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Cabral Gold unveils new resource for Cuiu Cuiu property, which provides good platform to advance project

Last updated: 13:49 07 Jun 2018 BST, First published: 08:49 07 Jun 2018 BST

Workers and tent at Cabral's Cuiu Cuiu property
Previous drilling at the Central Zone

Brazil-focused junior Cabral Gold Inc (CVE:CBR) said a new resource estimate at the Cuiu Cuiu property is a key first step to develop an economically robust project.

The NI 43-101 report was compiled by Micon International Limited and covers four deposits at the site in the state of Para in the north of the country.

WATCH: Cabral Gold encouraged by Eldorado permitting, updated resource estimate to come

It sees 5.9mln tonnes at 0.9 g/t (grams per  tonne) for 171,000 ounces of gold in the higher confidence indicated category (at a cut-off of 0.35g/t).

In the lower confidence inferred, it reported 19.5mln tonnes at 1.24 g/t for 776,000 ounces of the yellow metal in the inferred category.

"The 2018 resource estimate is an important fundamental step towards developing an economic platform for the Cuiu Cuiu project," Alan Carter, president and chief executive, told investors.

"We believe that surface trenching and further drilling will provide additional data that will likely statistically improve top-end cuts, and as a result add significant additional ounces within the existing deposits as well as along strike."

Carter pointed out that previous drilling had identified ten mineralized zones at Cuiu Cuiu, for which only four have had sufficient drilling to determine resources, and significant upside exists in all four of the deposits identified so far.

"Furthermore, the recent recognition of new high-grade targets at Cuiu Cuiu also represents a very important step towards improving the overall grade and viability of the project through the potential addition of higher grade resources. These efforts will be prioritized, and tested over the coming months," he added.

The company is currently undertaking an aggressive surface exploration program at Cuiu Cuiu which involves soil sampling, auger sampling, pitting and trenching on at least 12 targets, including Central, MG, JB and Central North.

This is aimed at prioritizing targets for diamond drilling later in 2018.

Today's estimate covers four deposits. These are Central, Moreira Gomes (MG), Central North, and Jerimum de Baixo (JB) and Micon used 51 holes at Central, 35 holes  at MG, seven holes at Central North, and 15 holes at JB.

Notably, the Cuiu Cuiu property is contiguous to the northwest of Eldorado Gold Corp's advanced Tocantinzinho gold project.

Cabral Gold continues aggressive drill program at Cuiu Cuiu Project in Brazil

Cabral Gold CEO Alan Carter joined Katie Pilbeam at the London Mines and Money Conference. Carter shared with Proactive more about their district size Project Cuiu Cuiu which is in Brazil. Carter talked about the work being done on that project including the number of drill rigs turning....

on 1/12/21