Cabral Gold Provides Update for Cuiú Cuiú Gold District, Brazil
Cabral Gold (CBGZF) provided an update on its Cuiú Cuiú gold district operations in Brazil. Two drill rigs are currently active: one focusing on upgrading gold-in-oxide Inferred resources at Machichie Main, and another conducting exploration at various targets including Machichie NE, where previous drilling yielded 11m @ 33 g/t gold.
The company contracted Ausenco Brazil to update the PFS on the initial heap leach starter operation, aiming to reduce capital and operating costs while increasing mining rate and plant capacity. The previous PFS showed an after-tax IRR of 47.3% and NPV5 of US$25.2 million, with development capex estimated at US$37.4 million.
The company appointed John Sestan as VP Project Development to oversee the gold-in-oxide heap-leach starter operation. Results are pending on 18 drill holes, and metallurgical tests are planned for Q2 2025. The company is also pursuing discussions regarding project financing and ECPM contracts.
Cabral Gold (CBGZF) ha fornito un aggiornamento sulle sue operazioni nel distretto aurifero di Cuiú Cuiú in Brasile. Attualmente sono attive due trivelle: una si concentra sull'aggiornamento delle risorse inferite di oro in ossido nella zona di Machichie Main, mentre l'altra sta effettuando esplorazioni in vari obiettivi, incluso Machichie NE, dove le perforazioni precedenti hanno prodotto 11m @ 33 g/t oro.
La società ha incaricato Ausenco Brazil di aggiornare il PFS sull'operazione iniziale di heap leach, con l'obiettivo di ridurre i costi di capitale e operativi, aumentando al contempo il tasso di estrazione e la capacità dell'impianto. Il precedente PFS ha mostrato un IRR post-tasse del 47,3% e un NPV5 di 25,2 milioni di USD, con un capex di sviluppo stimato in 37,4 milioni di USD.
La società ha nominato John Sestan come VP dello Sviluppo Progetti per supervisionare l'operazione di heap-leach di oro in ossido. I risultati di 18 fori di perforazione sono in attesa, e i test metallurgici sono programmati per il secondo trimestre del 2025. La società sta inoltre portando avanti discussioni riguardanti il finanziamento del progetto e i contratti ECPM.
Cabral Gold (CBGZF) proporcionó una actualización sobre sus operaciones en el distrito de oro de Cuiú Cuiú en Brasil. Actualmente hay dos plataformas de perforación activas: una se centra en la actualización de recursos inferidos de oro en óxido en Machichie Main, y la otra está realizando exploraciones en varios objetivos, incluido Machichie NE, donde perforaciones anteriores arrojaron 11m @ 33 g/t oro.
La empresa contrató a Ausenco Brazil para actualizar el PFS sobre la operación inicial de lixiviación en pilas, con el objetivo de reducir los costos de capital y operación mientras se aumenta la tasa de extracción y la capacidad de la planta. El PFS anterior mostró un TIR después de impuestos del 47,3% y un VAN5 de 25,2 millones de USD, con un capex de desarrollo estimado en 37,4 millones de USD.
La empresa nombró a John Sestan como VP de Desarrollo de Proyectos para supervisar la operación de lixiviación en pilas de oro en óxido. Se esperan resultados de 18 perforaciones, y se planean pruebas metalúrgicas para el segundo trimestre de 2025. La empresa también está llevando a cabo discusiones sobre financiamiento del proyecto y contratos ECPM.
Cabral Gold (CBGZF)는 브라질 Cuiú Cuiú 금 지구의 운영에 대한 업데이트를 제공했습니다. 현재 두 개의 드릴링 장비가 활성화되어 있습니다: 하나는 Machichie Main에서 산화 금 추정 자원을 업그레이드하는 데 집중하고 있으며, 다른 하나는 Machichie NE를 포함한 다양한 목표에서 탐사를 진행하고 있습니다. 이전 드릴링에서는 11m @ 33 g/t 금이 나왔습니다.
