Cabral Gold (TSXV:CBR) - Pitch Perfect, November 2025

Key Concepts

Kuyukuyu Project: Cabral Gold's advanced gold project in northern Brazil.
Saprolite: Surface weathered material, targeted for initial mining.
Hard Rock Deposits: Deeper gold mineralization requiring more extensive extraction.
Resource Estimate: Quantification of gold ounces within a deposit.
Starter Operation: Initial, smaller-scale gold production phase.
PFS (Pre-Feasibility Study): A study to assess the technical and economic viability of a mining project.
IRR (Internal Rate of Return): A metric used to evaluate the profitability of an investment.
NPV (Net Present Value): The difference between the present value of cash inflows and the present value of cash outflows over a period of time.
Tapajós Gold Belt: A significant gold-producing region in Brazil.
G Mining: Company operating the adjacent, third-largest gold mine in Brazil.
Mashishi Main & Mashishi Northeast: Two of Cabral Gold's recent hard rock gold discoveries.
Central Gold Deposit & MG Deposit: Cabral Gold's two main known gold deposits.

Cabral Gold: Kuyukuyu Project Overview and Development Strategy

This summary details Cabral Gold's Kuyukuyu gold project in northern Brazil, highlighting its advanced stage, strategic development plan, and the management team's extensive experience and investment.

Project Location and Adjacent Operations

Cabral Gold's flagship asset is the Kuyukuyu project, situated in northern Brazil. A key strategic advantage is its immediate adjacency to G Mining's Cheno mine, which is currently the third-largest gold mine in Brazil. Both Cabral's project area and G Mining's deposit lie on the same Northwest Trending regional structure, suggesting shared geological potential. Historically, Kuyukuyu produced ten times more placer gold from streams than the Cheno mine.

Resource Base and New Discoveries

The Kuyukuyu project currently boasts a resource estimate of 1.2 million ounces of gold, last updated in September 2022. This resource is spread across two main gold deposits: the Central Gold Deposit and the MG Deposit.

Since the last resource update, Cabral Gold has made four new hard rock gold discoveries:

Mashishi Maine
Mashishi Northeast
Jerem Sema
PDM

These new discoveries are located very close to the MG gold deposit, with Mashishi Main and Mashishi Northeast being immediately north of MG. Drilling on these new discoveries is ongoing.

Drilling Results and Expansion Potential

Recent drilling efforts have yielded significant results, particularly in the new discovery areas:

Mashishi Main/Northeast:
- 11 meters at 33 grams per tonne (g/t) gold
- 12 meters at 27 g/t gold
- 5 meters at 24.5 g/t gold
Central Gold Deposit: The 2022 resource estimate for the Central deposit was approximately half a million ounces. The resource block model shows significant gaps, indicating potential for expansion through infill drilling.
MG Deposit: This deposit, located 5 kilometers away from the Central deposit, also shows potential for expansion, particularly down-dip, and has gaps in the current drill program that are being targeted.

Both the MG and Central deposits are characterized by high-grade mineralization. For instance, a specific box in the MG deposit is reported to be running 2.6 meters at approximately 28.9 g/t gold, which is described as "pretty common for Kuyukuyu."

The company plans to update the resource estimate towards the end of 2026. In addition to known deposits and new discoveries, there are approximately 50 peripheral targets within the district-scale project, offering substantial exploration potential.

Development Strategy: Two-Stage Approach

Cabral Gold's strategy for developing the Kuyukuyu project involves a two-stage approach:

Stage 1: Starter Operation (Surface Weathered Material)

Focus: Mining the surface weathered material, known as saprolite. This material is up to 60 meters thick and sits above the hard rock deposits.
Status: The starter operation is under construction and fully funded.
Production Target: Expected to produce around 20,000 ounces of gold per year.
Cash Cost: Estimated at $1,200 per ounce.
Timeline: Production is anticipated to commence in the fourth quarter of 2026.
Methodology: This will be a heap leach project with on-off pads.
Capital Cost: $37.7 million.
Engineering: Designed and engineered by Senko Engineering, a multinational firm with a significant presence in Brazil. Long lead items have already been ordered.
PFS (Pre-Feasibility Study): Released in July 2025, this study outlines the initial step of mining approximately one million tons per year.
- Assumed Gold Price: $2,500 per ounce.
- IRR: 78%
- NPV: $74 million
- Payback: 10 months
- At a gold price of $3,500 per ounce:
  - IRR: 151%
  - Payback: 6 months

Stage 2: Expansion and Hard Rock Mining

Objective: To generate cash from the starter operation and reinvest it into drilling the remaining targets within the district.
Focus: Developing the known hard rock deposits and exploring the numerous peripheral targets.

Management Team and Capital Structure

Management Experience: The management team is highly experienced, with a proven track record of involvement in five grassroots gold discoveries in Brazil over the last 20 to 25 years. These discoveries collectively total over 5 million ounces.
Personal Investment: The management team has invested a significant amount of their own capital into Cabral Gold. The President and CEO, Alan Carter, has personally invested almost 2 million Canadian dollars.
Capital Structure:
- Shares Outstanding: 273 million shares.
- Stock Performance: The stock has been rising, with a recent re-rate following the announcement of secured funding for the starter operation.
- Shareholders: A good roster of institutional shareholders.

Key Arguments and Perspectives

The core argument presented is that Cabral Gold represents a compelling investment opportunity due to:

Experienced Management: A team with a history of successful gold discoveries in Brazil.
Significant Personal Investment: Demonstrating strong belief in the project's potential.
Advanced Project with Proven Resources: A substantial resource base of 1.2 million ounces.
Strategic Location: Adjacent to a major producing mine in a prolific gold belt.
New Discoveries: Four recent, high-grade discoveries expanding the project's potential beyond the existing resource.
District-Scale Potential: Numerous unexplored targets within a large project area.
Fully Funded Starter Operation: A de-risked, near-term production plan generating cash flow.

Conclusion and Takeaways

Cabral Gold's Kuyukuyu project is positioned for significant growth. The company has a clear, two-stage development strategy, starting with a fully funded, heap leach operation targeting weathered surface material, expected to commence production in late 2026. This initial phase will generate cash to fund further exploration and development of the project's substantial hard rock resources and numerous new discoveries. The experienced management team's significant personal investment underscores their confidence in the project's potential, which is further bolstered by its strategic location adjacent to a major gold mine and its district-scale exploration upside. The recent high-grade drilling results and the robust economics outlined in the PFS highlight the attractive nature of this opportunity.