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

Our previous interview: https://www.cruxinvestor.com/posts/cabral-gold-tsxvcbr-pfs-reveals-low-capex-starter-gold-mine-with-47-irr-6439

Recording date: 7th April 2025

Cabral Gold (TSX-V: CBR) is rapidly advancing its district-scale Cuiú Cuiú gold project in northern Brazil, with recent high-grade drill results significantly enhancing the project's potential. The company's latest discovery at Machichie Northeast delivered an exceptional intercept of 12 meters at 27.7 g/t gold, following previous results including 11 meters at 33 g/t gold. These represent "two of the best holes we've ever drilled on the project," according to President and CEO Alan Carter, indicating substantial resource growth potential beyond the current 1.3 million ounce estimate.

The company is pursuing a strategic two-phase development approach that addresses the capital constraints typically facing junior miners. The initial phase targets shallow, oxidized material amenable to heap leach processing, minimizing capital expenditure while establishing cash flow to fund further exploration of the property's district-scale potential. This approach allows Cabral to "get off this hamster wheel" of dilutive financing, as Carter describes it, and "be in control of our own destiny" through self-generated revenue.

Economics for the project appear compelling, particularly in the current gold price environment. The Preliminary Feasibility Study (PFS) completed in October 2024 projected a 47% post-tax rate of return based on a conservative gold price of $2,250 per ounce. With gold currently trading above $3,000 per ounce, the potential returns could be substantially higher. All-in sustaining costs of approximately $1,000 per ounce suggest potential operating margins exceeding $2,000 per ounce at current prices.

An updated PFS expected in May 2024 will incorporate the Machichie Main deposit, potentially enhancing the already robust economics. While the recently discovered high-grade Machichie Northeast zone won't be included due to insufficient drilling density, its proximity to planned mining areas (approximately 650 meters from the initial MG deposit) makes it a compelling target for rapid development. The high-grade material may require a supplementary gravity plant alongside the planned heap leach facility, with metallurgical work currently underway.

The exploration upside at Cuiú Cuiú is particularly noteworthy, with over 50 gold targets identified across the property. Carter highlights the project's scale by comparing it to G-Mining's neighboring operation, noting that "Cuiú Cuiú has a much bigger footprint... it's sort of seven to ten times larger" based on soil anomalies and historic production. Some targets include boulder fields with material "averaging sort of 75 grams, 90 grams a ton. Gold, not silver."

Financing discussions for the initial production phase are advancing, with interest from "all sorts of different parties" including traditional lenders, streaming companies, end users, and strategic investors. The company aims to secure financing by July 2024, with construction potentially beginning in the third quarter. With a 12-month build time and simplified processing approach requiring "no drilling and blasting, and no crushing and grinding," Cabral could be positioned for production by late 2025.

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

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