회사는 초기 heap leach 스타터 운영에 대한 PFS 업데이트를 위해 Ausenco Brazil를 계약했습니다. 이는 자본 및 운영 비용을 줄이는 동시에 채굴 속도와 플랜트 용량을 증가시키는 것을 목표로 하고 있습니다. 이전 PFS는 세후 IRR이 47.3%이고 NPV5가 2520만 달러이며, 개발 CAPEX는 3740만 달러로 추정되었습니다.
회사는 금-산화물 heap-leach 스타터 운영을 감독하기 위해 John Sestan을 프로젝트 개발 부사장으로 임명했습니다. 18개의 드릴 홀에 대한 결과는 대기 중이며, 2025년 2분기에 금속 공정 테스트가 계획되어 있습니다. 회사는 또한 프로젝트 금융 및 ECPM 계약에 대한 논의를 진행하고 있습니다.
Cabral Gold (CBGZF) a fourni une mise à jour sur ses opérations dans le district aurifère de Cuiú Cuiú au Brésil. Deux foreuses sont actuellement actives : l'une se concentre sur l'amélioration des ressources en or oxydé inférées à Machichie Main, tandis que l'autre réalise des explorations sur divers cibles, y compris Machichie NE, où les forages précédents ont donné 11m @ 33 g/t or.
L'entreprise a engagé Ausenco Brazil pour mettre à jour le PFS concernant l'opération de lixiviation en tas initiale, visant à réduire les coûts d'investissement et d'exploitation tout en augmentant le taux d'extraction et la capacité de l'usine. Le précédent PFS affichait un TRI après impôts de 47,3 % et une VAN5 de 25,2 millions de USD, avec un capex de développement estimé à 37,4 millions de USD.
L'entreprise a nommé John Sestan au poste de VP Développement de Projet pour superviser l'opération de lixiviation en tas d'or oxydé. Les résultats de 18 forages sont en attente, et des tests métallurgiques sont prévus pour le deuxième trimestre de 2025. L'entreprise poursuit également des discussions concernant le financement du projet et les contrats ECPM.
Cabral Gold (CBGZF) hat ein Update zu seinen Operationen im Cuiú Cuiú Goldbezirk in Brasilien gegeben. Derzeit sind zwei Bohrgeräte aktiv: eines konzentriert sich auf die Aufwertung der geschätzten Goldvorräte in Oxid bei Machichie Main, während das andere Erkundungen an verschiedenen Zielen durchführt, einschließlich Machichie NE, wo frühere Bohrungen 11m @ 33 g/t Gold ergaben.
Das Unternehmen hat Ausenco Brazil beauftragt, das PFS für den anfänglichen Heap-Leach-Startbetrieb zu aktualisieren, mit dem Ziel, die Kapital- und Betriebskosten zu senken und gleichzeitig die Abbaurate und die Anlagenauslastung zu erhöhen. Das vorherige PFS zeigte eine Nachsteuer-IRR von 47,3 % und einen NPV5 von 25,2 Millionen USD, wobei die Entwicklungskosten auf 37,4 Millionen USD geschätzt wurden.
Das Unternehmen ernannte John Sestan zum VP Projektentwicklung, um den Heap-Leach-Startbetrieb für Gold in Oxid zu überwachen. Die Ergebnisse von 18 Bohrlöchern stehen noch aus, und metallurgische Tests sind für das zweite Quartal 2025 geplant. Das Unternehmen führt auch Gespräche über die Projektfinanzierung und ECPM-Verträge.
- Previous PFS showed strong economics with 47.3% after-tax IRR and $25.2M NPV5
- High-grade drilling results at Machichie NE (11m @ 33 g/t gold)
- Potential cost savings and increased mining rate identified in optimization work
- Appointment of experienced VP Project Development indicates progress toward production
- Significant capital expenditure required ($37.4M) for project development
- Project financing still pending and not secured
- Updated PFS and metallurgical test results not available until Q2 2025
Vancouver, British Columbia--(Newsfile Corp. - February 13, 2025) - Cabral Gold Inc. (TSXV: CBR) (OTC Pink: CBGZF) ("Cabral" or the "Company") is pleased to provide a summary of recent progress at the Cuiú Cuiú gold district in northern Brazil.
