SOURCE: Serabi Gold plc

Serabi Gold plc

November 23, 2011 02:00 ET

Serabi Gold plc ("Serabi" or "The Company") Drilling Update Shallow Infill Drilling at Piaui Provides Further Encouragement of Potential

LONDON--(Marketwire - Nov 23, 2011) - Serabi Gold plc (AIM: SRB) (TSX: SBI) (TSX: SBI.WT), the Brazilian focused gold exploration Company, is pleased to announce encouraging preliminary analytical results from a shallow infill drilling programme on the Piaui Prospect located at its 100% owned Jardim do Ouro project in the Tapajos region.

As previously announced, the Company has been experiencing delays in receiving assay results from the independent laboratory used by the Company, and the preliminary analytical results set out below from infill and extension drilling at the Piaui Prospect have been returned from the Company's own on-site analytical laboratory at the Palito mine (see footnote - Preliminary Assay Results). Shallow infill drilling commenced in October on the promising Piaui propect and 2,600 metres of a shallow diamond drilling programme across 23 drill holes has been recently completed (PDD0495-PDD0501, PDD0503-PDD0517). All samples have also been submitted to ALS Chemex of Vancouver and results of this final analysis will be released in due course.

Mike Hodgson, Chief Executive, commented:
"Piaui represents a previously concealed ore body and as such is unlikely to have been discovered had it not been for 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 latest preliminary results continue to confirm the potential of Piaui to host broader width near-surface mineralization with good gold grades, over a significant strike length".

The recent drilling follows the successful Phase 1 results together with the highly encouraging results from the ground-based geophysical Induced Polarisation survey undertaken (as announced on 12 September 2011), which indicated that the strike length of the Piaui discovery could now extend up to 1,400 metres. To date, the drilling, which has now been undertaken over two areas of 600 metres and 350 metres within the overall 1,400 metre potential strike length of the prospect, continues to intersect broad zones of intense chlorite/silica/sulfide alteration zones in excess of 40 metres which demonstrate the passage of a significant amount of mineralized fluid. Preliminary on-site analytical results returned to date indicate a very fertile mineralized system, with indications that the system remains open at depth.

Significant preliminary results (subject to confirmation by ALS Chemex) returned to date include:

Prospect Hole East North RL Hole Depth Dip/Azm From To Width Au
(UTM) (UTM) (UTM) (m) (m) (m) (m) g/t
Piaui PDD0495 633760 9300260 222.97 244.50 -55/210 111.62 113.50 1.88 0.36
Piaui PDD0497 633246 9300573 235.66 191.05 -52/211 51.50 52.00 0.50 0.94
66.69 67.22 0.53 1.14
103.77 104.84 1.07 0.49
Piaui PDD0498 633900 9300105 204.55 111.70 -50/210 40.98 41.70 0.72 3.63
49.66 50.57 0.91 3.05
Piaui PDD0499 633142 9300633 242.22 188.20 -50/212 110.57 115.78 5.21 3.25
including 110.57 111.56 0.99 4.13
including 114.54 115.78 1.24 8.81
130.88 131.93 1.04 0.63
Piaui PDD0500 633072 9300673 243.06 97.90 -48/30 50.96 51.75 0.79 0.74
Piaui PDD0501 633072 9300673 243.16 99.45 -51/213 44.94 45.75 0.81 1.35
45.75 46.63 0.78 0.62
69.04 69.54 0.50 0.80
Piaui PDD0503 633038 9300693 224.41 112.65 -50/200 102.91 103.91 1.00 0.44
Piaui PDD0504 632998 9300624 240.75 95.05 -50/213 45.14 45.90 0.76 2.17
48.20 49.34 1.14 0.24
59.50 60.60 1.10 0.24
70.94 71.44 0.50 2.16
Piaui PDD0505 633032 9300604 228.22 95.55 -50/213 36.61 37.39 0.78 0.85
57.85 61.77 3.92 0.58
62.61 64.30 1.69 0.50
Piaui PDD0506 633067 9300584 228.33 94.40 -49/216 12.05 13.10 1.05 0.60
40.57 41.44 0.87 2.48
56.81 60.21 3.40 6.68
including 57.81 58.75 0.94 16.69
64.90 65.83 0.93 0.48
65.83 66.83 1.00 0.30
Piaui PDD0507 633102 9300564 228.90 92.20 -49/210 19.83 20.56 0.74 0.81
Piaui PDD0508 633136 9300544 228.33 97.60 -49/215 8.77 9.45 0.68 0.96
12.60 13.82 1.22 0.62
15.50 18.30 2.80 3.63
including 16.69 17.58 0.89 8.59
50.21 51.09 0.88 0.53
63.33 64.43 1.10 2.57
Piaui PDD0509 633171 9300524 228.00 97.85 -49/211 14.40 14.92 0.52 1.07
20.50 23.20 2.58 0.92
38.19 38.94 0.75 0.77
Piaui PDD0510 633206 9300504 227.87 140.20 -48/214 8.10 10.29 2.28 1.18
Piaui PDD0511 633240 9300484 228.00 133.60 23.64 24.30 0.66 1.34
39.57 40.20 0.63 0.51
64.18 66.18 2.00 7.00
including 65.10 66.18 1.08 10.22
72.12 73.20 1.08 0.31
73.20 74.13 0.93 2.12
Piaui PDD0512 632962 9300645 228.00 86.20 -50/210 52.85 54.00 1.15 0.27
Piaui PDD0515 633865 9300125 206.00 71.70 28.13 29.23 1.10 0.28
36.16 36.91 0.75 0.93
43.11 43.71 0.60 1.66
Piaui PDD0457Ext 220.45 50.50 -50/210 161.50 162.47 0.97 1.26
182.73 183.58 0.85 0.53

Note: Assay intercepts are calculated based on a minimum weighted average grade of 0.3g/t Au using a 0.5g/t Au weighted average lower cut and a maximum internal waste interval of 1.2m. All assays were completed by Serabi's on-site laboratory using a 30gm DIBK aqua regia digest with an AAS analysis. Serabi's on-site laboratory is not certificated for analysis and these results should be considered preliminary in nature (please refer to the footnote at the end of this release for further details).

As described above, final analysis has been delayed due to technical issues with the offsite laboratory. Results from a certificated analytical laboratory are expected within the coming months.

The initial Phase 1 drilling programme has now been completed with a total of 8,169 metres having been drilled.

Results have previously been announced for the Piaui, Panhandle and Currutela prospects. Results have now been received from the primary external laboratory in Vancouver, Canada for the samples recovered from the Tatu, Lazaro and Pele prospects which are located north of the Palito deposit. Gold intersections were recovered at Pele and Tatu but the widths and grades are not considered of sufficient interest to warrant further activity at this time given the more encouraging potential of the Piaui, Espeto and Currutela prospects. At the Lazaro prospect, as with the earlier Panhandle prospect, the single drill hole failed to return any indication of a causitve body for the targeted geophysical anomaly.

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 are those provided by the Company's own on-site laboratory facilities and have not yet been independently verified although the Company has already despatched duplicate samples for such verification using fire assay methodology. 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

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    Finance Director
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    Mobile: +44 (0)7710 151692
    Email: contact@serabigold.com
    Website: www.serabigold.com

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