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Exploration Success Continues at Piaui Prospect

·17-min read
Serabi Gold plc
Serabi Gold plc

For immediate release

18 March 2022

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

Exploration Success Continues at Piaui Prospect

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to update the market on further positive development from the Palito project where brownfield diamond drilling has continued to define mineralisation at the Piaui prospect within a series of parallel mineralised structures located just 500 metres from the current underground mine infrastructure.

A PDF Copy of this news release including images can be accessed using the following link - https://bit.ly/36ntFz1

Highlights

  • Shallow drilling confirms the continuity of three major parallel mineralised structures and identifies further smaller parallel zones.

  • Visible gold encountered in PDD0619 within a zone grading 2.6m @ 13.37g/t Au including 0.75m @ 33.74g/t Au from 28.55m.

  • High grade intercepts include:

    • 0.41m @ 16.89g/t Au from 26.40m, 1.94m @ 11.86g/t Au including 0.70m @ 19.15g/t Au from 35.30m (PDD0618)

    • 0.65m @ 14.28g/t Au from 43.1m, 5.90m @ 4.11g/t Au including 1.00m @ 17.56g/t Au from 69.75m (PDD0617)

    • 2.00m @ 3.69 including 1.00m @ 6.54g/t au from 12.0m (PDD0616)

    • 1.60m @ 2.70g/t Au including 0.50m @ 6.30g/t Au from 113.55m (PDD0612)

Mike Hodgson, CEO of Serabi, commented:

“The Piaui prospect is shaping up to be an excellent near mine opportunity for Serabi. This excellent set of drill results supports the strong results generated in 2011 with high grades over significant mineable widths. Piaui is close to the existing mine infrastructure and therefore can be brought into the mine plan in a short period of time and at low capital cost. We look forward to updating the market with further results when we complete a phase of deeper drilling later in the year.”

Figure 1: Plan of Piaui Prospect with new and significant historic drill results.
To access an image of the Piaui Prospect Plan please use the following link - https://bit.ly/363Tft8

Results

The Piaui Prospect is located within the Palito Mine Lease, only 500m south of the mine infrastructure and underground mine development in the Senna and Zonta veins. It was identified in 2010 from a ground based induced polarisation survey undertaken as follow up to an airborne VTEM survey completed in 2008. Initial drilling results released in 2011 (news release dated 7 April 2011) reported a number of significant higher grade zones, including 2.57m @ 17.32g/t Au (PDD0459), 2.51m @ 6.20g/t Au (PDD0458), 10.73m @ 1.16g/t Au (PDD0456) and 4.50m @ 2.76g/t Au (PDD0455), within a strongly chlorite altered shear zone. Subsequent drilling in 2011 (news release dated 23 November 2011) reinforced the initial results with further intercepts including 5.21m @ 3.74g/t including 0.68m @ 14.00g/t Au (PDD0499), 3.40m @ 6.49g/t (PDD0506), 4.80m @ 2.72g/t Au (PDD0508), 2.00m @ 8.91g/t Au (PDD0511) and defined mineralisation over a 300 metre strike length within a strong hydrothermal alteration zone which was interpreted to remain open at depth.

In 2016, Serabi completed a series of bore hole electromagnetic (BHEM) surveys on the deeper holes drilled into the prospect to identify off-hole massive sulphide. As a result a series of conductors were defined occurring in two east dipping payshoots within the plane of the intercepted mineralised structures.

In 2022, Serabi have completed a further 10 drill holes (PDD0610 – PDD0619) into the two zones with the objective of refining the interpretation of the structures identified by the 2011 drilling, to faciliate a decision to extend mine development to Piaui. The first phase of the drilling targeted the mineralised zones within 100m of surface. The second phase planned for later in 2022 will target the BHEM anomalies.

Significant intercepts reported from the Piaui prospect are tabled below including some previously reported historic results from the 2011 drill campaign.

Hole

Target

East

West

RL

Depth (m)

Dip/Azm

From

To

Apparent Width (m)

Gold Grade

(UTM- SAD69)

(UTM- SAD69)

(°/°UTM)

(Au g/t)

PALITO SURFACE DIAMOND DRILLING

PDD0610

633159.00

9300631.00

249.00

90.29

-50.0/210.00

78.00

79.90

1.90

1.16

PDD0611

633126.00

9300597.00

230.00

167.04

-48.7/212.26

16.30

18.00

1.70

1.34

64.00

66.10

2.10

1.25

incl.

64.00

64.60

0.60

3.63

Teresina

68.45

69.70

1.25

1.44

incl.

68.45

69.20

0.75

2.02

Paulistana

112.55

113.00

0.45

1.92

PDD0612

Teresina

633090.00

9300611.00

240.00

176.40

-58.7/209.66

56.22

56.85

0.63

2.23

109.25

110.85

1.60

1.17

Floriano

113.55

115.15

1.60

2.70

incl.