Highlights
- Two drill rigs are currently operating at Cuiú Cuiú. One of these rigs is working on upgrading gold-in-oxide Inferred resources to Indicated status at the Machichie Main target which was not considered in the PFS announced in October 2024, but is likely to form part of an updated mining plan
- The second rig is focused on follow-up drill testing of primary exploration targets at the Machichie NE discovery, where drilling in 2024 returned 11m @ 33 g/t gold (see press release dated May 30, 2024), and also at the Central SE, Mutum and Jerimum Cima targets. Results are currently pending on 18 holes from both rigs
- Ausenco Brazil has been contracted to update the PFS on the initial heap leach starter operation, particularly with a focus on capturing the opportunities identified in the PFS to lower the estimated capital and operating expenditures as well as increasing the mining rate and plant capacity. Discussions regarding project financing and ECPM (Engineering, Construction and Procurement Management) contracts are ongoing
- Mine plan scenarios are being run using economic and operating assumptions more aligned with an increased scale, the latest unit costs and the projected gold price environment. This may drive a reduction in the cut-off grade and could further increase mineral reserves across all three deposits (MG, Central and Machichie Main)
- Cabral has hired John Sestan as VP Project Development to oversee and manage the gold-in-oxide heap-leach starter operation at Cuiú Cuiú and to build potential development options aligned with increasing the global resource base
Alan Carter, Cabral's President and CEO commented, "The next few months should be very exciting for our shareholders as we continue to develop our heap-leach starter operation at Cuiú Cuiú with the objective of achieving near-term cash flow. Once in operation, this starter project will allow us to aggressively drill off the numerous targets within the Cuiú Cuiú district and significantly expand the global resource inventory.
Recent optimization work by our team has confirmed potential savings in capital expenditures and operating expenditures for the gold-in-oxide project. In addition, the current drilling program is aimed at further increasing the Indicated resource base which we expect will support the inclusion of gold-in-oxide material from the Machichie Main deposit. The appointment of John Sestan as VP Project Development is another important step in our transition from a pure exploration company to a junior producer.
In parallel with the advances on our heap leach starter operation, we have also commenced exploration drilling on several high-priority targets in close proximity to the known gold deposits, including Central SE, Mutum, Jerimum Cima and the Machichie NE discovery where drilling in 2024 returned 11m @ 33 g/t gold."
Drilling
Cabral is currently operating two reverse circulation (RC) drill rigs along with two excavators for trenching and road construction. Presently, one RC rig is conducting infill drilling on the Machichie Main deposit in order to increase drill spacing and upgrade Inferred to Indicated gold-in-oxide resources. This could positively impact the resources considered in the mine plan and the reserves.
A second RC rig is conducting further exploration on the Machichie NE zone where Cabral drilled high grade intercepts of 5m @ 24.5 g/t Au (DDH331), 11m @ 33.0 g/t Au (RC421), and 6m @ 13.3 g/t Au (RC449) in 2024 (see press releases dated May 30, July 25 and October 28, 2024). The high-grade zone at Machichie NE has thus far been traced for 200m along strike in a NW-SE direction. A recent reinterpretation of the airborne geophysical data suggests this structure may extend at least 600m along strike.
Cabral is planning exploration drilling on several other targets within the Cuiú Cuiú district during Q1 2025. As with Machichie NE, this program is aimed at making another significant hard rock discovery and adding further to the global resource base within the district.
A series of holes are planned at the Central SE target in the coming weeks, where previous recce drilling hit 27m @ 6.9 g/t gold, and a major soil geochemical anomaly suggests a potential extension immediately southeast of the Central gold deposit.
