Drilling Update - Bonanza Gold Grades Returned from Palito Extension Drilling
November 24 2011 - 1:00AM
UK Regulatory
TIDMSRB
SERABI GOLD plc
("Serabi" or "the Company")
Drilling Update
Bonanza Gold Grades Returned from Palito Extension Drilling
Serabi Gold plc (AIM:SRB, TSX:SBI and SBI.WT), the Brazilian focused gold
exploration company, is pleased to announce encouraging preliminary analytical
results from shallow extension drilling on the south-eastern strike extension of
the Palito deposit have returned Bonanza grade gold and high grade copper
results
Preliminary analytical results set out below from shallow infill and step out
drilling on the strike extension of the Palito Main Zone have been returned from
the onsite analytical laboratory at the Palito mine (see footnote - Preliminary
Assay Results). Drilling commenced in late October on the shallow depth
projection of several interpreted higher grade mineralized shoots and was
completed in mid-November. The program completed a total of 8 holes for a total
of 937m of shallow diamond drill holes (PDD0519-PDD0526). Preliminary assays
for the first five of these holes have now been received. All eight holes have
been sampled, and submitted to the Company's primary laboratory at ALS Chemex in
Vancouver. The results of this final analysis will be released in due course.
Mike Hodgson, Chief Executive, commented:
"We are confident that the existing Palito gold resource extends towards the
Espeto prospect located some 800 metres to the south east, and with Curretela a
further 900 metres along strike, the potential continues. In late 2008 we
undertook some additional drilling which showed significant extension to the
current limit of the Palito resource by some 500 metres and this new drilling
not only supports this, but adds a further 300 metres. If this is substantiated
by further resource drilling it would more add some 80% to the strike length of
the current Palito resource. The grades are of course very pleasing and suggest
that the high grade nature of the ore that makes Palito such a compelling
opportunity continue along the mineralized zone. The relative shallowness of
the intersections (mostly between 45 metres and 80 metres vertical depth) is
also indicative of the possibility to initially use open pit mining methods
which can reduce the complexity and risk of future mining operations."
Significant preliminary results (subject to confirmation by ALS Chemex) returned
to date include:
+------------------------------------------------------------------------------+
| Hole |
| Hole East North RL Depth Dip/Azm From To Width Au Cu |
| |
| (UTM) (UTM) (UTM) (m) (m) (m) (m) g/t % |
+------------------------------------------------------------------------------+
|PDD0519 634410 9300977 204 126.3 -64/211 96.39 97.11 0.72 9.26 0.40|
+------------------------------------------------------------------------------+
| No |
| significant |
|PDD0520 634367 9300979 209 124.85 -69/211 Assays |
+------------------------------------------------------------------------------+
| No |
| significant |
|PDD0521 634367 9300980 209 75.1 -58/208 Assays |
+------------------------------------------------------------------------------+
|PDD0522 634300 9301054 224 150.1 -64/210 104.86 105.76 0.90 20.60 3.56|
+------------------------------------------------------------------------------+
|PDD0523 634270 9301072 223 105.3 -49/210 71.21 72.57 1.36 48.07 2.64|
| |
| including 72.00 72.57 0.57 103.94 6.04|
+------------------------------------------------------------------------------+
| assays |
|PDD0524 634270 9301073 223 150 -68/211 pending |
+------------------------------------------------------------------------------+
| assays |
|PDD0525 634339 9300992 215 84.8 -48/225 pending |
+------------------------------------------------------------------------------+
| assays |
|PDD0526 634339 9301001 215 120.5 -69/211 pending |
+------------------------------------------------------------------------------+
| Previous drilling from 2008 and since last Geological Resource Update |
+------------------------------------------------------------------------------+
| Hole |
| Hole East North RL Depth Dip/Azm From To Width Au Cu |
| |
| (UTM) (UTM) (UTM) (m) (m) (m) (m) g/t % |
+------------------------------------------------------------------------------+
|PDD0444 634344 9300995 211 220.1 -59/211 55.15 56.12 0.97 3.43 0.04|
| |
| 58.90 59.83 0.93 34.75 0.24|
+------------------------------------------------------------------------------+
|PDD0447 634307 9301051 219 238.5 -48/211 79.00 79.70 0.7 0.97 0.15|
+------------------------------------------------------------------------------+
|PDD0450 634231 9301082 223 230.9 -50/209 54.25 56.80 2.55 2.43 0.55|
| |
| including 55.65 56.80 1.15 3.56 1.10|
+------------------------------------------------------------------------------+
|PDD0452 634416 9300971 203 220.3 -50/210 75.64 76.55 0.91 5.01 0.04|
+------------------------------------------------------------------------------+
Note: 1) Assay intercepts for PDD0519 - PDD0526 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. All assays were
completed by Serabi's onsite laboratory using a 30gm DIBK aqua regia digest with
an AAS analysis. Serabi's onsite laboratory is not certificated for analysis
and these results should be considered preliminary in nature (please refer to
the footnote at the end of this release for further details).
2) Assay intercepts for PDD0444-PDD0452 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. All assays were completed by an
independent accredited laboratory using a 30gm Fire Assay charge with an AAS
analysis.
