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Exploration drilling extends the newly developed Mogno and Ipe lodes

·16 min read

For immediate release

11 May 2021

Serabi Gold plc
(“Serabi” or the “Company”)

Successful high-grade exploration drilling extends the newly developed Mogno and Ipe lodes at depth and potentially along strike.

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to update the market on exploration drilling results from the Palito Mine where the combination of surface and underground exploration drilling has confirmed depth and plunge continuity of the high grades in the Mogno and Ipe lodes.

A PDF version of this announcement, including all images, can be accessed using the following link https://bit.ly/3fc7mNq

Highlights

Drilling on the Mogno and Ipe veins at the Palito Mine has confirmed depth extensions by over 100 metres below the lowest mined level. Furthermore, step out drilling indicates additional payable ore shoots up to 600 metres along strike in both directions.

Significant down plunge intersections on the Mogno lode from underground exploration drilling include:

  • PUD0578 – 0.75m @ 39.96 g/t Au

  • PUD0635 – 0.50m @ 12.52 g/t Au

  • PUD0679 – 1.00m @ 51.76 g/t Au

  • PUD0681 – 0.85m @ 35.31 g/t Au

  • PUD0684 – 1.25m @ 17.29 g/t Au

Down plunge intersections on the Ipe lode from underground drilling include:

  • PUD0684 – 2.05m @ 13.54 g/t Au

  • PDD0566 – 0.89m @ 36.62 g/t Au

Surface drilling has highlighted a number of potential new ore shoots along strike on both lodes. On the Ipe vein, PDD0565 intersected 0.95m @ 3.49g/t Au 600 metres to the NW of the mine current development, and PDD0573 intersected 1.25m @ 3.64g/t Au 400 metres to the SE of the current mine development, opening up the possibility of a very significant resource increase.

On the Mogno Vein previous drilling undertaken in 2018 also indicated this vein to be gold bearing 600 metres to the SE of the current mining area with PDD0533 having intersected 0.5m @ 1.38g/t Au whilst PDD0534 intersected 0.5m @ 2.06g/t Au.

Mike Hodgson, CEO of Serabi, commented:

The Ipe and Mogno lodes are increasing their contribution of the Palito Mine ore feed due to their relative shallow depth and high grades. Both these veins are being mined less than 200 metres from surface so are easily accessed and with the main ramp already deepened to over 350 metres from surface, both Ipe and Mogno do not require much capital development.

Both shoots are extremely rich in both gold and copper with grades similar to the G3 vein which was a major contributing vein to Palito production in previous years. The confirmation that these veins are continuing at depth is excellent news and bodes well for the future of the operation. Furthermore, the drill results indicate significant potential to extend resources laterally along strike. We will continue drill testing these strike extensions over the coming months, and if we see a replication of the ore shoots currently being mined, this will confirm the potential for these two vein structures to continue make a major long-term contribution to gold production.

With drilling still ongoing at the Sao Chico and Sao Domingos prospects and a fourth rig arriving in June, we look forward to providing further exploration results to the market over the coming months.

Results

Hole

Target

East

West

RL

Depth (m)

Dip/Azm

From

To

Apparent Width (m)

Gold Grade

(UTM- WGS84)

(UTM- WGS84)

(°/°UTM)

(m)

(m)

(Au g/t)

