Serabi reports further positive progress at Palito

The AIM-traded firm said brownfield diamond drilling had continued to define mineralisation at the Piaui prospect, within a series of parallel mineralised structures located 500 metres from the current underground mine infrastructure.

It said shallow drilling confirmed the continuity of three major parallel mineralised structures and identified further smaller parallel zones.

Visible gold was encountered in hole PDD0619 within a zone grading 2.6 metres at 13.37 grams of gold per tonne, including 0.75 metres at 33.74 grams per tonne from 28.55 metres.

High grade intercepts included 0.41 metres at 16.89 grams of gold per tonne from 26.4 metres, 1.94 metres at 11.86 grams per tonne including 0.7 metres at 19.15 grams per tonne from 35.3 metres in hole PDD0618.

It also highlighted 0.65 metres at 14.28 grams of gold per tonne from 43.1 metres, 5.9 metres at 4.11 grams per tonne, including one metre at 17.56 grams per tonne from 69.75 metres at hole PDD0617.

Elsewhere, it recorded two metres at 3.69 grams of gold per tonne, including one metre at 6.54 grams per tonne from 12 metres in hole PDD0616, and 1.6 metres at 2.70 grams per tonne, including 0.5 metres at 6.3 grams per tonne from 113.55 metres, at hole PDD0612.

“The Piaui prospect is shaping up to be an excellent near mine opportunity for Serabi,” said chief executive officer Mike Hodgson.

“This excellent set of drill results supports the strong results generated in 2011 with high grades over significant mineable widths.

“Piaui is close to the existing mine infrastructure and therefore can be brought into the mine plan in a short period of time and at low capital cost.”

At 1225 GMT, shares in Serabi Gold were down 4.91% at 50.4p.