District, Announces $2M Financing
Cabral Gold Drills 5.3m @ 27.6 g/t Gold Within
the Machichie Main Zone, Cuiú Cuiú Gold
District, Announces $2M Financing
Vancouver, British Columbia--(Newsfile Corp. - October 24, 2022) -
Cabral Gold Inc. (TSXV: CBR)
(OTC Pink: CBGZF) ("Cabral" or the "Company")
is pleased to provide assay results from eight
diamond-drill holes testing the Machichie Main zone within the Cuiú Cuiú gold
district. The discoveries at
the Machichie Complex were not included in the recent mineral resource estimate (see press release
dated September 30, 2022).
Highlights are as follows:
DDH310 returned the following intervals in fresh altered intrusive basement;
10.3m @ 3.0 g/t gold
from 63.5m including
1.0m @ 27.6 g/t gold
5.3m @ 27.6 g/t gold
from 87.1m including
0.5m @ 288.1 g/t gold
4.8m @ 1.6 g/t gold
from 125.2m
DDH312 returned
7.6m @ 4.7 g/t gold
from 88.6m in fresh altered intrusive basement, including
1.0m @ 31.2 g/t gold
DDH316 returned
4.6m @ 2.0 g/t gold
from 110.4m and
0.8m @ 34.6 g/t gold
from 133.2m
DDH317 returned
0.5m @ 14.9 g/t gold
from 100.5m and
0.6m @ 23.4 g/t gold
from 176.2m. All
of these occurred in n fresh altered intrusive basement
These diamond-drill results from the Machichie Main zone provide further evidence of the continuity
of the mineralized zone at depth and indicate that it also contains a significant amount of high-
grade gold mineralization
Alan Carter, Cabral's President and CEO commented, "The Machichie Main zone is part of the
Machichie complex, which includes the Machichie Main zone, Machichie NE, Machichie SW and
Machichie West targets. None of these targets were included in the recent updated mineral resource
estimate. These additional drill results from the eastern part of the Machichie Main zone provide
further proof of the presence of a significant mineralized zone with a high-grade component, which is
open down-dip on every section and also along strike. These results build on other recent excellent
drill results from the Machichie Main zone as the company works towards a maiden resource estimate
for these targets."
Machichie Main Zone Drill Results
The Machichie target is located 500m north-west of the MG gold deposit (Figure 1). Previous drilling at
the Machichie Main zone identified a persistent mineralized zone which is east-trending and dips steeply
to the north. This main zone consists of parallel high-grade core zones surrounded by a low-grade
alteration envelope. This is similar in style to the bedrock gold deposits at MG and Central as well as the
recently announced PDM basement discovery.
Figure 1: Map showing the location of the Central and MG gold deposits, the recent discoveries at
PDM and Machichie, the three oxide blankets and the new Machichie West area. Other key gold
targets are shown as yellow circles
To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/3900/141625_ea92c54264a338c9_002full.jpg
The current drill program testing the Machichie Main zone (Figure 2) was designed to extend the known
zone of mineralization down-dip and along strike. All of the eight holes reported herein successfully
intercepted significant intervals of mineralization down-dip, and included several high-grade intercepts.
Figure 2: Detailed map showing the east-trending Machichie Main zone (in grey) and drill results
from
recent holes highlighted in yellow.
To view an enhanced version of Figure 2, please visit:
https://images.newsfilecorp.com/files/3900/141625_ea92c54264a338c9_003full.jpg
Section E553105
DDH310 and DDH311 were drilled from the same platform in a northerly direction, and were designed
to test down dip of DDH197 on section E553105 (Figure 3, Table 1).
DDH197 was the only hole previously drilled on section E553105. It was a shallow hole that cut three
mineralized intervals including 4.5m @ 1.2 g/t gold, 1.5m @ 1.3 g/t gold and 2m @ 1.9 g/t gold. DDH310
and DDH311 both successfully extended all three zones down dip (Figure 3).
The results from DDH310 include
10.3m @ 3.0 g/t gold
(Table 1)
from 63.5m including
1.0m @ 27.6 g/t
gold
,
5.3m @ 27.6 g/t gold
from 87.1m including
0.5m @ 288.1 g/t gold
and
4.8m @ 1.6 g/t gold
from 125.2m.
In DDH310, the grade is significantly higher than all three mineralized zones encountered
up dip in DDH197.
DDH311 was drilled at a higher angle from the same platform and cut the same three mineralized zones
even further down dip returning
1.0m @ 3.0 g/t gold
from 95.4m,
3.3m @ 2.3 g/t gold
from 121.0m
including
0.7m @ 9.0 g/t gold;
and
2.1m @ 2.4 g/t gold
from 155.5m.
Figure 3: Cross section of E553105 showing the results from DDH197, DDH310 and DDH311
To view an enhanced version of Figure 3, please visit:
https://images.newsfilecorp.com/files/3900/141625_ea92c54264a338c9_004full.jpg
Section E552900
DDH312 was drilled on section E552900 (Figure 4) testing the area between previous results from
DDH299 and RC0060.
DDH312 intersected the mineralized zone as per projections at 88.6m and returned
7.6m @ 4.7 g/t
gold
including
1.0m @ 31.2 g/t gold.
This further supports
continuity of the Machichie mineralized zone
down-dip.
Figure 4: Cross section of E552900 showing the results from DDH312, RC0060 and DDH299.
