Serabi Gold upbeat on latest Gabi Vein assay results

The AIM-traded firm had announced in August that remodelling and interpretation of historic data had identified a parallel structure named the Gabi Vein, located about 70 metres to the south of the Main Vein.

Since then, three new surface holes had been completed, with significant intersections including 0.8 metres at 10.02 grams of gold per tonne on hole 21-SC-212, at a depth of 175.94 metres.

Hole 21-SC-221, meanwhile, intersected 0.30 metres at 6.61 grams of gold per tonne at a depth of 235.17 metres, and hole 21-SC-224 intersected 0.3 metres at 7.06 grams of gold per tonne at a depth of 303.80 metres.

As well as the three new holes, 146 historical holes were relogged and resampled in the second half of 2021, with “significant” intersections observed.

“These recent assay results into the newly identified Gabi Vein at Sao Chico are very exciting,” said chief executive officer Mike Hodgson.

“They clearly illustrate the lateral potential that exists at Sao Chico.

“With multiple payable drill hole intercepts into the vein covering a strike length of over 1,000 metres and depth of 400 metres, it demonstrates potential to add significant additional mineral resources from this new ore zone, which also appears amenable to selective mining.”

Hodgson said that, with the Gabi Vein 70 metres south of current mine development, access was “simple”, and during the early part of 2022 confirmatory infill drilling would be conducted.

“Coringa mine development is continuing as planned and I was at site last week to observe progress first hand.

“I am delighted to report we are scheduled to intersect the first of three veins at approximately 340 metres RL elevation before the end of the year.

“The ground conditions are excellent, and after installing some initial rock support around the portal, the Coringa rock conditions look every bit as good as we see at Palito.”

Mike Hodgson said he was “looking forward” to reporting on the first intersections into the Serra zone early in the new year.

“Staying with Coringa, on 6 December we were subject to informal news in Brazil that suggested the granting of future licences at our Coringa project would be dependent upon the completion of an indigenous impact study.

“I can confirm that today all current licences are valid and in good standing, and it remains very much business as usual at Coringa, with the mine under development.

“Contrary to the news reports we are advised that a formal decision by all three judges that are considering the matter has yet to be made and to date all prior court hearings have suggested an indigenous impact study will not be required.”

Nonetheless, Hodgson explained that following meetings with regulatory authorities and the indigenous communities during the third quarter, Serabi undertook to voluntarily initiate a study to assist authorities with their consideration of the installation licence application.

“We therefore do not expect these reported matters to adversely impact the granting of the installation licence and are still planning to commence construction of the Coringa processing plant in the middle of 2022.”

At 1210 GMT, shares in Serabi Gold were up 4.4% at 56.9p.