SOURCE: Serabi Gold plc

Serabi Gold plc

January 24, 2012 02:00 ET

Serabi Gold plc ("Serabi" or the "Company") Upgraded Intercepts Enhance the Piaui Prospect

LONDON--(Marketwire - Jan 24, 2012) - Serabi Gold plc (AIM: SRB) (TSX: SBI) (TSX: SBI.WT), the Brazilian focused gold exploration Company, is pleased to announce final independent laboratory analytical results from the shallow infill and extensional drilling programme at the Piaui Prospect at their 100% owned Jardim do Ouro project.

Final analyses of previously reported preliminary results tabled below show a higher reported gold grade on average of 14.9%. This upgrading in tenor is a result of the analytical techniques used. Preliminary onsite results were completed via an aqua regia digest analytical technique whereas the independent laboratory ALS Minerals of Vancouver has reported results derived from a 30gm fire assay.

Mike Hodgson, Chief Executive, commented:

"With no historical artisanal workings, Piaui is a discovery which has resulted directly from our aerial geophysical programme. Previously announced geochemical and drilling results over a 300m strike length indicated good grades at shallow depths including results of 1.93 metres @ 22.86g/t Au, 10.7 metres @ 1.17 g/t Au, 9.1 metres @ 2.24 g/t Au, 3.2 metres @ 16.16 g/t Au and 4.5 meters @ 2.75 g/t Au, and highlighted the possibility of wider intersections than we have encountered at Palito. The 16% upgrade of the preliminary results from our latest drill programme, covering a cumulative strike length of 700m has enhanced the potential of Piaui Prospect. We continue to investigate the near surface ore potential at Piaui, through an Auger drilling programme, which has to date brought some further encouraging results."

This last round of diamond drilling followed the successful Phase 1 discovery results, as well as the ground-based geophysical Induced Polarisation (IP) survey undertaken (as reported in the Company's announcement of 12 September 2011). The IP survey had indicated a potential strike length of the Piaui Prospect up to 1,400 metres. The drilling has intersected broad zones of intense chlorite/silica/sulphide alteration over a cumulative strike length of 700m. The results indicate a significant mineralized system remaining open at depth.

Significant results illustrating the preliminary Palito and confirmed ALS results returned to date include:

Hole East North RL Hole Depth Dip/Azm From To Width Au (Palito) Au (ALS)
(UTM) (UTM) (UTM) (m) (m) (m) (m) g/t g/t
PDD0497 633246 9300573 235.66 191.05 -52/211 51.50 52.00 0.50 0.94 1.17
66.69 67.22 0.53 1.14 1.38
PDD0498 633900 9300105 204.55 111.70 -50/210 40.98 41.70 0.72 3.63 4.17
49.66 50.57 0.91 3.05 3.22
PDD0499 633142 9300633 242.22 188.20 -50/212 110.57 115.78 5.21 3.25 3.73
including 110.57 111.56 0.99 4.13 4.84
including 114.54 115.78 1.24 8.81 10.03
130.88 131.93 1.04 0.63 0.77
PDD0500 633072 9300673 243.06 97.90 -48/30 50.96 51.75 0.79 0.74 0.84
PDD0501 633072 9300673 243.16 99.45 -51/213 44.94 45.75 0.81 1.35 1.41
69.04 69.54 0.50 0.80 0.90
PDD0504 632998 9300624 240.75 95.05 -50/213 45.14 45.90 0.76 2.17 2.65
70.94 71.44 0.50 2.16 2.54
PDD0505 633032 9300604 228.22 95.55 -50/213 36.61 37.39 0.78 0.85 0.80
57.85 60.79 2.94 0.58 0.65
62.61 64.30 1.69 0.50 0.56
PDD0506 633067 9300584 228.33 94.40 -49/216 12.05 13.10 1.05 0.60 0.68
40.57 41.44 0.87 2.48 3.09
56.81 60.21 3.40 5.88 6.49
including 57.81 58.75 0.94 16.69 17.90
62.40 62.90 0.50 0.54 0.68
PDD0507 633102 9300564 228.90 92.20 -49/210 19.83 20.56 0.74 0.81 - (2)
PDD0508 633136 9300544 228.33 97.60 -49/215 8.77 9.45 0.68 0.96 1.20
12.60 13.82 1.22 0.62 0.63
15.50 20.30 4.80 2.01 2.72
including 16.69 17.58 0.89 8.59 9.48
50.21 51.09 0.88 0.53 0.58
63.33 64.43 1.10 2.57 2.72
PDD0509 633171 9300524 228.00 97.85 -49/211 14.40 14.92 0.52 1.07 - (2)
20.50 23.20 2.58 0.92 - (2)
38.19 38.94 0.75 0.77 0.86
PDD0510 633206 9300504 227.87 140.20 -48/214 8.10 10.29 2.28 1.18 - (2)
PDD0511 633240 9300484 228.00 133.60 -49/209 23.64 24.30 0.66 1.34 - (2)
39.57 40.20 0.63 0.51 0.72
64.18 66.18 2.00 7.00 8.91
including 65.10 66.18 1.08 10.22 12.25
72.12 73.20 1.08 0.31 0.28
73.20 74.13 0.93 2.12 3.12
PDD0512 632962 9300645 228.00 86.20 -50/210 52.85 54.00 1.15 0.27 0.28
PDD0514 633830 9300150 211.16 72.55 -49/210 0.00 0.80 0.80 17.38 - (2)
PDD0515 633865 9300125 206.00 71.70 -50/211 36.16 36.91 0.75 0.93 1.12
43.11 43.71 0.60 1.66 1.83
PDD0457Ext 632994 9300528 217.83 220.50 -51/027 161.50 162.47 0.97 1.26 1.35
182.73 183.58 0.85 0.53 0.50

