Vancouver, British Columbia--(Newsfile Corp. - September 12, 2019) - Cabral Gold Inc. (TSXV: CBR) ("Cabral" or the "Company") is pleased to provide an update regarding the ongoing exploration program at Cuiú Cuiú Project, Pará State, Brazil and plans for further diamond drilling.
- Soil sampling is currently in progress over the Cilmar target area aimed at identifying the source of gold in extensive alluvial workings, including numerous coarse angular gold nuggets. 934 soil samples have been collected so far.
- A mechanized auger drilling rig has been purchased in order to significantly increase the speed of the auger drilling program at Cuiú Cuiú.
- Energold has been selected as the drilling contractor to complete a program of diamond drilling at Cuiú Cuiú. This program will be directed towards the further definition of high-grade gold mineralization at the Central and Moreira Gomes deposits and the recently discovered Machichie zone
Following the closing of the over-subscribed private placement on July 25, 2019, the Company initiated an aggressive program of soil sampling in the north-eastern part of the Cuiú Cuiú project (see Figure 1). This worked is aimed at identifying the source of abundant placer gold, and in particular a coarse gold nugget population produced from streams (see Figure 2). This area has been named the Cilmar target and is located 10km east of the Central gold deposit and 7km northeast of the Moreira Gomes gold deposit and has never been previously explored.
Figure 2. Selection of gold nuggets recently recovered from the Cilmar (Mineiro) target
A total of 934 soil samples have been collected from two areas at Cilmar to date and an additional 1000 samples are expected to be collected over the coming weeks.
In addition, the Company has purchased a mechanized auger drilling rig to complete deeper holes up to 30m depth in areas of post-mineral cover at the Cilmar target and elsewhere at Cuiú Cuiú. This rig should significantly increase the speed and reduce the cost of the auger drilling program.
Dr. Alan Carter, President and CEO, commented, "A program of mechanized auger drilling has never been tried at Cuiú Cuiú and should shed significant light on the origin of the placer gold in the Cilmar area and other compelling regional magnetic targets that are shedding placer gold at Cuiú Cuiú and which have never been previously drill tested such as Miraboa and Baixa Onca."
Separately, the Company has hired Energold Drilling to complete the next program of diamond drilling at Cuiú Cuiú which is expected to commence by early October. This work will focus on further defining the high-grade zones within the existing Central and MG gold deposits and the recently discovered Machichie zone where 3.4m @ 36.9 g/t was intersected in drilling (see press release dated 28th February).
Issuance of stock options and RSUs
Cabral's Board of Directors has approved the granting of stock options to various employees, directors and consultants pursuant to the Company's stock option plan. The stock options entitle the holders to purchase a total of 2,575,000 common shares in the capital stock of the Company at a price of $0.15 per common share. The stock options are exercisable for five years and are subject to vesting over 24 months.
Cabral's Board of Directors has also approved the granting of restricted share units ("RSUs") to two non-executive directors pursuant to the Company's RSU plan. Subject to any necessary or required approval of the TSX Venture Exchange, the RSUs entitle the holders to acquire a total of 266,666 common shares in the capital stock of the Company. Fifty percent of the RSUs will vest 18 months after the date of grant with the remainder vesting after 36 months.
FOR FURTHER INFORMATION PLEASE CONTACT:
President and Chief Executive Officer
Cabral Gold Inc.
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.
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.
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 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. Drilling results are reported as down-hole length weighted intersections.