For immediate release

            31 August 2018

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

Step out drilling at Palito continues to extend mining potential to the south

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to announce the results from its ongoing exploration programmes being undertaken at its operations in the Tapajos.  


  • Serabi is undertaking a systematic step-out drill programme along the Palito trend.  The drilling is focused on a series of closely spaced drill traverses south of Palito towards the Currutela Prospect.    
  • Drilling to date has returned multiple high-grade gold intersections from a newly discovered pay shoot, on the G3 vein, located 200 metres to the south of the current mine workings. 
  • The newly identified, high grade intersections (see Table 2 below) include:
    • 2.0 metres at 29.82 grammes per tonne (“g/t”) gold (“Au”) from 337.85m (PDD0557) including 1.3m at 44.75 g/t Au
    • 1.5m @ 8.08 g/t Au from 371.7m (PDD0534) including 0.89m at 12.88 g/t Au.
    • 0.65m @ 3.87 g/t Au from 290.83m (PDD0556)
    • 2.0m @ 33.76 g/t Au from 76.75m (PDD0558) including 1.0m at 64.63 g/t Au
  • The results continue to suggest that the Palito orebody has the potential to extend south into the Currutela Prospect, which would open up an overall southerly strike of three kilometres.


Mike Hodgson, CEO of Serabi, commented:

“I am delighted to announce these positive results from our ongoing exploration programmes.  The results, which include multiple, newly identified, high grade gold intersections on the G3 ore zone, indicate this vein’s further continuity.  The vein is now established over a one and a half kilometre strike length, and this recent drilling indicates the vein remains open to the south and reinforces our belief that the Palito orebody will ultimately extend and be continuous with the Currutela Prospect. Additionally, the success of this exploration drilling has helped to identify the longer term production potential of the Palito Complex.

“On the Sao Chico orebody we have concentrated on drilling the geophysical anomalies identified in 2016, and have intersected mineable grade and widths, which suggest a parallel ore zone. Drilling is continuing there.  

“These ongoing drill programmes on both the Palito and Sao Chico orebodies are focussing on strike extensions of the main veins and are designed to provide the Company with organic growth opportunities. Serabi is also carrying out wider, regional exploration activities including both airborne and ground-based geophysical surveys and soil geochemical sampling.

“I look forward to updating the market on the continued progress of our exploration programmes in due course.”


The recent exploration drilling conducted at the Palito Operations has returned multiple high-grade gold intersections from a newly discovered pay shoot, on the G3 vein, located 200 metres to the south of the current Palito underground workings and only 800 metres from the northern limits of the Currutela Prospect.

These intersections reinforce the Company’s belief that the Palito orebody continues into the Currutela Prospect, where positive exploration results were reported from a drilling campaign conducted during 2011 and completed early in 2012.  Both the new results and the historic results suggest the multiple veins of the Palito orebody continue south towards the multi-vein Currutela Prospect.

The new intersections returned along the G3 Structural Zone from the latest drilling campaign (further details of which are set out in Table 2 below) include;

  • 2.0m @ 29.82 g/t Au and 1.2% Cu from 337.85m (PDD0557) including 1.3m @ 44.75 g/t Au
  • 1.5m @ 8.08 g/t Au from 371.7m (PDD0534) including 0.89m @ 12.88 g/t Au.
  • 0.65m @ 3.87 g/t Au from 290.83m (PDD0556)
  • 2.0m @ 33.76 g/t Au from 76.75m (PDD0558) including 1.0m @ 64.63 g/t Au

These drill-holes formed part of a systematic step-out drill programme along the strike projection of the G3 structure south of the Palito Mine. The drill campaign has also been testing the strike projection of a number of the key lode structures being mined at Palito, including the Pipocas and Mogno veins as well as the G3 vein.