The recent shallow drilling program was undertaken to confirm the strike
continuity of the Palito Main Zone (PMZ) indicated by the last drill holes
completed at the end of 2008 drilling campaign and the initial drill hole
reported from the Espeto prospect (as announced 15 July 2011).
Figure 1 below plots the above results on a longitudinal section of the Palito
Main Zone and illustrates their location relative to the existing physical limit
of mineralization included in the current geological resource. Intersections
are reported in grammes of gold per metre.
Please access Figure 1 by clicking on the link below
http://hugin.info/137617/R/1566260/486321.jpg
FIGURE 1 - LONGITUDINAL SECTION OF THE PALITO MAIN ZONE
These results highlight the prospectivity remaining along strike from Palito and
into the Espeto and Currutela prospects and supported by the geophysical
information gathered by the Company and also confirm the continuing high grade
nature of the mineralisation. High grade intercepts have now been returned
continuously along the strike of the PMZ for 800m beyond the current limit of
the geological resource at Palito estimated in March 2008.
As noted in the Company's announcement of 23 November 2011, final assay results
have been delayed due to technical issues with an independent laboratory used by
the Company. Results from a certificated analytical laboratory are expected
within the coming months.
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
Roland Cornish Tel: +44 (0)20 7628 3396
Michael Cornish Tel: +44 (0)20 7628 3396
Fox Davies Capital Ltd
UK Broker
Simon Leathers Tel: +44 (0)20 3463 5010
Jonathan Evans Tel: +44 (0)20 3463 5010
Farm Street Communications
Public Relations
Simon Robinson Tel: +44 (0)7593 340107
Fig House Communications
Investor Relations
Rebecca Greco Tel: + 1 416 822 6483
Copies of this release are available from the Company's website at
www.serabigold.com.
Forward-looking statements
This press release contains forward-looking statements. All statements, other
than of historical fact, that address activities, events or developments that
the Company believes, expects or anticipates will or may occur in the future
(including, without limitation, statements regarding the estimation of mineral
resources, exploration results, potential mineralization, potential mineral
resources and mineral reserves) are forward-looking statements. Forward-looking
statements are often identifiable by the use of words such as "anticipate",
"believe", "plan", may", "could", "would", "might" or "will", "estimates",
"expect", "intend", "budget", "scheduled", "forecasts" and similar expressions
or variations (including negative variations) of such words and phrases.
Forward-looking statements are subject to a number of risks and uncertainties,
many of differ materially from those discussed in the forward-looking
statements. Factors that could cause actual results or events to differ
materially from current expectations include, among other things, without
limitation, failure to establish estimated mineral resources, the possibility
that future exploration results will not be consistent with the Company's
expectations, the price of gold and other risks identified in the Company's most
recent annual information form filed with the Canadian securities regulatory
authorities on SEDAR.com. Any forward-looking statement speaks only as of the
date on which it is made and, except as may be required by applicable securities
laws, the Company disclaims any intent or obligation to update any forward-
looking statement.
Qualified Persons Statement
The information contained within this announcement has been reviewed and
verified by Michael Hodgson, CEO 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. Oil and Gas Companies
dated March 2006.
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
Technical Report for the Jardim Do Ouro Project, Para State, Brazil" dated 22
December 2010. 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.
Preliminary Assay Results
The assay results reported in the table within this release are those provided
by the Company's own on-site laboratory facilities and have not yet been
independently verified although the Company has already despatched duplicate
samples for such verification using fire assay methodology. Serabi closely
monitors the performance of its own facility against results from independent
laboratory analysis for quality control purposes. In 2008 NCL(Brasil) Ltda, the
author of the Company's independent technical reports produced in compliance
with Canadian National Instrument 43-101 reviewed and compared over 1,000 sample
results of the Palito laboratory against results obtained by an independent
laboratory using fire assay. They noted that when discarding from the sample
population all results of less than 0.7g/t "the repeatability improves
significantly reaching the generally accepted limits of variance (90% of the
samples with HARD<20%)".Further details are set out in their report NI 43.101
TECHNICAL REPORT FOR THE JARDIM DO OURO PROJECT, PARA STATE, BRAZIL dated
December 9, 2010 and available on the Company's website.
During 2011 the Company has continued to monitor the performance of its own
laboratory against results reported by the Company's independent laboratory and
have concluded that by eliminating from its sample population all results of
less than 0.3 g/t there remains good correlation and for higher grade gold
values the tendency is for the Company's own results to be under-reported due to
the improved gold recovery that can be obtained using fire assay methods.
The Company would expect that in the preparation of any future independent
Reserve/Resource statement undertaken in compliance with a recognised standard,
the independent authors of such a statement would not use Preliminary assay
results but would only use assay results reported by an appropriately
certificated laboratory.
Neither the Toronto Stock Exchange, nor any other securities regulatory
authority, has approved or disapproved of the contents of this news release.
ENDS
Longitudinal Section of the Palito Main Zone:
http://hugin.info/137617/R/1566260/486321.jpg
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Serabi Gold plc via Thomson Reuters ONE
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