To view an enhanced version of Figure 4, please visit:
https://images.newsfilecorp.com/files/3900/141625_ea92c54264a338c9_005full.jpg
Section E552735
DDH316 and DDH317 were drilled from the same platform on section E552735 from south to north. Two
shallow diamond-drill holes had been previously drilled on this section (DDH180 and DDH181). Each of
these two previous holes encountered a single mineralized zone at shallow depths. DDH181 cut 6.6m @
1.6 g/t gold in fresh altered basement, while DDH180 intersected 1.1m @ 1.5 g/t gold in saprolite
(Figure 5).
DDH316 encountered several mineralized zones down dip including 0.7m @ 1.5 g/t from 84.5m, 0.5m
@ 2.2 g/t from 94.9m,
4.6m @ 2.0 g/t
from 110.4m and
0.8m @ 34.6 g/t gold
from 133.2m. The interval
that returned 4.6m @ 2.0 g/t gold is interpreted to be the down-dip extension of the mineralized zone
intersected in DDH180 and DDH181 suggesting the main mineralized zone extends 75m further down-
dip. The deeper high-grade section which returned
0.8m @ 34.6 g/t gold,
was not intersected in
previous holes which were collared too far south to intersect this new parallel structure.
DDH317, located on the same platform, but drilled at a steeper angle, intercepted two narrow high-
grade zones. It returned
0.5m @ 14.9 g/t gold
from 100.5m and
0.6m @ 23.4 g/t gold
from 176.2m.
The deeper intercept is interpreted to be the down-dip extension of the new high-grade interval
encountered in DDH316.
Figure 5: Cross section of E552735 showing the results from DDH316 and
DDH317 as well as the
previous holes drilled on this section (DDH180 and DDH181)
To view an enhanced version of Figure 5, please visit:
https://images.newsfilecorp.com/files/3900/141625_ea92c54264a338c9_006full.jpg
Interpretation
The results from these additional diamond-drill holes at the Machichie Main zone reaffirm that the
mineralized zone remains open at depth, is continuous down-dip, and comprises several parallel zones.
All of the sections described here are from the central eastern part of the mineralized zone, and indicate
that the Machichie Main zone comprises a series of parallel high-grade zones occurring within a broader
low-grade alteration zone as is the case with the Central and MG gold deposits.
Further drilling will be required prior to determining a maiden resource estimate for the Machichie
Complex. There are now multiple mineralized zones within the Machichie Complex that may combine to
form the next new significant gold deposit at Cuiú Cuiú. The recent trenching to the west suggests that
the Machichie Main zone could extend over 900m from east to west, and the zone remains open further
to the west. The northeast-trending vein array at Machichie West, and mineralization at Machichie NE
remain open in all directions.
Drill
Hole
Weathering
Mineralized
Zone
From
to
Width
Grade
#
m
m
m
g/t gold
DDH304
Fresh Rock
90.0
92.3
2.3
2.9
141.4
142.1
0.7
3.5
164.0
166.7
2.7
2.0
EOH
189.5
DDH310
Fresh Rock
63.5
73.8
10.3
3.0
incl.
64.0
65.0
1.0
27.6
87.1
92.4
5.3
27.6
incl.
89.8
90.3
0.5
288.1
125.2
130.0
4.8
1.6
EOH
153.4
DDH311
Fresh Rock
95.4
96.4
1.0
3.0
121.0
124.3
3.3
2.3
incl.
121.5
122.2
0.7
9.0
135.7
137.1
1.4
1.4
155.5
157.6
2.1
2.4
EOH
172.9
DDH312
Fresh Rock
88.6
96.2
7.6
4.7
incl.
92.2
93.2
1.0
31.2
EOH
144.5
DDH313
Fresh Rock
98.0
100.0
2.0
1.2
103.0
107.7
4.7
1.2
EOH
148.7
DDH314
Fresh Rock
131.0
136.7
5.7
0.3
EOH
170.0
DDH316
Oxide
12.6
20.7
8.2
0.4
Fresh Rock
84.5
85.2
0.7
1.5
94.9
95.4
0.5
2.2
110.4
115.0
4.6
2.0
133.2
134.0
0.8
34.6
EOH
162.2
DDH317
Fresh Rock
100.5
101.0
0.5
14.9
176.2
176.8
0.6
23.4
EOH
191.0
Table 1: Drill results from Machichie Main zone regarding holes DD304 and DDH310 to DDH314
and
DDH316 and DDH317
Announcement of Financing
The Company is pleased to announce the terms of a non-brokered private placement of up to
10,000,000 units of the Company (the "
Units
") at a price of $0.20 per Unit for gross proceeds of up to
$2,000,000 (the "
Private Placement
").
Each Unit will consist of one common share in the capital of the
Company (a "
Common Share
") and one common share purchase warrant (a "
Warrant
").
Each Warrant
will be exercisable for two years following the closing of the Private Placement (the "
Closing
") and will
entitle the holder to purchase one Common Share at an exercise price of $0.30 in the first year following
Closing, or $0.40 per Common Share in the second year following Closing.
Cabral may pay finder's fees in connection with the Private Placement.
Finders will be paid a cash
commission equal to up to 6.0% of the gross proceeds of the Private Placement and will be issued that
number of compensation options (the "
Compensation Options
") that is equal to up to 6.0% of the Units
issued under the Private Placement.
Each Compensation Option will entitle the holder to purchase one
Common Share at an exercise price of $0.20 for a period of two years following Closing.
The Company intends to use the net proceeds from the Private Placement for exploration and
development activities, repayment of operating liabilities and general working capital purposes.
The securities issued pursuant to the Private Placement will be subject to a four-month hold period from
the Closing Date.
Completion of the Private Placement and the payment of any finder's fees will be
subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture
Exchange.
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
100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in
northern Brazil. Two main gold deposits have so far been defined at the Cuiú Cuiú project which contains
National Instrument 43-101 compliant 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).
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. 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.