Mobilisation Of RC Drill Rig To Cuiu Project In Brazil

VANCOUVER - Cabral Gold Inc. reported mobilization of an RC drill rig to the Cuiu Cuiu project in northern Brazil. Cabral is planning a minimum of 25,000m of RC drilling on multiple targets at the Cuiu Cuiu gold project over the coming months. Drilling will initially focus on the Alonso, Medusa and Cilmar targets located in the eastern part of the project area which have never been drill tested. Surface sampling of boulders at Alonso returned gold values ranging from 11.6 to 200.3 g/t gold and boulders from the Medusa target returned gold values of 1.1 to 82.1 g/t gold. Additional drilling is also planned on several targets outside the existing resource base including the Machichie East and Machichie zones which were identified in 2019 and returned 3.4m @ 36.9 g/t gold, Central SE which has four diamond drill holes to date including 27.0m @ 6.9 g/t gold, and Pau de Merenda which has several drill intercepts including 47.0m @ 1.8 g/t gold. Drilling is also planned to further assess the high-grade zones at the two existing deposits at Central and MG where drilling during late 2019 returned 7.6m @ 18.5 g/t and 5.6m @ 13.0 g/t gold, in order to better define the core high-grade zones of both deposits.

The objective of the planned drill program is to outline multiple high-grade gold deposits at the Cuiu Cuiu project where previous drilling has already outlined a large low-grade resource with Indicated Resources of 5.9Mt @ 0.9 g/t (200,000oz) and Inferred resources of 19.5Mt @ 1.24 g/t (800,000oz) and comprises the MG and Central deposits. Drilling completed during 2019 clearly demonstrates the presence of high-grade zones within the MG and Central deposits, and also increased the number of peripheral targets with high-grade gold drill intercepts to eight, suggesting the presence of a major district containing multiple gold deposits.

Drilling will initially test several targets which have returned high-grade gold values on surface. These include the Alonso, Medusa and Cilmar targets which have never been previously drill tested and returned spectacular gold values from surface values earlier this year, including gold values of 11.6 to 200.3 g/t gold from 24 surface boulders at Alonso, and 1.1 to 82.1 g/t gold from 19 surface boulders at Medusa.

Following the completion of these initial drill programs, the rig will move to complete further drilling at the Machichie and Machichie East targets which are located 600m and 800m respectively, north of the MG gold deposit, and where initial diamond drilling during 2019 returned encouraging results including 3.4m @ 36.9 g/t gold.

Additional drilling is also planned at the Central SE target located 1km SE of the Central deposit and where previous drilling returned 27.0m @ 6.9 g/t gold and 8.0m @ 8.4 g/t gold. Further drilling is also planned at the Pau de Merenda target located 1.5km NW of Central (Figure 1) where previous surface trenching returned 15.0m @ 4.1g/t gold (open) and limited drilling returned 8.5m @ 5.1 g/t gold, and 47m @ 1.8 g/t including 1.0m @ 12.8 g/t and 1.2m @ 10.9 g/t gold.

Infill drilling is also planned at the high-grade zones within the MG and Central deposits to further define the dimensions of the high-grade core zones which are surrounded by lower grade envelopes. Drilling during late 2019 returned 7.6m @ 18.5 g/t and 5.6m @ 13.0 g/t gold.

Drilling is expected to continue through into mid-2021 and the target sequence is likely to change as drill results become available. It is considered highly likely that ongoing reconnaissance work in the Cuiu Cuiu district will generate additional targets.