In a significant development for its Brazilian gold project, Cabral Gold has announced a substantial 50% expansion of the gold-in-oxide blanket at its PDM target, increasing the mineralized area from 0.26 km² to 0.39 km². This expansion, not accounted for in the company’s recent Preliminary Feasibility Study, suggests enhanced potential for the company’s planned starter operation.
Recent drilling at the PDM target has yielded impressive results, with hole RC0579 intersecting 6 mete
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In a significant development for its Brazilian gold project, Cabral Gold has announced a substantial 50% expansion of the gold-in-oxide blanket at its PDM target, increasing the mineralized area from 0.26 km² to 0.39 km². This expansion, not accounted for in the company’s recent Preliminary Feasibility Study, suggests enhanced potential for the company’s planned starter operation.
Recent drilling at the PDM target has yielded impressive results, with hole RC0579 intersecting 6 meters at 2.74 g/t gold from just 9 meters depth, including a high-grade section of 1 meter at 13.06 g/t gold. This hole represents one of the southernmost positions drilled at PDM, extending known mineralization 150 meters further south than previously documented.
Other notable intersections in the oxide material include 11 meters at 0.88 g/t gold from 26 meters depth in RC0573 and 6 meters at 1.46 g/t gold from 11 meters depth in RC583, which included 1 meter at 7.98 g/t gold.
Beyond expanding the oxide resource, Cabral’s drilling program has identified two new primary gold mineralization zones in the underlying intrusive rocks. These newly discovered zones follow the established northwest-southeast structural trend characteristic of the Cuiu Cuiu Gold District and extend at least 600 meters along strike.
“These latest drill results from the PDM target have extended the surface extent of the gold-in-oxide blanket by 50%, indicating a significantly larger gold-in-oxide resource base,” said Alan Carter, President and CEO of Cabral Gold. “Of greater importance, however, is the fact that additional drilling has increased the number of northwest-trending primary mineralized zones in the underlying intrusive rocks at PDM, from two to four.”
All four primary mineralization zones remain open along strike to both north and south, as well as at depth, suggesting potential for further resource expansion with continued drilling. Diamond drill hole DDH334 intersected multiple zones, returning 9 meters at 0.50 g/t gold from surface and 5 meters at 1.96 g/t gold from 41 meters depth, including 1 meter at 9.08 g/t gold.
The PDM target sits within a prominent northwest-trending gold-in-soil anomaly extending more than 5 kilometers along strike. This structural corridor hosts several of Cabral’s key targets, including the Central gold deposit, Central SE, Central North, and Mutum targets.
Previous drilling in the primary intrusive rocks has returned encouraging high-grade results, including 22.4 meters at 4.8 g/t gold with 1.35 meters at 62.0 g/t gold. These higher-grade intersections occur within brecciated structural zones and remain open at depth and along strike.
The expanded gold-in-oxide blanket now incorporates the Mutum area to the southeast, where previous trenching returned results of 32 meters at 1g/t gold and 25.5 meters at 0.9g/t gold. The mineralized area remains open to the north, suggesting potential for further expansion.
Cabral is maintaining an active exploration campaign with three drilling rigs currently operating at the Mutum target and the Machichie Main and Machichie NE targets. Recent drilling at Machichie NE has returned exceptional high-grade results, including 12 meters at 27.7 g/t gold and 11 meters at 33.0 g/t gold.
In parallel with its exploration activities, Cabral’s management team continues pursuing the US$37.7 million construction financing required for its gold-in-oxide starter operation. The recently updated Preliminary Feasibility Study projects attractive economics with a post-tax internal rate of return of 78% and net present value of US$73.9 million, based on a US$2,500 per ounce gold price assumption.
All-in sustaining costs are projected at $1,210 per ounce with a payback period of just 10 months. The company is simultaneously advancing detailed engineering work while building its construction and operating team under recently appointed Construction Manager Luiz Celaro.
The PDM results reinforce the district-wide potential of the Cuiu Cuiu Gold District, where Cabral holds 43-101 compliant resources at the Central, MG, and JB deposits. The consistent northwest-southeast structural trend across multiple targets suggests a unified mineralizing system with potential for additional discoveries.
For Cabral, the dual presence of near-surface oxide mineralization suitable for heap leaching and deeper primary mineralization provides flexibility for development sequencing and operational planning. The systematic exploration approach across multiple targets, combined with the structural continuity of mineralization, positions the company for potential additional discoveries that could further enhance the project’s long-term value.
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