Canada’s Cabral Gold announces capex forecast for Brazilian project

Canada’s Cabral Gold announced the details of its Cuiú Cuiú project in Brazil's Tapajós region, Pará state, on which it has been conducting a prefeasibility study (PFS).

The company now estimates that capex for the project will be US$37.4mn.

"The PFS confirms an economically attractive starter heap-leach and open-pit mining operation targeting the weathered gold-in-oxide mineralization at Cuiú and outlines a pathway for funding the evaluation and drill testing of numerous targets within the Cuiú Cuiú district," Alan Carter, president and CEO of Cabral Gold, said in a statement.

"With capital expenditures of just US$37.4 million and an average operating cash cost of $1,154/oz of gold, the initial gold-in-oxide project is expected to generate strong cashflows. This cash flow will be used to fund an aggressive program of drilling directed towards the company’s principal objective of expanding the much larger primary hard rock resource base and drill testing the numerous targets within the Cuiú Cuiú district," he added.

Cabral Gold seeks to move forward with the completion of detailed engineering work, further resource drilling, modelling designed to grow the resource base and securing the necessary project financing, allowing for an investment decision during the second quarter of 2025.

Average gold production in the first two years of operation after commissioning is estimated at 19,700oz/y at an AISC of US$1,003/oz.

Companies owning gold projects are trying to move forward quickly with their projects due to the current surge in gold prices generated by global geopolitical tensions.