LONDON, Sept. 9, 2013 (GLOBE NEWSWIRE) -- Serabi Gold plc (AIM:SRB) (TSX:SBI), the Brazilian focused gold exploration and development company, company today announces the first results from eleven holes of its infill and step-out definition drilling programme at its Sao Chico gold deposit in the Tapajos Province, Para State, Brazil. [A PDF version of this release including pictures can be accessed using the following link - http://hugin.info/137617/R/1727562/576855.pdf]
A twenty two hole infill and step-out definition drill programme commenced in June 2013, targeting the high grade Main Vein at the Sao Chico Project. The results from the first 11 of these 22 holes have returned a series of high grade gold intersections. The drilling intercepted a continuous zone of alteration and quartz sulphide veins beneath and along strike from the previous 3,200 metre resource drilling conducted by Kenai Resources Limited in 2011.
The interpretation now indicates that the Main Vein is open in all directions and its strike may be continuous to the first phase exploration drill holes located up to 200 metres to the west, results for which were released on 3 September 2013.
Plan view of the Sao Chico drill-holes, and vein traces.
Please use the following link to access the diagram - http://hugin.info/137617/R/1727562/576666.jpg
Long section looking north of the Main Vein at Sao Chico showing drill intercepts
Please use the following link to access the diagram - http://hugin.info/137617/R/1727562/576667.jpg
Holes 13-SC-034 and 13-SC-038 being the most westerly located drill-holes in the Main Vein definition programme, have significantly opened the strike potential of the mineralised structure. Interpolation of these results with the previously reported exploration drilling results released on 3 September 2013 suggests that the Main Vein structure continues to be mineralised for at least a further 200m to the west. Drilling in this location intercepted the vein and returned results including 2 metres @ 85.39g/t Au (13-SC-030) and 2 metres @ 4.06g/t Au (13-SC-025).
The NI 43-101 Technical Report compiled by EAL Ltd in 2012, demonstrated a Measured and Indicated Resource of 26,487 t at 29.77 g/t Au (25,275 oz. Au) and an Inferred Resource of 85,577 t at 26.03 g/t Au (71,385 oz. Au) based on 3,200 metres of drilling undertaken in 2011. The strike length of the mineral resource, largely confined to the Main Vein, was 150 metres. Serabi's ongoing 2013 drilling programme, has now intersected and confirmed structural continuity over 350 metres, remaining open along strike to the east and west as well as down dip.
Drilling continues on the definition of the high grade main vein for resource definition and mine planning purposes with further results expected to be reported in the coming weeks.
Mike Hodgson CEO said, "When the opportunity arose to acquire Sao Chico, the timing was very good indeed. Development of the Palito mine had just begun and remediation of the process plant, which would have surplus capacity, underway. We always saw the close proximity of Sao Chico, with its spectacular high grades, as an obvious satellite that could supplement Palito and quickly increase Serabi's total gold production in the Tapajos at low cost and risk. The subsequent granting of a trial mining license (GUIA) only enhances the opportunity that Sao Chico presents. The initial infill and step out drilling results are extremely encouraging. The 150 metre strike length of the Main Vein is now more than doubled, and we see the high grades first observed in the 2011 drilling undertaken by Kenai Resources continuing. Furthermore, the first phase exploration holes undertaken to the west comprising SC – 023, 025, 027 and 030 now open up the possibility that we are dealing with a considerably greater strike length. We eagerly await the results of the remainder of the drill programme."
|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|
|Beaumont Cornish Limited|
|Roland Cornish||Tel: +44 (0)20 7628 3396|
|Michael Cornish||Tel: +44 (0)20 7628 3396|
|Peel Hunt LLP|
|Matthew Armitt||Tel: +44 (0)20 7418 9000|
|Andy Crossley||Tel: +44 (0)20 7418 9000|
|Blythe Weigh Communications Ltd|
|Tim Blythe||Tel: +44 (0)20 7138 3204|
|Mobile: +44 7816 924626|
|Halimah Hussain||Tel: +44 (0)20 7138 3203|
|Mobile: +44 7725 978141|
Copies of this release are available from the Company's website at www.serabigold.com.
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.
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 25 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, recognizing 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.
Quality Assurance and Quality Control Procedures Disclosure
The Company has implemented and maintains a Serabi quality assurance/quality control (QA/QC) protocol at its JDO Project as defined in its "NI 43-101 Preliminary Economic Assessment for the Jardim Do Ouro Project, Para State, Brazil" dated 28 June 2012. This ensures best industry practice in sampling and analysis of exploration and resource definition samples. The insertion of field duplicates, certified standards and blank samples into the sample stream form part of the Serabi procedure (these act as an independent check on contamination, precision and accuracy in the analytical laboratory).
Assay results are reported once rigorous QAQC procedures have been approved
Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this news release.
GLOSSARY OF TERMS
The following is a glossary of technical terms:
"Au" means gold.
"assay" in economic geology, means to analyze 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.
"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.
"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.
"measured mineral resource" is that part of a mineral resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.
"mineral resource" is a concentration or occurrence of diamonds, natural solid inorganic material or natural 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.
"NI 43-101" means Canadian Securities Administrators' National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
"Vein" is a generic term to describe an occurrence of mineralised rock within an area of non-mineralised rock.
Serabi Gold plc
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