Brazil's Cuiú Cuiú Gold Mine Receives Operating License, First Gold Production Advanced to September 2026

en.Wedoany.com Reported - Cabral Gold Inc. (TSXV: CBR | OTCQX: CBGZF) has obtained an operating license from SEMAS/PA, the environmental agency of the Brazilian state of Pará, for the first-phase oxide gold ore heap leach project at its Cuiú Cuiú Gold Mine in Pará State. The company has accordingly advanced its first gold production date to September 2026, approximately six weeks ahead of the original schedule. The license, together with the final regulatory approval from Brazilian military authorities for the purchase and transport of cyanide, provides regulatory consent for the use of cyanide in the leaching process and lays the groundwork for securing a full mining license in the future.

The operating license approves the use of cyanide in the leaching process, based on the preliminary license issued earlier in 2026. Cabral stated that the preliminary license serves as the foundation for a future full mining license. The wet circuit construction is now more than 90% complete, representing the second of two commissioning phases following the completion of the dry circuit. The adsorption, desorption, and recovery (ADR) plant was assembled and commissioned in Perth, Western Australia, before being shipped to site, where mechanical assembly is now complete and electrical installation is over 90% finished. Commissioning efforts have shifted to the carbon adsorption columns, desorption, and doré production, which are the final steps before first gold production.

Cuiú Cuiú is located in the Tapajós Gold Province in Pará State. According to Brazil's National Mining Agency, the region is the site of Brazil's largest gold rush, with an estimated 30 to 50 million ounces of placer gold recovered between 1978 and 1995. Cuiú Cuiú has a historical production of approximately 2 million ounces, roughly ten times the amount of placer gold recorded at the neighboring Tocantinzinho mine. Tocantinzinho, owned by GMining Ventures, is Brazil's third-largest open-pit gold mine. Cabral holds a 100% interest in the Cuiú Cuiú mining concession and is mining near-surface oxide gold ore this year while deploying six drill rigs for exploration across the broader land package.

President and CEO Alan Carter stated that project construction has continued to make good progress over the past few weeks, particularly with the receipt of the operating license and the cyanide permit. The company has continued construction through the middle of Brazil's rainy season, where rainfall occurs for most of the day, yet the first gold production date remains six weeks ahead of the original schedule. Carter also noted that despite the recent pullback in gold prices, the company's share price has remained resilient, while most junior gold companies in his portfolio have declined due to the gold price retreat and Middle East tensions.

Project economics are based on the July 2025 pre-feasibility study (PFS) led by Ausenco Brazil. At a base-case gold price of $2,500 per ounce and initial capital expenditure of $37.7 million, the after-tax internal rate of return (IRR) is 78%, with an after-tax net present value at a 5% discount rate (NPV5%) of $73.9 million. The mine life is 6.2 years, with total production of 113,155 ounces and all-in sustaining costs (AISC) estimated at $1,210 per ounce, with average annual production of approximately 25,000 ounces over the first two years. The $45 million gold loan used for project construction was completed in November 2025 and remains the company's primary source of funding. Cabral plans to use first-phase cash flows for further exploration at the mine site rather than dilutive equity financing. Should the gold price reach $3,500 per ounce, the after-tax IRR would rise to 151%.

With construction substantially complete and permits in hand, the remaining risk for the Cuiú Cuiú project has narrowed to the commissioning execution of the wet circuit, while permitting and financing uncertainties have been eliminated. The company expects to produce first gold in September 2026.