Serabi pleased with latest sampling from Sao Domingos

Brazil-focussed gold mining and development company Serabi Gold updated the market on exploration sampling and ongoing drilling from the São Domingos project on Thursday.

The AIM-traded firm said surface sampling and mapping at the project had highlighted the potential of the Atacadão trend, with early exploration drilling confirming the density and tenor of gold bearing structures.

It said the Atacadão trend lay two kilometres to the south of the Toucano trend.

Surface sampling, totalling 69 rock chip samples with an average grade of 8.33 grams of gold per tonne over an area of 1.5 by 1.5 kilometres, and a maximum result of 204.77 grams per tonne, reflected the prospectivity of the area.

The company said that significantly, 36% of samples returned over three grams of gold per tonne, with an average grade of 22.5 grams per tonne.

Mapping outlined a broad east-west corridor of parallel gold-bearing structures transected by a north east-south west mineralised structure.

Serabi said historic artisanal hard-rock shafts, located at the intersection of those structural orientations, had returned grades of up to 40.59 grams of gold per tonne.

Drilling began in July on the Atacadão trend, following up on the detailed mapping and rock chip sampling of that prospective trend.

A north-south drill traverse, designed to cover the structural intersection, returned early positive results on multiple narrow vein sets grading up to 6.19 grams of gold per tonne.

Separately, the company said it had commissioned a regional airborne geophysics survey on the São Domingos Project, which was expected to be completed by the end of October.

“These initial results of the surface sampling from the Atacadão trend are very encouraging,” said chief executive officer Mike Hodgson.

“The distribution and grade of the rock chip samples demonstrates the strength and scale of the mineralised system.

“The objective of the drilling is to provide us with a better understanding on the geological controls on gold deposition and, while this is still at an early stage and on the periphery of the trend, the initial results are very promising.”

Hodgson said the Atacadão trend is the second prospect in the São Domingos project area to be drill tested.

“It lies two kilometres to the south of the Toucano trend, where the company has already identified a 50 metre-wide alteration zone over a potential strike length of at least 600 metres containing multiple high-grade intercepts.”

The company was proving-up additional prospects at São Domingos for future drill-testing, Hodgson added.

“Elsewhere, Serabi is drilling at the São Chico mine, five kilometres to the east of Atacadão, and now has two drill rigs testing the southern extensions of the Palito orebody.”

At 1222 BST, shares in Serabi Gold were down 0.31% at 64.3p.