Cabral Gold Expands the Central Gold Deposit, Cuiú Cuiú Gold District, Brazil

Cabral Gold extends mineralization at Cuiú Cuiú with strong drill results and targets Q4 2026 production.

What the company is saying

Cabral Gold Inc. is highlighting new diamond drill results from the Central North target and the northern extension of the Central deposit at Cuiú Cuiú, Brazil. The company emphasizes intercepts such as 8.2m at 2.50 g/t gold (including 0.5m at 21.27 g/t) in DDH391, 10.4m at 0.45 g/t in DDH395, and 18.0m at 0.72 g/t in DDH400, presenting these as evidence of mineralization extending at depth and along strike. Management, through VP Exploration Elton Pereira, frames the Central–PDM trend as a 5km corridor with multiple high-priority targets and asserts that the mineralized system remains open, supporting the case for further resource growth. The announcement also references recent results at the Mutum target (20.7m at 1.57 g/t gold) and notes ongoing drilling at Jerimum Cima, Machichie, and Mutum, with 28 diamond and 69 RC drill holes pending results. The company states it is working toward a NI 43-101 compliant resource update for all gold-in-oxide and primary gold resources at Cuiú Cuiú by year-end 2026, and expects to enter commercial production in Q4 2026 following its first gold pour at the Phase 1 heap leach operation. The tone is confident, with a focus on resource expansion and near-term production, and the grant of 500,000 restricted share units to an officer signals internal alignment.

What the data suggests

The disclosed drill results show multiple mineralized intercepts at Central and Central North, including 8.2m at 2.50 g/t gold (DDH391), 10.4m at 0.45 g/t (DDH395), 13.0m at 0.41 g/t (DDH397), and 18.0m at 0.72 g/t (DDH400), with higher-grade sub-intervals such as 0.5m at 21.27 g/t and 1.9m at 3.11 g/t. These grades and widths are consistent with potentially economic open-pit mineralization in the region. The company holds a 100% interest in the Cuiú Cuiú district, which has NI 43-101 Indicated resources of 12.29Mt at 1.14 g/t gold (450,200oz) in fresh basement and 13.56Mt at 0.50 g/t (216,182oz) in oxide, plus Inferred resources of 13.63Mt at 1.04 g/t (455,100oz) in fresh basement and 6.4Mt at 0.34 g/t (70,569oz) in oxide. The resource figures are tied to technical reports dated October 2022, October 2024, and July 2025. The company has completed its first gold pour at the Phase 1 heap leach operation but does not disclose production volumes or grades from that pour. Drilling is ongoing, with results pending on 97 holes, and a resource update is expected by year-end 2026. The factual disclosures are strong for an exploration-stage company, but realized production and cash flow data are not yet available.

Analysis

The announcement provides detailed and credible drill results, including specific intercepts and grades, as well as updated NI 43-101 resource figures with supporting technical report dates. These are realised, measurable facts and appropriate for an exploration-stage company. However, the tone is somewhat inflated by forward-looking statements about entering commercial production in Q4 2026 and the potential for additional mineralization, neither of which are yet realised. The mention of a Phase 1 heap leach operation signals significant capital intensity, but no financial or production metrics are disclosed for the gold pour, and commercial production is still projected rather than achieved. The narrative emphasizes ongoing and future drilling, resource updates, and district-scale potential, but the majority of tangible benefits (production, cash flow) remain at least several quarters away. The gap between narrative and evidence is moderate: technical progress is real, but the language around future production and resource growth is not yet substantiated by operational or financial outcomes.

Risk flags

• ●Operational risk is elevated due to recent drill rig maintenance issues and laboratory delays, which have slowed exploration progress and could impact the timing of both resource updates and production ramp-up. The company has 28 diamond and 69 RC drill holes pending results, and any further delays could push back key milestones.
• ●Resource and geological risk persists as the mineralized system is described as open at depth and along strike, and while drill results are encouraging, the continuity and economic viability of new zones are not yet proven. The company relies on ongoing drilling to convert exploration success into resource growth.
• ●Execution risk around the transition to commercial production is material, as the company has only recently completed its first gold pour and has not disclosed production volumes or recoveries. Achieving steady-state production in Q4 2026 will require successful commissioning and ramp-up of the heap leach operation.
• ●Disclosure risk exists due to the absence of financial data related to the recent gold pour, such as ounces produced, recovery rates, or costs, making it difficult for investors to assess the project's near-term cash flow potential or operational efficiency.

