Vancouver, British Columbia–(Newsfile Corp. – January 6, 2022) –  Cabral Gold Inc. (TSXV: CBR) (OTC: CBGZF) (“Cabral” or the “Company“) is pleased to provide a summary of successes achieved during 2021 at the Cuiú Cuiú gold district in northern Brazil, and outline its plans for 2022.

During 2021, Cabral’s ongoing drill program was primarily focused on defining the high-grade zones within the MG and Central gold deposits, but the Company also identified two new near surface gold-in-oxide blankets at MG and PDM, as well as a new high-grade mineralized zone in hard rock at PDM. The Company continued to drill test and expand other new target areas, such as Machichie, Machichie SW, Morro da Lua, and Indio. There are still some 39 other gold targets to test on the 36,000 ha Cuiú Cuiú property. Concurrent with the drill program Cabral continued its regional grassroots reconnaissance exploration in new areas of the district including stream- and soil-geochemical sampling and prospecting.

Based on positive initial results realized during early 2021, Cabral accelerated its drilling campaign. The Company started 2021 with two RC rigs and added a diamond rig in February and two more diamond rigs in July following the successful closing of a financing in July. A total of 25,359m of drilling was completed during the year, including 16,027m of RC drilling and 9,332m of diamond drilling. Assay results from 21 diamond-drill holes and 12 RC holes completed at MG, PDM, and Central were still pending at year end and will be released in the coming weeks.

Cabral is looking forward to continuing its aggressive exploration program in 2022 and is planning an expanded drill program at PDM following encouraging drill results in December which included 22.4m @ 4.8 g/t gold from the granitic rocks below the recently identified gold-in-oxide blanket. In addition, diamond drilling at the Central and MG gold deposits will continue with the objective of defining higher grade zones within both deposits, while testing for additional zones of mineralization. RC drilling will also continue testing the overburden above the Central gold deposit with the objective of identifying a third gold-in-oxide blanket.

Elsewhere additional drilling and trenching is planned at Machichie, and several regional targets including Tracaja, Indio, Dona Moca and the new Escondido target.

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Figure 1: Topographic map showing the location of the MG and Central gold deposits (in red) and the outline of the recently discovered gold-in-oxide blankets at PDM and MG (in beige) as well as other key targets at Cuiú Cuiú. The outline of the historic placer gold workings are shown in pale yellow. MG and Central are the two deposits comprising the current project resource

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Highlights of 2021 are as follows:

MG Gold Complex:

Initial RC and diamond drilling at MG resulted in a significant reinterpretation of the geology of the MG deposit. A thick, laterally extensive, flat-lying cover sequence of redeposited oxidized, heavily weathered and unconsolidated mineralized material (oxide blanket) was identified extending from surface to up to 60m depth, and represents a new discovery during 2021. This new style of gold deposit resulted from the erosion of the basement MG gold deposit, and unconformably overlies the primary gold deposit. It extends significantly to the north and south of the east-trending basement deposit. Importantly, this mineralized blanket material will likely be free digging and was largely considered sterile waste material in the compilation of the 2018 resource estimate.

MG Gold-in-Oxide Blanket:

