Cabral Gold Adds Third Drill Rig to Current Drill Program at the Cuiú Cuiú District, Brazil

Vancouver, British Columbia--(Newsfile Corp. - February 16, 2021) - Cabral Gold Inc. (TSXV: CBR) (OTC: CBGZF) ("Cabral" or the "Company") is pleased to advise that it has added a third drill rig to the current drill program at the Cuiú Cuiú gold district in northern Brazil, and drilling is in progress.

Highlights are as follows;

  • Cabral has added a third drill rig to the current program at the Cuiú Cuiú gold district. Energold Perfuracoes Ltda have been contracted to drill a minimum of 5,000m of diamond drilling as part of the current program, and the rig is on site and drilling has commenced
  • The diamond drill rig will initially focus on drilling off the high-grade zones at both the MG and Central gold deposits where previous drilling has returned over 70 drill intercepts in excess of 10 g/t gold
  • There are strong indications from previous drilling at both the MG and Central gold deposits, and now at the new Machichie zone, that high-grade mineralization is continuous along strike and down-dip in several parts of the deposit. The addition of this drill rig is designed to further define the size and grade of these high-grade zones

Alan Carter, Cabral's President and CEO commented, "The arrival of a third rig at Cuiú Cuiú further expands the current drill program and allows us to address the third aspect of the high-grade potential of the project, namely the high-grade potential of the existing MG and Central deposits. Establishing high-grade resources at Cuiú Cuiú is a key objective for our team in the short to medium term. With follow-up drilling already in progress at Machichie, and reconnaissance drilling of several additional high-grade targets expected to recommence in a few days, the next few weeks and months promises to be a very exciting time in terms of drill results for Cabral Gold and its shareholders."

Diamond Drill Program

The initial 5,000m diamond-drill program is designed to follow-up significant high-grade mineralization identified by previous drill programs at the MG and Central deposits, and now the Machichie target, where infill drilling is required to better define the limits of the high-grade zones.

Whilst the MG and Central deposits contain over 70 drill intercepts in excess of 10 g/t gold, the current drill density is insufficient to enable the construction of specific restricted high-grade wireframe domains. As a result, the last NI 43-101 resource estimate was significantly and adversely impacted by the top-cutting of these high-grade intercepts (see news release dated June 7, 2018). The most extreme example involved an isolated very high-grade intercept within the MG deposit, where diamond drill hole CC_104_10 returned 70.2 g/t gold over 2.0m, which was reduced to 2.0 g/t gold when top cutting was applied. It is expected that the additional diamond drilling that is now in progress will allow better definition of these high-grade zones and lead to the construction of specific wireframe domains, which should allow the inclusion of the high-grade zones in a future update of the NI 43-101 resource estimate.

Oriented core will be used to help define the orientation, continuity and size of high-grade domains within the broader lower-grade historic resource areas, as well as in the new mineralized zones.

Core will also provide the required structural, technical and geological data to develop tighter wireframe models for future resource estimates, as well as providing material for density measurements and metallurgical sampling.

Follow-up RC Drill Program

The Prospector W750 RC drill rig has now completed the fourth additional step-out hole on the eastern side of the Machichie deposit and is currently drilling 50m west of the most westerly hole drilled at Machichie to date.

Reconnaissance RC Drill Program

The reconnaissance drilling program, which was testing the Indio target and was temporarily suspended due to an outbreak of COVID-19 in late January, is expected to recommence on or before 19th February. All employees have either returned to site or are expected back on site by 18th February, and drilling will recommence at the Indio target, which is located approximately 1.5km SE of the MG gold deposit.

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 placer gold camp in the Tapajós and produced an estimate 2Moz of placer gold historically.

FOR FURTHER INFORMATION PLEASE CONTACT:

"Alan Carter"

President and Chief Executive Officer
Cabral Gold Inc.

Tel: 604.676.5660

Dr Adrian McArthur, B.Sc. Hons, PhD. FAusIMM., 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 assays have been determined by SGS method FAA505 (fire assay; 50 charge). Analytical quality is monitored by certified references and blanks. Until dispatch, samples are stored in the Company's supervised exploration office. The samples are couriered to the assay laboratory using a commercial contractor. Pulps and rejects are returned to the Company and archived.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/74470

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