Cabral Gold (CBR.V): Drills More High-Grade at Primary Central Gold Deposit and Further Outlines Extensive Gold-in-Oxide Mineralization at Central

Vancouver, British Columbia–(Newsfile Corp. – April 13, 2022) – Cabral Gold Inc. (TSXV: CBR) (OTC Pink: CBGZF) (“Cabral” or the “Company“) is pleased to provide assay results from four diamond-drill holes testing the primary Central gold deposit within the Cuiú Cuiú gold district, northern Brazil.

Highlights are as follows:

• DDH266 tested the main Central mineralized zone and returned a high-grade intercept, as well as multiple lower-grade intervals, including:
  • 1.7m @ 14.9 g/t gold from 74.4m. This high-grade intercept occurs in the southern part of the deposit, within fresh (unweathered), brecciated and altered basement intrusive rocks.
  • 4.4m @ 1.0 g/t gold from 89.3m, 0.5m @ 5.8 g/t gold from 108.2m, 2.1m @ 1.2 g/t gold from 117.2m, and 11.1m @ 1.5 g/t gold from 122.8m. All of these intercepts also occur within fresh, strongly brecciated and highly altered basement intrusive rocks.
  • 12.7m @ 0.5 g/t gold from 15.0m and 7m @ 1.0 g/t gold from 35.7m. Both intercepts occur in highly weathered and oxidized mineralized basement closer to surface. 12m @ 0.7 g/t gold was also encountered from surface in the overlying gold-in-oxide blanket.

• DDH265, was drilled to test the northeastern limit of the mineralized zone at Central. It returned 18.3m @ 0.7 g/t gold from surface in the overlying gold-in-oxide blanket.
• DDH248 was designed to test the near-surface extension of the weathered Central basement zone. It intersected 27m @ 0.6 g/t gold from surface, including 7.5m @ 0.3 g/t gold in the overlying gold-in-oxide blanket, and 19.5m @ 0.8 g/t gold within mineralized basement saprolite.

The results from all four holes further support previous drilling, defining a significant thick zone of gold-in-oxide mineralization sitting above the primary unweathered gold deposit at Central. It comprises a combination of overlying sub-horizontal, gold-in-oxide blanket, as well as a thick zone of highly weathered saprolite material representing the highly weathered subvertical primary gold mineralization. This oxide (saprolite) mineralization extends from the base of the blanket (near surface) to depths greater than 70m.

Alan Carter, Cabral’s President and CEO commented, “The latest drill results from Central lend further support to recent evidence from drilling that a high-grade zone of mineralization exists within the core of the primary basement Central gold deposit, just as at the nearby MG gold deposit. Furthermore, all of the holes reported here cut significant intercepts of soft weathered gold-in-oxide mineralization, supporting previous drilling that a third significant zone of gold-in-oxide mineralization sits above the primary un-weathered basement deposit at Central. We look forward to the results of the ongoing drill program at Central as well as the results from the four other drill rigs which are currently active at the nearby MG, Machichie, PDM and Indio targets.”

Central Diamond-Drill Results

The Central gold deposit is located 5km NW of the MG gold deposit and 2.5km SE of the PDM target within the Cuiú Cuiú gold district (Figure 1).

Figure 1: Map showing the location of the Central gold and MG gold deposits, the PDM (Pau de Merenda) and Machichie targets, and other key targets (yellow circles) within this part of the Cuiú Cuiú district

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Two rigs are currently operating at Central: an RC rig drilling shallow holes to assess the extent of the recently identified near-surface gold-in-oxide blanket (see press release dated January 27, 2022) as well as a diamond rig to both better define the high-grade, highly altered, brecciated and sheared zones within the primary basement deposit and to define the near surface gold-in-oxide mineralization.

Assay results are reported herein from four diamond-drill holes recently completed at Central: DDH248, DDH249, DDH265 and DDH266. These were completed on section N20845, located in the southeastern part of the Central gold deposit (Figure 2, Table 1).

Figure 2: Map of the Central area showing the outline of the primary northwest-trending Central gold deposit resource outline, the extensive artisanal placer workings, and the location of diamond-drill holes completed to date. Diamond-drill holes DDH248, DDH249, DDH265 and DDH266 with results reported as part of this press release are highlighted, as are previously reported diamond-drill holes DDH247, DDH250, DDH251, DDH255 and DDH258

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Assay results from the initial six holes of this program were previously reported and included 23.8m @ 5.5 g/t gold in DDH250 (see press releases dated January 27, 2022 and 10 February 10, 2022). The principal objective of the current drilling program is to identify and define the individual higher-grade zones within the Central gold deposit, whilst exploring for additional high-grade mineralization in parts of the current resource with a low historic drill density, and testing for oxidized mineralization closer to surface where historic drilling was extremely sparse.

