Cabral Gold Inc (CVE:CBR) (OTCMKTS: CBGZF) says it has uncovered a new high-grade gold system at the Machichie target at its Cuiú Cuiú project in northern Brazil.
The assays announced Thursday come from six reconnaissance holes from the target, which has never previously been drilled, and a highlight intercept was 3.4m (meters) at 36.9 g/t (grams per ton) gold including 0.7m at 162.7 g/t gold in one hole.
READ THE DEEP DIVE: Cabral Gold starts drilling at Cuiú Cuiú gold project
This first phase of diamond-drilling is part of a larger 20-hole reconnaissance program designed to test nine separate high-grade gold targets.
Machichie was selected as a priority target following the identification of high-grade gold mineralization from shallow artisanal shafts in mid-2018.
It lies just 500 meters north of the MG deposit, which is currently the second largest gold deposit known at Cuiú Cuiú, with an inferred resource of 8.6MMt (million tonnes) at 1.45 g/t gold.
Open along strike and at depth
The intersection above is from a hole targeting a north-east (NE) trending structure, coincident with a NE-trending magnetic low. The structure remains open along strike and to depth.
The other five holes tested the E-W (east-west) trending Machiche magnetic-low. Highlight assays here included 2.1m (meters) at 15.3 g/t gold and 0.5m (meters) at 20.2 g/t gold. Another hole showed 0.6m (meters) at 10 g/t (grams per ton) gold.
Shares surged over 24% to $0.28.
Contact Giles at giles@proactiveinvestors.com
Follow him on Twitter @Gile74