Video News/Investment Trends

Cabral Gold (TSXV: CBR) President and CEO Alan Carter says the company is advancing toward production at its Cuiú Cuiú gold district in Brazil following a construction decision and the completion of project financing. Speaking with Kitco Mining’s Investment Trends, Carter said Cabral expects to declare commercial production in the fourth quarter of this year as it builds its phase one oxide operation. “We modeled the project at a gold price of $2,500 an ounce,” he said, noting the pre-feasibility study delivered a 78% after-tax rate of return and projected all-in sustaining costs of about $1,200 per oz. Carter said higher gold prices materially improve project economics, adding that capital payback at current prices is “probably in the order of about four months,” while construction remains “on schedule” and “on budget.” He also outlined Cabral’s $45 million US gold loan financing, which involved no equity dilution and was provided by the company’s largest institutional shareholder. Looking ahead, Carter said the company plans to update its global resource later this year following 35,000 m of drilling and several new discoveries, as cash flow from phase one is expected to support continued exploration and longer-term growth.