Interview with Alan Carter, President & CEO of Cabral Gold Inc.
Our previous interview: https://www.cruxinvestor.com/posts/cabral-gold-tsxvcbr-unlocking-brazils-next-major-gold-district-5699
Recording date: 10th September 2024
Cabral Gold (TSXV: CBR) presents an compelling investment opportunity in the gold sector, with its Cuiú Cuiú project in Brazil's Tapajós region poised for near-term development. The company is on the verge of completing a Pre-Feasibility Study (PFS) for its oxide resource, targeting production as early as Q1 2026.
Located adjacent to G Mining's recently commissioned Tocantinzinho mine, Cuiú Cuiú boasts a strategic position in a historically prolific gold district. CEO Alan Carter emphasizes the project's significance: "Historically, it produced 10 times the amount of placer gold as Tocantinzinho." This historical context underscores the potential scale of Cabral's land package.
The company's current resource base totals approximately 1.2 million ounces of gold, with substantial room for growth. Recent exploration success, including a high-grade intercept of 11 meters at 33 g/t gold on a peripheral target, highlights the project's upside potential. With over 45 targets yet to be drilled, Cuiú Cuiú offers significant exploration opportunities beyond the known deposits.
Cabral's near-term focus is on developing its oxide resource, which offers several advantages:
Free-digging material, potentially leading to lower mining costs
Simple processing requirements, eliminating the need for expensive milling equipment
High gold recoveries of 92-93% in recent metallurgical tests
These factors could contribute to favorable project economics and a relatively low-cost operation.
The company aims to make a construction decision by Q1 2025, with potential production starting in Q1 2026. This accelerated timeline is made possible by the project's relatively simple nature. To bridge the gap to production, Cabral is exploring various financing options, including joint ventures, debt, equity, and streaming agreements.
From a market perspective, Cabral Gold trades at a significant discount to its potential value. With a market capitalization well below $100 million, there's substantial room for valuation expansion as the company transitions from explorer to producer. The project's potentially low capital intensity relative to peers could make it an attractive investment proposition.
Investors should consider several key factors:
Imminent PFS release, a potential catalyst for stock appreciation
Ongoing exploration results that could indicate the true scale of Cuiú Cuiú
Progress on project financing and strategic partnerships
The company's ability to meet its stated development timeline
While Cabral Gold offers significant upside potential, investors should also be aware of risks inherent to junior mining companies, including execution, financing, and commodity price risks.
The macro environment for gold remains favorable, with prices near all-time highs. Additionally, the industry's focus on stable jurisdictions, near-term production potential, and exploration upside aligns well with Cabral's offering.
In conclusion, Cabral Gold represents a unique opportunity to invest in a potentially emerging gold district with near-term production prospects. As the company approaches key milestones, including the PFS release and potential construction decision, it could transition from an under-the-radar explorer to a noteworthy gold producer in one of Brazil's most prospective regions. For investors seeking exposure to the gold sector, Cabral Gold warrants serious consideration.
View Cabral Gold's company profile: https://www.cruxinvestor.com/companies/cabral-gold
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What is Company Interviews?
An insight into junior mining and opportunities to invest.
Company Interviews, a Crux Investor show, exists to cut through the jargon, bias and bluster.
Matthew Gordon, and guest host Merlin Marr-Johnson hone in on the important factors that indicate a company's strong footing for growth and success.