Cabral Gold shares rise on top-three results ever at Cuiú Cuiú project in Brazil

Drilling at Cabral Gold’s (TSXV: CBR; US-OTC: CGBZF) Machichie target has returned some of the highest-grade assays at the Cuiú Cuiú project in northern Brazil, news that saw shares jump 14% on Thursday to a new 52-week high of 29¢. 

At the Machichie NE target, hole RC421 drilled 11 metres grading 33 grams gold per tonne from 50 metres depth in saprolite and weathered and altered bedrock, including 4 metres at 89.3 grams gold from 52 metres depth, Cabral said in a news release. 

RC422 at Machichie NE returned 21 metres at 1.3 grams gold from surface in saprolite including 3 metres grading 7.5 grams gold, and 13 metres at 0.5 gram gold from 36 metres depth.

At the Machichie Main zone, 150 metres south of Machichie NE, hole RC420 returned 25 metres at 2.9 grams gold from surface, including 12 metres grading 5.5 grams gold. Cuiú Cuiú, in the Tapajós Region of Pará state is located about 2,100 km northwest of Brasilia.

“The assay results from RC421 at the Machichie NE target are among the top three drill holes ever drilled at Cuiú Cuiú and are the best results drilled to date outside of the known Central and MG gold deposits,” Cabral Gold’s president and CEO Alan Carter said. “These results not only have very positive implications for the presence of additional near surface gold-in-oxide resources at Cuiú Cuiú, but also suggest the presence of significant zones of high-grade mineralization in primary bedrock underlying the weathered material.” 

Another trend

The reverse circulation drilling has also confirmed the existence of another east-west trending mineralized structure 150 metres north of the Machichie Main zone discovery. Earlier drilling returned such results as 34 metres at 5.4 grams gold.

Machichie Main and Machichie NE are located 500 metres and 650 metres, respectively, north of the Moreira Gomes (MG) deposit. It and the Central deposit — 5 km to the northwest — form the Cuiú Cuiú project, which is about 20 km northwest of G Mining Ventures‘ (TSX: GMIN; US-OTC: GMINF) Tocantinzinho gold project.  

Cabral is working on a pre-feasibility study for a heap-leach oxide project at Cuiú Cuiú. It expects to release the results of the study in mid-third quarter.  

Cuiú Cuiú hosts 21.6 million indicated tonnes grading 0.87 gram gold for 604,000 oz., and 19.8 million inferred tonnes at 0.84 gram gold for 534,500 oz., according to a technical report published in October 2022. 

The Tapajós gold province saw the largest gold rush in Brazilian history and the National Mining Agency of Brazil has said it produced about 30 to 50 million oz. of placer gold between 1978 and 1995. Cuiú Cuiú had the largest area of placer workings in Tapajós and produced around 2 million oz. of placer gold historically. 

Cabral has a market capitalization of $55.9 million. The lower end of its 52-week range is 11¢.