PALITO UNDERGROUND DD DRILLING

PUD0578

Mogno

633828

9301490

60.654

221.6

-17/047

209.50

210.25

0.75

39.96

PUD0635

Mogno

633909

9301390

16.649

388.64

-12/086

284.55

285.05

0.50

12.52

Ipe

633909

9301390

16.649

388.64

-12/086

327.10

328.40

1.30

4.30

PUD0674

Mogno

633850

9301530

13.715

242

-16/050

185.20

186.00

0.80

1.10

Ipe

633850

9301530

13.715

242

-16/050

NSR

PUD0676

Mogno

633850

9301530

13.715

279.7

-30/049

212.85

213.55

0.70

4.48

Ipe

633850

9301530

13.715

279.7

-30/049

253.25

255.05

1.80

1.73

PUD0679

Mogno

634072

9301608

-11.3

80.5

-56/264

68.30

69.30

1.00

51.76

PUD0681

Mogno

634072

9301608

-11.3

67

-55/218

35.10

35.95

0.85

35.31

PUD0682

Mogno

634012

9301489

13.715

231.86

-36/023

133.80

134.40

0.60

7.35

Ipe

634012

9301489

13.715

231.86

-36/023

190.30

191.00

0.70

1.45

PUD0684

Mogno

634012

9301489

13.715

241.73

-38/070

132.85

134.10

1.25

17.29

Ipe

634012

9301489

13.715

241.73

-38/070

199.50

201.55

2.05

13.54

PALITO SURFACE DD DRILLING

PDD0564

Mogno

633769

9301704

269.99

211.4

-52/070

128.40

129.00

0.60

1.41

Ipe

633769

9301704

269.99

211.4

-52/070

NSR

PDD0565

Mogno

633649

9302075

304.17

251.57

-60/216

NSR

Ipe

633649

9302075

304.17

251.57

-60/216

170.80

171.75

0.95

3.49

PDD0566

Mogno

634300

9301219

264.24

330.77

-60/051

214.45

215.00

0.55

2.48

Ipe

634300

9301219

264.24

330.77

-60/051

281.08

281.97

0.89

36.62

PDD0567

Mogno

634511

9301279

228.47

301.1

-50/235

NSR

Ipe

634511

9301279

228.47

301.1

-50/235

NSR

PDD0572

Mogno

634346

9301140

245.66

317.95

48.2/58.86

NSR

PDD0573

Mogno

634404

9301026

216

412.03

45.7/56.96

NSR

Ipe

371.40

372.65

1.25

3.64

PDD0576

Mogno

634385

9301061

229.58

382.28

-60/57

Pending

PDD0577

Mogno

633913

9301801

231

258.26

-70/24

Pending

PDD0578

Mogno

633808

9301875

245

151.9

-45/240

Pending

PDD0579

Mogno

633669

9301816

306

ongoing

-45/038

Ongoing

Reported intercepts calculated based on a minimum weighted average grade of 0.5g/t Au using a 0.5g/t Au weighted average lower cut and a maximum internal waste interval of 1.2m based on ALS and Serabi´s on-site lab reported analyses. Assay results reported within this release for surface drilling have been provide by ALS laboratories in Brazil whilst assay results for underground drilling are those provided by the Company's own on-site laboratory facilities at Palito and have not yet been independently verified. Serabi closely monitors the performance of its own facility against results from independent laboratory analysis for quality control purpose. As a matter of normal practice, the Company sends duplicate samples derived from a variety of the Company's activities to accredited laboratory facilities for independent verification. Since mid-2019, over 10,000 exploration drill core samples have been assayed at both the Palito laboratory and certified external laboratory, in most cases the ALS laboratory in Belo Horizonte, Brazil. When comparing significant assays with grades exceeding 1 g/t gold, comparison between Palito versus external results record an average over-estimation by the Palito laboratory of 6.7% over this period. Based on the results of this work, the Company's management are satisfied that the Company's own facility shows sufficiently good correlation with independent laboratory facilities for exploration drill samples. The Company would expect that in the preparation of any future independent Reserve/Resource statement undertaken in compliance with a recognised standard, the independent authors of such a statement would not use Palito assay results without sufficient duplicates from an appropriately certificated laboratory.

NSR – No significant result





To view the image of the Mogno Longsection, please click on this link -https://bit.ly/3bjaExc

Mogno Longsection

To view the image of the Ipe Longsection, please click on this link -https://bit.ly/33tfNhY

Ipe Longsection

To view the image of the Plan view of the Palito workings showing the location of Ipe and Mogn, please click on this link https://bit.ly/3f90Gzz

Plan view of the Palito workings showing the location of Ipe and Mogno, relative to the main mine

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.

Enquiries:

Serabi Gold plc

Michael Hodgson

Tel: +44 (0)20 7246 6830

Chief Executive

Mobile: +44 (0)7799 473621

Clive Line

Tel: +44 (0)20 7246 6830

Finance Director

Mobile: +44 (0)7710 151692

Email: contact@serabigold.com

Website: www.serabigold.com

Beaumont Cornish Limited
Nominated Adviser

Roland Cornish

Tel: +44 (0)20 7628 3396

Michael Cornish

Tel: +44 (0)20 7628 3396

Peel Hunt LLP
UK Broker

Ross Allister

Tel: +44 (0)20 7418 8900



Camarco
Financial PR
Gordon Poole / Nick Hennis





Tel: +44(0) 20 3757 4980

Copies of this announcement are available from the Company's website at www.serabigold.com.

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement.

GLOSSARY OF TERMS

Ag

means silver.

Au

means gold.

assay

in economic geology, means to analyse the proportions of metal in a rock or overburden sample; to test an ore or mineral for composition, purity, weight or other properties of commercial interest.

CIM

means the Canadian Institute of Mining, Metallurgy and Petroleum.

chalcopyrite”

is a sulphide of copper and iron.

Cu

means copper.

cut-off grade

the lowest grade of mineralised material that qualifies as ore in a given deposit; rock of the lowest assay included in an ore estimate.

“dacite porphyry intrusive”

a silica-rich igneous rock with larger phenocrysts (crystals) within a fine-grained matrix

deposit

is a mineralised body which has been physically delineated by sufficient drilling, trenching, and/or underground work, and found to contain a sufficient average grade of metal or metals to warrant further exploration and/or development expenditures; such a deposit does not qualify as a commercially mineable ore body or as containing ore reserves, until final legal, technical, and economic factors have been resolved.

electromagnetics

is a geophysical technique tool measuring the magnetic field generated by subjecting the sub-surface to electrical currents.