The company also plans drilling and trenching at the Jerimum Cima target to follow up on 2024 trench results of 18m @ 1.9 g/t gold (see press release dated November 14, 2024 and several older diamond drill holes that intercepted significant gold mineralization including 39m @ 5.1 g/t gold in primary intrusive rocks.
At Pau da Merenda (PDM), mineralization remains open at depth and to both the northwest and southeast towards the Mutum area where historic surface trenching returned values including 32m @ 1g/t gold, 25.5m @ 0.9g/t gold and 16.5m @0.9 g/t gold. Cabral plans drilling in the coming weeks and months to test each of these targets.
Drill results are currently pending on 18 holes.
Ongoing Work Regarding Heap-Leach Starter Operation
Cabral has contracted Ausenco Brazil to complete an updated PFS study on the gold-in-oxide material at Cuiú Cuiú, the results on which are expected during Q2. The results of the PFS study on the gold-in-oxide starter operation included an after-tax IRR of
Recent optimization work has confirmed a number of potential cost savings, particularly the estimated capital and operating expenditures, as well as potential to increase the mining rate and plant capacity.
Furthermore, the additional drilling currently in progress at Machichie Main and drilling completed at the Central gold deposit following the release of the PFS study could result in the conversion of a significant portion of the Inferred gold-in-oxide resources to Indicated resources, which will be incorporated in an updated resource estimate for the gold-in-oxide material at Cuiú Cuiú. This in turn will result in an amended mineral reserve estimate and mine plan, also expected as part of an updated PFS during Q2 2025.
Additional metallurgical work, including a number of column leach tests, is also planned at the Kappes Cassiday and Associates lab in Reno, Nevada, and is aimed at characterizing the gold-in-oxide material from the Machichie Main gold deposit. These metallurgical results are expected in Q2 2025.
Mine plan scenarios are being run using economic and operating assumptions more aligned with an increased scale, the latest view of unit costs and the projected gold price environment. This may drive a reduction in the cut-off grade and should further increase mineral reserves across all three deposits (MG, Central and Machichie Main).
Discussions regarding ECPM (Engineering, Construction and Procurement Management) contracts, and project financing are ongoing.
VP Project Development
Cabral has hired John Sestan as VP Project Development to oversee and manage the gold-in-oxide heap-leach starter operation at Cuiú Cuiú and to build potential development options aligned to significantly increasing the global resource base.
John is mining finance specialist with over 30 years of experience in mining and resources M&A, raising capital and mine development. His experience spans most continents and multiple jurisdictions, and he is highly skilled at leading teams and successfully managing a wide range of competing stakeholders. He combines the rigour and technical expertise gained at significant mining companies, such as Rio Tinto, with his entrepreneurial flair to build deliverable development strategies for new mines.
He is committed to assembling a development plan for Cuiú Cuiú that meets the moment, is executable and is financeable in the current capital markets. John complements our existing management team, and will be accountable for driving the company's transition to production.
In parallel, he will also be driving plans to fast-track the development of the larger primary ore resources so that we can accelerate the realisation of the full potential of the Cuiú Cuiú district.
John is an Engineer, and has an MBA and various other financial qualifications, including Company Director Qualifications from the Australian Institute of Company Directors.
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 gold 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
Technical information included in this release was supervised and approved by Brian Arkell, B.S. Geology and M.S. Economic Geology, SME (Registered Member), AusIMM (Fellow) and SEG (Fellow), Cabral Gold's Vice President, Exploration and Technical Services, and a Qualified Person under NI 43-101.
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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/240760
FAQ
What are the key financial metrics from CBGZF's recent PFS for Cuiú Cuiú?
What were the recent drilling results at CBGZF's Machichie NE target?
When will CBGZF complete the updated PFS for Cuiú Cuiú?
What is the current drilling activity at CBGZF's Cuiú Cuiú project?
What is the planned production capacity for CBGZF's heap-leach starter operation?