  • Based on the initial discovery of near-surface oxide mineralization in April 2021, Cabral conducted an aggressive RC drilling program consisting of 79 RC holes totaling 6,609m. These were designed to determine the vertical and lateral extent of the gold-in-oxide blanket. The surface footprint has since grown to 40 hectares, and remains open in several directions. Drilling highlights (see press releases dated May 19, July 29, August 31, October 14, November 9, and November 24, 2021) during 2021 include:
    • 60m @ 3.5 g/t gold including 2.6m @ 64.6 g/t gold
    • 46m @ 1.3 g/t gold including 5.0m @ 3.6 g/t gold and 1.0m @ 7.7 g/t gold
    • 46m @ 1.2 g/t gold including 3.0m @ 5.5 g/t gold
    • 66m @ 0.7 g/t gold including 6.0m @ 2.5 g/t gold
    • 47m @ 0.7 g/t gold
    • 48m @ 0.5 g/t gold
    • 16m @ 1.2 g/t gold
    • 22m @ 0.7 g/t gold including 2.0m @ 3.0 g/t gold
    • 24m @ 0.8 g/t gold
    • 34m @ 0.7 g/t gold including 2.0m @ 3.0 g/t gold and 1.0m @ 5.4 g/t gold
    • 46m @ 0.5 g/t gold
  • Within the blanket, there is an east-trending zone of thicker and higher-grade mineralization that is evident within the overall outline of the blanket. This higher-grade zone largely occurs directly above the primary basement MG gold deposit
  • Five diamond drill holes were drilled during 2021 with the objective of collecting samples of blanket material for metallurgical test work. Drill results from these five holes included: 70.8m @ 1.0 g/t gold, including 17.0m @ 3.3 g/t gold; 43.6m @ 1.4 g/t gold; 30m @ 2.2 g/t gold; 54.0m @ 0.7 g/t gold; 13m @ 0.9 g/t gold; and 21.7m @ 0.8 g/t gold (see press releases dated December 2 and December 9 2021). Samples have been dispatched to the Kappes Cassiday laboratory in Reno, Nevada. This work is critical to understanding the economic viability of this unconsolidated surface oxide mineralization at MG, which may be amenable to low-cost heap-leach processing. Results are expected in March 2022
  • The mineralized blanket is an important new discovery and lies entirely within the confines of any potential open pit that would exploit the basement gold deposit at MG. Most of this blanket material was previously considered to be barren and therefore the removal of this material as pre-strip within any open pit was expected to constitute a significant cost. Instead, this newly discovered gold-in-oxide material could prove to be an economic bonus that appreciably improves the overall economics of the project. This material is soft and much of it will likely be free digging, which would significantly reduce mining costs. Moreover, the softer rock would also have a much lower work index leading to lower crushing and grinding costs than the harder basement rocks. It is also possible that the blanket material may be amenable to heap-leach processing, which could further reduce processing costs, initial capital costs, and cutoff grades

MG Primary Basement Gold Deposit:

  • Drilling during 2021 targeted the basement deposit at MG and was designed to expand and confirm high-grade gold mineralization, establish vertical and lateral continuity, and evaluate untested regions of a potential open pit, particularly closer to surface. Drilling continues, and assays are currently pending from ten holes drilled during late 2021. Key results to date include:
  1. Several parallel zones to the primary MG gold deposit were discovered, notably in the footwall, where highlights included: 18.1m @ 4.3 g/t gold, including 1.0m @ 45.1 g/t gold; and 2.1m @ 29.4 g/t gold, including 0.5m @ 120.6 g/t gold (see press releases dated April 15, July 8, November 3 and December 2, 2021)
  2. The deposit was also extended to the west where diamond drilling returned 19.1m @ 2.2 g/t gold, including 7.0m @ 4.5 g/t gold (see press release dated December 2, 2021)
  3. Lateral and vertical continuity of known high-grade mineralization was confirmed in several areas highlighted by: 17.6m @ 4.1 g/t gold, including 4.3m @ 11.3 g/t gold; 14m @ 1.9 g/t gold, including 2.5m @ 7.5 g/t gold; and 10.5m @ 2.4 g/t gold, including 2m @ 4.7 g/t gold (see press releases dated July 8, July 29 and November 3, 2021)
  4. In much of the deposit, the mineralized zones are now interpreted to dip more shallowly to the north than previously thought. As a result, the historic drilling may have missed the main mineralized zone in some areas

Central Deposit:

  • The Central gold deposit is currently the largest gold deposit at Cuiú Cuiú and is open at depth. Historic drilling indicates the potential to add ounces in a number of areas, and there is also potential for parallel zones of mineralization. One diamond drill rig commenced drilling at Central in late November (see press release dated November 24, 2021) and results are currently pending on eight diamond holes which were completed in late 2021
  • Based on the discovery of the new gold-in-oxide blankets above the MG gold deposit and at the PDM target during 2021, a 25-hole RC drilling program was initiated above the Central gold deposit to test for the possibility of a third gold-in-oxide blanket. Results are currently pending on 12 RC holes and the program is ongoing

PDM Gold Complex:

Following the identification of the gold-in-oxide blanket mineralization at MG, the Company elected to explore for similar near surface oxide gold deposits elsewhere within the Cuiú Cuiú district. The next target was PDM, located 2.5km NW of the Central gold deposit and 6.5km NW of the MG gold deposit. Several scattered historic holes and trenches at PDM had returned significant gold values from bedrock as well as oxidized weathered rock.

