Exploration
update
SERABI
MINING plc ("Serabi" or "the Company)
Exploration
results indicate new mining potential at Palito
Serabi Mining plc (AIM:SRB) announces ongoing
exploration success at the Ruari's Ridge and Chico do Santo projects, which now
provides a basis for detailed evaluation and preliminary mining to commence
during the second half of the year, with the potential for full scale mining to
start in 2008.
- Drill and trench intersections at Ruari's Ridge confirm the
presence of a major new mineralized zone, consisting of multiple
veins that Serabi expects will form the basis of a new mining
area
- Results at Ruari's Ridge extends the inferred strike extension of
high-grade gold/copper mineralisation by 300m to 950m strike and
vertically by 100m to 300 metres
- Extent and number of
mineralised structures increases at the Chico do Santo project, with
improved potential to establish a satellite mine in this area
- A detailed evaluation programme
will now commence at both projects with the objective of commencing
full-scale mining in 2008
With
increasing facilities coming into place, exploration and evaluation has been
escalating during the past year across the Jardim do Ouro district, the area
immediately adjacent to Serabi's Palito gold mine. Resulting from this
ongoing drill and trench results from the Ruari's Ridge and Chico do Santo
projects now indicate both have good potential to be developed as satellite
mines at the Palito operation.
Located
approximately 500m south-west of the underground mining operation established
on the Palito Main Zone (PMZ) mineralisation, the Ruari's Ridge project was
originally defined by a strong gold-in-soil geochemical anomaly, situated on
the flank of a significant magnetic geophysical high; it is noteworthy that a
similar geochemical anomaly has been identified just over 100m to the south-east
but is yet to be tested. Preliminary drill results reported in the
Company's Exploration Updates of 13 September, 2006 and 26 March, 2007,
identified sub-parallel zones of gold and copper mineralisation extending over
600m strike and 200m down dip. Initial Phase-2 follow-up drill and trench
results now confirm the presence of at least three or four sub-parallel zones
of gold-copper mineralisation which has extended the inferred strike extension
of high-grade gold/copper mineralisation to 950m along strike and 300m
vertically.
Trenching
has revealed regular intercepts of gossaniferous (1) veins along the central
portion of the main soil geochemistry anomaly, confirming continuity of
mineralisation over 400m strike. In addition, the occurrence of a further
gossaniferous altered outcrop returning more than 13 g/t gold some 400m
south-east of these trenches and directly along strike, indicates a potential
surface exposure of 800m.
Furthermore,
positive drill intersections 150m north-west of the gossaniferous trenches, is
thought to indicate a further extension of the same mineralisation, indicating
a cumulative total of at least 950m of inferred strike extent of the Ruari's
Ridge mineralisation.
The results
from diamond drilling also indicate high-grade mineralization persists to 300m
vertically beneath the mineralised trench intercepts, compared with 200m
previously indicated. This drilling also shows that parallel zones of
high-grade mineralization exists in the central part of the strike, with up to
3 additional zones identified parallel to the main zone.
(1) Gossan:
mass of weathered material resulting from oxidation by percolating waters of
outcrops of sulphide mineral deposits
To date a
total of 26 drill holes have been completed along the Ruari's Ridge prospect,
with a number of results still outstanding. This drilling is predominately
composed of diamond core drilling and some percussion drill holes, for a total
of approximately 5,600 metres.
Previously
Serabi reported the first 6 diamond drill holes into the northern portion of
the prospect (PDD 255, 258, 261, 264, 271 and 289-partial) In addition to these
a further 20 holes have been completed or are in progress. Results have been
collated for 13 holes with complete assays pending on 7 holes.
Significant
new drilling intercepts include:
Hole
|
From (m)
|
To
(m)
|
Interval (m)
|
Au (g/t Au)
|
Cu
(%)
|
PDD0289
|
42.50
|
43.57
|
1.07
|
1.90
|
0.03
|
76.20
|
76.73
|
0.53
|
3.07
|
0.03
|
235.42
|
235.92
|
0.50
|
1.04
|
0.03
|
254.27
|
254.94
|
0.67
|
45.74
|
0.46
|
309.75
|
310.58
|
0.83
|
1.49
|
0.02
|
313.18
|
313.78
|
0.60
|
3.77
|
0.06
|
397.15
|
397.70
|
0.55
|
50.99
|
2.70
|
402.75
|
404.35
|
1.60
|
3.45
|
0.14
|
PDD0294
|
39.85
|
40.34
|
0.49
|
5.38
|
0.03
|
44.80
|
45.61
|
0.81
|
1.26
|
1.40
|
46.87
|
48.05
|
1.18
|
2.03
|
0.07
|
211.84
|
212.39
|
0.55
|
43.04
|
2.21
|
|
76.4
|
77.02
|
0.62
|
3.64
|
0.77
|
|
34.87
|
35.50
|
0.63
|
1.62
|
0.04
|
PDD0311**
|
106.58
|
107.36
|
0.78
|
2.40
|
0.03
|
174.98
|
175.82
|
0.84
|
1.62
|
0.01
|
189.00
|
189.62
|
0.62
|
2.61
|
0.03
|
266.21
|
267.14
|
0.93
|
2.47
|
0.01
|
|
57.85
|
59.45
|
1.60
|
5.92
|
0.06
|
Including
|
58.75
|
59.45
|
0.70
|
12.81
|
0.09
|
82.24
|
83.89
|
1.65
|
1.62
|
0.06
|
|
26
|
28
|
2.00
|
10.92
|
0.03
|
|
31
|
36
|
5
|
2.33
|
NS
|
|
32
|
34
|
2
|
4.24
|
NS
|
(*) � core
assays from Palito Mine Laboratory only, � core sample results are pending from
SGSGeosol Laboratory in Belo Horizonte
(**)
Partial results for hole received
Significant
trench sampling intercepts include:
Hole
|
Interval (m)
|
Au (g/t Au)
|
|
TC-27
|
17.2
|
3.23
|
including 0.45m @ 45.89g/t and 0.9m @ 12.93g/t
|
TC-28
|
11.4
|
6.00
|
including 3.65m @ 16.83g/t
|
TC-29
|
2.40
|
1.64
|
|
TC-30
|
1.20
|
1.32
|
|
0.90
|
2.67
|
|
3.75
|
1.02
|
|
Trench
samples have been assayed at the Palito Mine Laboratory only.
