Cabral Gold Inc (CVE:CBR) (OTCPINK:CBGZF) has acquired the surface rights covering the oxide gold blanket and the underlying MG deposit in Brazil.
Drilling at the MG deposit recently returned 60 metres (m) at 3.5 grams per ton (g/t) gold, according to a statement.
Cabral nabbed the surface rights to 184.7 hectares on the property, which brings its total land holdings at both the MG and Machichie deposits to 256.5 hectares.
READ: Cabral Gold discovers more high-grade gold at its Cuiú Cuiú project in Brazil
As part of the deal, Cabral also acquired a second area of 186.9 hectares just north of Machichie near the Quebra Bunda target, where surface sampling on a high-grade vein in outcrop returned 3,727 g/t gold.
Cabral was also granted trial mining license permits over MG and Machichie, giving it the right to process up to 100,000 tons of ore per year upon receipt of its environmental licenses.
The Vancouver-based resource company already owns two contiguous blocks of surface rights at Cuiú Cuiú that totals 71.7 hectares, which cover the western half of the MG deposit and the parallel Machichie target as well as most of the Machichie southwest vein array, where recent drilling at the Hamilton Novo vein returned 3m at 13.2 g/t gold.
"The recent drill results from the gold-bearing oxide blanket at MG meant that the acquisition of the surface rights over this part of the Cuiú Cuiú district became an extremely high priority for us,” Cabral CEO Alan Carter said in a statement.
“The acquisition of these surface rights, together with the recent granting of two Trial Mining Licenses over the MG deposit and the Machichie zone, enhances Cabral's control of the area and raises the possibility of an accelerated path to production."
Cabral told investors it is planning to “aggressively” determine the size of the gold-bearing oxide blanket at MG in the coming months, while continuing to both outline the high-grade zones in the underlying MG gold deposit, and drill test regional targets within the Cuiú Cuiú gold district.
Cabral has a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in northern Brazil. Cuiú Cuiú currently has a resource estimate showing indicated resources of 5.9 million tonnes at 0.9 g/t for 200,000 ounces and inferred resources of 19.5 million tons at 1.24 g/t for 800,000 ounces.
Contact Angela at angela@proactiveinvestors.com
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