Cabral Gold Inc (TSX-V:CBR) unveiled new assay results from its drilling campaign at the MG gold deposit on the firm’s flagship Cuiú Cuiú property in northern Brazil.
Results from 17 drill holes included 46 metres (m) at 1.2 grams per ton (g/t) gold, 22m at 0.7 g/t gold and 14m at 0.8 g/t gold.
The Vancouver-based company said recent drilling at the gold-in-oxide blanket has increased the surface area of the blanket by 50% to 36 hectares – an 80% increase from the initial estimate of the size.
READ: Cabral Gold says drilling on the MG gold deposit has extended the main mineralized zone at depth
The blanket remains open in several directions, Cabral added.
"These RC drill results suggest that the recently identified gold-in-oxide blanket at MG is at least 50% larger (36 hectares) than we envisaged just three weeks ago,” Cabral CEO Alan Carter told shareholders.
“The blanket at MG remains open in several directions, particularly to the west, where the most westerly hole drilled to date returned 14m at 0.8 g/t and 18m at 0.5 g/t gold in unconsolidated near surface oxide material.”
Cabral said it had signed an agreement with a Reno-based laboratory to complete metallurgical tests on mineralized samples from MG. Five holes were sunk with the objective of collecting samples for test work, according to the company.
CEO Carter added that the metallurgical test work is “obviously key to demonstrating the economic viability of this near surface gold-in-oxide mineralization, and will be an important milestone for the company in the coming months."
Cabral holds a 100% interest in the Cuiú Cuiú gold district located in the Tapajós Region, within the state of Pará in northern Brazil. Two gold deposits have so far been defined at Cuiú Cuiú and contain 43-101 compliant Indicated resources of 5.9 million tons at 0.90 g/t for 200,000 ounces, and Inferred resources of 19.5 million tons at 1.24 g/t for 800,000 ounces.
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