Serabi Gold pleased with survey over Sao Domingos

The AIM-traded firm said that meant the entire Palito complex tenement had now been surveyed.

It said the results showed the Mata Cobra magnetic trend, that dominates the central part of the tenement and which has a coincident copper and gold soil geochemical anomaly, extended into the Sao Domingos property and extended the strike length of the Mata Cobra corridor to more than 40 kilometres, from 25 kilometres.

The Sao Domingos extension of the magnetic trend was coincident with geochemical anomalism identified through mapping and soil sampling and, as with Mata Cobra, had “significant” artisanal mining activity on its periphery.

Serabi said the Toucano trend was one such area of artisanal mining, now identified as situated on the edge of the magnetic high.

Initial drilling into the Toucano prospect at Sao Domingos recorded some “very high” intersections, including visible gold in hole 21-SD-010, which returned a number of intersections including 7.15 metres at 258.24 grams of gold per tonne.

The Matilda prospect showed a “subtle but distinct” magnetic signature, the firm added, coincident with the extensive soil geochemical anomaly, interpreted to reflect a magnetite alteration halo.

It said analysis of the survey data was continuing, with new targets being delineated for follow-up mapping and soil sampling later this year.

“The much-anticipated results of the survey have not disappointed,” said chief executive officer Mike Hodgson.

“We acquired the Sao Domingos tenement in late 2019. With prolific past and present artisanal gold production, multiple gold occurrences but little systematic exploration, the potential to make discoveries was clear.

“With a significant number of potential targets for consideration prior to the survey, the results of this survey now provide real focus.”

Hodgson said the “spatial relationship” between the high magnetic feature and known Sao Domingos prospects was consistent with Serabi’s findings along the Mata Cobra belt, which hosts several prospects it was already investigating, including Calico, Juca, Ganso and Forquilha, providing an “excellent” additional screen to generate further targets.

“Two of these prospects are the Toucano trend which we have drilled with great success, and the very exciting Matilda geochemical anomaly that lies between Sao Domingos and Sao Chico.

“This new survey highlights potential beyond these targets and demonstrates the extension of the Mata Cobra magnetic anomaly to over 40 kilometres.”

At 1213 GMT, shares in Serabi Gold were up 3.93% at 58.2p.