Cabral Gold Announces New Mineral Resource Estimate for the Cuiú Cuiú Project, Brazil

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Vancouver, British Columbia–(Newsfile Corp. – September 30, 2022) – Cabral Gold Inc.(TSXV: CBR) (OTC Pink: CBGZF) (“Cabral” or the “Company“) is pleased to announce an updated Mineral Resource Estimate for the Cui Cuiú project, Para State, Brazil.

Highlights:

Total Indicated Resources are 21.6 M tonnes grading 0.87 g/t gold (604.0 K ounces), while total Inferred Resources are 19.8 M tonnes grading 0.84 g/t gold (534.5 K ounces). All Indicated Resources and 84% of the Inferred Resource (ounces) are contained within the MG and Central/CN deposits. Indicated Resources increased by 433 K ounces (253%) from the previous estimate

• Open-pit Indicated Resources amenable to mill processing are 21.6 M tonnes grading 0.87g/t gold (604.0 K ounces), while open-pit Inferred Resources are 17.2 M tonnes grading 0.68 g/t gold (376.9 K ounces)

• Open-pit oxide resources amenable to heap-leach processing are reported for Central/CN, MG, and PDM, comprising Indicated Resources of 9.3 M tonnes grading 0.52 g/t gold (153.7 K ounces), and Inferred Resources of 6.1 M tonnes grading 0.40 g/t gold (79.2 K ounces)

• All of the deposits included in the current Mineral Resource Estimate remain open along strike and down dip of the resource estimate wireframes. The deepest drill holes returned positive results and there are no known geological structures that could interrupt, or constrain the mineralization below the current wireframes

• New discoveries at Machichie and MG have not yet been sufficiently drilled for inclusion in a resource estimate

Alan Carter, Cabral’s President and CEO commented, “The new resource estimate is a testament to the integrity of the Cuiú Cuiú mineralization, with more than 50% of the total gold ounces in the indicated category. Our geological understanding has improved significantly since Cabral commenced drilling and the Company is now able to correlate, interpret and predict gold mineralization down dip and along strike. The definition of the first near-surface heap-leachable oxide Mineral Resource (154 K ounces Indicated and 79 K ounces Inferred) could be a game changer for early low-cost development of a mine at Cuiú Cuiú, supported by our approved Trial Mining Licenses. Future drill programs will focus on step-out drilling aimed at increasing resources at Central and MG and maiden resources for the Machichie and PDM discoveries”.

This is the first resource estimate incorporating Cabral’s drilling data since the Company commenced drilling at the Cuiú Cuiú project in 2019. The Company had originally planned on issuing an updated Mineral Resource Estimate at the end of 2022 following completion of deeper down-dip and on-strike drilling at known deposits, and completion of drill programs at two exciting new discoveries (PDM and Machichie), all of which was designed to increase the overall resource. The current Mineral Resource Estimate was, however, completed months earlier than planned, due to a request by the British Columbia Securities Commission to update the existing NI 43-101 technical report (effective date of June 19, 2021) that had been referenced in both the Annual Information Form dated May 5, 2022, and the preliminary short-form prospectus filed on May 25, 2022. The Company was placed on the defaulting issuer list on September 15, 2022, pending completion, filing and review of the 2022 NI 43-101 technical report.

Despite the change in timing, the current Mineral Resource Estimate reflects a significant advancement of the project with drilling undertaken through the Effective Date (July 31, 2022) which was designed primarily to infill previous drilling at MG and Central, as well as to identify and expand newly discovered gold-in-oxide mineralized zones at MG, PDM and Central, and primary basement mineralization at Machichie and PDM. This drill program was successful in meeting those objectives. Cabral drilling to the Effective Date also clarified historical work, and significantly improved the degree of confidence and understanding of the mineralized zones at MG and Central as illustrated by the 253% increase in Indicated Resources from previous estimates.

Planned deeper and step-out drilling that had been designed to expand resources at several deposits, was not completed prior to the database cut-off date for the current Mineral Resource Estimate. Similarly, additional drilling will be required at the PDM and Machichie discoveries to enable future inclusion in the current resource.

Figure 1: Location of current gold resources at Central/CN, JB, MG and PDM oxide deposit. The locations of new discoveries in primary basement rocks at Machichie and PDM are also shown

To view an enhanced version of Figure 1, please visit:
https://images.newsfilecorp.com/files/3900/138997_1612eddd64127a86_002full.jpg

2022 SLR Resource Estimate

The current Mineral Resource Estimate, effective July 31, 2022 (Table 1) was prepared by SLR Consulting (Canada) Ltd. (“SLR“) and disclosed in accordance with National Instrument 43-101 (“NI 43-101“). The estimate is based on drilling undertaken by Cabral prior to July 31, 2022, as well as historic drilling by Magellan Minerals Ltd. (“Magellan“), the former owner of the Cuiú Cuiú project, from 2006 through 2012.

