The company I’m discussing today possesses all the right attributes. Cabral Gold Inc. (CBR:TSX.V; CBGZF:OTCMKTS) controls a 1.2-million-ounce gold resource in mining-supportive Brazil with a current market valuation of approximately CA$104 million, holding CA$15 million cash reserves, creating an enterprise value under CA$90 million. Their Cuiu Cuiu landholding spans roughly 5,500 hectares.

Today’s investors can acquire an ounce of economically viable gold from Cabral for roughly US$7.50 an ounce. Alternatively, you might pay nearly US$3,500 for a single-ounce coin from your neighborhood precious metals retailer. Soon enough, investors will comprehend that purchasing quality underground ounces represents a far better value than what your friendly bullion seller offers.

The company recently unveiled an updated prefeasibility study, regarding the possibility of beginning a mine on the surface oxide resource. Cabral employs an intriguing funding strategy. Rather than facing repeated private placement fundraising every year or so, they plan to implement a modified technique reminiscent of alluvial mining operations.

By focusing on the easily accessible and processable oxide gold directly at surface, they can commence production for approximately US$38 million, with annual processing capacity around 1 million tonnes, offering capital recovery within ten months plus an NPV on the oxide component of US$74 million, and a post-tax IRR of 78%. The AISC figure sits at US$1,210, based on projections assuming gold is priced at US$2500.

I greatly appreciate their gradual production approach. I’ve witnessed countless promising junior miners get cornered over recent years, forced into fundraising during unfavorable market conditions, and consequently punishing their most dedicated shareholders.

Some recent drilling outcomes from newly identified zones across their expansive property are truly exceptional. These include 22 meters averaging 4.8 g/t Au at PDM, 39 meters of 5.1 g/t Au at J Cima, a remarkable 12 meters of 27.7 g/t Au at Machichie NE alongside 11 meters of 33 g/t gold and 5 meters of 24.5 g/t Au.

Undoubtedly, the Cuiu Cuiu project hasn’t revealed all its treasures. The area hosted one of history’s largest alluvial gold rushes, with extraction estimated between twenty and thirty million ounces from the late 1970s through the late 1990s. Cuiu Cuiu alone yielded between 1.5 and 2.0 million ounces of alluvial gold.

Their presentation is outstanding, and potential investors should review it thoroughly.