G Mining's TZ Gold Project Likely to Become Brazil's Third-Largest Gold Mine
G Mining's recently announced US$110 million acquisition of the TZ gold project from Eldorado Gold should result in one of Brazil's largest gold mines and highlights the potential of the Tapajos region, which was the site of the world's largest gold rush.
Cabral Gold Inc. (TSX-V: CBR; OTC: CBGZF) is getting a new neighbor at its Cui?? Cui?? project in Brazil's Tapaj??s region, and Dr. Alan Carter, the junior miner's Founder and CEO is feeling vindicated due to his longstanding belief that the Tapajos will prove to be one of the world's largest gold districts.
The new neighbor is G Mining Ventures (GMIN:TSX.V), which has purchased the fully permitted Tocantinzinho (TZ) gold project from Eldorado Gold (ELD:TSX; EGO:NYSE) for $110 million in combined cash and shares. Eldorado's President and CEO George Burns described TZ as "a cornerstone asset for GMN, a team with a strong track record of building mines on time and on budget . . . we believe they are the right group to responsibly advance the asset."
Breaking Down the Timeline
Cabral's Carter told Streetwise, "This is a huge development for this part of Brazil and highlights the enormous potential of the Tapajos region. If you look at the largest gold mines in Brazil and what G Mining is planning to do, TZ will in likely become Brazil's third largest gold mine."
"We are very optimistic that we will make additional discoveries in the coming months."
In immediate, practical terms, G Mining plans an "aggressive" schedule of work through June 2022. This will mean infrastructure improvements that will benefit Cabral as well. "Being next to a significant development that is under construction will be far better for us than being next to a stranded project that has been left on the back burner," Carter said.
The Tapaj??s region was the site of the world's largest placer mining gold rush in 1978 to 1995, yielding up to 30 million ounces. Cabral owns 100% of Cui?? Cui??, located 20 kilometers northwest of TZ, and Cui?? Cui?? was the largest placer gold camp in all of the Tapajos.
During the Tapaj??s Gold Rush, Cui?? Cui?? produced 2 million ounces of placer gold, 10 times the amount produced at TZ, suggesting that in all likelihood there will be a lot more gold in the hard-rock at Cui?? Cui??. The Cui?? Cui?? district currently contains 1 million ounces in two deposits but the project is 15 x 10 km and contains 43 mostly high-grade targets within a few kilometers of the two known hard-rock deposits.
Whilst developments at the TZ project next door are positive, Cabral is on its own fast-paced exploration program at Cui?? Cui??. Since Carter last spoke with Streetwise in August, Cabral has added two more drills and now has a total of five turning, which should result in a lot of news through to mid-2022 at least. In addition, Cabral is making new discoveries which are should add significant ounces at Cui?? Cui??.
Carter commented, "It's extremely rare for a junior company like ours to control an entire gold district, but with high-grade gold drill intercepts on 10 targets outside the two known gold deposits, and a further 33 targets within an 8-kilometer radius, we are very optimistic that we will make additional discoveries in the coming months."
"It's not a question of whether there is gold at Cui?? Cui??. The question is how many more deposits are there, and how much gold do they contain?"With work continuing year-round at Cui?? Cui??, even during the November to April rainy season, Carter anticipates nine months of steady news flow.
"Even with lab turnaround times running slowly due to Covid-19, we expect to release results every two to three weeks," he said.
Cabral's Mission Is to Deliver Value at Cui?? Cui??
Cabral and Carter are committed to Cui?? Cui??, and Carter has so far put $1.7 million of his own money into Cabral, making him the largest shareholder.
"As a management team, we are on a mission to deliver value, and we all are aligned with our shareholders as we work on that objective. Last year we were the #2 ranked mining stock on the TSX-V exchange, and there are hundred's of mining companies listed in the exchange. Our Cui?? Cui?? project is very special because it encompasses an entire district. It's not a question of whether there is gold at Cui?? Cui??. The question is how many more deposits are there, and how much gold do they contain?"
"We think that so far we can explain 10% of the placer gold that was extracted at Cui?? Cui??. We're looking for the remaining 90%. To us it only makes sense that the largest placer gold camp in the region of the world's biggest placer gold rush should harbor the largest hard-rock gold deposits," Carter concluded.
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