LONDON (Alliance News) - Serabi Gold PLC Tuesday said the latest results from its drilling test at its Sao Chico gold deposit in Brazil had returned more high-grade gold results of more than 100 grammes a tonne.
It said the remaining results from an infill and step-out definition drilling programme showed high-grade gold intersections, including 114.74 grammes a tonne and 175.19 grammes a tonne, and a consistent high grade zone within the main vein, which is now double the length of the previous strike distance. It said there's also the potential for further significant strike and depth extensions.
"The overall programme has to date more than doubled the original 150 metre strike length, and following the first holes drilled, the possibility of this strike length becoming substantially larger is a real possibility," Chief Executive Mike Hodgson said in a statement.
"As well as potentially significantly enhancing the resource at Sao Chico we are increasing our understanding of the deposit and we are now preparing all the necessary submissions to the authorities for the conversion of the trial mining license to a full mining licence," he added.
Hodgson said the company is also progressing its main Palito asset, with mining well underway and a "healthy" grade of ore being stockpiled before the processing plant is commissioned, which it expects to happen before the end of the year.
Serabi Gold shares were up 17% at 6.3 pence Tuesday morning, one of the top five risers on AIM.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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Serabi (SRB)