Diamond Drill Hole Completed At Pau de Merena Target

VANCOUVER – Cabral Gold Inc. reported on a recently completed diamond drill hole at the Pau de Merena (PDM) target. PDM is located 2.5km NW of the Central gold deposit and within the Cuiú Cuiú district. Diamond drill hole DDH346 intersected 23.3m @ 4.7 g/t gold from 57m depth in hard rock below the gold-in-oxide blanket, including 1m @ 91.3 g/t gold and 1m @ 8.1 g/t gold. The mineralized zone remains open at depth and along strike.

The mineralized zone is most likely the strike extension of the zone intersected in DDH22 which returned 8.5m @ 5.1 g/t gold including 0.7m @ 30.4 g/t gold, and is one of four zones thus far identified in intrusive rocks below the gold-in-oxide blanket at PDM. Drill results are pending on the Mutum and Machichie NE targets, and diamond drilling is currently in progress at the Machichie Main and Jerimum Cima targets

Alan Carter, President and CEO, said, “The results from diamond drill hole DDH346 at the PDM target at Cuiú Cuiú highlight the presence of several very high-grade structures in the intrusive rocks below the gold-in-oxide blanket at PDM. These four discrete structures remain open along strike and down-dip. Whilst a significantly larger gold-in-oxide blanket occurs at PDM than previously envisaged, there is increasing evidence of down-dip and along strike continuity of the four known zones of primary mineralization within the intrusive rocks below the gold-in-oxide blanket. Additional drilling is planned to determine the size of the hard rock gold resource at PDM, which is located only 2.5km northwest of the Central gold deposit.

These drill results come soon after the announcement of the US$45 million construction financing for the Phase 1 operation at Cuiú Cuiú which is aimed at the heap leach processing of the near surface gold-in-oxide material at the MG, Machichie Main and Central gold deposits at Cuiú Cuiú. The oxide material at PDM was not part of this PFS study but these results and more recent drilling at PDM in both the oxide material and the underlying intrusive rocks, augers well for expansion of the global resource base at Cuiú Cuiú.”