Cabral Gold Drills 11.9m @ 3.3 g/t Gold Including 1.2m @ 16.0 g/t Gold in 120m Step-Out at PDM Target, Cuiú Cuiú Gold District

Vancouver, British Columbia--(Newsfile Corp. - January 12, 2022) -  Cabral Gold Inc. (TSXV: CBR) (OTC PINK: CBGZF) ("Cabral" or the "Company")  is pleased to provide assay results from the first step-out diamond-drill hole testing the PDM basement target beneath the recently identified gold-in-oxide blanket, as well as results on two RC drill holes from the MG target within the Cuiú Cuiú gold district in northern Brazil.

Highlights are as follows:

  • A step-out diamond drill hole at the PDM target, DDH239, intersected basement mineralization at the PDM target, and returned
    • 11.9m @ 3.3 g/t gold from 112.6m depth downhole
    • including 0.5m @ 16.1 g/t gold
    • and 1.2m @ 16.0 g/t gold
  • DDH239 is the first step-out hole testing the new basement PDM zone, and is located 120m to the NW of DDH238. DDH238 previously returned 22.4m @ 4.8 g/t gold from 114.1m depth downhole, including 1.35m @ 62.0 g/t gold, and 1.3m @ 9.5 g/t gold
  • The results from DDH239 and DDH238 indicate that the new basement mineralized zone at PDM continues for at least 200m along strike. This zone remains open on strike and both up and down dip
  • Results on two RC holes from MG were also received. RC262 indicates the presence of gold-in-oxide mineralization over 100m east of the current eastern limit of the gold-in-oxide blanket

Alan Carter, Cabral's President and CEO commented, "The results from DDH239 confirm the presence of a significant zone of primary gold mineralization in the granitic rocks directly beneath the gold-in-oxide blanket at PDM. These results come soon after the results from DDH238 located 120m to the SE, which returned 22.4m @ 4.8 g.t gold and indicate continuity of the mineralized zone along strike. On the basis of these results, we have taken the decision to expand the diamond drill program at the PDM target and we look forward to further drill results from this exciting new mineralized zone at Cuiú Cuiú. In addition, the presence of gold-in-oxide mineralization over 100m east of the current eastern limit of the gold-in-oxide blanket at MG, opens up the possibility of significant additional oxide mineralization further to the east than previously thought".

PDM Diamond Drill Results

The PDM (Pau de Merenda) target is located 2.5km NW of the Central gold deposit at Cuiú Cuiú (Figure 1). Following the identification of an extensive gold-in-oxide blanket at PDM earlier this year (see press release dated August 10, 2021), a program of diamond drilling was initiated in order to test for the presence of an underlying zone of primary gold mineralization in the granitic basement rocks.

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Figure 1: Map showing the location of the PDM and MG gold-in-oxide blankets and the existing MG and Central gold primary gold deposits as well as other key targets (yellow circles) within this part of the Cuiú Cuiú district

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Drill results from the initial four diamond-drill holes at PDM were released during mid-December 2021. DDH238 was the first drill hole of the current program drilled from the SW to NE and returned 22.4m @ 4.8 g/t gold from 114.1m depth downhole in fresh basement rocks, including 1.3m @ 9.5 g/t gold from 129.2m depth, and 1.35m @ 62.0 g/t gold from 132.7m depth downhole (see press release dated December 15, 2021). This zone of mineralization appears to correlate with mineralization intersected in historic diamond-drill hole CC20 (47.1m@ 1.8 g/t gold including 1.0m @ 12.8 g/t gold and 1.2m @ 10.9 g/t gold). Hole CC20 was drilled along strike and down-dip of what is now believed to be the strike of the main NW-trending, SW-dipping PDM basement zone.

DDH239 was the first step-out hole, drilled in a NE direction, and is located 120m NW of DDH238 (Figure 2). DDH239 returned 11.9m @ 3.3 g/t gold from 112.6m depth downhole, including 0.5m @ 16.1 g/t gold from 129.2m, and 1.2m @ 16.0 g/t gold from 132.7m. The hole also intersected a second zone of weaker mineralization, 7.4m @ 0.4 g/t gold from 166.6m depth downhole.

