Brazil Gold Project on Track: Cabral Gold Targets Significant Cash Flow From Cuiu Cuiu Heap Leach Development

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1. Ownership and Share Structure Information

The information listed above was updated on the date this article was published and was compiled from information from the company and various other data providers.

Cabral Gold Inc. (CBR:TSX.V; CBGZF:OTCMKTS) has released a construction update on its Phase 1 gold-in-oxide heap leach project in the Cuiu Cuiu gold district of Pará, Brazil, reporting that work is 54% complete and on track for commercial production by the end of 2026.

Construction Progress: 54% Complete, On Budget and On Schedule

As of early March, 71% of total project costs have been committed under contract, and the detailed engineering phase is advancing smoothly. Procurement of major plant equipment is more than 90% complete, with the remaining items expected to be finalized by the end of the month. The construction team and contractors have logged 93,625 combined work hours in 2026 with no lost-time incidents.

President and CEO Alan Carter noted that the project has successfully moved past the most weather-sensitive phase of construction. Significant earthworks are now 95% complete, and the focus has shifted to above-ground plant erection and surface infrastructure, which carry less weather-related risk and lower execution uncertainty.

The project site currently employs 283 workers and contractors, all Brazilian nationals, with 70% drawn from the local state of Pará. The workforce is transitioning from earthmoving to plant installation in the coming months.

Key Milestones and Equipment Delivery

The adsorption, desorption, and recovery (ADR) plant is nearing final assembly at Como Engineering in Perth, Australia, and is scheduled to undergo dry commissioning before being disassembled and shipped to the site. Conveyor systems, mineral sizers, and other long-lead items are in advanced stages of manufacturing. Local Brazilian suppliers are producing steel structures, including the run-of-mine ore bin, which is expected on site by mid-March.

On the civil side, the permanent mine camp area has been cleared and leveled, with construction begun in January 2026 and on track for completion by the end of March. A nine-meter-high mechanically stabilized earth retaining wall for the ROM ore reception area has been completed. Final water and solution storage ponds are nearing completion.

Infill drilling of the MG oxide starter pit, which will supply ore for the first 12 months of operation, is 75% complete. Results will feed into a detailed mine design, with mining activities expected to commence in mid-2026. Key upcoming milestones include major equipment arrivals on site in Q1 and Q2, the ADR plant arrival in Q3, followed by plant commissioning and the ramp-up to commercial production in Q4 2026.

Phase 1 Economics and the Path to Self-Funding

The Phase 1 heap leach operation is designed to produce approximately 15,000 to 20,000 ounces of gold per year. At current gold prices near US$5,000 per ounce, Paradigm Capital analyst Don Blyth estimates the project could generate pre-tax cash flow of CA$45 to CA$60 million annually. The primary purpose of Phase 1 is to establish Cabral as a self-funding explorer-developer, generating the cash flow needed to finance the larger "Phase 2" development plan, which would involve milling hard and fresh rock mineralization.

Cabral is also actively advancing exploration alongside construction, with three drill rigs currently operating at the project. Strong results could support a doubling of exploration activity in 2027. The next Mineral Resource Estimate for Cuiu Cuiu, expected later in 2026, is projected to confirm at least 2 million ounces of global mineral resources.

An Obvious Takeover Candidate?

Blyth described Cabral as an "obvious takeover candidate" for G Mining Ventures, whose Tocantinzinho mine operates adjacent to the Cuiu Cuiu project. However, he emphasized that Cabral is not dependent on a takeover to create value for shareholders. "Cabral is advancing its Phase 1 HL project, continuing to grow resources and demonstrate a larger standalone project," Blyth wrote.

Analyst Commentary: A Buy on Down Days

The Gold Advisor Senior Analyst, Jeff Valks, writing on March 5, noted that the project is tracking well against its pre-feasibility study. He highlighted the significance of the construction transition from earthworks to plant installation as a meaningful de-risking milestone, even if construction updates tend to attract less market attention than drill results.

Valks described the stock as a buy, recommending accumulating on down days, and disclosed a long position in the shares. He noted that the stock had climbed by more than 200% in the prior year in the U.S. market.

Gold Market Context: Labor Data Reignites Demand

Gold has climbed back above US$5,100 per ounce following a weak U.S. employment report for February, which showed nonfarm payrolls falling by 92,000 jobs, well below economist forecasts of around 58,000 gains. The unemployment rate edged up to 4.4%, and previous months' figures were revised lower. The data have renewed expectations for Federal Reserve rate cuts later in the year, lifting demand for gold as a non-yielding asset.

Spot gold was last seen trading at US$5,128.50 per ounce, up nearly 1% on the day. Jeffrey Roach, Chief Economist at LPL Financial, noted that the three-month average for job creation has slowed sharply and that a faster-than-expected deterioration in the labor market could prompt a rate cut as early as April.

Gold's path has not been without volatility. Earlier in the week, spot prices declined roughly 1.6% to near US$5,060 per ounce amid strength in the U.S. dollar and higher oil prices following military action in the Middle East, which raised inflation concerns and tempered rate-cut expectations. Analysts have noted that gold has increasingly been treated as a speculative asset over the past year rather than a traditional safe haven, contributing to heightened price swings.

Ownership and Share Structure

Insiders and management hold approximately 6% of Cabral Gold, with institutions accounting for around 14% and retail investors making up the remaining 80%. Major shareholders include AMS Asset Management at 5.85%, Aegis Financial Corp. at 4.80%, CEO Alan Carter at 4.7%, and Director Lawrence Lepard at 1.13%.

The company has approximately 277.99 million shares outstanding and a market capitalization of CA$236.29 million. Its 52-week trading range spans CA$0.24 to CA$0.98.