Results
from a further four trenches are pending.
Please see attached link to Ruari's
Ridge - Plan
Please see attached link to Ruari's
Ridge - Section 20640 N
Situated
some 300m north-east of the current PMZ mine, very early exploration identified
three mineralised structures running parallel to the PMZ associated with old
garimpeiro workings. Drilling has continued, with a further 8 holes
completed for a total of 1,130m. In addition, preliminary interpretation
of a recently completed ground electromagnetic geophysics survey (EM) has
enhanced the understanding of the Chico do Santo prospect. Significantly two
(2) more potentially mineralised structures have been defined using the survey,
bringing the total to five (5) potentially mineralised structures.
Furthermore, results now indicate that such mineralisation could extend to
within just 100m of the existing underground mine at Palito.
Using the
new information and with a better understanding of the structures at Chico do
Santo, the new interpretation will enable Serabi to better target drilling on
the prospect.
Significant
new drilling intercepts include:
Hole
|
From (m)
|
To
(m)
|
Interval (m)
|
Au (g/t Au)
|
Cu
(%)
|
PDD0292
|
45.03
|
45.64
|
0.61
|
1.41
|
0.01
|
PDD0293
|
118.25
|
119.25
|
1.00
|
1.33
|
0.03
|
143.96
|
144.54
|
0.58
|
1.19
|
0.06
|
PDD0296
|
126.03
|
126.55
|
0.52
|
21.47
|
1.1
|
135.63
|
137.26
|
1.63
|
25.76
|
1.23
|
PDD0303*
|
63.28
|
64.20
|
0.92
|
1.67
|
0.02
|
73.81
|
74.37
|
0.56
|
7.35
|
0.33
|
PDD0308*
|
136.45
|
137.00
|
0.55
|
10.82
|
1.53
|
RC-CS-08�
|
2.00
|
4.00
|
2.00
|
0.76
|
0.02
|
8.00
|
12.00
|
4.00
|
0.91
|
0.02
|
|
3.00
|
5.00
|
2.00
|
0.55
|
0.01
|
RC-CS-11�
|
56.00
|
61.00
|
5.00
|
1.02
|
0.01
|
RC-CS-12�
|
55.00
|
58.00
|
3.00
|
25.07
|
1.44
|
(*) � core
assays from Palito Mine Laboratory only, � core sample results are pending from
SGSGeosol Laboratory in Belo Horizonte
(�) RC
assays from Palito Mine Laboratory only
Please see attached link to Chico do
Santo - Section 20100 N
Commenting
on the results, Graham Roberts, the Chairman of Serabi said:
"The
results from both projects are very exciting and confirm the wider potential of
the district from which the Palito operation can be expanded. As a
completely new discovery Ruari's Ridge is particularly meaningful, being
previously unknown and unworked by the garimpeiros, with major implications for
such potential across the rest of the Jardim do Ouro district.
The
challenge is now twofold. First, to fully evaluate and hopefully bring to
production both these projects as satellite mines of the Palito
operation. In this regard we are fortunate as the topography at Ruaris'
Ridge will enable quick underground access to the mineralisation; such
development will also provide a platform from which to better exploit the
nearby Palito West deposit. Secondly, in order to ensure we arrive at the
best long-term plan for the Palito Operation, it is important to understand
better and quantify the full potential of the district from which more
significant expansion might be achieved in the future. In this regard we
will now escalate the pace of exploration and evaluation in the area."
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.
The Tapajos
region of northern Brazil encompasses an area of approximately 100,000 km�,
primarily situated in south-west Para State. It has a significant history
of alluvial gold production with estimated gold production of some 30 million
ounces having being 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.. Commercial production was achieved last October at
Palito, with cash costs for the fourth quarter of 2006 reported at $252 per
ounce of gold equivalent.
Serabi
already has a significant exploration programme focused on the Tapajos region,
owns and operates four surface drilling rigs and has its own assay laboratory.
Ruari's Ridge Plan
Ruari's Ridge - Section
20640 N
Chico do Santo - Section
20100 N
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