PDM Gold-in-Oxide Blanket:

  • In August, results were announced on an initial 11 RC holes which suggested the presence of a second gold-in-oxide blanket at the PDM target (see press release dated August 10, 2021). Drill result highlights (see press releases dated August 10, August 26 and October 28, 2021) include:
    • 40m @ 2.2 g/t gold, including 7m @ 9.4 g/t gold
    • 16m @ 1.3 g/t gold
    • 13m @ 0.9 g/t gold
    • 10m @ 0.6 g/t gold.
  • The blanket at PDM is an important new discovery and currently covers an area of 900 x 350m (31.5ha), having expanded significantly from the initial 200 x 400m estimate in August. The blanket also contains a significant NW trending zone of higher grade and remains open to the north and west. This higher grade zone is very similar to the high-grade core within the blanket at MG, which largely occurs directly above the basement primary gold mineralized zone at MG

PDM Primary Basement Target:

  • In late 2021, diamond drilling at PDM in un-weathered basement rocks underneath the gold-in-oxide blanket, returned 22.4m @ 4.8 g/t gold, including 1.35m @ 62.0 g/t gold (see press release dated December 15, 2021). This new intercept suggests the presence of a significant new zone of higher-grade primary gold mineralization at PDM. This basement gold mineralization is the most likely source of the near-surface gold-in-oxide blanket at PDM and lies beneath the higher-grade zone within the blanket
  • The new mineralized basement zone is an important new discovery. It extends at least 200m along strike, trends NW-SE and dips steeply to the SW. It is open to the north, south and down-dip. The zone appears similar to, and is 2.5km NW and along strike from the NW-SE trending Central gold deposit. Virtually no exploration has been done in the intervening NW-SE trending corridor. Additional drilling is planned for 2022 to establish the extent, strike and dip of the basement zone.

Machichie and Machichie NE Target:

  • The Machichie target area is located 500m north of the MG deposit. The main Machichie target is an E-W trending mineralized zone, comprising a high-grade vein structure surrounded by a lower grade halo, very similar to the nearby MG gold deposit
  • RC drilling during 2021 along the strike of the main Machichie target, returned encouraging drill results including 34m @ 5.4 g/t gold, which included 13m @ 13.4 g/t gold (see press release dated January 5, 2021). Results to date suggest that the mineralized zone extends E-W for at least 500m and it remains open to the east and west and contains higher-grade shoots within the main mineralized zone along strike. Further drilling and trenching are planned for 2022
  • At Machichie NE, five holes were drilled to follow-up a mineralized intercept from a single drill hole completed in 2019 which returned 15.9m @ 1.7 g/t gold, including 0.5m @ 21.3 g/t gold. 2021 drill results are highlighted by 8m @ 3.3 g/t gold, and 17m @ 0.8 g/t gold, including 4m @ 2.9 g/t gold (see press release dated February 11, 2021). Follow drilling at Machichie NE is planned during 2022 in order to evaluate the extent of this mineralized zone

Morro da Lua Target:

  • Follow-up RC drilling at the Morro da Lua target during 2021 identified at least three high-grade NE trending veins. Results were highlighted by 2m @ 10.5 g/t gold, and 3m @ 6.6 g/t gold, and indicated continuity along strike and down dip (see press release dated July 15, 2021). Further drilling is planned for 2022

Other Targets:

