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Cabral GoldBob Moriarty The Trump administration is stuck in a quandary trying to determine if they should blow up the world’s economy first or just settle for a nuclear exchange with Russia, China, Iran, India, Yemen and anyone else who fails to take a bended knee to our masters. It’s a giant challenge for TACO. Meanwhile if the world manages to make it through the next few months, we are about to enter a golden age for the goldies. The company I am going to write about today has everything going for it. Cabral Gold (CBR-V) has a 1.2-million-ounce gold deposit in mining friendly Brazil with a market cap today of about $104 million CAD with $15 million in the bank for an enterprise value of under $90 million. Their Cuiu Cuiu property measures about 5,500 hectares. Investors today can buy an ounce of economic gold from Cabral for about $7.50 an ounce. Or you can spend almost $3500 for a one-ounce coin at your local coin dealer. One day very soon investors are going to realize that buying quality ounces in the ground is a whole lot cheaper than your friendly coin merchant. The company just released an updated prefeasibility study on the option of starting to mine the at surface oxide resource. Cabral takes an interesting approach to raising money. Rather than facing another stab at the PP market every year or so, they are going to use a modified approach similar to that of placer mining. By sticking to the easy to mine and process oxide gold right at surface, they can go into production for a cost of about $38 million with throughput of about 1 million tonnes per year with a payback of capitol at ten months and an NPV on the oxide portion of $74 million USD and a post-tax IRR of 78%. The AISC cost is USD $1,210 on a base case assuming gold at $2500. I like the idea of easing into production a lot. I have seen dozens of good solid juniors get mousetrapped over the last couple of years being forced to go to the market at a bad time and whacking their most loyal investors by doing so. Some of the latest drill results from newly discovered areas on their giant land position are simply world class. They include 22 meters of 4.8 g/t Au at PDM, 39 meters of 5.1 g/t Au at J Cima, an impressive 12 meters of 27.7 g/t Au at Machichie NE along with 11 meters of 33 g/t gold and 5 meters of 24.5 g/t Au. For certain the Cuiu Cuiu project has not given up all its gold. The region supported one of the largest placer gold rushes in history with production estimated at something between twenty and thirty million ounces of gold between the late 1970s and late 1990s. Cuiu Cuiu alone produced between 1.5 and 2.0 million ounces of placer gold. Cabral Gold is an advertiser. I have bought shares in the open market so naturally I am biased. Do your own due diligence. Their presentation is excellent and potential investors should read it carefully. Cabral Gold Inc ### Bob Moriarty 321gold Ltd |
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