Cabral Gold Inc (TSX-V:CBR) has provided investors with an update on the permitting process at its wholly-owned Cuiú Cuiú gold district in northern Brazil.
The Vancouver-based junior resource company engaged in the exploration and development of gold properties in Brazil, said both preliminary (LP) and installation permits (LI) have been granted by the Para State Environmental Agency (SEMAS/PA) for two Trial Mining Licenses previously approved by the Brazilian Mining Agency (ANM).
The LP and LI permits cover the key MG and Central deposits, as well as the Machichie and PDM discoveries, said the company. The receipt of both the LP and LI authorizes trial mining and the installation of all necessary infrastructure and equipment required for trial mining.
READ: Cabral Gold closes previously announced placing, bringing in C$3,011,507.40 gross
In a statement, Cabral CEO Alan Carter said: “The issuance of the LP and LI environmental permits is a giant step forward for the Cuiú Cuiú project. The fact that these permits have been granted on schedule is indicative of the level of support that the project has within the relevant government agencies both in the state of Para and at the federal level in Brazil.”
“All of the main permits are now in place to allow us to proceed with trial mining and gold recovery from the three gold-in-oxide blankets which were only recently identified at Cuiú Cuiú.”
The company added that the major milestone in the overall permitting process for the Cuiú Cuiú project comes just days after the receipt of metallurgical results from column leach tests, indicating gold recoveries of 82% using heap-leaching methods. There are no major remaining impediments to the installation of all the necessary infrastructure and equipment for trial mining and processing, said the firm.
Updated resource estimate and PEA study
Cabral noted that an updated resource estimate for the Cuiú Cuiú project is underway, with completion expected in July 2022. It will include maiden resource estimates for all three gold-in-oxide blankets, including PDM, MG, and Central.
In addition, in view of the recent positive results from column leach tests on material from the MG gold-in-oxide blanket and the imminent global resource update for the Cuiú Cuiú district, Cabral plans to kick off a Preliminary Economic Estimate (PEA) as soon as possible which will assess the economic viability of the gold-in-oxide blankets, added the company.
“The granting of these key permits comes just days after we received the column leach test results on the gold-in-oxide blanket material. These test results demonstrated excellent recoveries from the recently completed column leach tests, which in turn indicate that heap-leach processing of the oxide material at Cuiú Cuiú is viable,” noted CEO Carter. “We now look forward to the results of the resource update in the coming weeks and ultimately a PEA study assessing the heap-leach potential of the oxide mineralization.”
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive