Published: 07:00 11.09.2007 GMT+1 /HUGIN
/Source: Serabi Mining plc /LSE: SRB /ISIN: GB00B074J639
Exploration
Release
SERABI
MINING plc ("Serabi" or "the Company)
Exploration
results indicate growing resource potential across the Jardim do Ouro district
Serabi Mining plc (SRB: AIM) announces further
exploration success at the Palito mine and adjacent Jardim do Ouro
district.
- Palito
West - structural continuity extended from 80 metres to 200 metres,
together with high-grade drill intersections. Geophysical tests
along strike indicate this structure continues to the south-east and may
become very significant in the future of the Palito operations..
- Chico da Santa - new interpretation indicates expansion of the area of
mineralization following successful geophysical survey and its close
proximity to the existing Palito underground mining operation, potentially
allowing the project to be incorporated into the production schedule
earlier than expected; subsequent drill follow-up has resulted in positive
results.
- Ruari's
Ridge - exploration adit commenced in August from the north-west limit of
the payable mineralised zone to enable detailed investigation of mining potential.
- Palito
Main Zone - down-dip drilling continues to demonstrate good grades and
depth continuity.
- Fixed
Loop Electromagnetic ("FLEM") geophysical surveys prove to be a
key exploration tool at Palito. Following this success in highlighting
potential new mineralisation, Serabi has contracted to fly a helicopter
electromagnetic survey over the entire Jardim do Ouro district during Q4
2007; the benefit of this rapid assessment is expected to provide numerous
drill ready targets by year-end.
- New
potential will be incorporated into a year-end resource
review.
Since April 2007, exploration activity around the
Palito mine / Jardim do Ouro concessions has been accelerated following a
number of key successes (see Exploration Update press release, dated June
4). These have included excellent drill results at Palito West, the
discovery and continued success at the Ruari's Ridge prospect and successful
FLEM geophysical surveys at Palito South, and most spectacularly at Chico da Santa.
The recent discoveries at the Ruari's Ridge and Chico da Santa prospects
and extended success at Palito West will hopefully provide the basis for
near term production expansion. Detailed evaluation of these satellites
is now underway, through a 12,000
metre drilling programme, trenching and aerial
geophysics. This work will culminate in an updated geological resource at
the year-end, together with a new mine production plan.
Located 200 metres to the south-west of the Palito
mine, Palito West was reported in the Exploration Update of March 26. Since
then, additional drilling has been ongoing and assays received. Previous
drilling and sampling defined Palito West mineralisation as a single feature
over 80 metres
strike length and to a vertical depth of 50 metres.. The
previously reported holes were part of a drill programme designed to test the
zone to the south in preparation for an "on-lode" development.
Recent significant assays returned are as follows:
|
Hole
|
From (m)
|
To (m)
|
Interval (m)
|
Au(g/t Au)
|
Cu (%)
|
|
PDD0281*
|
23.54
|
24.54
|
1.00
|
24.64
|
0.63
|
|
40.40
|
41.30
|
0.75
|
1.81
|
0.11
|
|
88.70
|
91.62
|
2.92
|
1.19
|
0.04
|
|
PDD0298
|
33.73
|
34.40
|
0.67
|
3.18
|
0.65
|
|
PDD0300
|
38.75
|
40.24
|
1.49
|
24.50
|
0.41
|
|
PDD0302
|
49.33
|
50.00
|
0.67
|
66.30
|
2.00
|
|
PDD0305
|
44.82
|
45.44
|
0.62
|
96.50
|
2.20
|
(*
previously reported with results from Palito Laboratory only)
The
intersections in PDD0298, PDD0300, PDD0302 and PDD0305 and in PDD0281 of 2.92m
@ 1.19g/t gold represent intersections on the interpreted main Palito West
Zone. Two recent holes, PDD0334 and PDD0339 have intersected excellent
visual sulphide rich mineralisation, which fit the Palito West projected
position and extend the strike length to at least 200 metres. A
strong geophysical electromagnetic (EM) conductor a further 200 metres south-east of
PDD0334 indicates further strike extension
potential.
Interpretation
also suggests a second parallel lode to Palito West approximately 40 metres to the
north-east, which returned intercepts in PDD0281 of 1.0 metre @ 24.64g/t gold
and 0.63% copper and includes historical intercepts in PDD0270 of 0.66 metre @ 13.62 g/t
gold.
Following
these encouraging results the potential to expand the Palito West resource is
being accelerated to optimise capital development planning required to bring
the deposit into production as quickly as possible. Initial detailed
follow-up consists of an enlarged programme of 40 x 40 metre spaced resource
drilling now designed to investigate a target zone of 200 meters strike and 150 meters depth, a
substantially larger zone than first anticipated. On surface the
mineralised zone is being exposed for surface sampling along the strike
length. This will also provide early production in Q4 of this year.
[see attached link to access
diagram]
Plan View of Palito West
Mineralisation
The
discovery of significant mineralization at Ruari's Ridge was reported in the
Exploration Update, dated June 4. Initial drilling and trenching
highlighted up to four mineralised zones, with structural continuity for 3
zones of up to 900 metres
and 300 metres
vertical depth, of which the most prominent zone has been confirmed on surface
by trenches for over 600
metres. Following these discoveries a detailed
exploration and evaluation drilling programme has commenced over a central
targeted area with a strike of 600 metres and 150 metres vertical
depth.
Thirty
three (33) diamond drill holes have been completed (8,000 metres), 30
assayed to date, 3 awaiting assay and sixteen (16) trenches have been
cut. The significant results returned from this campaign are listed
below. A further 4,000
metres (15 holes) are now planned to assess the strike
extension. The revised target block will be drilled on a 50 x 50 metre grid, to
investigate the top 150
metres, with deeper holes below the top 150 metres every 100 to 150 metres along strike.
Ruari's
Ridge Significant Drill Sampling Results include:
|
Hole
|
From (m)
|
To
(m)
|
Interval (m)
|
Au (g/t )
|
Cu
(%)
|
|
PDD0315
|
83.93
|
84.68
|
0.75
|
1.52
|
0.04
|
|
PDD0317
|
54.48
|
55.48
|
1.00
|
2.35
|
0.13
|
|
PDD0318
|
55.06
|
57.95
|
2.89
|
4.58
|
0.60
|
|
135.92
|
136.47
|
0.55
|
2.47
|
0.00
|
|
195.30
|
195.89
|
0.59
|
1.44
|
0.03
|
|
PDD0322
|
155.10
|
156.18
|
1.08
|
3.47
|
0.02
|
|
156.85
|
157.36
|
0.51
|
1.44
|
0.04
|
|
206.75
|
207.38
|
0.63
|
2.56
|
0.11
|
|
PDD0323
|
81.00
|
82.22
|
1.22
|
2.96
|
0.08
|
|
PDD0325
|
42.07
|
42.82
|
0.75
|
1.22
|
1.10
|
|
85.59
|
86.10
|
0.51
|
2.41
|
0.03
|
|
193.32
|
194.28
|
0.96
|
10.60
|
0.19
|
|
199.33
|
199.84
|
0.51
|
2.32
|
0.04
|
|
205.00
|
205.70
|
0.70
|
7.54
|
0.51
|
|
PDD0329
|
33.56
|
34.75
|
1.19
|
1.08
|
0.01
|
|
PDD0331
|
23.26
|
24.03
|
0.77
|
1.42
|
0.10
|
|
PDD0332
|
96.55
|
97.04
|
0.49
|
1.35
|
0.03
|
Ruari's
Ridge Significant Trench Sampling Results include:
|
Hole
|
From (m)
|
To
(m)
|
Interval (m)
|
Au (g/t )
|
Cu
(%)
|
|
TC 39
|
15.00
|
21.00
|
6.00
|
7.16
|
0.01
|
|
including
|
18.00
|
20.00
|
2.00
|
14.54
|
0.02
|
|
TC 38
|
35.00
|
40.00
|
5.00
|
1.41
|
0.01
|
|
including
|
38.00
|
39.00
|
1.00
|
4.03
|
0.01
|
|
TC 34
|
17.30
|
18.75
|
1.45
|
1.11
|
0.01
|
|
33.60
|
34.10
|
0.50
|
12.24
|
0.01
|
|
TC 32
|
5.75
|
12.00
|
6.25
|
1.40
|
0.02
|
|
42.00
|
43.00
|
1.00
|
1.26
|
0.01
|
(Trench
samples have been assayed at the Palito Mine Laboratory only.)
