(Alliance News) - Serabi Gold PLC on Monday reported "further encouraging results" from drilling at the Sao Chico mine site in Brazil.
Shares in Serabi were up 5.7% at 90.40 pence in London in morning trading in London.
Serabi announced additional results from the Sao Chico extension and regional geochemical sampling at the Palito Complex exploration tenement. An additional 8 surface holes and 10 underground holes were drilled at Sao Chico since the start of March.
Results from the additional surface drill holes included intersections of 5.30 metres at 12.10 grams of gold per tonne at hole 20-SC-166 and 3.40 metres at 3.94 grams per tonne at hole 20-SC-164.
Underground drilling, meanwhile, intersected 1.37 metres at 27.77 grams per tonne in hole 20-SCUD-341 and 2.71 metres at 5.06 grams at hole 20-SCUD-343.
According to Serabi, diamond drilling has shown that "the main vein structure now continues to host gold bearing mineralisation for approximately 375 metres to the west of the current mine limits, an extension of a further 75 metres".
Through reverse circulation percussion, it has determined that there is a "strong likelihood" that the Cicada terrestrial geophysics anomaly "is a western extension of the Sao Chico vein structure, approximately 1,000 metres to the west of the current mine limits".
Results from this include 3 metres at 2.09 grams of gold per tonne of ore and 1 metre at 1.17 grams - holes SCRC-004 and SCRC-007 respectively.
Furthermore, through regional geochemical sampling, an area known as Mata Cobra has been highlighted, representing an 8 kilometre by 2 kilometre soil copper anomaly of more than 100 parts per million. "Numerous significant new gold and/or multi-element anomalies" have been discovered within Mata Cobra.
Chief Executive Mike Hodgson said: "These results follow on from the exploration news issued on 3 March 2020, with further encouraging results as we test the western extension of the Main Vein at Sao Chico."
On the subject of Mata Cobra, he said: "Within the contours of this 100 [parts per million] copper anomaly, we have identified some very exciting prospects, these include Calico and Juca, at the west end of the corridor and approximately five kilometre south of Palito. Both of these prospects exhibit a very similar geological setting to Palito and anomalous gold grades in addition to the copper.
"In the central part of Mata Cobra corridor, the Ganso, Quibe and Tabereba geochemical prospects have been identified also on strong AEM anomalies, themselves a good indicator of sulphide mineralisation. We will continue to advance these prospects through to discovery drilling stage as soon as we can, but I am certainly very encouraged by the obvious potential that exists in the exploration ground between the Palito and Sao Chico orebodies."
Hodgson added that April has been "another good month" and production is estimated at around 3,400 ounces, with the firm "starting to be able to change over a small number of staff each week who have been tested for Covid-19 and undertaken a period of quarantine".
By Anna Farley; annafarley@alliancenews.com
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Serabi (SRB)