Serabi Gold upbeat on drilling results from Toucano Zone

Brazil-focussed gold mining and development company Serabi Gold updated the market on exploration drilling results from the Toucano Zone at the Sao Domingos project on Tuesday, which lies to the west and along strike of its Sao Chico deposit.

The AIM-traded firm said drilling on Toucano had continued to successfully confirm depth and strike continuity of several of the high-grade lodes previously reported on 7 April.

It said hole 21-SD-012 was the deepest hole drilled yet under the Toucano pit, confirming that the broad alteration zone continued a further 50 metres below the previously-reported high-grade intercepts from drill hole 21-SD-010.

Significant results in 21-SD-012 included 3.25 metres at 2.91 grams of gold per tonne from 192.75 metres, and 3.75 metres at 7.95 grams per tonne from 208.8 metres.

It also highlighted 0.7 metres at 6.63 grams of gold per tonne from 222.3 metres, and 0.8 metres at seven grams per tonne from 236.3 metres.0

Serabi said holes 21-SD-013, 014 and 015 were all drilled 250 metres further north, and continued to intersect a broad 40 metre-wide alteration zone containing multiple vein lode structures along strike.

Those holes were all below the Raimundo artisanal pit, 250 metres to the north-east of the Toucano artisanal pit.

The holes also intersected additional parallel structures, north and south of the alteration halo.

With the initial phase of drilling at the Toucano Zone complete, the drill rig had been mobilised to assess the Atacadão prospect, where historic exploration around significant artisanal activity identified a series of highly prospective targets worthy of follow-up.

While the Atacadão phase one drilling is undertaken, access and drill pads would be prepared for infill and step-out drilling on the Toucano Zone.

“It is very pleasing that the drilling at the Toucano Zone continues to demonstrate the potential for the target and in particular the continuity of mineralisation at depth as we seek to realise the opportunity in the district surrounding Sao Chico,” said chief executive officer Mike Hodgson.

“The current drilling below the Toucano pit, with intercepts including 3.75 metres at 7.95 grams of gold per tonne, extends the mineralisation a further 50 metres below the previous high-grade intercept of 7.15 metres at 258.24 grams per tonne.

“Drilling beneath the Raimundo pit confirms the continuity of mineralisation along strike and has also identified parallel mineralised structures that warrant further follow-up.”

Hodgson explained that, with the initial drill programme at the Toucano Zone now complete, the drill rig was being relocated to the Atacadão prospect.

“This area has seen extensive artisanal activity and generated some high-grade results from both surface sampling by Serabi and drilling by the previous tenement holder.

“We believe this prospect is a series of parallel mineralised structures and plan to drill a fence of holes across it to provide a greater geological understanding and aid future drill planning.

“Elsewhere within our broader tenement area, we continue to drill close to the Sao Chico and Palito mines and have a fourth rig due to arrive at the site later this month.”

At 0842 BST, shares in Serabi Gold were flat at 68p.