“Within the contours of this 100ppm copper anomaly, we have identified some very exciting prospects, these include Calico and Juca, at the west end of the corridor and approximately five kilometres south of Palito.  Both of these prospects exhibit a very similar geological setting to Palito and anomalous gold grades in addition to the copper.

“In the central part of Mata Cobra corridor, the Ganso, Quibe and Tabereba geochemical prospects have been identified also on strong AEM anomalies, themselves a good indicator of sulphide mineralisation.  We will continue to advance these prospects through to discovery drilling stage as soon as we can, but I am certainly very encouraged by the obvious potential that exists in the exploration ground between the Palito and Sao Chico orebodies.

“On the operations front we have enjoyed another good month in April with final production expected to be approximately 3,400 ounces and we are starting to be able to change over a small number of staff each week who have been tested for COVID-19 and undertaken a period of quarantine.”

RESULTS

Significant new drilling results are set out in the table below;

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Figure 1 – Long section of Sao Chico underground development and step out drilling to the Cicada anomaly [Click on the link above to access]

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Figure 2 - Plan view of Sao Chico and geophysical anomalies to the west showing drilling locations [Click on the link above to access]

Regional soil geochemistry sampling has been ongoing since mid-2019 with over 12,000 samples collected to date. The programme is targeting the geophysical anomalies derived from both terrestrial IP and the AEM anomalies derived from the 2018 HeliTEM survey, and the results to date have been extremely positive.

Cinderella Shear/Red Sun

Soil sampling commenced on the Cinderella Shear Zone lying approximately two kilometres east of the Sao Chico operations. This target is a significant NNE-SSW striking shear (>7 kilometres) indicated by airborne magnetic interpretation containing coincident IP chargeable and resistive anomalies and sporadic shallow EM anomalies.

The Cinderella shear has yielded a series of NNE-SSW linear gold in soil anomalies coincident with the IP chargeability anomalies in the central and southern part of the shear supported by a number of >1g/t rock chip samples recovered from sub-copping basement in the area.

In the northern part of the Cinderella shear a broad E-W trending gold in soil anomaly coincident with IP and AEM anomalies has been delineated. This anomaly, referred to as the Red Sun prospect, is positioned over an extensive area of artisanal mining activity and adjacent to a large copper-in-soil anomaly and given its location is interpreted to be a continuation of the hosting structure for Sao Chico, on the eastern side of the Cinderella shear.

Mata Cobra Corridor

Soil sampling grids were completed over the priority AEM (HeliTEM) anomalies lying along the northern and southern flanks of the major E-W trending high magnetic feature. Subsequently these grids were extended and infilled to provide a continuous systematic coverage along the flanks of this magnetic feature.

Soil results defined an extensive copper in soil (≥50ppm) anomaly extending approximately 14 kilometres E-W along this magnetic feature and referred to as the Mata Cobra Corridor. Within this broad geochemical corridor, a series of higher tenor copper-in-soil anomalies are apparent, many coincident or proximal to AEM anomalies. The regional soil contours plan (included in this news release as Figure 3) highlights a number of these higher copper-in-soil (≥100ppm) anomalies that are coincident with AEM anomalies, including Juca, Forquila, Quibe and Tabereba.

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Figure 3 – Regional plan showing contours of soil anomalies identified by geochemical sampling [Click on the link above to access]

The soil geochemistry also delineated a number of robust gold-in-soil anomalies within the Mata Cobra Corridor or immediately adjacent to the copper anomaly. Prospects such as Calico, Mata Cobra East and Ganso were derived from anomalies of gold associated with other elements but with lower levels of copper.

The Calico Prospect, defined by a broad three kilometre by three kilometre soil geochemistry contour of greater than ≥10ppb of gold, contains a series of NW-SE trending stacked ≥30ppb of gold anomalies, with the highest results exceeding 500ppb of gold.  This target shows many similarities in direction, scale and tenor to the geochemistry signatures of the areas around Palito located just five kilometres to the north.

The Ganso prospect, eight kilometres to the west of Calico, is immediately overlying a priority AEM target, and comprises an E-W trending gold in soil anomaly >1g/t over a strike length of 1.2 kilometres supported by rock chips with grade of  >1g/t Au and a multi-element base metal (-Cu) anomalism.

Regional soil sampling crews continue to further develop and refine these targets as well as continuing to target other AEM anomalies in the northern portion of the Jardim do Ouro tenement portfolio. The objective is to have a series of drill ready targets defined in readiness for the resumption of drilling activities post the COVID-19 crisis.

Prospect Scale Mapping

In conjunction with the regional soil sampling programs, Serabi have been undertaking prospect wide field mapping activities to enhance our understanding of the multi-element soil geochemistry results being generated,

Serabi geologists have, over many years, developed an understanding of the Palito area and its mineralisation and geological setting and in turn the importance of alteration types, mineralisation models and associated mineralogy, has honed the wider regional understanding.  

Field mapping over soil geochemistry/AEM coincident anomalies at Calico, Forquila and Juca prospects has identified evidence of potassic hydrothermal alteration within float and outcrop samples and evidence of porphyritic type intrusions with subordinate sulphide species. 

A number of discrete Mo±Bi±Te±As multi-element cores within the broader copper anomalous area are coincident with AEM anomalies and proximal potassic hydrothermal alteration suggesting multiple shallow intrusive centres lie within the “Mata Cobra” geochemical corridor.

The mapping activities have enhanced the potential for discovery of intrusion based mineral systems. These systems can be mid-level crustal Intrusion Related Gold Systems (IRGS) or shallower crustal level Porphyry type copper/gold/molybdenum intrusives as possible causative models for the geochemical/geophysical and geological anomalism being discovering within the tenement portfolio.

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Figure 4 – Plan and section views of soil sampling results at Calico and Juca prospects [Click on the link above to access]

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

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

Enquiries:

Copies of this announcement are available from the Company's website at www.serabigold.com.

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement.

GLOSSARY OF TERMS

The following is a glossary of technical terms:

Assay Results
The assay results reported in the table within this release are those provided by the Company's own on-site laboratory facilities at Palito and have not been independently verified.  Serabi closely monitors the performance of its own facility against results from independent laboratory analysis for quality control purpose.  As a matter of normal practice the Company sends duplicate samples derived from a variety of the Company's activities to accredited laboratory facilities for independent verification. Based on the results of this work, the Company's management are satisfied that the Company's own facility shows good correlation with independent laboratory facilities. The Company would expect that in the preparation of any future independent Reserve/Resource statement undertaken in compliance with a recognised standard, the independent authors of such a statement would not use Palito assay results but only use assay results reported by an appropriately certificated laboratory.

Qualified Persons Statement
The scientific and technical information contained within this announcement has been reviewed and approved by Michael Hodgson, a Director of the Company. Mr Hodgson is an Economic Geologist by training with over 26 years' experience in the mining industry. He holds a BSc (Hons) Geology, University of London, a MSc Mining Geology, University of Leicester and is a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer of the Engineering Council of UK, recognising him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Forward Looking Statements
Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ‘‘believe’’, ‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

ENDS

Attachment

• Continued exploration success at Sao Chico and regional geochemistry reveals exciting promise