Cabral Gold Inc (TSX-V:CBR). has announced encouraging assay results from eight diamond drill holes testing the Machichie Main zone within the Cuiu Cuiu gold district.
The company said the results provide further evidence of the continuity of the mineralized zone at depth and indicate that it also contains a significant amount of high-grade gold mineralization.
In a statement, Alan Carter, Cabral's president and CEO said: "The Machichie Main zone is part of the Machichie complex, which includes the Machichie Main zone, Machichie NE, Machichie SW and Machichie West targets. None of these targets were included in the recent updated mineral resource estimate.
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"These additional drill results from the eastern part of the Machichie Main zone provide further proof of the presence of a significant mineralized zone with a high-grade component, which is open down-dip on every section and also along strike. These results build on other recent excellent drill results from the Machichie Main zone as the company works towards a maiden resource estimate for these targets."
Drilling highlights were as follows:
- DDH310 returned the following intervals in fresh altered intrusive basement; 10.3 metres (m) @ 3.0 grams per ton (g/t) gold from 63.5m including 1.0m @ 27.6 g/t gold and 5.3m @ 27.6 g/t gold from 87.1m including 0.5m @ 288.1 g/t gold and 4.8m @ 1.6 g/t gold from 125.2m;
- DDH312 returned 7.6m @ 4.7 g/t gold from 88.6m in fresh altered intrusive basement, including 1.0m @ 31.2 g/t gold;
- DDH316 returned 4.6m @ 2.0 g/t gold from 110.4m and 0.8m @ 34.6 g/t gold from 133.2m; and
- DDH317 returned 0.5m @ 14.9 g/t gold from 100.5m and 0.6m @ 23.4 g/t gold from 176.2m. All of these occurred in fresh altered intrusive basement
The Machichie target is 500m north-west of the MG gold deposit. Previous drilling identified a persistent mineralized zone, which is east-trending and dips steeply to the north. This main zone consists of parallel high-grade core zones surrounded by a low-grade alteration envelope. This is similar in style to the bedrock gold deposits at MG and Central as well as the recently announced PDM basement discovery.
The results from these additional drill holes at the Machichie Main zone reaffirm that the mineralized zone remains open at depth, is continuous down-dip, and comprises several parallel zones. All of the sections are from the central-eastern part of the mineralized zone, and indicate that the Machichie Main zone comprises a series of parallel high-grade zones occurring within a broader low-grade alteration zone as is the case with the Central and MG gold deposits.
Further drilling will be required prior to determining a maiden resource estimate for the Machichie Complex. There are now multiple mineralized zones within the Machichie Complex that may combine to form the next new significant gold deposit at Cuiu Cuiu. The recent trenching to the west suggests that the Machichie Main zone could extend over 900m from east to west, and the zone remains open further to the west. The northeast-trending vein array at Machichie West, and mineralization at Machichie NE remain open in all directions.
Private placement
The company also announced the terms of a non-brokered private placement of up to 10,000,000 units at $0.20 each for gross proceeds of up to $2,000,000. Each unit will consist of one common share and one common share purchase warrant. Each warrant will be exercisable for two years following the closing of the private placement, entitling the holder to purchase one share at an exercise price of $0.30 in the first year following closing, or $0.40 in the second year following closing.
The company intends to use the net proceeds from the private placement for exploration and development activities, repayment of operating liabilities and general working capital purposes.
Cabral Gold is a junior resource company engaged in the identification, exploration and development of mineral properties, with a primary focus on gold properties located in Brazil. The company has a 100% interest in the Cuiu Cuiu gold district located in the Tapajos Region, within the state of Para in northern Brazil. Two main gold deposits have so far been defined at the Cuiu Cuiu project which contains National Instrument 43-101 compliant indicated resources of 21.6 million tonnes @ 0.87 g/t gold (604,000 ounces) and inferred resources of 19.8 million tonnes @ 0.84 g/t gold (534,500 ounces).
Contact the author at jon.hopkins@proactiveinvestors.com