Serabi Gold Drilling Update Released

PUBLISHED: Nov 24 2011 @ 11:26 | Comments (0) |

Serabi Gold Plc (LSE:SRB), a UK based gold exploration company with an operational focus on Brazil, released a statement on Thursday announcing positive preliminary results from drilling activities on the south-eastern strike extension of their Palito deposit. The AIM traded company share price was up 2.5% at 3:11 pm GMT following the news release.

Operational Overview
Drilling commenced in late October and was completed in the middle of November. Operations focused on shallow infill and step out drilling on the strike extension of the Palito Main Zone. Following their return from the analytical laboratory on-site, it was determined that bonanza grade gold and high grade copper were present in the mines.

Chief Executive Speaks

Chief Executive Officer, Michael Hodgson commented on the results:
“We are confident that the existing Palito gold resource extends towards the Espeto prospect located some 800 metres to the south east, and with Curretela a further 900 metres along strike, the potential continues.

In late 2008 we undertook some additional drilling which showed significant extension to the current limit of the Palito resource by some 500 metres and this new drilling not only supports this, but adds a further 300 metres. If this is substantiated by further resource drilling it would more add some 80% to the strike length of the current Palito resource.

The grades are of course very pleasing and suggest that the high grade nature of the ore that makes Palito such a compelling opportunity continue along the mineralized zone. The relative shallowness of the intersections (mostly between 45 metres and 80 metres vertical depth) is also indicative of the possibility to initially use open pit mining methods which can reduce the complexity and risk of future mining operations.”

Results
Preliminary results have been received for the first five of eight total holes drilled in the recent operation. The total depth drilled between these eight holes was 937 metres. According to the company, the positive outcomes from their initial drilling highlight the magnitude of prospects that remain from the Palito site through to the Espeto and Currutela sites. High grade resources have been returned 800 metres beyond the limit of geological resource as determined in studies conducted in 2008.

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