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Cabral Gold Announces Positive Prefeasibility Study on the Gold-in-Oxide Starter Operation at the Cuiú Cuiú Gold Project, Brazil with After-Tax IRR of 47.3%
Vancouver, British Columbia--(Newsfile Corp. - October 21, 2024) - Cabral Gold Inc. (TSXV: ...
About this update from Cabral Gold, Inc.
[{"type":"text","content":"Cabral Gold Announces Positive Prefeasibility Study on the Gold-in-Oxide Starter Operation at the Cuiú Cuiú Gold Project, Brazil with After-Tax IRR of 47.3%Vancouver, British Columbia--(Newsfile Corp. - October 21, 2024) - Cabral Gold Inc. (TSXV: CBR) (OTC Pink: CBGZF) (\"Cabral\" or the \"Company\") is pleased to announce a positive Prefeasibility Study (\"PFS\") on the development of near-surface gold-in-oxide material at the Cuiú Cuiú gold district in Brazil. The PFS, which was led by Ausenco do Brasil Engenharia Ltda. (\"Ausenco\") confirms the Cuiú Cuiú gold-in-oxide starter project provides a high return and a low capital entry point to mine gold at the prospective Cuiú Cuiú District.Highlights Base Case after-tax IRR of 47.3% and after-tax NPV5 of US$25.2 million for an initial 720,000 tonne / yr starter operation using open-pit mining of oxidized gold mineralization and heap-leach processing, and assuming a gold price of US$2,250 / oz In the case of the current Spot Gold1 price - US$2,710/oz, the IRR increases to 82.6% and the after-tax NPV5 to US$49.3 million The PFS has a 4.5-year mine life with strong cashflows in the early years and an 18-month payback2The initial in-pit resources have very favorable geometry due to the shallow and high-grade nature of the ore. The starter pit (planned for the first seven months) is expected to mine shallow, higher grades with a very good strip ratio, containing an estimated 418,000 tonnes of ore @ 1.38 g/t average gold grade3 with just 56,000 tonnes of waste Average annual gold production in the first 2 years of operation after commissioning is 19,700 ounces per year at an all-in sustaining cost (\"AISC\") of US$1,003 / ozLow development Capex of US$ 37.4 million, including 10% allowance on most quantities and 20% ContingencySignificant potential exists to add nearby resources of similar high-value oxidized mineralization with further step-out and infill drilling at the nearby Machichie and Machichie NE targets, where recent drilling returned 11m @ 33g/t goldBeyond the attractive initial financial outcome, the project 1) provides future expansion options for gold-in-oxide production, 2) provides pre-stripping exposing the underlying primary gold mineralization reducing future strip-ratios and mining costs, 3) establish...