time to buy or add to positions

Let's look at Cabral for a moment...

Cabral is at cash backing

Enough cash to explore their highly prospective high grade DSO hematite tenements for the next 1.5 years without needing cash.

Initial exploration is pointing to a broad area exhibiting many large high grade zones over Cabral's vast landholding. The most prospective to date, the Queixada Zone with grades above 65%Fe which is so far covering an area of 3km x 2km.

If we compare the initial results with the multi-billion dollar ENRC project, Pedra De Ferro, not too far away, they exhibit some interesting similarities.

A report on that project can be read below (pages 42-50)

http://www.enrc.com/sites/enrc.g3dbuild.com/files/presentations/2012%20Spring%20Roadshow%20June.pdf

The lithology (page 45) exhibits many similarities.

The aforementioned projects were discovered in 2005 by Brazilian geologists in similar circumstances to Cabral's current situation. Within a year Zamin Ferrous, owned by Indian billionare Pramod Agarwal had bought 70% followed by the remaining 30% the following year. The Bahia projects were then purchased in two parts by Eurasian Natural Resources Corporation ENRC, 50% in 2008, the other 50% in 2010. These are multi-billion dollar projects attracting interest from all around the world.

If Cabral get any success when they are drilling for DSO hematite in the coming months, every major's eyes will be all over Cabral, probably their cash too.

With a small 259,316,667 shares on issue that leaves room for some explosive share price growth. Even before drill results the usual short term speculators should push the market cap up to at least $20m, which would be over 300% from today and a share price close to 8c. If they hit something substantial with drilling, it wouldn't be unreasonable to give a valuation from 50c to well over a dollar.

All of this will be occurring over the coming months.

Just gotta buy and wait.