Serabi Gold takes wraps off expanded resource at Palito

The AIM-traded company said the data as of 30 June showed that the Palito Complex, including the Palito deposit and the Sao Chico satellite deposit, now boasted 377,800 ounces of contained gold in the measured and indicated category, marking a significant elevation in its asset base.

Further elevating Serabi’s prospects, the average reported grade of measured and indicated resources had risen by 93%, from 5.23 grams per tonne to 10.08 grams per tonne.

That meant there was an increase in the volume and the quality of the mineral resources available at the Palito Complex.

That was complemented by the report of an additional inferred resource of 153,900 ounces, extracted from 682,400 tonnes with an average in-situ grade of 7.01 grams per tonne, making for an augmentation of 45% over the average reported grade from the previous 4.83 grams per tonne.

“This significant increase in geological resources for the Palito deposit since the last published estimation as of December 2021, is the result of an aggressive underground drilling programme over the last 18 months which has clearly been very successful,” said chief executive officer Mike Hodgson.

“I am pleased to report that we now have a total mineral resource inventory across Coringa and the Palito Complex in excess of one million ounces.

“We have continually maintained that Palito is a long-life asset which can be difficult to demonstrate within a narrow vein underground deposit.”

Hodgson said that when mining started in 2005, the maiden resource was approximately 400,000 ounces.

“With over 15 years of production during which more than 400,000 ounces have been mined, and to now have a new total mineral inventory in excess of 500,000 ounces is not only extremely encouraging but it clearly demonstrates the geological potential and a successful resource replacement strategy.

“We have no reason to believe this will not continue.

“It is also particularly pleasing to see a significant jump in grade.”

Mike Hodgson explained that the veins comprising the Palito resource lie within an approximately one-kilometre strike, with a further three kilometres still to be tested.

“We wait to see how this translates into mineral reserves when mining dilution is taken into account, but I anticipate an uplift on the previous mineral reserve estimate of 58,000 ounces.”

At 1241 BST, shares in Serabi Gold were up 1.33% at 26.6p.

Reporting by Josh White for Sharecast.com.