113.55

114.05

0.50

6.30

Paulistana

118.90

119.60

0.70

1.17

126.10

127.00

0.90

0.58

PDD0613

Floriano

633040.00

9300574.00

229.00

75.61

-56.7/214.86

14.00

16.00

2.00

1.97

28.00

29.00

1.00

0.51

Paulistana

34.30

34.80

0.50

2.44

PDD0614

Floriano

633095.00

9300595.00

232.00

154.42

-59.1/214.56

77.30

77.90

0.60

4.25

PDD0615

633125.00

9300567.00

230.00

150.62

-60.0/211.96

37.75

38.25

0.50

1.87

Teresina

41.15

41.55

0.40

2.11

PDD0616

Floriano

633130.00

9300508.00

225.00

75.19

-60.0/30.00

12.00

14.00

2.00

3.69

incl.

12.00

13.00

1.00

6.54

16.00

17.00

1.00

0.92

PDD0617

Paulistana

633003.00

9300595.00

226.00

95.46

-60.0/208.86

16.60

17.80

1.20

0.84

37.85

38.40

0.55

2.82

Picos

43.10

43.75

0.65

14.28

69.75

75.65

5.90

4.11

incl.

69.75

70.75

1.00

17.56

PDD0618

633186.00

9300435.00

221.00

75.63

-58.4/32.06

10.00

11.25

1.25

0.74

12.50

13.75

1.25

0.64

17.15

18.25

1.10

0.76

21.50

23.94

2.44

3.13

26.40

26.81

0.41

16.89

Paulistana

35.30

37.24

1.94

11.86

incl.

35.30

36.00

0.70

19.15

Floriano

54.60

55.80

1.20

0.83

PDD0619

Paulistana

633219.00

9300420.00

221.00

111.17

-60.2/27.06

28.55

31.15

2.60

13.37

incl.

28.55

29.30

0.75

33.74

Floriano

48.80

49.70

0.90

1.88

59.25

59.85

0.60

1.68

SELECT HISTORIC DIAMOND DRILLING INTERCEPTS (1)

PDD0455

Paulistana

633176.19

9300455.51

221.69

175.00

-62.0/32.18

3.50

8.00

4.50

2.76

Floriano

28.40

31.90

3.50

1.57

PDD0456

Teresina

633161.89

9300430.78

218.36

255.00

-61.6/31.68

179.50

190.23

10.73

1.16

incl.

184.60

185.60

1.00

3.80

PDD0458

Teresina

633058.30

9300494.29

219.01

250.50

-61.4/27.88

189.83

192.34

2.51

6.20

PDD0459

Paulistana

633072.43

9300519.23

222.37

170.00

-60.6/21.68

18.90

21.47

2.57

17.32

Teresina

140.80

141.59

0.79

1.22

PDD0499

Teresina

633142

9300633

242.22

188.20

-50/212

110.57

115.78

5.21

3.74

incl.

115.10

115.78

0.68

14.00

PDD0506

Paulistana

633067

9300584

228.33

94.40

-49/216

56.81

60.21

3.40

6.49

PDD0508

Teresina

633136

9300544

228.33

97.60

-49/215

15.50

20.30

4.80

2.72

PDD0511

Floriano

633240

9300484

228.00

133.60

-48.7/209.2

64.18

66.18

2.00

8.91

Paulistana

73.20

74.13

0.93

3.12

Reported intercepts calculated based on a minimum weighted average grade of 0.5g/t Au (0.3g/t Au for historic results) 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. Some of the assay results reported above include those provided by the Company's own on-site laboratory facilities at Palito and have not 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.
Note: Historic results have been re-assayed using the ALS independent laboratory and, this combined with re-compositing, accounts for the difference between these reported and the originally reported intercepts.



(1) Since the original release of these results, samples have been re-assayed using the independent ALS laboratory and the intervals recomposited. Therefore the results reported in the table above may vary slightly from those originally reported..

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 and Financial Adviser

Roland Cornish / Michael Cornish

Tel: +44 (0)20 7628 3396

Peel Hunt LLP
Joint UK Broker

Ross Allister / Alexander Allen

Tel: +44 (0)20 7418 9000

Tamesis Partners LLP
Joint UK Broker

Charlie Bendon / Richard Greenfield

Tel: +44 (0)20 3882 2868

Camarco
Financial PR

Gordon Poole / Emily Hall

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.

See www.serabigold.com for more information and follow us on twitter @Serabi_Gold

GLOSSARY OF TERMS

The following is a glossary of technical 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 include those provided by the Company's own on-site laboratory facilities at Palito and these will not have 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

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