Significant upside in Brazil adjacent to Eldorado Gold May 2017 - - PowerPoint PPT Presentation

May 2017

Significant upside in Brazil adjacent to Eldorado Gold

The material presented herein is private and confidential. The contents are not to be reproduced or distributed to any third party, including the public or press. Certain statements contained in this presentation constitute forward-looking statements. These statements relate to future events or the Corporation's future performance, business prospects or opportunities. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "estimate", "expect, "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes that the expectations reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. These statements speak only as of the date specified. The Corporation does not intend, and does not assume any obligation, to update these forward-looking statements. These forward-looking statements involve risks and uncertainties relating to, among other things, results of exploration activities, the Corporation's limited experience with development-stage mining operations, uninsured risks, regulatory changes, defects in title, availability of materials and equipment, timeliness of government approvals, changes in commodity and, particularly, gold prices, actual performance of facilities, equipment and processes relative to specifications and expectations and unanticipated environmental impacts on

• perations.

Actual results may differ materially from those expressed or implied by such forward-looking statements.

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Disclaimer

Introducing A New Brazilian Gold Explorer

Cabral Gold Inc. (TSXV – SAO)

Solid Assets

• Primary project: Cuiú Cuiú
• Widespread artisanal workings
• $22MM spent
• 1.3MM oz gold resource (2011

historic)

• 48km of drilling (22km after

resource est.)

• Contiguous to Eldorado’s TZ

development gold project

• High potential for resource

expansion

• Many untested targets

Experienced Management and Board

• Alan Carter
• Paul Hansed
• Charles Oliver
• Dennis Moore
• Derrick Weyrauch
• Don Njegovan

RTO and Financing Expected to Close in June 2017

• ~ 34.5MM shares outstanding
• Est. $20.7MM market cap
• $7MM cash
• Plans to aggressively explore,

define targets and expand resource base

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Experienced Board and Management

Management

Alan Carter – President and Director: (BSc, PhD in Geology) +25 years of experience in mining, 13 with Rio Tinto + BHP Billiton. Founder and CEO of Magellan Minerals Ltd. Co-owner of 3.5% NSR on Tocantinzinho. Co-founder of Peregrine Metals and Cuprum Resources. Currently a director of Anfield Gold Ltd. (acquired Magellan Minerals in 2016) and Peregrine Diamonds. Paul Hansed – Chief Financial Officer: +25 years of accounting and finance experience including 19 years with KPMG in Canada and

• Europe. Previous CFO of Magellan Minerals Ltd.

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Board of Directors

Charles Oliver – Chairman: (CFA, BSc in Geology, AccDir). Former Lead Portfolio Manager for Sprott Gold and Precious Metal Fund, and at AGF Funds, where he managed a variety of funds, including the Precious Metals Fund, Canadian Resources Fund, Global Resources Fund, Growth Equity Fund and Markland Oil sands Sector Fund. Currently a director Klondex Mines Ltd. and Integra Gold Corp. Dennis Moore: (BSc, M Eng) +35 years of experience in mining exploration in Austral-Asia and South America. Discovered Tocantinzinho in 1997 and ultimately drilled off 2.4MM oz for Brazauro Resources. Co-founder and former VP Exploration Magellan Minerals. CEO of a private exploration company focused on Nevada exploration. Co-owner of 3.5% NSR on Tocantinzinho. Derrick Weyrauch: (BA Econ., CPA, CA) +25 years of experience in senior management focused on financing, corporate turnaround and restructuring, strategic planning and M&A transactions. Mr. Weyrauch served as a director of Jaguar Mining from 2013 to 2014, and as CFO until 2016, overseeing its restructuring from CCAA. Prior to that he has been CFO of several junior exploration companies, including Andina Minerals Inc., Temex, and Malbex. Currently a director of Banro and Eco Oro. Don Njegovan: (BSc Mining Engineering, BA) +20 years experience in mining. VP Business Development at Osisko Mining. Former Mining Investment Banker.

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Merger Announced

Business combination agreement by way of three-cornered amalgamation announced May 11, 2017

Merger Terms

0.9 Cabral share per 1 San Angelo share (0.18 post rollback)

Expected Close

On or around July 10, 2017

Terms and Conditions

Approval of 5:1 roll back by San Angelo shareholders Cabral to have working capital of no less than $3.8MM Approval of the amalgamation by Cabral shareholders TSX-V approval

Financing

$6MM subscription receipt offering of Cabral units converting to San Angelo

• units. Units to be free trading at closing of the amalgamation.

