Cabral Gold Inc. (CBR:TSX.V; CBGZF:OTCMKTS) recently announced that it has secured a US$45 million gold loan to fully fund the construction of the Phase 1 Heap Leach project at Cuiú Cuiú, noted Paradigm Capital Analyst Don Blyth in an updated research report on October 22.
The company stated that the financial flexibility provided by this gold loan, along with the recent equity raise of CA$14.9 million, will enable it to continue their regional exploration drilling program at Cuiú Cuiú during the project's construction.
The latest drill results underscore the importance of ongoing exploration efforts, Blyth said. Drilling at the PDM target yielded a standout result of 23.3 meters at 4.7 grams per tonne gold (g/t Au), including 1.0 meter at 91.3 g/t Au starting at 57 meters depth (Hole DDH346).
Hole 346 appears to be an extension of the same mineralized zone intersected by previous drilling approximately 100 meters to the northwest, which returned 8.5 meters at 5.1 g/t Au, Blyth wrote.
CBR Positioned to 'Substantially Grow' Resource
Blyth called the developments "positive."
"The PDM target currently has a defined gold-in-oxide resource, but there is not currently any fresh rock resource at PDM, due to insufficient drilling," he wrote.
The PDM target currently has a defined gold-in-oxide resource, but there is no fresh rock resource yet due to limited drilling, the analyst said. It is reasonable to anticipate that a fresh rock resource will be defined at PDM, featuring a zone of high-grade mineralization surrounded by broader zones of lower-grade mineralization, the analyst wrote.
"This is exactly what we see at the defined existing hard rock deposits (Central and MG)," Blyth noted. "Furthermore, similar results are occurring at Machichie Main, Machichie NW and the Jerimum Cima targets."
The current hard rock resources are about 1 million ounces (Moz), which is not sufficient to justify the development of a standalone mill, in Paradigm's opinion. In a worst-case scenario, this could still be attractive as a satellite deposit for G Mining with its Tocantinzinho (TZ) mine located just a few kilometers away.
"But we believe CBR is positioned to substantially grow this hard rock resource with additional drilling (we think 2 Moz is achievable over the next 12 months) and the momentum of discovery shows no signs of slowing down," Blyth said.
The Cuiú Cuiú project may not have enough hard rock resources to justify a standalone mill (aka Phase 2) today, but that it is entirely possible, indeed very likely, with additional drilling, according to the analyst.
Conclusion
Blyth has rated the stock Speculative Buy and raised his target price from CA$0.65 per share to CA$0.75 per share on August 4. With a price of CA$0.38 at the time, it would mean a nearly 100% return.
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Disclosures for Paradigm Capital, Cabral Gold, October 22, 2025:
The analyst has an ownership position in the subject company.
Paradigm Capital Inc. has assumed an underwriting liability for, and/or provided financial advice for consideration to the subject companies during the past 12 months.
Paradigm Capital Inc. expects to receive or intends to seek compensation for investment banking services from the subject companies in the next 3 months.
Paradigm Capital Inc. has greater than a 1% ownership position in the subject company.
The analyst has a family relationship with an Officer/Director of subject company.
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Gold and Precious Metals
Don Blyth, Analyst 416.903.3461
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