Cabral Gold: A 5-10 Bagger Hidden In Plain Site
The following analysis is an excerpt from the May 20th issue of my Mining Stock Journal. Cabral released more drill results today (March 26th) and my analysis will be included in the next issue. Note: I have advised my subscribers to avoid New Found Gold for a few years. A paid subscription to this Substack includes a subscription to my Mining Stock Journal (follow this link for information).
Cabral is the perfect example of a project development company that is extremely undervalued relative to the potential value of the eventual mine. There's a lot of gold to be found on Cuiu Cuiu. There's three current deposits, three likely deposits including Machichie Main and at least a couple dozen identified targets. Once the starter mine is in operation, Cabral likely will not have to issue anymore shares. I think this aspect is vastly under-appreciated by the market.
Cabral Gold (CBGZF, CBR.V - US$0.24) - CBR released assays from two surface trenches and eight RC drill holes at the Machichie Main gold deposit at Cuiu Cuiu. Trenching is cutting a narrow, shallow ditch across a visible mineralization or a deposit in order to obtain samples and to help with follow-up exploration work. The one trench sample assay returned 3.6 gpt over 20 meters, confirming the presence of significant higher-grade mineralization within the near-surface gold-in-oxide material Machichie Main.
The assays from the drill holes returned some very high-grade gold mineralization, including 3.9 gpt over four meters, 3.1 gpt over 4 meters, etc. All of the mineralized intercepts were in fresh rock intrusive material below the near-surface gold oxide deposit. The results from the trenches and drill holes at Machichie Main confirm continuity and grade of the mineralization along strike and at depth.
The drill results could have a significant upside economic impact on the updated PFS for the starter mine. A lot of the inferred material in the at/near surface oxide gold material is 1+ grams per ton but could not be incorporated into the initial PFS because it was just inferred.
The current trenching/drilling program is focused on upgrading as much of the inferred as possible to indicated so that it can be added to the gold-in-oxide reserves and incorporated into the updated PFS and mine plan for the starter mine. In addition, the assays from beneath the oxide "blanket" confirm the potential of a significant gold deposit that lies below the surface material that will be used in the starter mine.
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