  • Encouraging drill results were also returned from the Machichie SW area, where the number of known NE trending veins was increased from six to nine. Diamond drilling during April on the Hamilton Novo vein returned 3m @ 13.2 g/t gold including 1.0m @ 36.7 g/t gold (see press release dated April 29, 2021), and RC drilling during October identified three additional NE trending vein structures with drill results including 1m @ 18.5 g/t gold, 2m @ 3.5 g/t gold, 3m @ 2.8 g/t gold, and 1m @ 18.3 g/t gold (see press release dated October 6, 2021)
  • Similarly, first phase reconnaissance drilling at the Indio target, which is located 1.5km SE of the MG gold deposit, returned encouraging results, including 5m @ 2.7 g/t gold and 4m @ 2.5 g/t gold suggesting continuity of gold mineralization in an E-W direction for at least 150m (see press release dated March 31, 2021). Given the continuity of mineralization at Indio, follow-up drilling is planned during 2022
  • Reconnaissance stream-sediment sampling during late 2021 (see press release dated December 9, 2021) identified a new gold anomaly called Escondido located 3.4km ESE of the MG gold deposit. The new anomaly is very similar to the geochemical and magnetic anomaly which define the MG gold deposit and will be the subject of follow up soil and auger sampling and if results justify, reconnaissance drilling, during 2022

Tenure:

  • During 2021 Cabral acquired surface rights to all of the surface footprint of the MG Complex as well as much of Machichie and PDM

Board Addition:

  • In April 2021 the Company announced the addition of an experienced mining engineer to Cabral’s Board of Directors, Rodney Cooper, P.Eng.

Bought Deal Financing

  • In June, the Company announced a $10,000,000 Bought Deal financing led by Cormark Securities Inc. on behalf of a syndicate of underwriters including Stifel Nicolaus Canada Inc., Paradigm Capital Inc., and Research Capital Corporation (see press release dated June 8, 2021).
  • The offering was subsequently closed in early July and included the exercise in full of the underwriters’ over-allotment option. The Company sold an aggregate of 21,298,000 units at a price of $0.54 per Unit for aggregate gross proceeds of $11,500,920

Alan Carter, Cabral’s President and CEO commented, “2021 was an extremely busy and pivotal year for Cabral and must surely be the most successful year in our Company’s history. The new unconsolidated oxide and hard-rock gold discoveries that we made at MG and PDM during 2021 confirm that Cuiú Cuiú is a district and contains multiple gold deposits. I would like to again congratulate our team in Brazil on a very successful year. We look forward to another exciting year in 2022 that will focus on establishing the limits of these new mineralized zones and will also see us drill testing a number of other high-quality targets within the Cuiú Cuiú district during the coming months.”

Plans for 2022

The discovery of the two near surface gold-in-oxide deposits at MG and PDM is a potential game changer for Cabral. The completion of the metallurgical test work at the Kappes Cassiday lab in Reno will be a high priority for the Company in early 2022. Should this work indicate that the mineralized material at MG is amenable to low-cost heap leaching, the Company plans to proceed with a scoping study later in 2022.

As outlined above, diamond drilling will continue at the primary MG gold deposit in order to fully determine the size of the high-grade zones at MG and in order to determine the western limits to the main MG mineralized zone. This drilling will also further investigate the potential of the parallel zones intersected in diamond drilling during 2021.

Diamond drilling will continue at the Central gold deposit. As at the MG gold deposit, the current program is designed to further define the high-grade zones at Central.

RC drilling at Central is also in progress with the objective of testing for the presence of gold-in-oxide blanket mineralization above the primary Central gold deposit similar to that identified at both MG and PDM in 2021. An initial 25-hole RC drill program is in progress.

Further diamond drilling is also planned at the PDM target following the recent discovery of a zone of high-grade primary gold mineralization which returned 22.4m @ 4.8 g/t gold in the granitic rocks underlying the gold-in-oxide blanket. This drilling will determine the dimensions and grade of the new mineralized zone.

Further trenching and drilling is planned at the Machichie target during 2022 where RC drilling during 2021 returned 34m @ 5.4 g/t gold including 13m @ 13.4 g/t gold.

Whilst the focus of the drill campaign during 2022 will remain on the MG and Central trends, and the targets in and around those trends (notably PDM in the Central trend and Machichie at MG), Cabral will continue to test the various regional targets at Cuiú Cuiú and is currently planning drilling at Tracaja, Indio, Dona Moca and the new Escondido target.

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

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