Announcement • Jul 21
Cabral Gold Inc. Announces Additional Drill Results from Pre-Production Infill Drilling At the MG Gold Deposit Cuiú Cuiú Gold District Brazil
Cabral Gold Inc. has announced results from 41 additional reverse circulation infill drill holes recently drilled as part of the pre-production drill-to-measured resource upgrade and production de-risking of the gold-in-oxide ore within the MG starter pit at the Cuiú Cuiú Gold District, Brazil. Results have been received on an additional 41 infill RC holes targeting the gold-in-oxide material in the eastern and central parts of the MG starter pit. The program of infill drilling was aimed at improving the confidence around the current mine plan at MG and upgrading the indicated resource to measured classification. Notable results from this final batch of RC drill results from MG include: 10m @ 0.72 g/t gold from surface in RC744, 13m @ 0.46 g/t gold from surface in RC745, 14m @ 0.81 g/t gold from surface in RC746, 16m @ 0.77 g/t gold from surface in RC747, 17m @ 1.93 g/t gold from surface in RC748, 14m @ 0.74 g/t gold from surface in RC749, 17m @ 0.62 g/t gold from surface in RC750, 18m @ 0.64 g/t gold from surface in RC751, 18m @ 0.57 g/t gold from surface in RC752, 25m @ 0.52 g/t gold from surface in RC753, 25m @ 0.53 g/t gold from surface in RC754, 25m @ 0.57 g/t gold from surface in RC755, 34m @ 0.50 g/t gold from surface in RC772. Drilling has been completed at MG on this program for a total of 5,767 meters drilled in 165 holes. All assay results have now been received on the MG pre-production infill drill program. The MG gold deposit is one of the two main gold deposits that currently comprise the Indicated and Inferred resource base at Cuiú Cuiú. As with the nearby Central gold deposit, the upper portion of the subvertical MG gold mineralization is extensively weathered resulting in a vertical profile of saprolite extending to 60 meters depth. This saprolite together with the overlying blanket sediments and soils, which are also mineralized, will form the starter pit for the Phase 1 gold-in-oxide mining operation which is due to commence production in Fourth Quarter 2026. The objective of the RC infill drill program at MG is to provide greater confidence in the grade and continuity of the planned oxide-gold ore supply from MG to the heap leach pad, ahead of mining, and to further refine the mine plan that was developed as part of the PFS study release in July 2025. Results have been received on the remaining 41 infill RC holes, targeting the gold-in-oxide material in the eastern and central parts of the MG starter pit. These follow the receipt of results previously from 124 infill RC holes. The program of infill drilling was designed to enhance the level of confidence around the Year 1 mine plan at MG and to upgrade the current resource by the end of this month. In total, 165 RC holes totalling 5,767m were completed enhancing the drill hole spacing to a nominal 12.5m grid through most of the Year 1 pit plan and 25m spacing elsewhere. The RC drill results reported to date confirm the presence of good gold grades, from surface, within the weathered saprolite and overlying sedimentary blanket and within the Year 1 pit outline. All of the holes reported herein were drilled within the Year 1 pit to a maximum depth of 25m. The close-spaced drilling with downhole sampling on one-meter intervals confirms the pre-existing exploration drilling and validates the geological model demonstrating the presence of significant near surface resources with good grade material amenable to heap leach. This data reconciles well with the exploration model and allows the Company to initiate ore control and production with confidence in the Year 1 pit. The Company continues exploration and resource development drilling with six drill rigs, four diamond drills and two reverse circulation drills currently operating at Jerimum Cima, Machichie NE, Machichie Main, and Central. At Jerimum Cima, a follow up program of 25 diamond drill holes is nearing completion. The drilling is focused on further definition of four main mineralized structures that are east-west trending and host gold in quartz-sulfide breccias. Recent drilling at Jerimum Cima returned 9.5m @ 87.4 g/t gold. These structures have now been intersected over a distance of more than one kilometre along strike and over 200 metres down dip and remain open to the east. In the overlying Jerimum Cima oxide zone, the company has completed drilling on a nominal 50 to 70 by 100 metre spacing aimed at determining the size of the gold-in-oxide mineralization at Jerimum Cima. Assay results on Jerimum Cima drilling are pending. Resource development drilling has recently commenced at the Machichie Main and Machichie NE targets where the company is now operating two diamond drills and a reverse circulation drill. Diamond drills are targeting several higher-grade structures in the primary zone at Machichie Main where mineralization has been defined in bedrock over a strike length of more than one kilometre and where Cabral has not yet declared resources. Reverse circulation drilling is in progress concurrently at Machichie Main aimed at infilling large drilling gaps in the oxide zone with the objective of adding gold-in-oxide resources. Diamond drilling at the Central target is also nearing completion, where several mineralized zones remain open to the northwest and southeast. Results are pending. Based on drilling completed in 2025 and the first half of 2026, the Company is currently updating resource models at Moreira Gomes, Jerimum Baixo, and Pau da Meranda targets. Resource model updates are also planned at Jerimum Cima, Machichie Main, Machichie NE, and Central as drill results are received. Cabral maintains a Quality Assurance /Quality Control program for all its exploration projects using industry best practices. Key elements of the QAQC program include verifiable chain of custody for samples, regular insertion of certified reference materials, blanks, and duplicates, as well as check assays on results. RC samples are split, collected in plastic sample bags, and sealed on drill hole location. Drill core is halved by saw cut or slicer (in soft saprolite). RC and core samples are shipped in sealed bags by independent contractor to SGS GEOSOL Laboratorios in Vespasiano, Brazil, an independent analytical services provider with global certifications for Quality Management Systems (ISO 9001:2015 and ISO 14001:2015 (ABS Certificates 32982 and 39911) and ISO/IEC 17025:2017 accreditation (CRL-0386)). Gold analyses are routinely performed via 50g fire assay with secondary assay techniques applied on higher grade samples. Final assay results are validated by Cabral Geological Staff prior to insertion into the database.