While the
zones continue to exhibit structural continuity to the north-west, gold and
copper values decrease, eventually becoming barren some 150 metres north of the
airstrip. To the south-east the zones remain very open. At times,
though massive sulphides and quartz are absent, alteration and disseminated
sulphides are always present in the structures. The current southerly extension
approximately 600 metres
south of the runway has good structure, and remains open with the possibility
of continuity towards a geochemistry anomaly 300 metres further
south. There is currently no EM survey to the south.
Results
have been sufficiently encouraging for an exploration adit "in-ore"
to start at the northern extent of the zone. This adit will be mined at
the 250m elevation and will be driven south to investigate in detail the
economic viability of the mineralisation.
[see attached link to access
diagram]
Recent FLEM results in the
Chico da Santa and Palito South areas highlight strong correlation with known
areas of mineralisation
Interpretation
based on 11 older drill holes had shown three, high-grade structures at Chico
da Santa with limited strike and dip.. During the second quarter this
year Serabi undertook a FLEM survey over the property, with extremely
encouraging results that now suggest Chico da Santa is a much more significant
project than previously thought. As a result, exploration activity has
accelerated here dramatically.
- Up until April 2007, 1,326 metres of
Reverse Circulation (RC) and 4,700m of diamond core (DC) drilling were
completed, establishing continuity of 200 metres strike
and 100 metres
dip length for 3 zones.
- Since April the FLEM survey has been completed
and numerous EM conductors clearly defined, resulting in a new geological
interpretation.
- Since April, 14 holes have been drilled, 8RC and
6DC. These have now identified 5 mineralized zones, highlighted by the
holes that recorded intersections as follows:
|
Hole
|
From (m)
|
To
(m)
|
Interval (m)
|
Au (g/t )
|
Cu
(%)
|
|
PDD0303*
|
63.28
|
64.20
|
0.92
|
1.07
|
0.03
|
|
73.81
|
74.37
|
0.56
|
10.20
|
0.39
|
|
PDD0308*
|
78.40
|
79.04
|
0.64
|
0.60
|
0.04
|
|
136.45
|
137.00
|
0.55
|
43.20
|
1.40
|
|
PDD0320
|
58.16
|
60.57
|
2.41
|
19.79
|
1.73
|
|
PDD0328
|
70.55
|
73.00
|
2.45
|
2.37
|
0.03
|
|
76.04
|
76.59
|
0.55
|
6.14
|
0.03
|
|
PDD0335
|
103.73
|
104.70
|
0.67
|
5.92
|
0.60
|
|
120.42
|
120.94
|
0.52
|
1.16
|
0.05
|
|
PDD0341
|
188.62
|
189.96
|
1.34
|
3.63
|
0.61
|
|
Including
|
189.42
|
189.96
|
0.54
|
6.70
|
0.68
|
|
RC-CS-009
|
39.00
|
44.00
|
5.00
|
3.33
|
0.30
|
|
Including
|
40.00
|
41.00
|
1.00
|
13.30
|
0.81
|
|
RC-CS-016
|
1.00
|
4.00
|
3.00
|
1.02
|
0.01
|
|
6.00
|
8.00
|
2.00
|
1.51
|
0.01
|
|
RC-CS-018
|
34.00
|
35.00
|
1.00
|
1.42
|
0.01
|
|
RC-CS-020
|
29.00
|
31.00
|
2.00
|
2.37
|
0.12
|
|
RC-CS-021#
|
79.00
|
81.00
|
2.00
|
10.27
|
0.33
|
|
RC-CS-022#
|
28.00
|
29.00
|
1.00
|
9.56
|
0.01
|
|
RC-CS-023#
|
8.00
|
11.00
|
3.00
|
1.30
|
0.01
|
|
71.00
|
72.00
|
1.00
|
1.40
|
0.06
|
|
79.00
|
80.00
|
1.00
|
1.87
|
0.02
|
|
101.00
|
102.00
|
1.00
|
1.22
|
0.14
|
((*)
previously reported with results from Palito Laboratory only)
((#) full
results of holes pending)
- While intersections are narrow, some very high
gold values do occur.
