Nov 10, 2017
Dr. Alan Carter has started a gold company operating in central Brazil next to the Tocantinzinho Project of Eldorado Gold. As President of Cabral Gold (CBR-V), a newly listed company, Dr. Carter and his team has spent years putting the gold property package together.
The Cuiú Cuiú gold project is the company’s main focus. It comes with an historic resource of 1.5 million ounces of gold at about a 1.2 g/t grade. That resource was based on 26,000 meters of drilling. An additional 22,000 meters of drilling was done but the resource does not reflect the additional gold. Based on back of the envelope calculations I’d guess the additional 22,000 meters will add half a million up to an additional million ounces. The current pit would show a resource of 1.3 million ounces.
Obviously the reader would share my lack of understanding as to just what those grades and tonnage would mean in the middle of the Brazilian jungle but lucky for us, we can look at what Eldorado is planning on their TZ gold mine near by.
Based on a press release dated September 7, 2016, Eldorado plans on mining 170,000 ounces of gold a year at TZ at a reserve grade of 1.4 g/t for ten years. Construction will begin in 2017 with initial production planned for 2019. They estimate a sustaining cash cost of $615 an ounce.
Eldorado is putting in power lines and building a 70 km access road that Cabral will have the use of.
The numbers on the project are simply stupid. The stock has barely begun to trade at $.465 and that gives the company a market cap of $15.5 million with nearly seven million in the treasury. That makes what should be economic gold near surface worth under $10 an ounce. That isn’t going to last long.
I’m not going to ramble on at length about the company and their projects because they have done a really excellent job of telling their story in the company presentation. Any readers interested in cheap gold in a reasonable jurisdiction in a company run by great management should read the presentation.
I was an early buyer of the shares and I have also participated in their latest private placement. Do your own due diligence. Cabral is an advertiser.
CBR-V $0.465 (Nov 09, 2017)
34.5 million shares
Cabral Gold website