(Kitco News) Cabral Gold is advancing its Cuiú Cuiú gold district in Brazil toward first production in the fourth quarter of 2026 after securing a key environmental permit that enables the project to move beyond its current trial-mining constraints.
Speaking with Kitco Mining in mid-March, President and CEO Alan Carter said the company’s receipt of the Licença Prévia, represents a critical step in Brazil’s permitting framework. Carter called the milestone “the most important step if you’re trying to permit a mine in Brazil.”
The LP is the first stage in Brazil’s three-step environmental licensing process and underpins Cabral’s ability to expand operations. Carter said the project has been operating under trial mining licenses that limit throughput to about 500,000 tonnes per year, or roughly 1,500 tonnes per day. Full permitting would allow the company to scale toward its planned 3,000 tonne-per-day capacity.
Carter said applications for the next approvals, the installation and operating licenses, were expected to follow in March. As of April 13, the company has not reported receiving those approvals in subsequent releases.
With permitting advancing, execution on Phase 1 construction remains the immediate focus. Cabral reported in a March 5 update that construction was 54% complete, with Carter updating, “we're still on budget and on schedule.” The company continues to target commissioning in the third quarter of 2026 and gold production in the fourth quarter.
Carter said much of the higher-risk early construction work has been completed despite seasonal challenges. “As each day progresses, we are gradually de-risking this project,” he said.
The project’s economics remain a key part of the investment case. A 2025 pre-feasibility study outlined initial capital of about US$37.7 million and average annual production of roughly 25,000 oz, with an after-tax IRR of 78% at $2,500 gold and all-in sustaining costs near US$1,210 per oz.
Cabral’s funding position has strengthened, with Carter noting on that the company held about C$40 million in cash. It subsequently announced a C$20.0 million bought deal financing on March 25, which closed April 2, with proceeds allocated to exploration, development, and working capital.
Exploration continues to support both near-term mine planning and longer-term growth. On April 7, Cabral reported reverse-circulation infill drilling at the MG starter pit, including 48 meters at 1.35 g/t gold from 4 meters depth and 17 meters at 2.27 g/t gold from surface. The company said the results confirm grade continuity and are expected to support an updated oxide reserve ahead of mining.
Carter also pointed to district-scale upside beyond the starter operation, highlighting high-grade intercepts at the Jerimum Cima target located about 3 km from existing deposits. “It is a spectacular hole,” he said.
Cabral is advancing a second development phase targeting underlying hard rock mineralization, with a preliminary economic assessment expected in 2027.
For now, the company remains focused on delivering Phase 1 while advancing exploration across the broader district, with permitting progress, construction milestones, and drilling results expected to define the next stage of development.
Watch the full video on the Kitco Mining YouTube channel.
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