Step-out exploration drilling programme records multiple high grade intercepts into the ‘Chico da Santa’ veins at Palito

Serabi Gold plc (AIM:SRB) (TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to provide assay results from recent surface and underground exploration drillholes into the Chico da Santa sector, as well as the first results into the newly discovered Pele sector at the Palito Gold Mine, Para State, northern Brazil. This exploration programme is targeting strike and resource extension of the established Ipe and Mongo veins with results confirming extension along strike and at depth.

Highlights

• On 11 May 2021 the Company disclosed the first results from step out exploration drilling into the Ipe and Mogno veins of the Chico da Santa sector, located in the eastern limits of the Palito deposit.

• Over the past 3 months, this drilling programme has recommenced and remains ongoing. The programme has been 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. Significant intersections from the underground drilling to date are as follows:
  • PUD0704 – 0.60m @ 7.84g/t Au (Mogno) from 291.00 metres to 291.60 metres
  • PUD0709 – 0.50m @ 22.56g/t Au (Ipe) from 39.30 metres to 39.80 metres
  • PUD0722 – 0.50m @ 8.43g/t Au (Mogno) from 52.50 metres to 53.00 metres
  • PUD0726 – 1.05m @ 68.09g/t Au (Ipe) from 41.25 metres to 42.30 metres
  • PUD0727 – 1.50m @ 76.09g/t Au (Ipe) from 61.70 metres to 63.20 metres
  • PUD0735 – 0.70m @ 7.39g/t Au (Ipe) from 41.90 metres to 63.20 metres
  • PUD0740 – 0.50m @ 12.64g/t Au (Bebeto) from 109.85 metres to 110.35 metres
  • PUD0748 – 0.50m @ 6.53g/t Au (Ipe) from 321.20 metres to 321.70 metres
  • PUD0686 – 2.75m @ 2.04g/t Au (Jatoba) from 137.70 metres to 140.45 metres

• Significant intersections from the surface exploration drilling to date are as follows:
  • PDD0594 – 0.35m @ 4.39g/t Au (Bebeto) from 136.46 metres to 136.81 metres
  • PDD0594 – 0.36m @ 9.49g/t Au (Ipe) from 315.97 metres to 316.33 metres
  • PDD0607 – 1.40m @ 14.39g/t Au (Pele) from 106.40 metres to 107.80 metres
  • PDD0415 – 0.82m @ 24.70g/t Au (Jatoba) from 57.38 metres to 58.20 metres
  • PDD0558 – 2.00m @ 33.76g/t Au (Jatoba) from 76.75 metres to 78.75 metres

1. PDD signifies a drill hole from surface, whilst PUD signifies a drill hole from underground

Mike Hodgson, CEO of Serabi, commented:

“There are some excellent intercepts in this latest batch of results. 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. It is therefore exciting to see these intercepts which extend the veins well beyond the current mine limits, both along strike and at depth. The results suggest a possibility of improving grades and payability with depth, which bodes well for the future.

“The underground development of the Ipe/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 3 years ago, there was, at that time, insufficient geological data to support further development. These new holes have cut the Jatoba vein well to the south of the original mine workings, with hole PDD0558 recording 33.76g/t Au over 2.0 metres, 400 metres south of the Jatoba mine 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. This drilling is now being supplemented by surface exploration.

“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.”.”

RESULTS

The CDS sector is located in the eastern part of the Palito Deposit. The Ipe and Mogno veins have been worked top down from level 178mRL to current development levels -60mRL, with current production on levels -20mRL and -40mRL. The drill results reported in this press release comprise step out drilling, targeting strike extension of these veins principally to the south of the current mine limits, as well as holes drilled to depth, below the lowest level, -60mRL.

