Cabral Gold Inc. announced assay results from an additional 12 RC holes testing near-surface oxide material at the Machichie Main Zone, Cuiú Cuiú gold district in northern Brazil. These holes are part of a drill program designed to better define and quantify the saprolite and blanket gold-in-oxide mineralization at the Machichie target, which is located just 500m northwest of the MG gold deposit and could have an impact on the current plans for trial-mining oxide material in that area. Highlights: RC409 returned 30m @ 2.6 g/t gold from surface in mineralized basement saprolite material including 12m @ 5.6 g/t gold from 11m depth.

RC418 returned 9m @ 4.3 g/t gold in mineralized fresh rock from 41m depth including 2m @ 18.6 g/t gold at the start of the 9m interval. RC414 returned 13m @ 1.6 g/t gold from surface in mineralized saprolite, including 6m @ 2.8 g/t gold from 4m depth. Other significant new mineralized saprolite drill intercepts include 7m @ 2.7 g/t gold from 7m depth in hole RC411, 15m @ 0.6 g/t gold from surface in hole RC412 and 18m @ 0.6 g/t gold from surface in hole RC413.

The Machichie target is located 500m northwest of the MG gold deposit. Previous diamond drilling testing the Machichie Main zone identified an east-trending, steeply north-dipping mineralized zone which is persistent along strike for at least 900m. The Machichie Main zone comprises several parallel high-grade core zones surrounded by a low-grade alteration envelope.

The geology at Machichie is very similar in style to the nearby MG and Central gold deposits as well as the PDM discovery. As at Central, MG and PDM, the upper portion of the basement 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. Previous drilling has largely been focused on testing the underlying fresh basement mineralization.

During those earlier programs, several holes encountered gold in oxidized weathered material above the primary basement gold mineralization but the distribution was poorly defined due to lack of drilling. The current RC drill program at Machichie was 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 positively impact plans for trial mining. The results from the initial nine RC holes drilled as part of the current program were very encouraging, and included 23m @ 1.1 g/t gold from surface in RC399 and 23m @ 0.5 g/t gold from surface in RC402.

Assay results included in the current press release pertain to drill holes RC408 through RC419. Drill holes RC409 and RC410 were drilled on section 553230 in the eastern part of the Machichie Main zone (Figures, 1 and 2, Table 1). The holes were designed to follow up on the higher-grade zone of gold- in-oxide mineralization intersected previously in RC hole RC041 which previously returned 19m @ 0.9 g/t. Hole RC409 was drilled from north to south and intersected 30m @ 2.6 g/t gold from surface in mineralized sediments and basement saprolite, including 12m @ 5.6 g/t gold from 11m depth This interval also includes a 6m @ 8.7 g/t gold from 16m depth (Figure 2).

This mineralized zone is interpreted to be the same as that intersected in RC399 which returned 23m @ 1.1 g/t gold on section 553180, 50m to the west. Drill hole RC410 was drilled 25m to the north of RC409 and intersected a second mineralized zone returning 16m @ 0.3 g/t gold from surface and 6m @ 1.9 g/t gold from 20m depth. Both mineralized zones were intercepted on section 553180 by RC400 and RC401.

Holes RC417 and RC418 were both drilled on section 552790, which had only one previous drill hole, RC058 which returned 1m @ 2.5 g/t gold from 87m in basement rocks. Both new holes were drilled north to south, and were designed to test the near-surface extension of the mineralized zone previously encountered in RC058. RC417 cut the same mineralized interval higher up in oxidized sediments and saprolite and returned 10m @ 0.5 g/t gold from surface.

RC418 encountered the same zone slightly deeper, at the base of the weathered profile, returning 5m @ 0.3 g/t gold in basement saprolite, and 9m @ 4.3 g/t gold from 41m depth including 2m @ 18.6 g/t gold from 41m in mineralized fresh basement rock. Holes RC413 to RC416 were all drilled on section 552900. Previous diamond drilling on this section defined two mineralized zones in basement granitic rocks.

DDH299 returned 7.6m @ 4.7 g/t gold and DDH312 returned 10.6m @ 0.4 g/t gold, again in basement granitic rocks at depth. The near surface oxidized material had not been previously tested. RC413 and RC414 confirmed gold mineralization extends to surface within oxide weathered material.

RC413 cut 18m @ 0.6 g/t gold from surface in basement saprolite, including 6m @ 2.8 g/t gold from 4m, RC414 intersected 13m @ 1.6 g/t gold from surface in mineralized basement saprolite. The current drill results from Machichie together with those previously reported confirm the presence of gold in weathered basement saprolite mineralization extending to surface from depth, and containing zones of higher-grade mineralization. Machichie is located just 500m northwest of the MG deposit.

The thickness, depth of weathering profile, and lateral extent of this zone at Machichie have not yet been well defined. 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 are still pending on 13 RC holes from Central and nine shallower power-auger holes at MG.