Cabral Gold Inc. announced drill results from an initial nine RC holes testing the near-surface oxide material at the Machichie gold discovery, Cuiú Cuiú gold district in northern Brazil. These holes are part of a drill program to better define the gold-in-oxide mineralization at the Machichie target, which is located 500m northwest of the MG gold deposit, and could have an impact on the current plans for trial-mining of the oxide material. The Machichie target is located 500m northwest of the MG gold deposit.

Previous diamond drilling at the Machichie Main zone identified a persistent mineralized zone which is east-trending and dips steeply to the north. This main zone consists of parallel high-grade core zones surrounded by a low-grade alteration envelope and is believed to extend E-W for at least 900m. The discovery is similar in style to the bedrock gold deposits at MG and Central as well as the PDM basement discovery.

As with Central, MG and PDM, the upper portion of the mineralized zone at Machichie has weathered over millions of years creating a layer of soil and saprolite (weathered bedrock) which also appears to contain gold. Whilst previous diamond drilling has largely been focused on the underlying hard rock potential at Machichie, several previous holes indicate the presence of gold-in-oxide weathered material above the primary basement mineralization. The current RC drill program at Machichie is designed to identify and better define higher-grade zones within the gold-in-oxide material that could add to the current gold-in-oxide resource at Cuiú Cuiú and could have an impact on plans for trial mining.

Drill holes RC399, RC 400 and RC401 were all drilled on section 553180 in the eastern part of the Machichie discovery. The holes were designed to follow up on the higher-grade zone of gold-in-oxide mineralization intersected in RC hole RC040 which previously returned 34m @ 5.4 g/t gold from surface, including 13m @ 13.4 g/t gold from 18m downhole. Hole RC399 was drilled from north to south and intersected 23m @ 1.1 g/t gold from surface in mineralized basement saprolite.

This subvertical east-trending zone is interpreted as being the same zone that was intercepted in basement saprolite in RC040. Drill holes RC400 and RC401 were drilled on the same section further to the north but in a southerly direction and intersected weaker zones of mineralization to the north. RC400 returned 11m @ 0.2 g/t gold from surface and RC401 returned 8m @ 0.2 g/t gold.

Holes RC402 and RC403 were both drilled on section 553150, which had no previous drilling . Both holes were drilled north to south, and were designed to test for the westward extension of the higher-grade intercept of 34m @ 5.4 g/t gold in RC040 previously returned on section 553180. Multiple east-trending subvertical mineralized zones were encountered in basement saprolite.

RC402 returned 23m @ 0.5 g/t gold from surface in saprolite material, including 1m @ 6.6 g/t gold from 9m downhole in the northern zone. Hole RC403 returned 13m @ 0.4 g/t gold from surface in mineralized basement saprolite, within the middle zone, that was also encountered deeper in RC402, which intersected 7m @ 2.5 g/t gold from 30m in mineralized basement saprolite. Holes RC406, RC407 and RC408 were drilled on section 553055.

Previous drilling had encountered multiple mineralized subvertical zones on this section. For example, DDH196 cut two vertically dipping zones, returning 12.5m @ 0.4g/t gold in near surface gold-in-oxide saprolite material and 10.4m @ 0.7 g/t gold in the hard rock material immediately underlying the saprolite. RC406 and RC407 confirmed both of these zones extend to surface in basement saprolite, returning 10m @ 0.6 g/t gold and 10m @ 0.4 g/t gold, respectively Results from RC408, which is designed to test the southern zone are pending.

These drill results from Machichie confirm the presence of gold-in-oxide in basement saprolite containing zones of higher-grade mineralization. Machichie is located just 500m north of the MG deposit. The thickness, depth of weathering profile, and lateral extent of this zone at Machichie have not yet been well defined.

However, based on limited drilling and trenching further west and in the area of the Machichie West target, its aerial extent could be signicant. As Machichie is so close to the MG resource, the identification of this higher-grade gold-in-oxide material at Machichie could have significant positive implications for the ongoing PFS aimed at trial mining and heap-leach processing of the near surface gold-in-oxide resources at Cuiú Cuiú. Results still pending on 13 RC holes from Central and nine shallower power-auger holes at MG.

Results are also pending on 12 RC holes from Machichie.