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Cabral Gold Identifies New High-Grade Veins and Adds Second Drill Rig at Cuiú Cuiú Gold District

Newsfile Corp.
·9 mins read

Vancouver, British Columbia--(Newsfile Corp. - September 24, 2020) - Cabral Gold Inc. (TSXV: CBR) (OTC: CBGZF) ("Cabral" or the "Company") is pleased to announce the identification of at least six new NE trending high-grade veins in the Machichie SW area located immediately north of the MG deposit, at the Cuiú Cuiú gold district in northern Brazil. Highlights are as follows:

  • Six new NE trending high-grade vein structures have been identified in the Machichie SW area as a result of recent mapping between the MG deposit and the Machichie target which was drilled during 2019

  • Drilling in this area of the Cuiú Cuiú district returned 3.4m @ 36.9 g/t gold during 2019. Previously it was not known if this zone was the western faulted offset of the Machichie structure or a separate discrete mineralized structure. It is now clear that this drill intercept represents a separate mineralized vein structure which has been named Machichie SW

  • Five other NE trending veins which are parallel to Machichie SW have now been mapped. These include Filão de Amor immediately to the west, and Zezinho, Hamilton Novo, Maranhão W and Maranhão E to the east. Grab samples from the Maranhão W and Maranhão E veins recently returned 21.4 g/t gold and 15.3 g/t gold, respectively

  • Previously, trenching of the Hamilton Novo vein returned 5.8m @ 16.0 g/t gold on surface and 3.0m @ 7.4 g/t gold in a single historic drill hole, with the intercept open along strike and down-dip

  • In order to test the increasing number of high-grade targets identified at Cuiú Cuiú, the Company has signed a contract with a third-party independent drilling contractor to add a second RC drill rig on site

Alan Carter, Cabral's CEO commented, "The identification of several new high-grade vein structures in the area between the MG gold deposit and the Machichie target is a truly exciting development and adds to the potential of this particular part of the Cuiú Cuiú district. Until now, we were not certain if the high-grade intercept of 3.4m @ 36.9 g/t gold which we drilled in 2019, was a faulted offset of the Machichie zone, but it now appears that it is a separate vein structure which is part of a vein array of at least six parallel high-grade veins. These new veins could contain a very large amount of high-grade gold mineralization and the addition of a second RC drill rig on the project will allow us to advance on two targets simultaneously."

Machichie SW

The Machichie SW target area of the Cuiú Cuiú district is located between the E-W trending MG deposit, which currently contains an Initial Inferred Resource of 8.6Mt @ 1.45 g/t gold (400,000oz), and the recently discovered Machichie zone, which is a parallel E-W trending zone located approximately 500m north of the MG deposit.

Prior to 2019, a surface trench in the area cut 5.8m @ 16.0 g/t gold and a single drill hole below the trench intersected 3.0m @ 7.4 g/t gold. This occurrence was never followed up. In early 2019, however, a single hole was drilled 125m to the west of the initial hole and cut 3.4m @ 36.9 g/t gold. At the time, it was not known whether this was the western extent of the Machichie structure, which had been faulted to the south, or a separate structure.

Recent mapping by Cabral Gold's geologists has not only concluded that the two occurrences described above are related to two separate NE trending veins, but four additional NE trending veins have also been recognized further east, none of which have been previously drill tested. These clearly form part of a high-grade vein array and are shown in Figure 1.



Figure 1: Detailed ground magnetic map (reduced to pole) showing MG deposit, the E-W trending Machichie zon,e and recently identified Machichie SW zone with new NE trending vein structures included.

To view an enhanced version of Figure 1, please visit:
https://orders.newsfilecorp.com/files/3900/64545_35fa85a1641de9fa_002full.jpg

Details regarding each vein structure from west to east are as follows:

  • Filão de Amor (undrilled) - mapped on surface, magnetic anomaly, surface samples range from 8.4 to 38.8 g/t gold

  • Machichie SW (2 holes) - mapped on surface, magnetic anomaly, surface samples include 3.4 and 19.2 g/t gold, one of two drill holes completed in 2019 cut 3.4m @ 36.9 g/t gold (Figure 2)

  • Zezinho (undrilled) - mapped on surface, magnetic anomaly, surface samples include 1.6 and 20.4 g/t gold

  • Hamilton Novo (1 hole) - mapped on surface, magnetic anomaly, surface samples range from 1.0 to 225.8 g/t gold, surface trenching returned 5.8m @ 16.0 g/t gold (Figure 3), a single historic drill hole drill intersected 3.0m @ 7.4 g/t gold, estimated true width of 2.3 - 5.8m

  • Maranhão W (undrilled) - mapped on surface, magnetic anomaly, surface sample of 21.4 g/t gold

  • Maranhão E (undrilled) - mapped on surface, magnetic anomaly, surface sample of 15.3 g/t gold

The strike and depth extent of these veins is currently unknown due to variable surface exposure and an almost complete lack of drilling to date. However, processing of the aerial and ground magnetic data indicates that the NE-trending veins sets are developed in tensional structures bound by the E-W trending MG and Machichie shear zones. Each of these NE-trending corridors, which are evident in the magnetic data, extend at least 500-600m along strike. Left-lateral movement on the E-W zones at MG and Machichie is believed to have resulted in the development of multiple contemporaneous NE trending veins.

Based on this model, Cabral believes there is a high likelihood of discovering additional NE-trending veins within this part of the Cuiú Cuiú District, as a number of E-W trending fault splays off the TZ lineament are known. Additional mapping, sampling and surface trenching is being conducted in order to establish the along strike continuity of these vein structures and to test for additional new parallel veins. Following the completion of this additional work, the Company will decide whether to include some or all of these veins in the recently announced 25,000m drill program.



Figure 2: Mineralized drill core from Hole 182-19 which intersected the Machichie SW vein structure and returned 3.4m @ 36.9 g/t gold

To view an enhanced version of Figure 2, please visit:
https://orders.newsfilecorp.com/files/3900/64545_35fa85a1641de9fa_003full.jpg



Figure 3: Hamilton Novo vein exposed on surface. Surface channel sampling here returned 5.8m @ 16.0 g/t gold

To view an enhanced version of Figure 3, please visit:
https://orders.newsfilecorp.com/files/3900/64545_35fa85a1641de9fa_004full.jpg

Drilling Update

Cabral Gold has already completed several holes at the initial Alonso target and drill results from this important high-grade target are expected shortly. Drilling is ongoing and will continue to systematically test the high-grade gold targets discovered to date.

The identification of a significant number of new high-grade targets in the Machichie SW area, and the ongoing regional reconnaissance program at Cuiú Cuiú, which is expected to generate additional targets, has led to a review of the current drill program. This review has concluded that drilling on two different targets simultaneously will allow for faster identification of high-grade deposits and increased news flow. As a result, the Company has signed a contract with an established third party drilling contractor to provide a second RC rig which is expected on site in the coming weeks.

About Cabral Gold Inc.

The Company is a junior resource company and is 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.

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 garimpo 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/64545