The Company has always felt there was strong potential for the continuity of the Palito ore zones to the Currutela prospect.  Currutela was discovered in 2011 and the prospect itself covers an approximate strike length of one kilometre.  Its northern most extent lies approximately one kilometre from southernmost point of the current Palito Mine, and during 2011-2012 broadly spaced drilling into the Currutela prospect and intermediate area towards the Palito Mine returned numerous significant intersections which are set out in Table 1 below:

Table 1: Currutela significant historic assay results, as previously reported in 2011 / 2012

HoleEastNorthRLDepthDip/AzmFromTo WidthAu g/tCu %
 (UTM)(UTM)(UTM)(m) (m)(m)(m)  
PDD0472635455.749299954.89186.81243-60/30No significant Assays  
PDD05206343679300979209124.85-69/211No significant Assays 
PDD0521634367930098020975.1-58/208No significant Assays 
PDD05246342709301073223150-68/211No significant Assays 


  1. Holes PDD0464 – PDD0466: As announced on 13 June 2011.
  2. Holes PDD0467 – PDD0472: As announced on 11 July 2011.
  3. Hole PDD0470: As announced on 15 July 2011,
  4. Holes PDD0464 – PDD0472: Assay intercepts calculated based on a minimum weighted average grade of 0.5g/t Au using a 0.5g/t Au weighted average lower cut and a maximum internal waste interval of 1.2m. All assays were completed by EcoTech Laboratory using 30gm Fire Assay charge with an AAS analysis.
  5. Holes PDD0519 – PDD0526: As announced on 24 January 2012. Reported intercepts calculated based on a minimum weighted average grade of 0.5g/t Au using a 0.5g/t Au weighted average lower cut and a maximum internal waste interval of 1.2m based on ALS reported analyses. All assays completed by ALS used a 30gm Fire Assay charge with an AAS analysis.  Where initial Au results exceed 10g/t, analysis is done with a gravimetric charge. 

Despite the success of the 2011/12 drilling campaign, the Company has only now been in a position to follow up, and recent drilling has focused on a series of closer spaced drill traverses between Palito and Currutela. 

On the Pipocas Vein a series of new drill traverses have been completed on strike projections of the vein.   The results demonstrate that the vein structure has strong lateral continuity to the northwest, with multiple intersections having been reported.  Mine development will now be undertaken along this strike extension.

Drilling of the Palito orebody and its potential extensions is continuing with further extension targets currently being pursued on the G3 plunge position and the Mogno Vein north-western strike position. Further drilling over the discoveries at the Piaui and Currutela prospects is also scheduled for later in the year.

The Palito trend has now been traced over a distance of approximately four kilometres extending from the Copper Hill discovery located to the north of to the southernmost extent of the Currutela prospect.


At the Sao Chico orebody, exploration drilling commenced in mid May 2018.  Drilling at Sao Chico is focussing on strike extensions of the Main Vein and potential parallel targets identified as geophysical induced polarisation (“IP”) anomalies in 2016.

Drilling is underway on the first of these anomalies, the Crossroads anomaly, and the initial drill holes have intersected promising sulphide and vein intersections. Whilst assay results on all holes completed to date are being awaited, initial results include an intersection of 1.35m at 12.02 g/t Au from 178.80m (18-SC-109) as set out in Table 3 below.


Regional exploration activity has been undertaken in the form of both airborne and ground-based geophysical surveys.  A 4,343 line-kilometre HeliTEM survey was completed in late July covering the balance of the Jardim do Ouro tenements (approximately 25,000 hectares) that were not covered in the 2008 and 2011 surveys. The Company expects the contractor to release the final collated survey data during September, following which Serabi will be able to work with its consultants on the interpretations.

A ground-based IP programme is also underway over the strike extensions of the Sao Chico orebody following the line-of-lode and extended to cover the five kilometre strike length of the structure.

Serabi has also completed, during August, a regional soil geochemical sampling programme over a number of previously identified geophysical and structural targets. Geochemical analyses of the samples are pending at this time.

