Serabi finds further gold deposits at Sao Chico project in Brazil

5 February 2014 (Last Updated February 5th, 2014 18:30)

Serabi Gold said the exploration programme at its Sao Chico gold project in Para, Brazil, has intersected further high-grade gold deposits.

Serabi Gold's exploration programme at its Sao Chico gold project in Para, Brazil, has intersected further high-grade gold deposits.

The findings came from infill and extension drilling on the Highway Vein, situated about 250m east and along strike of the Main Vein.

The company said that, consistent with drilling results from the Main Vein and its potential extension to the west, various interceptions of gold grades of more than 25g per tonne (g/t) have been reported, including one intercept of 189.6g/t over 1m.

Serabi Gold noted that in 2011, drilling intersected the Highway Vein in two drill holes on the same section, revealing intercepts of 1.60m at 5.25g/t of gold from 40m in hole 11-SC-012 and 2.92m at 7.45g/t of gold from 118.85m in hole 11-SC-013.

The recent drilling programme was completed towards the end of 2013 and featured five holes, intended at confirming the 2011 drilling and the strike extensions of the holes.

The drilling reported several zones of alteration and narrow quartz sulphide veins.

Serabi Gold CEO Mike Hodgson said the drilling results into the Main Vein recorded multiple intersections in excess of 100g/t of gold and a real potential to extend the prospect along strike and at depth.

"The Highway Vein lies some 250m east of the last drilled section on the Main Vein, and could well be the same structure," Hodgson said.

"With the potential strike extension of the Main Vein to the west and now the prospect that the Highway Vein and the Main Vein could be one and the same, it means that the structures encountered at Sao Chico have the potential to be a mineralised zone extending over 700m in strike length."

Serabi Gold will now undertake initial developments at the deposit and is acquiring an essential fleet to start the earthworks and ramp portal development at Sao Chico.

Work is expected to be underway in mid February this year, which will result in a ramp and underground mine development intersecting and evaluating the Main Vein.

The company will also conduct an underground drill programme to investigate and evaluate parallel mineralised structures, with the view to generating a robust mine production plan by year end.

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