LONDON (Alliance News) - Serabi Gold PLC Wednesday said its exploration programme at its Sao Chico gold project had intersected further high-grade gold deposits, suggesting a significant extension of the mineralisation at the site.
In a statement, the Brazil-focused gold miner said the latest finds had come from infill and extension drilling on the Highway Vein, located some 250 metres east and along strike of the Main Vein.
"Consistent with results from drilling conducted by the company on the Main Vein and its potential extension to the West, several interceptions of gold grades in excess of 25 grams per tonne have been reported including one intercept of 189.6 g/t over one metre," the company said in a statement.
"The drilling results into the Main Vein last year recorded multiple intersections in excess of 100g/t gold, and 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," Chief Executive Mike Hodgson said.
"To record near surface intersections all exceeding 25g/t gold in four holes out of five drilled is an excellent result. 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 700 metres in strike length," he added.
Serabi will now undertake some initial development of the deposit and is acquiring essential fleet so it can start the earthworks and ramp portal development at Sao Chico.
"Work is planned to be underway mid-February and this will result in a ramp and underground mine development intersecting and evaluating the Main Vein. We will also conduct an underground drill programme to investigate and evaluate parallel mineralised structures, all with the view to generate a robust mine production plan by year end," it said.
Serabi Gold shares were up 12.8% at 5.5 pence early Wednesday.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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Serabi (SRB)