Intercepts from the current drill program to date include:

Table 2: Palito new significant assay results:

HoleEastNorthRLDepthDip/AzmFromTo WidthAssay
 (UTM- SAD69)(UTM- SAD69)(UTM- SAD69)(m)(°/°UTM) (m)(m)(m)Au g/t
PDD0532634530.71509300982.2120204.5810289.58-60.7/212.85No significant assays
     Including  0.8912.88
PDD0535633282.14009301430.3370293.9290297.15-70.8/27.35No significant assays
PDD0536634637.71309300950.3820204.2600334.74-52.6/211.35No significant assays
PDD0538633455.50809301500.8080307.7980187.23-49.8/229.15No significant assays
PDD0546632660.02009301724.9960238.3410250.12-56.6/234.85No significant assays
PDD0547634424.70809300803.0800209.0940180.99-51.2/30.15No significant assays
PDD0548634514.04909300784.8940207.7630206.49-52/32.35No significant assays
PDD0551634242.2049300918.394205.9309.11-66.3/28.95No significant assays
PDD0552634444.8989301035.018219.87346.67-65/210.15No significant assays
PDD0553634443.9119300627.825223.588175.06-55.4/212.55No significant assays
     Including  1.3044.75
     Including  1.0064.63

Note: Reported 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 and a maximum internal waste interval of 1.2m based on SGS reported analyses. All assays were completed by SGS Geosol Laboratory using a 30gm Fire Assay charge with an AAS analysis.

Table 3: Sao Chico new significant assay results:

HoleEastNorthRLDepthDip/AzmFromTo WidthAssay
 (UTM- WGS84)(UTM- WGS84)(UTM- WGS84)(m)(°/°UTM) (m)(m)(m)Au g/t
18-SC-110613944.4249290154.485295.322250.40-60.4/210No significant assays
18-SC-111613973.7729290118.760300.516284.40-57.38/210No significant assays
18-SC-112613991.0429290149.353292.391300.00-58.8/210No significant assays
18-SC-113614045.1629290070.105309821251.20-65/210No significant assays
18-SC-114614024.8299290099.923305.538275.05-59.86/210No significant assays

Note: Reported 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 and a maximum internal waste interval of 1.2m based on ALS reported analyses. .All assays were completed by ALS Laboratory using a 50gm Fire Assay charge with an AAS analysis, where initial Au results exceed 10g/t, analyses is done on a gravimetric charge.

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.


Serabi Gold plc 
Michael HodgsonTel: +44 (0)20 7246 6830
Chief ExecutiveMobile: +44 (0)7799 473621
Clive LineTel: +44 (0)20 7246 6830
Finance DirectorMobile: +44 (0)7710 151692
Beaumont Cornish Limited
Nominated Adviser and Financial Adviser
Roland CornishTel: +44 (0)20 7628 3396
Michael CornishTel: +44 (0)20 7628 3396
Peel Hunt LLP
UK Broker
Ross AllisterTel: +44 (0)20 7418 8900
James BavisterTel: +44 (0)20 7418 8900
Public Relations
Tim BlytheTel: +44 (0)20 7138 3204
Camilla HorsfallTel: +44 (0)20 7138 3224

Copies of this announcement are available from the Company's website at

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement.


The following is a glossary of technical terms:

 “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.

“development” - excavations used to establish access to the mineralised rock and other workings

“DNPM” is the Departamento Nacional de Produção Mineral.

“grade” is the concentration of mineral within the host rock typically quoted as grammes 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.

“igneous” is a rock that has solidified from molten material or magma.

“Intrusive” is a body of igneous rock that invades older rocks.

“on-lode development” - Development that is undertaken in and following the direction of the Vein

 “mRL” – depth in metres measured relative to a fixed point – in the case of Palito and Sao Chico this is sea-level.  The mine entrance at Palito is at 250mRL.

“saprolite” is a weathered or decomposed clay‐rich rock.

“stoping blocks” – a discrete area of mineralised rock established for planning and scheduling purposes that will be mined using one of the various stoping methods. 

“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, 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.