This latest result at PDM indicates that the mineralized zone at PDM can be traced along strike to the NW, which is highly encouraging. As a result, Cabral is planning on drilling 13 additional diamond-drill holes totaling approximately 3,000m in order to determine the continuity and limits to the mineralized zone.

Thus far, a total of eight diamond-drill holes have been completed at PDM as part of the current program, and results are currently pending on three additional holes. Drilling is continuing.

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Figure 2: Map showing the outline of the higher grade zone within the near surface gold-in-oxide blanket (black line enclosing colored area) at PDM and historic diamond-drill holes (white captions) and new diamond-drill results (yellow captions), as well as the interpreted location of the underlying mineralized structure in the basement intrusive rocks underlying the gold-in-oxide blanket. Note locations of DDH239 which returned 11.9m @ 3.3 g/t gold and DDH238 which returned 22.4m @ 4.8 g/t gold

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MG RC Drilling

Results were also returned on two additional RC holes recently completed at MG.

RC265 was drilled on section 553060 (Figure 3). It returned 14m @ 0.3 g/t gold in fresh unweathered rock from 35m depth (main zone), 6m @ 0.2 g/t gold from 61m depth, and 15m @ 0.4 g/t gold from 73m depth. Both of the lower intercepts correspond to the footwall zone to the south of the primary MG gold deposit. This hole also intersected 2m @ 0.2 g/t gold from surface within the blanket.

RC262 was drilled near the eastern limit of the MG deposit on section E554180 (Figure 3). It returned 4m @ 0.1 g/t gold from 9m depth and 3m @ 0.7 g/t from 46m depth. Both intercepts are in oxide material. Historic hole CC76 was drilled approximately 45m to the SSE and returned 19.8m @ 0.8 g/t gold within oxide, and RC261 was drilled 67m to the ENE and returned 13m @ 0.2 g/t gold within oxide (Figure 3). All of these holes are located more than 100m east of the eastern limit of the gold-in-oxide blanket as it is currently defined, and indicate that additional gold-in-oxide blanket mineralization could exist significantly further to the east and southeast than previously envisaged.

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Figure 3: Map showing the location of RC 265 and RC262 within the gold-in-oxide blanket at MG. Note the location of RC262 and earlier holes RC261 and CC76 and gold intercepts well beyond eastern limit of currently known blanket

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Drilling Update

Diamond drilling is re-starting at the primary Central gold deposit following the Christmas and New Year break. Central is located 2.5km SE of the PDM target (Figure 1). Assay results are currently pending on eight holes from a total program of 43 planned diamond-drill holes at Central. These are designed to further define the high-grade zones at Central.

RC drilling at Central will also recommence shortly with the objective of testing for the presence of gold-in-oxide blanket mineralization above the primary Central gold deposit. Results are currently pending on 12 RC holes completed in 2021.

Diamond drilling at the primary MG gold deposit, which underlies the recently identified gold-in-oxide blanket at MG, will continue shortly. Results are currently pending on an additional ten diamond-drill holes completed in 2021. Significant assay results from all RC holes completed at MG in 2021 have all now been reported.

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 gold deposits have so far been defined at Cuiú Cuiú and contain 43-101 compliant Indicated resources of 5.9Mt @ 0.90g/t (200,000 oz) and Inferred resources of 19.5Mt @ 1.24g/t (800,000 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.

Tel: 604.676.5660

Guillermo Hughes, MAusIMM and FAIG., a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively "forward-looking statements"). The use of the words "will", "expected" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This news release contains forward-looking statements and assumptions pertaining to the following: strategic plans and future operations, and results of exploration. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.

Notes

Gold analysis has been conducted by SGS method FAA505 (fire assay of 50g charge), with higher grade samples checked by FAA525. Analytical quality is monitored by certified references and blanks. Until dispatch, samples are stored under the supervision the Company's exploration office. The samples are couriered to the assay laboratory using a commercial contractor. Pulps are returned to the Company and archived. Drill holes results are quoted as down-hole length weighted intersections.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/109858

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