May 12 2020
Serabi Gold plc, the Brazilian-focused gold mining and development company, is pleased to announce further drilling results at the Sao Chico extension drilling programme and results of the regional geochemical sampling programs on the Palito Complex exploration tenement.
Highlights
- Results for a further eight surface holes and ten underground holes at Sao Chico since the previous exploration news release of 3 March 2020.
- The new surface drill hole results included significant intersections of:
- 5.30 m @ 12.10 g/t Au (Hole: 20-SC-166)
- 3.40 m @ 3.94 g/t Au (Hole: 20-SC-164)
- The new underground step out drill results included high grade intersections within the upper portion of the main vein of:
- 1.37 m @ 28.77 g/t Au (Hole: 20-SCUD-341)
- 2.72 m @ 5.06 g/t Au (Hole: 20-SCUD-343)
- Diamond drilling demonstrates the Main Vein structure now continues to host gold bearing mineralisation for approximately 375 metres to the west of the current mine limits, an extension of a further 75 metres.
- Reverse circulation percussion drilling on the Cicada terrestrial geophysics anomaly indicates the strong likelihood that the anomaly is a western extension of the Sao Chico vein structure, approximately 1,000 metres to the west of the current mine limits. Results include:
- 3 m @ 2.09 g/t Au (Hole: SCRC-004)
- 1 m @ 1.17 g/t Au (Hole: SCRC-007)
- Regional geochemical sampling has highlighted an area, referred to as Mata Cobra, which represents an eight kilometre by two kilometre soil copper anomaly exceeding 100 ppm. This anomaly is coincidental with multiple molybdenum, bismuth, tellurium and arsenic (“Mo±Bi±Te±As”) multi-element anomalies as well as the original airborne electromagnetic (“AEM”) anomalies.
- Within the Mata Cobra copper anomaly, located approximately five kilometres to the south of Palito, numerous significant new gold and/or multi-element anomalies have also been discovered including:
- Ganso Prospect, a gold geochemical anomaly over a one-kilometre strike with ≥1 g/t gold in soils, coincidental with the AEM anomaly.
- The Calico, Forquila and Juca gold geochemistry and AEM coincident anomalies. Field mapping indicates porphyritic intrusions and hydrothermal alteration amongst the host rocks of the anomalies.
Mike Hodgson, CEO of Serabi has been interviewed by BRR Media and Crux Investors and explains the results and interpretations in more detail in these interviews which can be accessed using the following links
Crux Investors - https://youtu.be/G9BZ43_cjNU
BRR Media - https://www.brrmedia.co.uk/broadcasts-embed/5eb2c98a31da814c9fc6e6b0/copied-from-5e8f481f31da814c9fc6923f?popup=true
Mike Hodgson, CEO of Serabi, commented: “These results follow on from the exploration news issued on 3 March 2020, with further encouraging results as we test the western extension of the Main Vein at Sao Chico. The underground drilling focused on the shallow portion of the Main Vein immediately beyond the mine’s western limit and returned 1.37 m @ 28.77 g/t Au (20-SCUD-341) and 2.72 m @ 5.06 g/t (20-SCUD-343), both very encouraging.
“Surface drilling targeted the deeper portion of the main vein and its westerly extension, and results again demonstrate good depth and grade continuity, with intercepts of 5.30 m @ 12.10 g/t Au (20-SC-166) and 3.40 m @ 3.94 g/t Au (20-SC-164). The intercept in 20-SC-166 is 300 metres below surface, and immediately down dip of 20-SC-164 and 20-SCUD341 & 20-SCUD-343, with all holes demonstrating mineable widths and grades. On a long section, an interesting high-grade zone is clearly evolving.
“Further west we have new holes 20-SC-167, 169 and 170. These are the three most westerly holes and all three intersected the Main Vein with the clearly defined vein/alteration being visible. Whilst the grades returned from the intersections (hole 20-SC-170 graded 1.00 m @ 1.09 g/t Au) are quite low, this is not unusual and most importantly the intersections demonstrate continuity of a gold bearing structure that is still going strong in our most western hole, now located 375 metres west of the current mine workings.
“The Cicada terrestrial geophysics anomaly is located approximately 700 metres further to the west of hole 20-SC-170. We have been undertaking reverse circulation (RC) drilling over this area targeting the series of high chargeability anomalies defined from the extensive ground induced polarisation (“IP”) surveys completed in 2018 (news release dated 28 November 2018). We chose RC drilling as a quick test to confirm the potential of the Cicada geophysics anomaly and are delighted to report numerous very positive results with a number of intersections grading gold and the geology indicating strong zones of alteration and associated sulphides. RC drilling does not provide core, but a bulk one metre down hole sample, for each metre drilled. Any gold mineralisation intersected is therefore diluted in the sample over at least one metre. The best intercept returned to date has been from drill hole SCRC004, where 3.00 m @ 2.09 g/t Au was recovered from a depth of 169 metres including a zone of 1 m @ 5.42 g/t Au. Again, a long section, which shows the location of the RC programme over Cicada and the step out drilling going west from Sao Chico, clearly suggests that as we continue to drill in the gap, the two areas of mineralisation could ultimately connect.
“We have also been conducting a geochemistry programme to the south of Palito, following up on some of the findings from the AEM survey completed during 2018, which identified, in particular, the very prominent 14 kilometre long, east-west trending, magnetic anomaly known as the Mata Cobra lineament and the adjacent NE-SW trending Cinderella shear. Since mid-2019, we have been busy with a regional geochemical sampling campaign in and around the Mata Cobra belt, and can now report that the prospectivity of the Mata Cobra geophysical magnetic anomaly has been strengthened by the identification of a eight kilometre by two kilometre copper anomaly with analytical results over 100 ppm, coincidental with the geophysical anomaly identified by the AEM.
“Within the contours of this 100 ppm copper anomaly, we have identified some very exciting prospects, these include Calico and Juca, at the west end of the corridor and approximately five kilometres south of Palito. Both of these prospects exhibit a very similar geological setting to Palito and anomalous gold grades in addition to the copper.
“In the central part of Mata Cobra corridor, the Ganso, Quibe and Tabereba geochemical prospects have been identified also on strong AEM anomalies, themselves a good indicator of sulphide mineralisation. We will continue to advance these prospects through to discovery drilling stage as soon as we can, but I am certainly very encouraged by the obvious potential that exists in the exploration ground between the Palito and Sao Chico orebodies.
“On the operations front we have enjoyed another good month in April with final production expected to be approximately 3,400 ounces and we are starting to be able to change over a small number of staff each week who have been tested for COVID-19 and undertaken a period of quarantine.”