Pricing $0.108 per unit comprising a common share and one half 1-year warrant with a strike of 0.135 and a second half 2-year warrant with a strike

• f 0.162 (post merger $0.60, $0.75, and $0.90 respectively).

San Angelo Oil Ltd. (TSXV – SAO) RTO Transaction and Financing Details

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• After RTO and 5:1 roll back
• 24.5MM shares basic
• 26.3MM shares f.d.
• 0.86MM warrants and 0.94MM options all ITM
• ~$1.4MM cash and $1.9MM ITM cash
• After planned $6MM financing
• 34.5MM shares basic
• 47.5MM shares f.d.
• 12.1MM warrants and 0.94MM options
• ~$6.9MM cash and $7.4MM ITM cash

Based on the price of financing Cabral’s market cap would be $20.7MM with an EV of $13.8MM

Pro-forma Capital Structure and Ownership After RTO and Financing

Basic Fully Diluted

Tapajos Site of the world’s largest ever gold rush between mid 1970’s and mid1990’s Largest placer gold province in

• Brazil. Third largest in world.

Estimated to have produced 20-30MMoz of placergold

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Highway

Bom Jardim Cuiu Cuiu

Anfield Anfield

Navigable River

Cuiú Cuiú: Regional Location

Tocantizinho (Eldorado Gold) 2.2Moz

Cuiú Cuiú: Larger Artisanal Footprint than TZ

• 36K ha property

contiguous and on trend to the northwest

• fTZ
• Cuiú Cuiú reportedly

produced 10x the gold of TZ from artisanal workings during the Tapajos goldrush

• Accessible by road and

navigableriver

• Serviceable airstrip at

the small village of Cuiú Cuiú on the property, population ~400

8 Cuiú Cuiú

2Moz from streams +1.5MMoz resource to date

Tocantinzinho

0.2MMoz from streams 2.2Moz resource Rio Crepori road Airstrip

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• 1. Successfully identified four significant bedrock sources of several heavily worked steams
• 2. Maiden resources for two gold zones with combined 2011 resources (43-101 now

historic) of 1.3MM oz (in pit), or 1.5MM oz (geological)

• 3. Metallurgical work returned gold recoveries of 94-97% from conventional grind and

CIL cyanidation

• 4. Two new deposits discovered in 2012; Central North and Jerimum Baixo have not

yet been included in resource estimate - both are still open

• 5. Work was focused on 15% of the property near the village of Cuiú Cuiú
• 6. Gold in soil anomaly ~18km in length loosely corresponding to structures interpreted

from mag

• 7. Numerous high-grade intercepts outside existing resource in at least six areas
• 8. Identified many showings, veins and anomalous areas to follow up

Highlights of Previous Cuiú Cuiú Work

• Property geology dominated

by a major structure trending to TZ

• +98% of previous drilling

and +95% of prior expenditures was in the core area near Cuiú Cuiú

• Resources (historic) at

Central and Moreira Gomes

• J. Baixo and Central North

drilled after resource calculations

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Location of Known Cuiú Cuiú Deposits

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Indicated Tonnes (000) Grade (g/t) Gold Ounces (000) Central 3,400 1.0 100 Moreira Gomez 0.0 Total 3,400 1.0 100 Inferred Tonnes (000) Grade (g/t) Gold Ounces (000) Central 17,000 0.9 500 Moreira Gomez 14,000 1.5 700 Total 31,000 1.2 1,200

Source: Pincock, Allen & Holt, A. M. McMahon, April 19, 2011: Resource Estimate and Technical Report for the Cuiú Cuiú Project Tapajos Region, North-Central Brazil. NI 43-101 Report Note: Mineral resources are not mineral reserves and do not have demonstrated economic viability. Please note that all figures have been rounded to reflect their appropriate level of accuracy. These resources are constrained by mineable shapes and cut-off grades to meet the requirement that resources must have reasonable prospects for economic extraction. The mineable shapes are either Lerch-Grossman pits or conceptual underground stopes. Resources falling within the pits are reported at cut-off grades of 0.3 gpt Au for fresh rock or 0.4 gpt Au for saprolite. Stope shapes only include blocks above a cut-off grade of 1.3 gpt Au. The cut-off grades consider a gold price of $1,250 per ounce and metallurgical recoveries of 91% for fresh rock and 66% forsaprolite.