Note: (1) Reported intercepts are calculated based on a minimum weighted average grade of 0.5g/t Au using a 0.5g/t Au weighted average lower cut and a maximum internal waste interval of 1.2m based on ALS reported analyses. All assays completed by ALS used a 30gm Fire Assay charge with an AAS analysis. Where initial Au results exceed 10g/t, analysis is done with a gravimetric charge. All assays completed by Serabi's on-site laboratory used a 30gm DIBK aqua regia digest with an AAS analysis. Serabi's on-site laboratory is not certificated for analysis (please refer to the footnote at the end of this release for further details).
(2) This sample was recovered from weathered near surface (saprolite) material. Saprolite samples are not submitted for independent analysis.

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

Forward-looking statements

This press release contains forward-looking statements. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding the estimation of mineral resources, exploration results, potential mineralization, potential mineral resources and mineral reserves) are forward-looking statements. Forward-looking statements are often identifiable by the use of words such as "anticipate", "believe", "plan", may", "could", "would", "might" or "will", "estimates", "expect", "intend", "budget", "scheduled", "forecasts" and similar expressions or variations (including negative variations) of such words and phrases. Forward-looking statements are subject to a number of risks and uncertainties, many of differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, failure to establish estimated mineral resources, the possibility that future exploration results will not be consistent with the Company's expectations, the price of gold and other risks identified in the Company's most recent annual information form filed with the Canadian securities regulatory authorities on SEDAR.com. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement.

Qualified Persons Statement
The information contained within this announcement has been reviewed and verified by Michael Hodgson, CEO of the Company. Mr Hodgson is an Economic Geologist by training with over 25 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, recognizing him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining. Oil and Gas Companies dated March 2006.

Quality Assurance and Quality Control Procedures Disclosure

The Company has implemented and maintains a Serabi quality assurance/quality control (QA/QC) protocol at its JDO Project as defined in its "NI 43-101 Technical Report for the Jardim Do Ouro Project, Para State, Brazil" dated 22 December 2010. This ensures best industry practice in sampling and analysis of exploration and resource definition samples. The insertion of field duplicates, certified standards and blank samples into the sample stream form part of the Serabi procedure (these act as an independent check on contamination, precision and accuracy in the analytical laboratory).

Assay results are reported once rigorous QAQC procedures have been approved

Preliminary Assay Results

The assay results reported in the table within this release include those provided by the Company's own on-site laboratory facilities. Serabi closely monitors the performance of its own facility against results from independent laboratory analysis for quality control purposes In 2008 NCL (Brasil) Ltda, the author of the Company's independent technical reports produced in compliance with Canadian National Instrument 43-101 reviewed and compared over 1,000 sample results of the Palito laboratory against results obtained by an independent laboratory using fire assay. They noted that when discarding from the sample population all results of less than 0.7g/t "the repeatability improves significantly reaching the generally accepted limits of variance (90% of the samples with HARD < 20%)". Further details are set out in their report NI 43.101 TECHNICAL REPORT FOR THE JARDIM DO OURO PROJECT, PARA STATE, BRAZIL dated December 9, 2010 and available on the Company's website.

During 2011 the Company has continued to monitor the performance of its own laboratory against results reported by the Company's independent laboratory and have concluded that by eliminating from its sample population all results of less than 0.3 g/t there remains good correlation and for higher grade gold values the tendency is for the Company's own results to be under-reported due to the improved gold recovery that can be obtained using fire assay methods.

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 Preliminary assay results but would only use assay results reported by an appropriately certificated laboratory

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

Contact Information

  • Enquiries:
    Serabi Gold plc
    Michael Hodgson
    Chief Executive
    Tel: +44 (0)20 7246 6830
    Mobile: +44 (0)7799 473621

    Clive Line
    Finance Director
    Tel: +44 (0)20 7246 6830
    Mobile: +44 (0)7710 151692

    Email: contact@serabigold.com
    Website: www.serabigold.com

    Beaumont Cornish Limited
    Nominated Adviser
    Roland Cornish
    Tel: +44 (0)20 7628 3396
    Michael Cornish
    Tel: +44 (0)20 7628 3396

    Fox Davies Capital Ltd
    UK Broker
    Simon Leathers
    Tel: +44 (0)20 3463 5010
    Jonathan Evans
    Tel: +44 (0)20 3463 5010