“garimpo”

is a local artisanal mining operation

garimpeiro

is a local artisanal miner.

geochemical

refers to geological information using measurements derived from chemical analysis.

geophysical

refers to geological information using measurements derived from the use of magnetic and electrical readings.

geophysical techniques

include the exploration of an area by exploiting differences in physical properties of different rock types. Geophysical methods include seismic, magnetic, gravity, induced polarisation and other techniques; geophysical surveys can be undertaken from the ground or from the air.

gossan

is an iron-bearing weathered product that overlies a sulphide deposit.

grade

is the concentration of mineral within the host rock typically quoted as grams per tonne (g/t), parts per million (ppm) or parts per billion (ppb).

g/t

means grams per tonne.

“granodiorite”

is an igneous intrusive rock similar to granite.

hectare” or a “ha

is a unit of measurement equal to 10,000 square metres.

“igneous”

is a rock that has solidified from molten material or magma.

IP

refers to induced polarisation, a geophysical technique whereby an electric current is induced into the sub-surface and the conductivity of the sub-surface is recorded.

“intrusive”

is a body of rock that invades older rocks.

"Indicated Mineral Resource

is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

"Inferred Mineral Resource”

is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

“Inferred Mineral Resource”

‟ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

“mineralisation”

the concentration of metals and their chemical compounds within a body of rock.

“mineralised”

refers to rock which contains minerals e.g. iron, copper, gold.

"Mineral Resource

is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth's crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

“Mineral Reserve”

is the economically mineable part of a Measured or Indicated Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A Mineral Reserve includes diluting materials and allowances for losses that may occur when the material is mine

Mo-Bi-As-Te-W-Sn”

Molybdenum-Bismuth-Arsenic-Tellurium-Tungsten-Tin

“monzogranite”

a biotite rich granite, often part of the later-stage emplacement of a larger granite body.

“mt”

means million tonnes.

“ore”

means a metal or mineral or a combination of these of sufficient value as to quality and quantity to enable it to be mined at a profit.

“oxides”

are near surface bed-rock which has been weathered and oxidised by long term exposure to the effects of water and air.

“ppm”

means parts per million.

“Probable Mineral Reserve”

is the economically mineable part of an Indicated and, in some circumstances, a Measured Mineral Resource demonstrated by at least a Preliminary Feasibility Study. This Study must include adequate information on mining, processing, metallurgical, economic, and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

“Proven Mineral Reserve”

is the economically mineable part of a Measured Mineral Resource. A Proven Mineral Reserve implies a high degree of confidence in the Modifying Factors

“saprolite”

is a weathered or decomposed clay-rich rock.

sulphide

refers to minerals consisting of a chemical combination of sulphur with a metal.

vein

is a generic term to describe an occurrence of mineralised rock within an area of non-mineralised rock.

VTEM

refers to versa time domain electromagnetic, a particular variant of time-domain electromagnetic geophysical survey to prospect for conductive bodies below surface.

Assay Results
Assay results reported within this release for surface drilling have been provide by ALS laboratories in Brazil whilst assay results for underground drilling are those provided by the Company's own on-site laboratory facilities at Palito and have not yet been independently verified. Serabi closely monitors the performance of its own facility against results from independent laboratory analysis for quality control purpose. As a matter of normal practice, the Company sends duplicate samples derived from a variety of the Company's activities to accredited laboratory facilities for independent verification. Since mid-2019, over 10,000 exploration drill core samples have been assayed at both the Palito laboratory and certified external laboratory, in most cases the ALS laboratory in Belo Horizonte, Brazil. When comparing significant assays with grades exceeding 1 g/t gold, comparison between Palito versus external results record an average over-estimation by the Palito laboratory of 6.7% over this period. Based on the results of this work, the Company's management are satisfied that the Company's own facility shows sufficiently good correlation with independent laboratory facilities for exploration drill samples. The Company would expect that in the preparation of any future independent Reserve/Resource statement undertaken in compliance with a recognised standard, the independent authors of such a statement would not use Palito assay results without sufficient duplicates from an appropriately certificated laboratory

Qualified Persons Statement
The scientific and technical information contained within this announcement has been reviewed and approved by Michael Hodgson, a Director of the Company. Mr Hodgson is an Economic Geologist by training with over 26 years' experience in the mining industry. He holds a BSc (Hons) Geology, University of London, a MSc Mining Geology, University of Leicester and is a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer of the Engineering Council of UK, recognising him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Forward Looking Statements
Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ‘‘believe’’, ‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those, variations, or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

ENDS

Attachment