Bottom line

Cabral Gold's latest drill results at Central and Central North demonstrate continued mineralization with grades and widths that support the case for resource expansion at Cuiú Cuiú. The company is progressing toward a NI 43-101 resource update and targets commercial gold production by Q4 2026, both of which are near-term catalysts. While the technical disclosures are robust, the absence of production and cost data from the initial gold pour leaves a gap in assessing near-term financial impact. Operational and execution risks remain, particularly around timely delivery of pending drill results and successful ramp-up to commercial production. Investors should focus on the upcoming resource update, actual production figures from the heap leach operation, and evidence of operational stability as the key indicators of value realization. The most important takeaway is that Cabral is approaching a critical inflection point, but tangible proof of production and cash flow is still pending.

Announcement summary

(TSXV:CBR, OTCQX:CBGZF) Cabral Gold Inc. announced results from five additional diamond drill holes at the Central North target area, immediately north of the Central Gold deposit within the Cuiú Cuiú Gold District, Brazil. Reconnaissance diamond drilling along trend and to the north of the Central gold deposit returned 8.2m @ 2.50 g/t gold from 149.7m depth including 0.5m @ 21.27 g/t gold in DDH391. Drilling along the NW extension of the main Central deposit returned 10.4m @ 0.45 g/t gold from 173.0m depth in DDH395 and 13.0m @ 0.41 g/t gold from 96.0m depth in DDH397. At the Central North target, located 400m NNW of Central, drilling intercepted 18.0m @ 0.72 g/t gold from 145.9m depth in DDH400. Recent drilling at the Mutum target, 1km to the NW, returned 20.7m @ 1.57 g/t gold in DDH387. Elton Pereira, VP Exploration, stated that the Central - PDM trend extends for at least 5km and hosts two of six known gold deposits in the district, with several high-priority targets outside the known deposits. The mineralized system remains open at depth and along strike to the north, and these results support the potential for additional mineralization beyond the currently defined Central resource. Five diamond drill holes were drilled at the northern end of the Central gold deposit (DDH391, DDH395, DDH384) and at the Central North Target (DDH400 and DDH404), 400m NNW of Central. Drill holes DDH391, DDH395, and DDH397 cut multiple zones of mineralization, including 8.2m @ 2.50 g/t gold from 149.7m depth (incl. 0.5m @ 21.27 g/t gold), 10.4m @ 0.45 g/t gold from 173.0m depth, and 13.0m @ 0.41 g/t gold from 96.0m depth, respectively. Historic holes in the area returned 24m @ 0.25 g/t gold in DDH127 and 20.3m @ 0.24 g/t gold in DDH123, with DDH123 ending in mineralization at 492.25m depth with 0.32 g/t gold. DDH400 at Central North returned 18m @ 0.72 g/t gold from 145.9m depth, including 1.9m @ 3.11 g/t gold. DDH391 also returned 16.3m @ 0.36 g/t gold from 86.3m depth, including 0.5m @ 7.08 g/t gold. DDH395 returned 8.0m @ 0.42 g/t gold in saprolite and 2.7m @ 1.20 g/t gold within a broader interval. DDH397 returned 9.0m @ 0.13 g/t gold in saprolite and 2.5m @ 1.62 g/t gold within a broader interval. DDH404 returned 3.0m @ 0.30 g/t gold and 1.0m @ 1.32 g/t gold. Drilling is ongoing at Jerimum Cima, Machichie, and the Mutum target, with RC drilling also ongoing at Jerimum Cima and Machichie Main. Results are pending on 28 diamond drill holes and 69 RC drill holes. The company is working towards a NI 43-101 compliant resource update for all gold-in-oxide and primary gold resources at Cuiú Cuiú by year-end 2026, with resources being updated for Central, MG, JB, Machichie Main, PDM, and Jerimum Cima. Cabral Gold Inc. has granted 500,000 restricted share units to an officer, vesting one year from the date of grant. The company holds a 100% interest in the Cuiú Cuiú gold district in the Tapajós Region, Pará, Brazil. Three main gold deposits at Cuiú Cuiú contain NI 43-101 Indicated resources of 12.29Mt @ 1.14 g/t gold (450,200oz) in fresh basement and 13.56Mt @ 0.50 g/t gold (216,182oz) in oxide material. Inferred resources are 13.63Mt @ 1.04 g/t gold (455,100oz) in fresh basement and 6.4Mt @ 0.34 g/t gold (70,569oz) in oxide. The resource estimates are based on NI 43-101 technical reports dated October 12, 2022 (primary), October 21, 2024 (oxide at PDM and MG), and July 29, 2025 (oxide at Central and Machichie). The company recently announced its first gold pour at its Phase 1 gold-in-oxide heap leach mining operation and expects to enter commercial gold production during Q4 2026. Alan Carter is President and Chief Executive Officer. Brian Arkell is Vice President, Exploration and Technical Services.

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