The Cuiú Cuiú project is located in the Tapajos Region of northern Brazil, 20 km northwest of Eldorado Gold´s Tocantinzinho project. The Tapajos Region was the site of a gold rush from the 1970s until the late 1990s with artisanal miners producing an estimated 20 to 30 million ounces of gold. The mineralization is hosted within the Brazilian Shield, which is Archean to Proterozoic in age and extends from Western Bolivia through Brazil to Guyana and Venezuela.
There are two defined gold deposits at Cuiú Cuiú, Central and Moreira Gomes, located 5 km apart. The Central zone extends over a strike length of 800 metres and is 50 to 70 metres wide with a maximum known vertical depth of 450 metres. The Moreira Gomes zone extends over a strike length of 1,200 metres, is 30 to 50 metres wide, and has a vertical depth of 400 metres. Both zones remain open along strike and at depth. The Indicated Mineral Resource, effective April 2011, consists of 3.4 Mt at 1.0 g/t gold and the Inferred Mineral Resource consists of 31.0 Mt at 1.2 g/t gold. The resource statement was based on an initial 25,945 metres of drilling.
Cabral Gold has a two-phase exploration program planned for the Cuiú Cuiú project. Phase 1 consists of a field program to identify new drill targets as well as an update to the current mineral resource estimate. The updated resource will incorporate an additional 22,070 metres of drilling that was completed after the 2011 mineral resource was calculated. Phase 2 is comprised of a geophysics program that will refine drill hole targets and be followed by 8,000 metres of exploration drilling.
An updated resource estimate at Cuiú Cuiú is expected to be released during 2018.
Cabral Gold completed the third tranche of its private placement. The total gross proceeds raised from the financing was approximately C$4.2 million. The funds will be used to finance the work program at Cuiú Cuiú.