Figure 1 – Plan view of the Palito Deposit, with main sectors

To access a detailed image of the Plan view of the Palito Deposit please use the following link – https://bit.ly/3z5NYvg

Figure 2 – Long Section of the Ipe Vein

To access a detailed image of the Long Section of the Ipe Vein please use the following link – https://bit.ly/3n1MGg7

Figure 3 – Long Section of the Mogno Vein

To access a detailed image of the Long Section of the Mogno Vein please use the following link – https://bit.ly/3sEQdED

Figure 4 – Long Section of the Jatoba Vein

To access a detailed image of the Long Section of the Jatoba Vein please use the following link –https://bit.ly/32HQ2gW

This ongoing surface and underground exploration programme as well as targeting strike and depth extensions to the Ipe and Mogno veins, is also targeting newly discovered veins to the east of Ipe, namely Bebeto, Romario and Pele. In addition, some holes have also been drilled west into the Jatoba vein, a lode that has been mined previously, but has not been part of the mine plan in recent years.

Drilling into the Ipe vein has successfully recorded the following intercepts:

• PUD0709 – 0.50m @ 22.56g/t Au (Ipe) from 39.30 metres to 39.80 metres
• PUD0726 – 1.05m @ 68.09g/t Au (Ipe) from 41.25 metres to 42.30 metres
• PUD0727 – 1.50m @ 76.09g/t Au (Ipe) from 61.70 metres to 63.20 metres
• PUD0735 – 0.70m @ 7.39g/t Au (Ipe) from 41.90 metres to 63.20 metres
• PUD0748 – 0.50m @ 6.53g/t Au (Ipe) from 321.20 metres to 321.70 metres
• PDD0594 – 0.36m @ 9.49g/t Au (Ipe) from 315.97 metres to 316.33 metres

These intercepts, alongside intercepts published earlier in the year, now demonstrate depth extension of the Ipe vein to level -150mRL, some 90 metres below the lowest developed level -60mRL. The drilling also demonstrates strike extension of the Ipe vein 400 metres to the south.

Drilling into the Mogno vein includes:

• PUD0704 – 0.60m @ 7.84g/t Au (Mogno) from 291.00 metres to 291.60 metres
• PUD0722 – 0.50m @ 8.43g/t Au (Mogno) from 52.50 metres to 53.00 metres

The Mogno vein is a parallel vein to Ipe, just 50 metres to the east. These latest results alongside previous exploration holes, extend the Mogno vein to a depth of -150m RL, again, 90 metres below the current deepest level. Drillhole PUD0704 lies 200 metres south of the mine limits and suggests strike potential to the south.

The Jatoba vein lies to the west of the Ipe/Mogno veins, and was mined 3 years ago. Recent drilling alongside some historical holes, has recorded some excellent intersections including:

• PUD0686 – 2.75m @ 2.04g/t Au (Jatoba) from 137.70 metres to 140.45 metres
• PDD0415 – 0.82m @ 24.70g/t Au (Jatoba) from 57.38 metres to 58.20 metres
• PDD0558 – 2.00m @ 33.76g/t Au (Jatoba) from 76.75 metres to 78.75 metres

The Pele sector, lies approximately 200 metres to the east of Mogno and has never been developed. Historical surface holes intersected numerous high grade veins and with the underground development of the Mogno vein, this has brought the opportunity to follow up these historical drill intersections with underground exploration drilling, which has also been complemented with some surface exploration holes.

The results to date include:

• PUD0719 – 0.50m @ 0.53g/t Au (Pele) from 308.60 metres to 309.10 metres
• PUD0723 – 0.50m @ 1.16g/t Au (Bebeto) from 122.50 metres to 123.00 metres
• PUD0723 – 0.50m @ 0.63g/t Au (Romario) from 142.00 metres to 142.50 metres
• PUD0733 – 0.50m @ 1.32g/t Au (Bebeto) from 84.30 metres to 84.80 metres
• PUD0740 – 0.50m @ 12.64g/t Au (Bebeto) from 109.85 metres to 110.35 metres
• PUD0748 – 0.50m @ 6.53g/t Au (Pele) from 321.20 metres to 321.70 metres
• PDD0594 – 0.35m @ 4.39g/t Au (Bebeto) from 136.46 metres to 136.81 metres
• PDD0606 – 0.60m @ 2.68g/t Au (Pele) from 52.40 metres to 53.00 metres
• PDD0607 – 1.40m @ 14.39g/t Au (Pele) from 106.40 metres to 107.80 metres

Drilling is continuing, and if justified by the results, a development crosscut from the Mogno vein will commence in 2022.

The results of new and historical holes newly sampled and assayed and not previously disclosed are tabulated below:

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.