Principal Metallurgist with Ausenco Engineering) is responsible for project infrastructure, recovery methods, capital and operating costs relating to processing, and economic analysis.
- Scott Elfen (P. E.), Global Lead Geotechnical and Civil Services with Ausenco Engineering) is responsible for heap leach and tailings infrastructure, capital and operating costs relating heap leach and tailings infrastructure.
- Volodomyr Myadzel (P.Geo) Principal Geological Consultant of VMG Consultoria e Solucoes Ltda. , is responsible for the sample preparation, data verification and mineral Resource estimation at Central and MG
- Rodrigo de Brito Mello (P.Geo), Director and owner of RBM Serviços Técnicos Ltda, is responsible for the geological setting, deposit type, exploration, drilling, and adjacent properties.
- Bruno Tomaselli (Consulting Manager), of Deswick Brasil, is responsible for mining method and operating costs related to the mine.
- Walter Dzick (P.Geo) Principal Geological Consultant of Dzick Geosconsultants , is responsible for the sample preparation, data verification and mineral Resource estimation for Machichie
Brian Arkell, VP Exploration and Technical Services of Cabral Gold Inc., a QP as defined in NI 43-101, has reviewed this press release on behalf of the Company and has approved the technical disclosure contained in this news release. The PFS Study is summarized into a technical report that will be filed on the Company's website at www.cabralgold.com and on SEDAR at www.sedarplus.ca in accordance with NI 43-101 within 45 days of this news release.
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
The Tapajós Gold Province is the site of the largest gold rush in Brazil's history which according to the ANM (Agência Nacional de Mineração or National Mining Agency of Brazil) produced an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest area of placer workings 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
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. 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.
1 Spot Price based on 18th October, 2024 trading price
2 Period from Production startup, 30 months from investment decision
3 Delivered to ROM pad
4 All site operating cash costs plus gold selling costs and royalties
5 See Company Press Release re PFS Metallurgical results - 31 July 2024
6 Based on Ore tonnes
7 No167/2024/DIFIS-PA/GER-PA
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227247
FAQ
What is the after-tax IRR of Cabral Gold's Cuiú Cuiú project?
What is the NPV5 of the Cuiú Cuiú gold project?
What is the initial mine life of the Cuiú Cuiú gold project?
How much gold is expected to be produced annually in the first 2 years?
What is the AISC for the Cuiú Cuiú project?
What is the development Capex for the Cuiú Cuiú gold project?
When does Cabral Gold plan to start production at Cuiú Cuiú?
What is the payback period for the Cuiú Cuiú gold project?