Table 1 showing the drill results from the diamond drill holes DDH248, DDH249, DDH265 and DDH266

Section N20845

All of the holes reported here were drilled on section N20845 which is located in the southern portion of the primary Central gold deposit (Figures 2 and 3, Table 1), approximately 75m south of DDH250, which recently returned 23.8m @ 5.5 g/t gold. Results from DDH247, drilled on Section N20845, were previously reported (see press releases dated January 27, 2022), and are shown on Figure 3.

Prior to the current drill program there was only one historic hole within the oxide on this section (Figure 3). That hole (CC_12) was drilled southeast to northwest, orthogonal to the section. Less than 20m of the hole that occurs within the 25m window of Section N20845. Furthermore, the first 13.3m of the gold-in-oxide blanket extending from surface in CC_12, was not even sampled for gold (Figure 3).

Only one historic hole (CC_104) was drilled across the entire strike Central main zone on this section. All other holes were drilled orthogonal to the section, parallel to the mineralized zone. The pierce points are shown on Figure 3 where they cross the 25m window of Section N20845. With the exception of orthogonal hole CC_12, the shallowest historic intercept at the southwestern margin of the zone was over 100m deep, while the shallowest historic intercept on the northeastern margin of the zone was over 175m deep (Figure 3).

DDH265 and DDH266

DDH265 and DDH266 were designed to define the northeastern and southwestern limits of the Central mineralized zone on this section, whilst testing for the up-dip extension of basement mineralization in weathered saprolite closer to surface.

DDH266 was drilled towards the southwest across the primary basement gold deposit (Figure 3) It intersected three significant zones of mineralization in the overlying weathered gold-in-oxide material. The uppermost, was 12.0m @ 0.7 g/t gold from surface within the overlying gold-in-oxide blanket. Beneath that, the hole cut 12.7m @ 0.5 g/t gold from 15.0m and 7.0m @ 1.0 g/t gold from 35.7m. Both of these intercepts are in saprolite, representing highly weathered vertically dipping basement mineralization.

DDH266 then passed into hard unoxidized, brecciated and altered basement intrusive rocks and cut a number of mineralized intercepts (Figure 3) including 1.7m @ 14.9 g/t gold from 74.4m, 4.4m @ 1.0 g/t gold from 89.3m, 0.5m @ 5.8 g/t gold from 108.2m, 2.1m @ 1.2 g/t gold from 117.2m depth, and 11.1m @ 1.5 g/t gold from 122.8m.

DDH265 was drilled from the same platform as DDH266, but in the opposite direction towards the northeast away from the primary basement gold deposit. It was designed to define the northeastern limit of the mineralized system. It did not encounter any significant mineralization within fresh basement rocks. However, DDH266 did intersect 18.3m @ 0.7 g/t gold from surface in the overlying gold-in-oxide blanket. This intercept lies northeast of interpreted northeastern limit of basement mineralization. It indicates that the flat-lying unconformable blanket remains open to the northeast.

Figure 3: Section N20845 through the southern part of the primary gold deposit at Central showing the locations of diamond drill holes DDH247, DDH248, DDH265 and DDH266 and recent drill results. A subvertical, narrow post-mineralization porphyritic rhyolite dyke cuts across this section, and is shown in orange.

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DDH248 and DDH249

DDH248 and DDH249 were shallow holes drilled in the middle part of section N20845 from the same platform (Figures 2 and 3). These holes were designed to test for both the flat-lying gold-in-oxide blanket mineralization at surface, and the up-dip extension of subvertical-dipping, highly weathered and oxidized, mineralized basement saprolite.

DDH248 intersected 27m @ 0.6 g/t gold from surface in oxidized and weathered basement rocks. This broader intercept comprised 7.5m @ 0.3 g/t gold in the flat-lying gold-in-oxide blanket from surface, and 19.5m @ 0.8 g/t gold from 7.5m within the underlying subvertical-dipping, highly weathered and oxidized, mineralized basement saprolite.

Similarly, DH249 returned 9.4m @ 0.2 g/t gold from surface in the flat-lying gold-in-oxide blanket. Further downhole, it also encountered 5m @ 0.5 g/t gold from 13m, and 6m @ 0.4 g/t gold. The latter two intercepts are in saprolite and represent the highly weathered and oxidized up-dip extension of subvertical-dipping mineralized basement.

