Cabral Gold (TSXV:CBR) - Operating Licence Secured, First Gold Targeted by September

Interview with Alan Carter, President & CEO of Cabral Gold Inc.

Our previous interview: https://www.cruxinvestor.com/posts/cabral-gold-tsxvcbr-85-built-q4-production-district-growth-ahead-11014

Recording date: 14th August 2026

Cabral Gold has reached a pivotal stage in developing its Cuiú Cuiú gold district in Pará State, Brazil, having secured the Operating Licence (LO) needed to begin leaching gold from its first heap leach pad. The licence, granted by the state environmental authority SEMAS/PA, follows the earlier Preliminary Licence and sits alongside a separate approval from Brazilian military authorities covering the purchase and transport of cyanide which both prerequisites for gold recovery under the company's Phase 1 gold-in-oxide operation.

Construction of the wet processing circuit, the last major piece of the build, is over 90% complete. The ADR plant which is built in Australia and shipped to site has finished mechanical assembly, with electrical work more than 90% done and commissioning under way. The simpler dry circuit, covering ore crushing, agglomeration and stacking, is already commissioned and operating. Ore is being mined, stacked and prepared for irrigation, which CEO Alan Carter expects to begin within days.

Management's updated timeline puts first gold production in September 2026, around six weeks earlier than originally planned, with full commissioning wrapped up by late September and a ramp-up toward commercial production - defined internally as 60-70% of design throughput - through the fourth quarter. The company has deliberately avoided issuing formal 2026 production guidance given the number of ramp-up variables involved in a first-time mine build, though guidance is likely for 2027.

Economically, the early mine life looks favourable relative to the broader resource. Infill drilling at the first deposit being mined points to average grades near 1.5 g/t gold over the first 12-18 months, roughly double the 0.7 g/t life-of-mine average, with life-of-mine costs guided at approximately US$1,200 an ounce against a gold price recently around US$4,300 an ounce. Management expects Phase 1 to generate at least US$50 million a year in cash flow once ramped up, which it intends to direct toward repaying a 39-month gold loan (signed in November 2025) and funding an active six-rig exploration programme, rather than raising further equity.

The larger opportunity, as Carter frames it, is Stage 2: unweathered hard-rock gold beneath the oxide caps now being mined, which he says represents roughly three-quarters of the district's current resource. With six known gold deposits, five confirmed to carry oxide caps, and around 50 untested peripheral targets across the district, management plans to update Cuiú Cuiú's global resource estimate by year-end and, depending on the outcome, potentially advance a preliminary economic assessment on the hard-rock opportunity in the first half of 2027.

Near-term risks centre on commissioning execution through the wet circuit and the inherent uncertainty of ramping up a new operation, while the current trial mining licence's 500,000-tonne cap - below the 1-million-tonne throughput contemplated in the Pre-Feasibility Study - remains a near-term constraint pending an expected licence upgrade. The project also recorded its first Lost Time Incident during the update period, a non-critical injury, against a Lost Time Injury Rate of 0.34 per 200,000 hours worked.

View Cabral Gold's company profile: https://www.cruxinvestor.com/companies/cabral-gold

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