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Company Interviews

Cabral Gold (TSXV:CBR) - Unlocking Brazil's Next Major Gold District

16 Jul 2024

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Interview with Alan Carter, President and CEO of Cabral Gold Our previous interview: https://www.cruxinvestor.com/posts/cabral-gold-tsxvcbr-near-term-production-on-12moz-cui-cui-gold-project-in-brazil-pfs-by-july-5454 Recording date: 15th July 2024 Cabral Gold is a junior mining company with a promising gold project in Northern Brazil that deserves investor attention. The company's flagship Cuiú Cuiú project is strategically located adjacent to G Mining's Tocantinzinho project, soon to be Brazil's third-largest gold mine. This proximity suggests favorable geology and potential infrastructure advantages.Key Investment Highlights:Substantial Resource Base: Cabral has already established indicated and inferred resources of nearly 1.2 million ounces of gold at Cuiú Cuiú. Recent high-grade drilling results, including an impressive intercept of 11 meters at 33 grams per ton of gold, suggest significant potential for resource expansion.District-Scale Potential: The project area boasts 45 gold targets outside the existing known deposits, indicating substantial exploration upside. CEO Alan Carter notes that the soil anomaly at Cuiú Cuiú is seven times larger than that of the neighboring Tocantinzinho project. Two-Stage Development Strategy: Cabral is pursuing a pragmatic approach to development: a) Stage 1 focuses on near-term production from oxide mineralization, which is typically easier and less costly to mine and process. b) Stage 2 aims to use cash flow from oxide production to fund exploration of the project's primary (hard-rock) potential, where management believes multi-million-ounce deposits may be found.Pre-Feasibility Study Nearing Completion: The upcoming PFS will provide crucial economic data for investors to assess the project's viability, including capital expenditure estimates, operating costs, and potential production rates. Experienced Management Team: Cabral has recently strengthened its leadership, bringing in professionals with significant experience in gold exploration and production, including former executives from major companies like Newmont. Potential for Organic Growth: The company plans to start with a modest operation and expand as more resources are defined, potentially reducing initial capital requirements and financial risk. Investors should also consider the following risks: Exploration Risk: Despite promising results, discovering economically viable deposits is not guaranteed. Development and Operational Challenges: Moving from exploration to production involves numerous hurdles. Financing Risk: Junior miners often require multiple funding rounds, which can dilute existing shareholders. Gold Price Volatility: Project economics heavily depend on gold prices. Geopolitical and Regulatory Risks: Operating in Brazil exposes the company to potential political and regulatory changes. Cabral Gold represents an intriguing opportunity for investors seeking exposure to the gold sector with the potential for significant upside. The company's strategic location, substantial existing resources, and district-scale potential offer leverage to gold prices and exploration success. However, as with any junior mining investment, thorough due diligence is essential, and investors should be prepared for potential volatility. The upcoming Pre-Feasibility Study will be a crucial milestone, providing investors with critical economic data to assess the project's viability. As CEO Alan Carter states, "Cuiú Cuiú is going to ultimately be a mine. It'll be a big one, but it's going to take time, and it's going to take money." This encapsulates both the potential and the challenges inherent in developing a major gold project in today's environment. — View Cabral Gold's company profile: https://www.cruxinvestor.com/companies/cabral-gold Sign up for Crux Investor: https://cruxinvestor.com

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