Serabi Gold upbeat on outcome of recent drilling

Brazil-focussed gold mining and development company Serabi Gold announced on Wednesday that exploration drilling conducted on its wholly-owned Coringa gold project returned multiple high-grade gold intersections on the Serra, Meio and Galena ore zones of the deposit.

The AIM-traded firm said recent drilling targeting both strike and plunge extensions along those three main zones demonstrated a series of high grade intersections, significantly extending the previously modelled zones.

A total of about 5,000 metres had been drilled to date.

It said the strike of the Meio #2 vein was extended for a further 480 metres to the south, increasing the total drilled strike of the vein to almost 1,200 metres.

The depth extension of the Meio #4 vein was lengthened by approximately 200 metres along a 400 metre strike zone to the north, and the Galena vein strike extension was increased by 100 metres to the south.

Mineralisation was found in the Serra vein for a further 150 metres down dip, and 140 metres along strike to the north.

The board said the holes formed part of step-out drill programme which began in October, and had focused on strike and depth extensions upon the ore zones.

“We are very happy with the exploration drilling results to date as they demonstrate significant depth and strike extensions to the main veins at Coringa,” said Serabi Gold chief executive officer Mike Hodgson.

“We are already well advanced with the preparation of an updated geological resource estimate and I believe that these results will translate into significant resource growth.

“The updated resource estimation which is planned for release before the end of the first quarter, will be followed by a preliminary economic assessment, the results of which, I hope, can be published before the end of the second quarter.”

Hodgson said that as well as the ongoing drilling, the company was continuing preparations to go underground at Coringa, which had principally involved some site clearance as it developed the portal.

“We have the Trial Mining License (GUIA) which permits underground development, and we hope to be underground and into the first ore during the second quarter.

“This will provide invaluable understanding of the ore body geometry which, given the nature of narrow, vertically dipping orebodies, can be difficult to understand from drill hole data alone.”