LONDON, Feb. 5, 2014 (GLOBE NEWSWIRE) -- Serabi Gold plc (AIM:SRB) (TSX:SBI), the Brazilian focused gold mining and development company announces further intersections of high-grade gold results at its Sao Chico gold project in Para from infill and extension drilling conducted on the Highway Vein, located some 250m east and along strike of the Main Vein. A PDF version of this press release can be accessed using the following link - http://hugin.info/137617/R/1759108/594800.pdf
The results of a five-hole extension drilling program have returned a series of high grade analyses.
Consistent with results from drilling conducted by the Company on the Main Vein and its potential extension to the West, several interceptions of gold grades in excess of 25 grams per tonne ("g/t") have been reported including one intercept of 189.6 g/t over one metre.
Mike Hodgson CEO said "The drilling results into the Main Vein last year recorded multiple intersections in excess of 100g/t gold, and real potential to extend the prospect along strike and at depth. The Highway Vein lies some 250m east of the last drilled section on the Main Vein, and could well be the same structure.
"To record near surface intersections all exceeding 25g/t gold in four holes out of five drilled is an excellent result. With the potential strike extension of the Main Vein to the West (c.f. press release - 8 October 2013) and now the prospect that the Highway Vein and the Main Vein could be one and the same, it means that the structures encountered at Sao Chico have the potential to be a mineralised zone extending over 700 metres in strike length.
"As part of the next step of evaluation we will undertake some initial development of the deposit and are acquiring essential fleet to commence the earthworks and ramp portal development at Sao Chico.
"Work is planned to be underway mid-February and this will result in a ramp and underground mine development intersecting and evaluating the Main Vein. We will also conduct an underground drill programme to investigate and evaluate parallel mineralised structures, all with the view to generate a robust mine production plan by year end. With our Palito Mine, located just 25km away, ramping up production this quarter, we anticipate 2014 will be an exciting year for Serabi, both as a high grade gold producer and mine developer. "
http://hugin.info/137617/R/1759108/594801.jpg
Please use the link above to access a diagram of the Main Vein Drill Plan
Main Vein Drill Plan
In 2011 drilling intersected the Highway Vein in two drill holes on the same section, reporting intercepts of 1.60m @ 5.25g/t Au from 40m in hole 11-SC-012 and 2.92m @ 7.45g/t Au from 118.85m in hole 11-SC-013. The recent drilling program completed towards the end of 2013 consisted of 5 holes which aimed at confirming the 2011 drilling and the strike extensions of the 2011 holes. The drilling reported multiple zones of alteration and narrow quartz sulphide vein.
Significant intercepts for the recent drilling are tabled below:
| Hole | East | North | RL | Depth | Dip/Azm | From | To | Int | Au | Pb | Zn | |
| (UTM) | (UTM) | (m) | (mdh) | (m) | (m) | (m) | (ppm) | (ppm) | (ppm) | |||
| 13-SC-051 | 614301 | 9290280 | 264 | 76.55 | -55/180 | 53.4 | 53.9 | 0.5 | 30.81 | 1062 | 943 | |
| 13-SC-052 | 614301 | 9290294 | 261 | 105.35 | -60/180 | 68.25 | 68.75 | 0.5 | 25.15 | 2115 | 157 | |
| 13-SC-054 | 614343 | 9290284 | 265 | 98.10 | -60/180 | 37.3 | 38.05 | 0.75 | 2.33 | 2073 | 1269 | |
| 54.35 | 55.15 | 0.8 | 8.68 | 3203 | 3704 | |||||||
| 62.9 | 63.4 | 0.5 | 1.42 | 49 | 81 | |||||||
| 69.9 | 70.55 | 0.65 | 5.36 | 1280 | 1509 | |||||||
| 73.45 | 74.4 | 0.95 | 8.92 | 1166 | 2226 | |||||||
| 76.4 | 77.4 | 1 | 189.6 | ADL | 8609 | |||||||
| 94.1 | 94.6 | 0.5 | 5.15 | 334 | 502 | |||||||
| 13-SC-056 | 614394 | 9290279 | 269 | 91.45 | -55/180 | 36.35 | 38 | 1.65 | 36.07 | 1717 | 1652 | |
| 81.95 | 82.55 | 0.6 | 0.51 | 62 | 86 | |||||||
| Note: All assays were prepared and analysed by SGS Geosol laboratory in Belo Horizonte using a 30gm Fire Assay with an AAS analysis. Assay intercepts are calculated based on a minimum weighted average grade of 0.5g/t Au using a 0.5g/t Au weighted average lower cut. High Grade intercepts are calculated based on a minimum weighted average grade of 3.0/t Au using a 3.0g/t Au weighted average lower cut. ADL refers to Above DetectionLimit. |
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 | Tel: +44 (0)20 7628 3396 |
| Michael Cornish | Tel: +44 (0)20 7628 3396 |
| Peel Hunt LLP | |
| UK Broker | |
| Matthew Armitt | Tel: +44 (0)20 7418 9000 |
| Andy Crossley | Tel: +44 (0)20 7418 9000 |
| Blythe Weigh Communications Ltd | |
| Public Relations | |
| Tim Blythe | Tel: +44 (0)20 7138 3204 |
| Mobile: +44 (0)7816 924626 | |
| Halimah Hussain | Tel: +44 (0)20 7138 3203 |
| Mobile: +44 (0)7725 978141 | |
| Camilla Horsfall | Tel: +44 (0) 20 7138 3224 |
| Mobile: +44 (0)7817 841793 |
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
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.
"Vein" is a generic term to describe an occurrence of mineralised rock within an area of non-mineralised rock.
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, 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.
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.