Machichie And Medusa Targets Update On Drilling Program


VANCOUVER -  Cabral Gold Inc. announced drill results from the Machichie and Medusa targets, and provide an update regarding the current reverse circulation (RC) drilling program which is designed to test multiple targets within the Cuiu Cuiu gold district in northern Brazil.

Highlights are as follows: At the Machichie target, the initial RC drill hole, 40-20, returned 34m @ 5.4 g/t gold including 13m @ 13.4 g/t gold, within which a bonanza grade section returned 3m @ 48.2 g/t gold. This hole is an important step-out hole and was drilled 175m east of the initial Machichie discovery hole which returned 62.8m @ 0.9 g/t gold including 2.1m @ 15.3 g/t gold and 45m @ 1.0 g/t gold including 3.1m @ 7.3 g/t gold; Hole 41-20 was drilled 50m east of hole 40-20 and intersected 20m @ 1.2 g/t gold including 1m @ 10.0 g/t gold indicating that the mineralized zone at Machichie continues along strike and is open to the east; and Reconnaissance drilling at the Medusa target aimed at identifying the source of mineralized surface boulders averaging 24.7 g/t gold has intercepted a mineralized structure directly below the mineralized float on surface, which will require further drilling.

Alan Carter, President and CEO, said, "These very high-grade results from initial step-out RC drill holes at the Machichie target at Cuiu Cuiu, confirm our belief that Machichie is a significant mineralized zone, and in all likelihood, the third significant gold deposit within the Cuiu Cuiu district. The grade and width of the mineralized intersection in hole 40-20 is the best we have seen so far at Machichie, and these holes significantly extend the mineralized zone to the east. Further drilling along strike and down dip will clearly be required to fully determine the size of the Machichie discovery. The reconnaissance drilling at Medusa has also intersected a new mineralized zone at depth which is very encouraging and will require follow-up drilling. With two rigs currently drilling, and an aggressive surface exploration program in progress at Cuiu Cuiu, we look forward to a steady stream of results during the first half of 2021".

The current follow-up RC drill program is designed to determine the extent of the mineralized zone at Machichie and the initial two step-out holes (RC 40-20 and RC 41-20) were completed in December 2020 prior to the end of year break to test the eastern extension of the mineralized zone. A series of NE-trending mineralized vein structures (Machichie SW vein array) converge with the E-W trending corridor and will also be targeted as part of the ongoing drill program.

Hole 40-20 returned 34m @ 5.4 g/t gold from 0 to 34.0m including 13m @ 13.4 g/t gold from 18.0 to 31.0m, within which a high-grade section intersected 3m @ 48.2 g/t gold from 18.0 to 21.0m. Hole 40-20 was drilled 175m east of the discovery drill holes at Machichie which returned 62.8m @ 0.9 g/t gold including 2.1m @ 15.3 g/t gold and 45m @ 1.0 g/t gold including 3.1m @ 7.3 g/t gold in 2019. Hole 40-20 also intersected 1m @ 3.30 g/t gold from 85.0 to 86.0m depth. The hole was drilled 75m east of the most easterly hole drilled at Machichie to date.

Hole 41-20 was drilled 50m east of hole 40-20 and intersected 20m @ 1.2 g/t gold from 25.0 to 45.0m including 1m @ 10.0 g/t gold from 43.0 to 44.0m. A second zone of 2m @ 1.2 g/t gold was intersected from 148.0 to 150.0m depth. Results are pending for hole 42-20, a hole drilled to test the Machichie NE target, where a single hole, 183-19, drilled in 2019, returned 15.9m @ 1.7 g/t gold including 0.5m @ 21.3 g/t gold and 1.0m @ 10.3 g/t gold and occurs along a previously unknown structure which is open along strike and at depth.

These initial drill results from the step out holes are highly encouraging and indicate that the mineralized zone at Machichie not only continues along strike to the east of the previous drilling, but is open and includes significant zones of very high-grade gold mineralization. Further drilling is planned at Machichie to test both the E-W trending corridor and the NE-trending vein structures at Machichie SW from January 2021 onwards. Drilling to date on the Machichie main E-W zone has so far confirmed gold mineralization over a 500m strike length and is open.

Results were returned on twenty-one reconnaissance RC holes (holes 16-20 to 36-20) which were drilled at the Medusa target (Figure 1). These were drilled in two N-S oriented traverses aimed at identifying the mineralized structure which is the source of two groups of surface boulders that were collected 350m apart and returned gold values of 5.2 to 50.1 g/t gold in the west and 1.1 to 82.1 g/t gold in the east.

The most significant intercept was returned from the final hole of the program (RC 36-20) at Medusa which was drilled immediately north of the eastern-most boulder train and intersected a broad low-grade zone of gold mineralization and a 1m section from 83.0m depth returned 1.0 g/t gold directly underneath the eastern most set of boulders which range from 1.1 to 82.1 g/t gold. This intercept is encouraging and will require follow-up drilling of the structure immediately to the east and west. Variably disseminated pyrite was present across the broader interval of 19.0 to 63.0m associated with weaker mineralization, indicating the presence of a broad alteration system. Medusa has a broad geochemical gold-in-soil anomaly associated with an extensive magnetic low in an area of poor exposure, with the drilling at an early reconnaissance stage.

Results are currently pending on six holes completed at the Tracaja target prior to the end of year break and drilling has recommenced on this target. An update regarding the drilling at Tracaja will be released shortly and results are expected within the next few weeks.