Serabi Gold upbeat on latest exploration at Palito mine

The AIM-traded firm said the programme was targeting strike and resource extension of the established Ipe and Mongo veins, with results confirming extension along strike and at depth.

On 11 May last year, the company disclosed the first results from step-out exploration drilling into the Ipe and Mogno veins of the Chico da Santa (CDS) sector, located in the eastern limits of the Palito deposit.

Over the last three months, the programme had restarted and was ongoing.

The company said the programme was extended to include the adjacent veins in the CDS sector, including the Jatoba vein to the west, and the neighbouring veins of the newly-identified Pele sector to the east, namely Bebeto, Romario and Pele veins.

It said significant intersections to date included 0.6 metres at 7.84 grams of gold per tonne in the Mogno vein from 291 metres to 291.6 metres at hole PUD0704, and 0.5 metres at 22.56 grams per tonne in the Ipe vein from 39.3 to 39.8 metres.

At hole PUD0722, it reported 0.5 metres at 8.43 grams per tonne in Mogno from 52.5 to 53 metres, on hole PUD0726 it recorded 1.05 metres at 68.09 grams per tonne in Ipe from 41.25 to 42.3 metres, and in hole PUD0727 it highlighted 1.5 metres at 76.09 grams per tonne in Ipe from 61.7 to 63.2 metres.

Serabi recorded 0.7 metres at 7.39 grams per tonne in Ipe from 41.9 to 63.2 metres at hole PUD0735, 0.5 metres at 12.64 grams per tonne in Bebeto from 109.85 to 110.35 metres in hole PUD0740, 0.5 metres at 6.53 grams per tonne in Ipe from 321.2 to 321.7 metres on hole PUD0748, and 2.75 metres at 2.04 grams per tonne in Jatoba from 137.70 to 140.45 metres at hole PUD0686.

Significant intersections from the surface exploration drilling to date, meanwhile, included 0.35 metres at 4.39 grams of gold per tonne in Bebeto from 136.46 to 136.81 metres at hole PDD0594, 0.36 metres at 9.49 grams per tonne in Ipe from 315.97 to 316.33 metres in hole PDD0594, 1.4 metres at 14.39 grams per tonne in Pele from 106.40 to 107.80 metres on hole PDD0607, 0.82 metres at 24.7 grams per tonne in Jatoba from 57.38 to 58.20 metres at hole PDD0415, and two metres at 33.76 grams per tonne in Jatoba from 76.75 to 78.75 metres in hole PDD0558.

“There are some excellent intercepts in this latest batch of results,” said chief executive officer Mike Hodgson.

“The established lodes, Ipe and Mogno, that are located within the CDS sector, were the cornerstone of the Palito Complex production during 2021.

“They are high grade lodes and made a significant contribution to the grade improvement of 28% seen in 2021 when compared to 2020.”

Hodgson said it was thus “exciting” to see the intercepts, which extended the veins well beyond current mine limits both along strike and at depth.

He added that the results suggested a possibility of improving grades and payability with depth, which boded well for the future.

“The underground development of the Ipe [and] Mogno veins during 2021 also brought the opportunity to drill long exploration holes laterally.

“Some holes drilled to the west have intersected extensions of the Jatoba vein.

“Whilst the Jatoba structure was mined three years ago, there was, at that time, insufficient geological data to support further development.”

The new holes had cut the Jatoba vein well to the south of the original mine workings, Mike Hodgson added, with PDD0558 showing results 400 metres south of the Jatoba workings, “clearly suggesting” great strike potential to add resources.

“Underground drilling to the east of Ipe/Mogno has resulted in identifying the Pele sector, another new area at Palito.

“The Pele sector hosts the veins Bebeto, Romario and the Pele vein itself and the early results again highlight this is a sector of excellent potential.”

That drilling was now being supplemented by surface exploration, Hodgson added.

“Serabi will continue to push forward with its exploration campaign as we seek to drive resource growth and continue our track record of reserve replacement, together with our objective of increasing production towards our goal of becoming a 100,000 ounce per annum gold producer.”

At 0908 GMT, shares in Serabi Gold were up 3.78% in London at 57.6p.