- Following the success of the FLEM survey, the
most easterly three structures, C1, C2 and C3 will be drilled over a
significantly larger target area than originally planned, with
substantially longer strike extensions. The strike of zones also
shows a 290� - 310� orientation, indicating the Chico da Santa zones will
intersect the Palito Main Zone mineralization at current mine elevations,
thereby providing easier and earlier production possibilities.
- Some 6,000 metres of
drilling is now planned over a 40 x 40 metre grid, along 450 metres strike
and 150 metre
depth. In addition, up to 20 trench sections will also be carried
out.
- Trenching in underway to confirm the surface
mineralisation on coincident FLEM and geochemical anomalies with results
from three trenches received to date. Results include;
|
Trench
|
From (m)
|
To
(m)
|
Interval (m)
|
Au (g/t )
|
Cu
(%)
|
|
TC 40
|
10.95
|
12.45
|
1.50
|
6.58
|
0.01
|
|
TC 42
|
5.00
|
6.90
|
0.90
|
91.70
|
0.12
|
(Trench
samples have been assayed at the Palito Mine Laboratory only.)
The
Palito Main Zone (PMZ)
The PMZ
will continue to be the 'backbone' of production for the coming year. The
decline ramp is now developing below the 144 metre level, and with
levels 210, 192, 178, 163 and now 144metre levels in various stages of
production and development, the PMZ has over one year of production stoping
'blocked out'. Further ore lies in the existing levels and planned levels
to the 100 meter
elevation. In the southern half of the mine, there are drill indicated
and drill inferred resources to the 50 metre elevation i.e. approximately 150 metres vertical
depth. It is envisaged the decline will be developed to the 100 metre level by Q1
2008. During Q4 2007 and Q1 2008, deep drilling to test the down dip
extensions of the PMZ will be undertaken to test the potential
extension
of the PMZ to the 0 m
level and also to optimize the capital development to that level. Subject
to the continuity of the resource at depth, it is estimated there is
approximately 5,000 tonnes per vertical metre of diluted resource. At a current
annual production rate of approximately 200,000 tonnes, approximately 2 levels
are exhausted in the PMZ each year.
New
Production Potential & Resource Update
With the
potential to expand the Palito West resource in the very near future, a scoping
study is now underway to incorporate Palito West into the proposed capital
development of the Ruari's Ridge deposit, some 100 metres to the
south-west via a decline access.
The
geological resource has not been updated since January 2006, and with
exploration success at the Jardim do Ouro prospects, the company has recently
appointed NCL Brazil Ltda to undertake a new geological resource and mineral reserve
estimate at year-end.
Technical
and geological information in this report has been read and approved by
Serabi's Chief Geologist, Mr Chris Spurway. Mr Spurway BSc (Honours) is a
graduate of the University of Sydney in Geology. He is a member of the AusIMM
and has worked for over 16 years in mineral exploration including three years
in Brazil.
Notes to Editors
The Tapajos region of northern Brazil encompasses an
area of approximately 100,000 Km2, mainly located in the south-west Para
State. It has a significant history of alluvial gold production with
estimated output of some 30 million ounces having been recovered, primarily
from artisanal workings.
Present in the Tapajos since 1999, Serabi has
established the only 'hard rock' mine in the region to date at its Palito gold
mine, which produced 39,197
ounces of gold equivalent in 2006 from underground
mining of high-grade, gold/copper mineralisation.
Serabi has
a significant exploration programme focused on the Tapajos region, owns and
operates four surface drilling rigs and has its own assay laboratory.
Plan View of Palito West Mineralisation
FLEM Jardim do Ouro
Full Text of Exploration Update Sept 07