Shares of Cabral Gold Inc. (CVE:CBR) were up 11.1% on Thursday as the company released initial drill results within the Central/Pau de Merenda target corridor at its Cuiu Cuiu project in Para state, northern Brazil.
The company said recent weathered bedrock sampling by auger drilling and pitting at the Central/Pau de Merenda corridor returned highly anomalous results in both gold counts and geochemical analyses.
"The auger results from the Central - Pau de Merenda corridor area are very compelling and strongly suggest the presence of a significantly larger area of gold mineralization than is suggested by the current resource at Central," said president and chief executive officer, Alan Carter.
Individual top-of-saprolite samples returned peak values of 18.7 grams per ton (g/t) gold. Gold counts in places exceeded 100 per sample
The results show a mineralized corridor extending for a minimum of 4km in a northwest-southeast direction.
The company said the Central deposit, which contains 485,000 ounces, currently occupies the southeastern 1.2km of this 4km long anomaly.
Cabral Gold’s Cuiu Cuiu project is located in the Tapajos region of Brazil. The Tapajos region was the site of the world’s largest ever gold rush between the mid-1970s and mid-1990s and is estimated to have produced 20-30mln/oz of placer gold.
Cuiu Cuiu itself was the largest of these placer areas and is estimated to have yielded 2mln/oz of gold from streams.
"These results come close on the heels of recent high-grade surface rock assay results from the Jerimum Cima target area (see news release of June 19, 2018), which are also located outside the existing resource. I would like to congratulate our exploration team, led by Adrian McArthur, on their continued success, and look forward to additional results from other targets at Cuiu Cuiu in the coming weeks and months."
Issuance of stock options
Cabral has also announced that it has granted stock options to the Executive Chairman of the Company pursuant to its stock option plan. The stock options entitle the holder to purchase 450,000 common shares in the capital stock of the Company at a price of $0.23 per common share. The stock options are exercisable until June 19, 2023, and are subject to vesting over 24 months.
Shares of Cabral were up 11.1% at C$0.25 on Thursday.