PRESS RELEASE 21st November 2007
SERABI MINING plc ("Serabi" or "the Company")
Accelerated mine development at Palito West
following high-grade drill results
following high-grade drill results
Serabi is pleased to announce that the latest campaign of strike and extension drilling at Palito West has now been completed and has yielded significant high-grade gold/copper mineralisation. A preliminary mine study has determined that the access to Palito West should be developed from the existing Palito Main Zone ("PMZ") underground operations rather than using a separate decline portal.
Palito West lies 200m to the south-west of the Palito Main Zone. This latest round of drilling has confirmed the previously reported structural continuity within which it has now been shown exists a high-grade zone of mineralisation extending over 150 metres along strike and over 150 metres vertically. It has also confirmed the existence of a second high-grade zone 40 metres to the south-east and a third zone some 100 metres to the south-west coincidental with a large down-hole electromagnetic anomaly.
The Palito West zone has been drilled on an approximate 40 metres x 40 metres grid over 200 metres strike to a vertical depth of 200 metres The longitudinal section indicates that the high-grade structure remains open at depth. A further drilling campaign to expand the extent of the mineralisation will be undertaken in the early part of 2008.
Results returned to date include:
|
Hole |
East |
North |
Elevation |
Dip/Az |
From |
To |
Drill |
Au |
Cu |
|
|
(m) |
(m) |
(mRL) |
(local) |
(m) |
(m) |
Interval |
(g/t) |
(%) |
|
PDD0343 |
9894.02 |
20364.56 |
1234.92 |
-45/270 |
74.65 |
75.58 |
0.93 |
21.4 |
0.82 |
|
PDD0345 |
9926.16 |
20325.55 |
1219.97 |
-45/270 |
20.64 |
21.23 |
0.59 |
2.18 |
0.07 |
|
|
|
|
|
|
124.45 |
125.90 |
1.45 |
3.95 |
0.14 |
|
PDD0346 |
9927.19 |
20325.64 |
1220.02 |
-60/270 |
29.25 |
29.92 |
0.67 |
1.77 |
0.10 |
|
PDD0348 |
9941.89 |
20370.02 |
1238.99 |
-50/270 |
13.90 |
15.72 |
1.82 |
3.08 |
0.01 |
|
|
|
|
|
|
77.13 |
78.10 |
0.97 |
1.99 |
0.08 |
|
|
|
|
|
|
124.9 |
126.49 |
1.59 |
1.36 |
0.04 |
|
|
|
|
|
|
133.67 |
134.38 |
0.71 |
20.8 |
0.39 |
|
PDD0349 |
9865.92 |
20323.37 |
1220.94 |
-45/270 |
41.72 |
42.55 |
0.83 |
15.6 |
0.22 |
|
PDD0350 |
9723.02 |
20211.39 |
1240.27 |
-45/90 |
19.55 |
21.04 |
1.49 |
6.44 |
0.05 |
|
|
|
|
|
|
30.01 |
30.67 |
0.66 |
4.13 |
0.09 |
|
|
|
|
|
|
45.38 |
45.90 |
0.52 |
2.11 |
0.01 |
|
|
|
|
|
|
245.90 |
246.97 |
1.07 |
2.01 |
0.17 |
|
PDD0352 |
9807.31 |
20209.77 |
1222.00 |
-45/90 |
|
|
|
<1g/t |
|
|
PDD0353 |
9802.48 |
20129.62 |
1221.96 |
-45/90 |
|
|
|
<1g/t |
|
|
PDD0354 |
9950.08 |
20049.09 |
1213.30 |
-45/270 |
|
|
|
<1g/t |
|
|
PDD0356 |
9781.75 |
19969.45 |
1207.04 |
-50/90 |
|
|
|
<1g/t |
|
|
PDD0357 |
9929.77 |
20306.98 |
1213.72 |
-50/265 |
16.37 |
17.26 |
0.89 |
29.2 |
0.25 |
|
|
|
|
|
|
36.64 |
37.18 |
0.54 |
6.07 |
0.09 |
|
|
|
|
|
|
47.97 |
48.95 |
0.98 |
1.68 |
0.13 |
|
|
|
|
|
|
96.65 |
97.16 |
0.51 |
5.18 |
0.43 |
|
|
|
|
|
|
122.25 |
124.35 |
2.10 |
14.81 |
0.18 |
|
PDD0358 |
9920.71 |
20409.77 |
1245.75 |
-62/270 |
8.30 |
9.28 |
0.98 |
1.11 |
0.02 |
|
|
|
|
|
|
110.30 |
110.94 |
0.64 |
7.43 |
0.12 |
|
PDD0360 |
9929.72 |
20306.53 |
1213.79 |
-60/263 |
165.52 |
166.56 |
1.04 |
41.2 |
2.00 |
|
PDD0362 |
9939.41 |
20449.56 |
1259.09 |
-50/270 |
21.67 |
22.63 |
0.96 |
1.95 |
0.09 |
|
|
|
|
|
|
108.45 |
109.28 |
0.83 |
55.9 |
4.50 |
|
