High-Grade Gold Zone Extends Again as New Drill Results Hit 7m of 5.1 g/t

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Cabral Gold Inc. (CBR:TSX.V; CBGZF:OTCMKTS) has announced new diamond drill results from the Machichie NE target, located 150 meters northeast of the Machichie Main discovery and approximately 650 meters north of the MG gold deposit within the Cuiú Cuiú district in northern Brazil. The latest results relate to four recently completed diamond drill holes.

Diamond drill hole DDH351 intersected 7 meters grading 5.1 grams per tonne gold starting at 135.7 meters depth in highly altered intrusive rocks. The interval includes 0.9 meters at 19.5 grams per tonne gold and 0.7 meters at 6.2 grams per tonne gold. Cabral stated that this intercept extends the known high-grade mineralized zone by an additional 50 meters down-dip relative to previously released drill results, which included 11 meters at 33.0 grams per tonne gold in RC0421, 6 meters at 13.3 grams per tonne gold in RC0449, 5 meters at 24.5 grams per tonne gold in DDH331, and 12 meters at 27.7 grams per tonne gold in RC520.

DDH351 was drilled from north to south at a 60-degree dip and intersected the mineralized zone 110 meters down-dip from RC422, which returned 21 meters at 1.3 grams per tonne gold, including 3 meters at 7.5 grams per tonne gold, and RC045, which returned 28 meters at 1.0 gram per tonne gold from surface. The company noted that the high-grade structure at Machichie NE remains open in all directions.

Other notable intercepts in this update include 4.8 meters at 1.52 grams per tonne gold and 2.2 meters at 1.04 grams per tonne gold in saprolite, as well as 1 meter at 2.26 grams per tonne gold in intrusive rocks from DDH347. Cabral reported that DDH347 is the most northeast hole to date to cut the mineralized zone and suggests the zone extends at least 250 meters along strike. DDH341 and DDH349, drilled off-trend, each returned 4 meters at 0.5 grams per tonne gold in saprolite.

Alan Carter, Cabral's President and CEO, said in the news release, "The results from recent diamond drilling at this target are very significant and indicate that the mineralized zone continues at depth and along strike."

Cabral stated that drill results remain pending from two additional diamond drill holes at Machichie NE, three diamond drill holes in the Machichie Main area, and 17 reverse circulation holes at the Mutum and West Mutum targets. Drilling is ongoing at the Jerimum Cima target and the Moreira Gomes deposit.

Gold Steadies as Long-Term Value Narrative Gains Ground

Gold prices eased slightly on November 11 after touching a three-week high, according to Kitco News. December gold futures settled at US$4,113.10 per ounce, a move attributed to short-term profit-taking. Silver held relatively unchanged at US$50.54 per ounce. Despite the pullback, gold continued to trend toward one of its strongest calendar-year performances since 1979, supported by investor expectations surrounding potential Federal Reserve interest rate cuts and ongoing macroeconomic uncertainty.

In a November 12 commentary, Matthew Piepenburg highlighted gold's long-standing reputation as a store of value during periods of economic volatility. He pointed to the gradual weakening of fiat currencies and the erosion of purchasing power as factors that have historically prompted investors to turn to gold during times of monetary instability and inflation.

Additional analysis published on November 16 by Shad Marquitz of Excelsior Prosperity examined the sustained rise in gold prices relative to equity valuations within the precious metals sector. Marquitz noted that gold had increased from roughly US$250 per ounce in 2001 to about US$4,000 per ounce in 2025, underscoring its ability to preserve value over extended periods. He stated that "gold simply preserves one's purchasing power over the long haul" and described it as "hard money" compared to fiat currency.

Marquitz also observed that the current bull cycle began in late 2015, with gold rising roughly 400% from its US$1,045.40 low. He commented that, although gold producers are operating with what he described as historically strong margins, many publicly traded companies in the sector have not fully reflected this performance in their valuations. "These PM producers are literally printing the most 'hard money' that they ever have at these metals prices," he wrote, while questioning why equity performance has lagged the underlying commodity.

Analyst Commentary Highlights Continued Strength

On October 22, Paradigm Capital analyst Don Blyth issued an updated research report highlighting Cabral Gold's progress following the company's announcement that it had secured a US$45 million gold loan to fully fund construction of the Phase 1 Heap Leach project at Cuiú Cuiú. According to Blyth, the financing provided the company with additional flexibility, noting that the arrangement, together with a recent CA$14.9 million equity raise, would allow Cabral to continue its regional exploration drilling program during project construction. Blyth also emphasized the significance of the most recent drill results at the time of the report, pointing to hole DDH346 at the PDM target, which returned 23.3 meters at 4.7 grams per tonne gold, including 1.0 meter at 91.3 grams per tonne gold from 57 meters depth. He wrote that hole 346 appeared to extend the same mineralized zone intersected by earlier drilling approximately 100 meters to the northwest, which had returned 8.5 meters at 5.1 grams per tonne gold.

