Interview with Alan Carter, President & CEO of Cabral Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/cabral-gold-tsxvcbr-targeting-first-revenues-within-15-months-4698

Recording date: 6th February 2024

Fast-Tracking Cash Flow to Unlock a New Gold District

Cabral Gold is advancing the high-grade Cuiú Cuiú gold project in northern Brazil with the aim of transforming into a profitable producer within 12-18 months. A focus on developing shallow high-grade saprolite (oxide) resources could generate early cash flows to support expanding into the larger underlying bedrock deposits. Recent drilling suggests growth potential well beyond the current 1.2M ounce resource, with at least 30 identified mineralized zones across the 20km long property. Trading at under $30/oz, Cabral offers upside leverage to higher gold prices with minimal risk.

Rapid Development of Enriched Near-Surface Zones

Extensive weathering at Cuiú Cuiú over millions of years has created thick blankets of saprolite extending up to 60m deep. Gold grades within this soft, free-digging material are comparable or often higher than the underlying unweathered bedrock. Significant metallurgical testwork demonstrates 80-95%+ gold recoveries using simple heap leach processing. With very low mining costs and cut-off grades, Cabral plans to rapidly advance Cuiú Cuiú’s saprolite resources to production.

A prefeasibility study examining a 5,000 tpd heap leach operation is on track for completion in Q2 2024. Based on positive economics, management anticipates making a construction decision in Q3 2024 once financing is arranged. The relatively low initial capex under $100M significantly derisks funding, allowing first gold production targeted by mid-2025. Investors are essentially funding a de-risked project with a very short timeline to cash flow.

Growing Resource Base Supports District Potential

While Cabral’s existing 1.2M ounce resource will form the basis for the initial Phase 1 saprolite mine, recent exploration success suggests strong potential for growth. Highlights include 30m at 2.6 g/t Au starting at surface at the new Machichi zone located just 500m from the proposed MG pit. Machichi has already been traced 900m and remains open along strike and at depth.

In fact, over 30 mineralized zones have been identified within Cabral’s 146 km2 property. Systematic exploration during Phase 1 saprolite operations would aim to continue expanding resources to underpin a significantly larger Phase 2 bedrock focused production profile. Currently trading under $30/oz in situ, investors gain upside exposure to the exploration potential for minimal risk.

Near-Term Share Price Catalysts

With construction targeted to start in 2024, Cabral offers multiple value-creating catalysts over the next 12 months:

• Prefeasibility study by Q2 2024 outlining robust phase 1 economics
• Financing arrangements to fund initial capex
• Ongoing exploration success expanding existing resources
• New discoveries proving up additional saprolite and bedrock mineralization
• Management’s track record of success includes involvement in developing the nearby 1Moz TZ project. As Cuiú Cuiú continues on the development fast-track, the company’s relative undervaluation should attract increasing investor attention.

Those investors with the patience to ride through the current challenging markets could be greatly rewarded.  Securing a position ahead of positive news flow leaves ample time for the next gold bull market to drive a potential re-rating towards fair value.

—

View Cabral Gold's company profile: https://www.cruxinvestor.com/companies/cabral-gold

Sign up for Crux Investor: https://cruxinvestor.com