Historic Resources

Cuiú Cuiú Resources

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SE-NW section throughCentral

Central Deposit

• Bulk tonnage, open pittable

deposit:

• Wide zone of mainly

disseminated mineralization with ~50m of saprolite and

• verburden
• Historical Inferred resources of

17Mt @ 0.9 g/t Au (0.5MM oz) + Indicated resources of 3.4MM tonnes @ 1.0 g/t Au (0.1MM oz)

• 1,000m strike and 450m
• depth. Deposit remains
• pen at depth
• Drill hole highlights include:
• 96.4m @ 1.02 g/t Au
• 134.5m @ 1.10 g/t Au
• 65.8m @ 3.54 g/t Au
• 87.9m @ 1.10 g/t Au
• 179.6m @ 1.06 g/t Au
• 174.2m @ 1.46 g/t Au
• 220.7m @ 2.02 g/t

• Bulk tonnage open pittable deposit
• Historical inferred resources of 14MM tonnes @ 1.5 g/t gold (0.7MM oz)
• MG deposit extended along strike to 2km
• Deposit is open at depth and to east

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Moreira Gomes

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Cuiú Cuiú Village Area

Historic Resources A: Central B: Moreira Gomes Pending Resources C: Jerimum Baixo

• 1.3 g/t over 41m
• 0.7 g/t over 38m

D: Central North

• 1.3 g/t over 39m
• 0.6 g/t over 20m

Advanced Exploration Drill Targets E: Pau da Merenda

• 1.1 g/t over 30m
• 1.8 g/t over 47m
• 5.1 g/t over 9m

F: Jerimum Cima

• 5.1 g/t over 39m
• 1.17 g/t over 18m

G: Central SE

• 6.9 g/t over 27m
• 8.4 g/t over 8m

H: Ivo

• 2.8 g/t over 8m
• 1.5 g/t over 9m

Miraboa

A B E C

Cuiú Cuiú Village

D F G

All known deposits and advanced targets occur at the source of artisanal stream workings Many heavily worked streams in the core area have yet to be followed up

H

CC North

Cuiú Cuiú – 18km Soil Anomaly

15 Colors in red indicate soils containing +70ppbgold

Jerimum Baixo Central SE Central Central North Ivo Moreira Gomes Pau da Merenda

Miraboa CC West Ratinho

Cuiú Cuiú Village

CC North

Jerimum Cima

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Unlike TZ there are many high-grade veins and showings at Cuiú Cuiú - Magellan focused on potential bulk tonnage deposits and virtually no drilling has been done to test the high-grade veins

• B. Onca

Geraldo M. Preto

Untested High-Grade Structures

Cuiú Cuiú Village

30.4/0.7 12.8/1.0 19.6/0.6 58.7/0.5 10.2/1.0 10.9/1.3 23.6/0.5 46.2/0.5 216.4/1.0

g/t / m

20.0/1.0

g/t

13.5/0.5 85.5/1.0 30.2/0.5 33.7 17.0 46.2 20.4 13.2 12.0 10.9 225.8 87.8 103.2 45.6 21.7 13.3/0.7 345.8/0.5 12.9/1.0 93.4/1.5 53.9/2.0 14.0/1.5 31.6/2.0 11.6/1.0

Untested High-Grade Structures - Continued

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• B. Onca and Geraldo – M. Preto targets are the two easternmost examples. High-grade outcrop samples

associated with artisanal workings have not yet been followed up by drilling, despite a spatial relationship to a heavily worked artisanal stream system. Drill holes were planned in 2012 but never drilled.