Blyth described the developments as "positive" and noted that the PDM target had a defined gold-in-oxide resource. He explained that PDM did not yet have a fresh rock resource due to limited drilling and stated that it was reasonable to expect that a fresh rock resource would eventually be defined, with high-grade mineralization surrounded by broader zones of lower-grade material. He added that this type of mineralization was consistent with what had been observed at the company's existing hard-rock deposits. Blyth also wrote that similar results were occurring at additional Cabral targets and stated that Cabral was positioned to "substantially grow" its hard-rock resource base with further drilling. In his report, Blyth assigned Cabral a Speculative Buy rating and referenced his prior target price increase from CA$0.65 per share to CA$0.75 per share.

 According to Valks, he viewed the stock as remaining a Buy, based on what he identified as continuity in deeper high-grade mineralization, secured financing for the starter operation, and the consistent flow of drill results throughout the district.

On November 20, 2025, Bylth published a Flash Note analyzing the latest Machichie NE drill results. According to Blyth, hole DDH351 extended the high-grade structural zone down-dip and confirmed strike continuity across approximately 250 meters. He stated that DDH351 cut 7 meters at 5.1 grams per tonne gold beneath the gold-in-oxide blanket and noted that the intercept sat 110 meters below a previous result on the same section.

Blyth wrote that earlier holes, including those returning 11 meters at 33.0 grams per tonne gold and 12 meters at 27.7 grams per tonne gold, formed part of what he described as a growing catalogue of high-grade results at Machichie NE. He added that DDH347 appeared to support strike extension to roughly 250 meters and that peripheral holes helped define the geometry of the system.

According to Blyth, the results aligned with management's objective of advancing maiden resources at multiple targets within the district. He also referenced Cabral's progress toward closing the US$45 million gold loan intended to fund Phase 1 heap-leach construction and stated in his conclusion that the results "continue to demonstrate the strength and down-dip continuity of the high-grade structural corridor at Machichie NE."

On November 20, Jeff Valks, Senior Analyst at The Gold Advisor, provided a positive assessment of Cabral Gold's latest drilling progress within the Cuiú Cuiú district. According to Valks, the most recent results represented "another high-grade step-out" that added momentum to the company's ongoing development plans. He noted that the 7 meters grading 5.1 grams per tonne gold in hole DDH351 extended the high-grade trend by an additional 50 meters down-dip and aligned with previously reported high-grade intercepts. Valks wrote that Cabral's drilling continued to show "high-grade shoots showing real staying power," framing the results within a broader pattern of consistent intersections across the district.

Valks also referenced the company's recent financing milestone, stating that on October 16, Cabral "locked in a US$45 million gold loan to fully fund its heap-leach starter project." He highlighted this funding as part of Cabral's progress toward construction and noted the combination of ongoing high-grade drill results and advancement of the near-surface oxide project. He stated that Cabral continued to deliver results across multiple targets and described the company's recent drilling as part of a sustained campaign with additional assays pending across several zones.

In his evaluation of Cabral's year-to-date performance, Valks commented that the stock had risen 151% year-to-date at the time of his writing. According to Valks, he viewed the stock as remaining a Buy, based on what he identified as continuity in deeper high-grade mineralization, secured financing for the starter operation, and the consistent flow of drill results throughout the district.

Advancing Multiple Targets Across a District-Scale Gold System

The new results at Machichie NE follow earlier high-grade intercepts and support Cabral's broader exploration effort across the Cuiú Cuiú district. According to the company's corporate presentation, the district hosts several established deposits and recent hard-rock discoveries, including Central, MG, JB, PDM, Machichie Main, Machichie NE, and J Cima. Previous drilling at Machichie NE returned results such as 12 meters at 27.7 grams per tonne gold, 11 meters at 33.0 grams per tonne gold, 6 meters at 13.3 grams per tonne gold, and 5 meters at 24.5 grams per tonne gold.

Cabral's presentation also outlines a proposed starter heap-leach operation targeting near-surface gold-in-oxide resources across MG, Central, Machichie Main, PDM, and Jerimum Cima. A pre-feasibility study released in July 2025 reported an after-tax internal rate of return of 78% and a net present value of US$73.9 million at a gold price of US$2,500 per ounce, with initial capital costs of US$37.7 million. The study contemplated processing 128,903 ounces of probable gold-in-oxide reserves from MG, Central, and Machichie.

With three rigs currently operating and drill programs active at multiple targets, including Machichie NE, Machichie Main, Jerimum Cima, Mutum, and Moreira Gomes, Cabral continues work aimed at further defining mineralized zones and expanding the geological understanding of the Cuiú Cuiú district. 

Ownership and Share Structure¹

About 7% of the company is owned by insiders and management, while institutions own about 15%. The rest is retail.

Major shareholders include AMS Asset Management with 5.89%, Aegis Financial Corp. with 4.83%, the CEO, Carter, with 4.73%, and Director Lawrence Lepard with 1.13%.

It has 276.21 million shares outstanding and a market cap of CA$151.75 million. It trades in a 52-week range of CA$0.17 and CA$0.62.