Vancouver, British Columbia--(Newsfile Corp. - May 16, 2024) - Cabral Gold Inc. (TSXV: CBR) (OTC Pink: CBGZF) ("Cabral" or the "Company") is pleased to provide an update of the ongoing trial-mining prefeasibility study (PFS) regarding the potential exploitation of near-surface gold-in-oxide mineralization at both the Central and MG gold deposits within the Cuiú Cuiú gold district in northern Brazil.

Highlights

  • The ongoing PFS study being conducted by Ausenco do Brasil Engenharia Ltda ("Ausenco") is now 87% complete. An initial estimate of capital expenditures is nearing completion with the focus now on more detailed cost estimates and optimizing project components to the most cost-effective design.
  • Metallurgical test work on six additional representative samples of oxide gold mineralization from the MG and Central gold deposits is now 60% complete. Initial indications are encouraging and indicate results comparable with previous test work which resulted in gold recoveries of 82% at MG after 60 days leaching in columns.
  • Mine design and planning work is being undertaken by Deswick Brazil Inc. ("Deswick") and is 30% complete. Engineering on early works to support a fast-track construction of the project has commenced. Discussions have commenced with mining contractors and potential EPCM companies.

Alan Carter, Cabral's President and CEO commented, "The PFS continues to make good progress and reinforces our previous expectations for the initial trial-mining project, while identifying significant potential improvement and value enhancements. We expect some of these opportunities will be included in the PFS scope and, together with other elements, will provide robust pathways for future growth and optimisation.

The previously reported excellent drill results from the program of RC drilling at the MG and Central gold deposits has improved our confidence in the resource estimate and confirmed higher grades within the near-surface saprolite and overlying blanket oxide material. Positive drilling at Machichie has confirmed a third source of high-grade shallow oxide material that could eventually be added to the project's mineral inventory."

Update regarding Prefeasibility Study

The Company is making good progress on a NI 43-101 compliant PFS regarding the economic viability of mining and heap-leach processing of the gold-in-oxide weathered material at the Central and MG gold deposits at Cuiú Cuiú. Ausenco do Brasil Engenharia Ltda ("Ausenco") has advised that the study is now 87% complete with the main items outstanding being capex estimates. The combined Ausenco - Cabral team is now focused on trade-off studies and more detailed design of various project components such as earthworks, leach pad and process plant, as well as obtaining more concise cost estimates. These final steps are aimed at optimizing the project to the most efficient, cost-effective design.

Metallurgical test work is being conducted by Kappes Cassiday & Associates in Reno, Nevada on six additional representative samples of oxide ore from the MG and Central gold deposits is now 60% complete. Initial indications are encouraging and indicate results comparable with previous test work which resulted in gold recoveries of 82% at MG after 60 days leaching in columns.

Testing confirms the material will require cement agglomeration. Agglomeration and compaction tests indicate cement usage of 10kg/tonne is sufficient to provide the necessary competency for a single-lift (5 metre) heap leach pad. Higher heap lift heights will likely require higher cement additions, depending on the total lift height.

The competency of Central ore is superior to MG ore and will, therefore, likely require a lower cement level to support the required heap conditions. With agglomeration and cement addition, the ore appears competent to be processed in multi-level leach pads, though a single lift, ON-OFF leach may present the best option for early MG higher-grade ore processing. The team is currently reviewing these options in a trade-off study. Final test results from both MG and Central are expected within the next few weeks.

The mine design and planning work being undertaken by Dewick Brazil Inc. ("Deswick") is currently 30% complete using updated resource models for the gold-in-oxide material at both the MG and Central gold deposits.

Pronorte Geotecnica Ltda ("Pronorte") has completed a program of geotechnical drilling at Cuiú Cuiú consisting of an initial 16 diamond-drill holes and 30 power-auger holes.

As previously reported, the RC drilling program aimed at identifying additional near-surface oxide resources, has been extended. This additional drilling is currently in progress at the Machichie deposit, and plans are to continue drilling at PDM and other deposits.

The Company expects to release the results of the PFS during mid Q3 2024.

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 main gold deposits have so far been defined at the Cuiú Cuiú project which contains National Instrument 43-101 compliant Indicated resources of 21.6Mt @ 0.87 g/t gold (604,000 oz) and Inferred resources of 19.8Mt @ 0.84 g/t gold (534,500 oz) as per the NI 43-101 technical report dated October 12, 2022.

The Tapajós Gold Province is the site of the largest gold rush in Brazil's history which according to the ANM (Agência Nacional de Mineração or National Mining Agency of Brazil) produced an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest area of placer workings in the Tapajós and produced an estimated 2Moz of placer gold historically.

FOR FURTHER INFORMATION PLEASE CONTACT:

"Alan Carter"

President and Chief Executive Officer
Cabral Gold Inc.

Tel: 604.676.5660

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.

Technical information included in this release was supervised and approved by Brian Arkell, B.S. Geology and M.S. Economic Geology, SME (Registered Member), AusIMM (Fellow) and SEG (Fellow), Cabral Gold's Vice President, Exploration and Technical Services, and a Qualified Person under NI 43-101.

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. 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.

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