Cabral Gold Announces Results of Updated Prefeasibility Study on the Gold-in-Oxide Starter Operation at the Cuiú Cuiú Gold Project, Brazil

Core Viewpoint - Cabral Gold Inc. has announced significant improvements in its updated Prefeasibility Study (PFS) for the Cuiú Cuiú gold project in Brazil, highlighting enhanced financial metrics and a promising pathway to initial gold production within 12 months of an investment decision [1][4][10]. Financial Metrics - The after-tax Net Present Value (NPV) has increased by nearly 200% from US$25.2 million to US$73.9 million [6][16]. - The after-tax Internal Rate of Return (IRR) has risen from 47% to 78% based on a base case gold price of US$2,500 per ounce, with payback of initial capital reduced from 18 months to 10 months [6][22]. - At the current spot gold price of US$3,340 per ounce, the after-tax IRR increases to 139% and the after-tax NPV to US$137 million [6][16]. Project Development - The project aims to develop a low-cost starter operation that will generate significant cash flow to support further exploration and development of the primary hard rock resources [3][11]. - Initial gold production is targeted for the second half of 2026, with advanced negotiations for project financing ongoing [4][77]. Resource and Production Capacity - Probable Mineral Reserves have increased by 54% from 83,762 ounces to 128,908 ounces of gold, with life of mine gold production rising by 56% from 72,478 ounces to 113,155 ounces [6][22]. - The annual processing capacity has been increased from 720,000 tonnes per year to 1,000,000 tonnes per year, extending the mine life from 4.4 years to 6.2 years [6][22]. Operational Improvements - The project has reduced capital intensity, with initial capital costs remaining essentially unchanged at US$37.7 million compared to US$37.4 million in the previous PFS [6][22]. - The waste-to-ore ratio has improved from 0.93 to 0.78, indicating more efficient resource extraction [22]. Exploration Potential - Recent drilling has identified a fifth gold-in-oxide blanket at the Jerimum Cima target, which could provide opportunities for future resource expansion [9][11]. - The company is pursuing an aggressive exploration drilling program to increase the primary hard rock resource base [11][12]. Infrastructure and Access - The Cuiú Cuiú project is strategically located near existing infrastructure, with ongoing upgrades to access roads to support year-round operations [52][53]. - The project will utilize a diesel generator bank for power, minimizing initial energy costs [56][57]. Next Steps - The company plans to finalize project financing and achieve an investment decision by the Cabral Board in the second half of 2025 [77].