PDD0363 |
9966.33 |
20370.35 |
1237.90 |
-50/270 |
49.97 |
50.90 |
0.93 |
1.50 |
0.04 |
|
|
|
|
|
|
178.55 |
179.24 |
0.69 |
3.40 |
0.85 |
|
PDD0364 |
9950.94 |
20408.8 |
1248.11 |
-60/270 |
176.69 |
177.60 |
0.92 |
1.35 |
0.37 |
|
PDD0365 |
9900.20 |
20253.79 |
1213.26 |
-60/267 |
|
|
|
<1g/t |
|
|
PDD0367 |
9669.83 |
19870.13 |
1213.53 |
-51/91 |
212.88 |
213.65 |
0.77 |
2.66 |
0.00 |
|
PDD0369 |
9778.00 |
20050.15 |
1218.43 |
-60/270 |
|
|
|
<1g/t |
|
|
|
|
|
|
|
|
|
|
|
|
|
Intercepts calculated using a 0.5g/m Au lower cut, containing maximum internal waste of 1.2 down hole metres | |||||||||
|
All samples reported are from half core NQ or BW sized drill core and were prepared and analysed by SGS Lakefield Geosol Laboratories of Brazil in accordance with JORC / NI 43-101 compliance guidelines | |||||||||
The preliminary mine design based on these latest results has been revised and the Company now intends to mine an access from the existing PMZ ramp allowing the development of the Palito West mineralisation.
Mr Mike Hodgson, Chief Executive of Serabi, commenting on the results said that, "Palito West has been taking on a growing importance in our thinking as the results of this latest campaign have unfolded and our decision to change the conceptual mine plan is a result of the excellent results achieved. This revised plan will permit initial access to ore at a greater depth and will improve mining efficiency and flexibility. The development will intersect the mineralisation at an elevation of 1150 metres and will involve a cross-cut of some 180 metres. This work is scheduled for completion by the end of the first quarter of 2008. This development plan still provides the opportunity for rapid future access to the mineralisation of the Ruari's Ridge prospect. Our decision to push ahead with this development is further validated by the recent intersection of further veins between Palito West and the PMZ. It is the Company's intention to evaluate these structures from this underground development"
Technical and geological information in this report has been read and approved by Serabi's Chief Geologist, Mr Chris Spurway. Mr Spurway BSc (Honours) is a graduate of the University of Sydney in Geology. He is a member of the AusIMM and has worked for over 16 years in mineral exploration including three years in Brazil.
Enquiries
Serabi Mining plc
Graham Roberts Tel: 020 7220 9550
Chairman Mobile: 07768 902475
Clive Line Tel: 020 7220 9553
Finance Director Mobile: 07710 151692
E-mail: contact@serabimining.com
Website: www.serabimining.com
Numis Securities Limited
John Harrison Tel: 020 7260 1000
James Black Tel: 020 7260 1000
Parkgreen Communications
Simon Robinson Tel: 020 7851 7480
Notes to Editors
The Tapajos region of northern Brazil encompasses an area of approximately 100,000 km², primarily situated in south-west Para State. It has a significant history of alluvial gold production with estimated gold production of some 30 million ounces having being recovered primarily from artisanal workings.
Present in the Tapajos since 1999, Serabi has established the only 'hard rock' mine in the region to date at its Palito gold mine, which produced 39,197 ounces of gold equivalent in 2006 and achieved commercial production at Palito in October 2006
Serabi has a significant exploration programme focused on the Tapajos region, owns and operates four surface drilling rigs and has its own assay laboratory.