Wireframes used to constrain block estimates were completed by Cabral and SLR using Surpac, Discover 2021, and Leapfrog Geo. Wireframes for low grade, high grade, saprolite and blanket material were generated. Assays were capped to various levels prior to compositing to a 2.0m length. Wireframes were filled with blocks measuring 5m by 2m by 5m in each direction and sub-celled along wireframe boundaries. The block models were re-blocked to 10m by 4m by 10m for pit optimization purposes, although reporting of open-pit resources was performed on re-blocked 5m by 2m by 5m blocks. Underground resources were reported based on sub-cells within underground reporting shapes generated using the Deswik Stope Optimizer (“DSO“). Densities were assigned based on weathering zones and mineralization shells. Blocks grades were interpolated using Inverse Distance Cubed (“ID3“). Blocks were classified as Indicated and Inferred in accordance with CIM Definition Standards (2014). Indicated Mineral Resources were defined by drilling spaced up to 50m apart while Inferred Mineral Resource were defined by a maximum extrapolation distance of 100m. The block estimates were validated using industry standard techniques such as visual inspection, global mean bias checks and swath plots.

This is the first Cuiú Cuiú resource estimate to incorporate results from Cabral’s drill programs which commenced in 2019. In addition to subdividing open pit and underground mineralization, this new Mineral Resource Estimate is also the first to segregate gold-in-oxide blanket and weathered saprolite oxide mineralization, both of which may be amenable to low-cost heap-leach processing, from fresh basement mineralization, which will require conventional milling and processing.

The 2022 Mineral Resource Estimate incorporates gold mineralization from five deposits (Figure 1), namely Central, MG, JB, CN, and PDM. The geology was reinterpreted and new wireframe models were developed for each deposit.

Total Indicated and Inferred Resources

The total Indicated Resource is 21.6 M tonnes grading 0.87 g/t gold (604.0 K ounces), while the total Inferred Resource is 19.8 M tonnes grading 0.84 g/t gold (534.5 K ounces), representing 53% and 47% of the reported ounces, respectively.

Most of the resource is attributable to the MG and Central deposits. All of the project’s Indicated Resources occur within open pits designed for the MG and Central deposits, while 83% of the total Inferred Resource is contained within the MG and Central/CN deposits.

Open Pit vs Underground Resources

Open-pit resources are included for Central, MG, CN, JB, and PDM. These comprise an Indicated Resource of 21.6 M tonnes grading 0.87 g/t gold (604.0 K ounces), all of which occur at MG and Central, and an Inferred Resource of 17.2 M tonnes grading 0.68 g/t gold (376.9 K ounces).

All mineralization amenable to underground mining is fresh unweathered basement mineralization and has been allocated to Inferred Resources, comprising 2.6 M tonnes grading 1.92 g/t gold (157.6 K ounces). These underground zones, all of which are open at depth, occur beneath the pit limits at Central, MG, and JB, which respectively represent 47%, 42% and 11% of the underground Inferred Resources.

Oxide and Fresh Basement Resources

Open pit oxide resources amenable to heap-leach processing are reported for Central, MG, CN and PDM, comprising an Indicated Resource of 9.3M tonnes grading 0.52 g/t gold (153.7 K ounces), and an Inferred Resource of 6.1 M tonnes grading 0.40 g/t gold (79.2 ounces). All of the oxide Indicated Resources are from Central and MG, while 72% of the Inferred Resources are from the Central/CN and MG deposits.

Oxide resources can be further subdivided into weathered basement saprolite and unconformably overlying colluvial/fluvial blanket mineralization. The latter are unconsolidated eroded saprolite mineralization, extend from surface, and are expected to be entirely free digging. Blanket mineralization include 4.1 M tonnes grading 0.37 g/t gold (47.6 K ounces) of Indicated Resources at MG and Central, and 3.8 M tonnes grading 0.35 g/t gold (43.3 K ounces) of Inferred Resources at Central, MG and PDM.

Fresh basement open-pit and underground mineralization remain the bulk of the resources, and both will require conventional milling and processing. These are reported for Central, MG, CN and JB, and comprise an Indicated Resource of 12.3 M tonnes grading 1.14 g/t gold (450.3 K ounces) and an Inferred Resource of 13.6 M tonnes grading 1.04 g/t gold (455.2 K ounces).