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Cabral Gold enthused after a peek "under the covers" at Cuiu Cuiu

Last updated: 05:01 10 Aug 2018 AEST, First published: 00:01 10 Aug 2018 AEST

Cross-section of mineral deposits at Vila Rica
Mother Nature sometimes hides her bounty

Cabral Gold Inc (CVE:CBR) has revealed why it sometimes to pay a little deeper.

It said it has identified stockwork-style mineralization at the Vila Rica discovery at the Cuiu Cuiu project in Brazil that previously were thought to be not worth bothering with.

The company has been following the lead of artisanal workers in the area and as a result has discovered that large areas of the project are covered by a thin veneer of sedimentary material that was deposited after the gold mineralization was formed.

Cabral's president and chief executive, Alan Carter, told Proactive Investors that this means large areas of the project are “effectively masked by these sediments”.

READ Cabral Gold hails high-grade mineralisation found at Machichie area at Cuiú Cuiú

Carter said workers had opened “a window down through the sediments into the underlying bedrock”.

What the artisanal workers uncovered was a gold-bearing vein and stockwork-style mineralization within saprolite (highly weathered bedrock) in the Vila Rica area.

Further studies identified this cover sequence as young, unconsolidated, lake clays and channel sands and gravels that unconformably overlie primary gold mineralization within the older granite saprolite.

The recognition of this widespread cover sequence opens the door for detection of additional buried vein and stockwork style systems in areas that had previously been downgraded due to the lack of a surface soil anomaly, Cabrol said.

Cabral has commenced an auger drilling program to test for base-of-cover/top-of-saprolite gold anomalism, with past surface soil geochemistry now thought to be ineffective over large areas due to the extent of transported cover.

“The Vila Rica program has given us our first indication of just how extensive the transported cover sequence is at Cuiu Cuiu, and the potential for this cover to conceal vein and stockwork style gold mineralization,” Carter told investors.

“The identification of stockwork style mineralization, as well as higher grade mineralization at Vila Rica, is a characteristic of the other four deposits with resources thus far identified at Cuiu Cuiu, but perhaps more exciting is the recognition of new targets under post-mineral transported cover identified through reprocessing of the magnetic data. It may well be that the best targets are yet to come as we commence our evaluation of these newly defined trends," he added.