Interpretation and Observations

Drilling on Section N20845 was successful in further defining the extent of the flat-lying gold-in-oxide blanket mineralization. All four holes support previous drilling in DDH247 (11.0m @0.7 g/t gold from surface), that a third significant zone of gold-in-oxide mineralization blanket mineralization sits unconformably above primary Central gold mineralization. The interpreted long-axis of this blanket zone trends to the NW parallel to the trend of basement mineralization (Figure 2). On this section, it can be traced across strike NE-SW more than 100m. It is still open to both the northeast and southwest (Figure 3). This material is very soft and comprises mainly unconsolidated muds and sands. It should be free digging material. As at the MG deposit, this material could be amenable to low-cost, low-capital heap-leach processing.

Drilling on Section N20845 was also successful in establishing that vertical-dipping Central gold mineralization continues through the weathered profile to the base of the blanket. Three of the holes within this release (DDH248, DDH249, and DDH266) encountered weathered and oxidized mineralized basement material, as did DDH247 (Figure 3). Within this profile, the mineralized basement brecciated and altered intrusive rock have been completely weathered and oxidized to saprolite, while maintaining much of the original igneous and breccia textures.

Whilst the entire weathered basement profile is completely oxidized, the upper part of the saprolite is very soft and could be free digging. Rock competence appears to increase with depth as the intensity of weathering diminishes. Regardless, this entire oxidized weathered primary profile extends to depths that locally exceed 70m and is approximately 80m in width on this section. As at MG, this material could also be amenable to low-cost, low-capital heap-leach processing.

DDH266 was the only new hole on this section into the fresh basement mineralization. It reaffirms the up-dip extension of basement mineralization encountered in historic hole CC_04, whilst also cutting a new high-grade zone in the middle of the deposit (1.7m @ 14.98 g/t gold).

Drilling and Trenching Update

Results are pending on eight diamond-drill holes at MG and drilling is continuing.

Results are pending on seven diamond-drill holes at Central and drilling is continuing.

Results are pending on 36 RC holes drilled north of Central which are aimed at further defining the extent of the near surface gold-in-oxide blanket material. The RC rig has now moved to complete infill drilling at the PDM gold-in-oxide blanket with a particular focus on further defining the higher grade core to the blanket.

At the recently discovered mineralized zone in basement granitic rocks at the PDM target located 2.5km NW of Central (see press release dated January 12, 2022), diamond-drilling also has been temporarily suspended as assay results have become too backlogged. Results on twelve diamond-drill holes are currently pending, and need to be interpreted for additional drill hole planning.

Meanwhile, the diamond drill has been redeployed from PDM to Machichie, where an infill and step-out drilling program has just begun and trenching is still in progress.

Results are currently pending on the first two diamond-drill holes drilled in 2022 at the Indio target. Drilling is ongoing.

About Cabral Gold Inc.

The Company 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 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 5.9Mt @ 0.90 g/t (200,000 oz) and Inferred resources of 19.5Mt @ 1.24 g/t (800,000 oz).

The Tapajós Gold Province is the site of the largest gold rush in Brazil’s history producing an estimated 30 to 50 million ounces of placer gold between 1978 and 1995. Cuiú Cuiú was the largest area of placer workings in the Tapajós and produced an estimated 2Moz of placer gold historically.

FOR FURTHER INFORMATION PLEASE CONTACT:

“Alan Carter”

President and Chief Executive Officer
Cabral Gold Inc.

Tel: 604.676.5660

Guillermo Hughes, MAusIMM and FAIG., a consultant to the Company as well as a Qualified Person as defined by National Instrument 43-101, supervised the preparation of the technical information in this news release.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as such term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward-looking Statements

This news release contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). The use of the words “will”, “expected” and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Such forward-looking statements should not be unduly relied upon. This news release contains forward-looking statements and assumptions pertaining to the following: strategic plans and future operations, and results of exploration. Actual results achieved may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors. The Company believes the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct.

Notes

Gold analysis has been conducted by SGS method FAA505 (fire assay of 50g charge), with higher grade samples checked by FAA525. Analytical quality is monitored by certified references and blanks. Until dispatch, samples are stored under the supervision the Company’s exploration office. The samples are couriered to the assay laboratory using a commercial contractor. Pulps are returned to the Company and archived. Drill holes results are quoted as down-hole length weighted intersections.