87.75 45.58 18.5 21.71 103.2

Remote sensing studies show significant artisanal workings west, northwest, southwest and east of the Central area where little work has been done and source has not been found. Open circles indicate largely untested areas

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Source of Artisanal Workings Not Yet Identified

Ratinho Miraboa CC West Nova Alianca CC North

Water Flow

Cuiú Cuiú Village

• B. Onca

• Ratinho: 4 holes; significant

untested structures; significant artisanal workings; limited soil geochem

• CC West: 0 holes; unknown

structures; significant artisanal workings; soil anomaly but limited soil geochem, outside mag survey

• Miraboa: 0 holes; significant

untested structures; significant artisanal workings; strong soil anomaly

• Nova Alianca: 0 holes;

untested structures; significant artisanal workings; no soil geochem, another historic airstrip

• CC North: 0 holes; significant

untested structures; significant artisanal workings; strong soil anomaly 19

Mag Data Suggest Key Untested Structures

CC West Ratinho Miraboa Nova Alianca

• Mag shows the TZ lineament extends through the property

but subsidiary structures appear to be associated with gold

CC North

Cuiú Cuiú Village

• In its September 7, 2016 updated outlook press release, Eldorado had the following to say on its

Tocantinzinho Project in Brazil:

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• April 27, 2017 Eldorado announced received its installation license for TZ but permits for tailings

and solution ponds were not expected until later in the year. “Average annual gold production is planned at approximately 170,000 ounces at cash costs of approximately US$535 per ounce, with initial production planned for 2019. Total development capital costs are estimated at $464 million and conditional upon Eldorado Board of Directors approval, construction will commence in 2017.”

– TZ is expected to produce 170K oz of gold annually for 10 years at sustaining cash costs of US$615/oz – Proven and Probable Reserves of 39.MM tonnes 1.4 g/t gold for 1.8MM oz. The project has M&I resources of 48.7MM tonnes @ 1.35 g/t gold (2.1MM oz) + Inferred 2.4MM tonnes @ 0.90 g/t gold (0.1Moz) – The capital program includes a 100km power line and substations as well as a 70km access road and on- site accommodation for 500 staff.

In 2017 the Company is expected to spend up to $35MM in capital, primarily on engineering, early work construction and general site improvements. At the end of Q1 basic engineering for the process plant was nearly complete, while detailed infrastructure engineering was expected to be completed during Q2.

The Tocantinzinho Story and Potential Benefits

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Peer Analysis – EV/Resource ($C)

• Significant upside potential

– 25,945m of diamond drilling was prior to the resource – 22,070m drilled after – 18km long gold-in-soil anomaly remains largely untested – most of work in core area – Many heavily worked streams not followed to source – Numerous high-grade vein showings and drill intercepts have not been followed up – Non-core assets underexplored

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• Primary asset: Cuiú Cuiú

– 36K ha property covering one of the largest artisanal workings in the Tapajos - Para state – $22MM in exploration expenditures – 18km gold-in-soil anomaly with numerous bedrock gold-bearing quartz veins and stockwork systems – 43-101 historic gold resource of 0.1MM oz Indicated and 1.2MM oz Inferred – Located 25km NW of Eldorado Gold’s proposed 170K oz/yr Tocantinzinho (TZ) project

Summary

Cabral Gold Inc: Strategy

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Update the 2011 resource estimate

• The 2011 resource estimate was based on 25,945m of diamond drilling
• 22,070m of drilling was completed after the 2011 resource estimate

Evaluate non-core gold projects

• Consider further exploration, potential joint ventures, or divestiture

Aggressively test known drill targets at Cuiú Cuiú – initial 2.5MM oz target

• Test drill-ready targets with the objective of lifting the total gold resources to 2-2.5MM oz

Identify regional targets at Cuiú Cuiú – increase resources to +4MM oz

• Complete regional geochemical surveys, following up anomalies with tighter geochem,

trenching, prospecting, mapping, geophysics, remote sensing studies and other studies to identify other prospective targets on the property with the objective of lifting the total resources to +4MM oz of gold

Advance permitting

• Conduct EIA-RIMA and apply for Licenca Previa (LP)

Cabral Gold Inc: Use Of Proceeds

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Cuiú Cuiú Phase I ($960K)

• Update mineral resource
• Regional geochemistry, geological mapping and prospecting
• Trenching
• Field office logistics, staff and transportation
• Data processing and interpretation

Cuiú Cuiú Phase II ($4.13MM)

• 8,000m diamond drilling, logging, and assaying
• Field Office logistics
• Data processing and interpretation
• Re-estimate mineral resource – if appropriate

Additional Brazilian and Canadian office costs + general working capital of ~$0.8MM annually