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Cabral Gold expands Jerimum Cima with high-grade drilling results in Brazil
The new results come as Cabral prepares to pour first gold in September, targeting commercial production in the fourth quarter.
Cabral Gold said drilling at its Cuiú Cuiú project in northern Brazil has returned high-grade results that indicate a new mineralized zone at the Jerimum Cima target, where work is aimed at building an initial resource for gold-in-oxide and underlying primary zones. The company’s drilling highlights include hole DDH411, which intersected 8.9 metres grading 5.8 grams of gold per tonne from 208 metres depth, including 1.8 metres at 28.4 grams.
Cabral characterized the DDH411 intercept as a new mineralized zone located about 200 metres south of the main Jerimum Cima zone. The company also pointed to additional high-grade drilling, including hole DDH385 at 9.5 metres grading 87.4 grams in June, and other intersections such as DDH393 at 9.3 metres and DDH396 at 8.9 metres.
In the same update, Mining.com reports Cabral is preparing to pour first gold in September and expects commercial production in the fourth quarter from a heap leach oxide starter pit at the Moreira Gomes target within Cuiú Ciuú. The updated prefeasibility study cited in the report estimates post-tax internal rate of return of 78% and post-tax net present value of about $74 million at a 5% discount, assuming a base case gold price of $2,500 per ounce.
Cabral also laid out project economics and timing, with initial capital costs of $37.7 million and a payback period of 10 months. It estimates production of 113,000 ounces over a 6.2-year life, while drilling continues at the Machichie Main deposit and Machichie West target and the company plans to update the global resource later this year.
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