Cabral Gold drills 7.6 m of 18.5 g/t Au at Cuiu Cuiu

2019-11-07 09:37 ET – News Release

Mr. Alan Carter reports

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CABRAL DRILLS 7.6M @ 18.5 G/T GOLD AT CUIU CUIU

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Cabral Gold Inc. has released results from five initial drill holes from the continuing phase 2 drilling program at its Cuiu Cuiu project, Para state, Brazil.

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Highlights:

• Drill hole 199-19, the first of several holes designed to test the continuity of high-grade mineralisation at the Moreira Gomes deposit, returned 16.9 metres at 9.6 grams per tonne gold from 82.6 m, including 7.6 m at 18.5 g/t gold from 91.9 m.
• Drill hole 199-19 was designed to test the downdip continuity of mineralisation previously intersected in hole 69-10, which had returned 15.8 m at 8.2 g/t gold, and clearly demonstrates the continuity of a broad zone of high-grade mineralisation extending down dip.
• Drilling at the recently discovered Machichie zone also returned two m at 5.9 g/t gold from 58 m depth, including 0.5 m at 20.1 g/t gold from 58.5 m.

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Alan Carter, president and chief executive officer, commented: “We are very pleased with the results from the first drill hole at MG, which is designed to demonstrate the downdip continuity of high-grade gold mineralisation as we work towards defining high-grade gold resources at the Cuiu Cuiu project. I would like to congratulate our exploration team on the results thus far and look forward to the results of additional holes from the ongoing drill program at the MG and Central zones.”

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Background

Cabral is currently in the process of further defining the recently discovered Machichie zone at Cuiu Cuiu (see press release dated Feb. 28, 2019) and also re-evaluating historic high-grade results at MG and Central that were drilled by the previous owner of the project.

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These previous drill programs at MG and Central were designed to identify bulk-tonnage ore deposits amenable to large-scale open-pit exploitation. As a result, drilling was widespread, and very little attention was directed toward following up the many higher-grade intervals encountered in those programs. Of 180 drill holes completed from 2008 to 2012, a total of 60 intersected values of greater than 10 g/t gold.

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Cabral is focused on defining these higher-grade zones and is in the process of re-evaluating historic high-grade results at MG and Central to examine the potential to exploit high-grade in-pit and underground mineralisation that may be economically viable.

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In order to do so, the first step is to establish the downdip continuity of historic high-grade results, which were severely and adversely impacted by top-end cutting by the most recent resource estimate (see press release dated June 7, 2018). Historic drill spacings were too broad to allow for separate high-grade domains to be wireframed.

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Moreira Gomes

Five diamond drill holes (199-19 to 203-19) have been completed at MG, targeting three potential zones of high-grade gold mineralisation that have been identified on the basis of previous drilling (see corporate presentation for details). To date, results have only been received on the first of these five holes (hole 199-19).

Hole 199-19 was designed to test the downdip continuity of gold mineralisation previously intersected in hole 69-10, which returned 15.8 m at 8.2 g/t gold. Hole 199-19 intersected 16.9 m at 9.6 g/t gold from 82.6 m, including 7.6 m at 18.5 g/t gold from 91.9 m, and confirmed the presence of a broad zone of high-grade mineralisation extending down dip within the central target of three high-grade zones at MG.

The high-grade zone of mineralisation is characterised by intense quartz-sericite-pyrite alteration.

In addition, a second lower-grade zone was intersected farther down hole 199-19 and returned 5.0 m at 1.5 g/t gold from 110.9 m, including 2.0 m at 3.0 g/t gold from 110.9 m.

Results are pending on drill holes 200-19 to 203-19, which are designed to test the other two high-grade zones at MG.

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Machichie

Five holes have been completed at the Machichie zone, which is located 600 m north of MG and was drilled for the first time in early 2019. These holes were designed as stepout holes from the limited drilling completed earlier.

Of these holes, 196-19 was drilled 50 m east of 177-19 and 178-19, which previously intersected 45.0 m at 1.0 g/t gold, including 3.1 m at 7.3 g/t gold, and 62.8 m at 0.9 g/t gold, including 2.1 m at 15.3 g/t gold. Hole 196-19 intersected 16.4 m at 0.64 g/t gold from 16.5 m and 2.0 m at 5.9 g/t gold from 58.0 m, including 0.5 m at 20.1 g/t gold from 58.5 m. This hole demonstrates that whilst the broader halo of lower-grade mineralization appears to be more restricted to the east, the high-grade zone continues.

Hole 197-19 was a farther stepout 100 m east of 177-19 and 178-19, and 50 m east of 196-19. Hole 197-19 was designed to test the downdip continuity of surface channel samples, which returned 9.5 m at 5.3 g/t gold. Two weaker mineralized zones were intersected in the drilling, including 1.5 m at 1.3 g/t gold from 56.0 m and 2.0 m at 1.9 g/t gold from 84.0 m.

Hole 198-19 was drilled 50 m west of 177-19 and 178-19, and 50 m east of 179-19 (16.3 m at 1.3 g/t gold). Hole 198-19 returned a number of lower-grade mineralised intervals, including: 2.0 m at 1.4 g/t gold from 59.8 m; 1.2 m at 0.7 g/t gold from 68.2 m; 1.5 m at 1.5 g/t gold from 75.0 m; and 4.0 m at 1.7 g/t gold from 86.5 m.

 

About Cabral Gold Inc.

The company is a junior resource company and is engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties located in Brazil. The company owns the Cuiu Cuiu gold project, located in the Tapajos region within the state of Para in northern Brazil.

We seek Safe Harbour.