Serabi Mining Exploration Program Focused On Palito

LONDON (Dow Jones)--Serabi Mining PLC (SRB.LN) said Tuesday the current exploration program is focused on a number of promising geophysical anomalies highlighted by the 2008 airborne VTEM survey and subject to finalizing a drill contract and mobilizing, it will undertake an estimated 7,500 meters of diamond drilling on these targets over the remainder of the year. MAIN FACTS: -All of these anomalies lie within three kilometers of the existing Palito mine and plant. -With section lines spaced 100 meters to 200 meters apart this initial drill program is targeted only at discovery and, if successful, further drilling will be required before any discovery can be classified as a resource. -The five zones identified are located to the north-east, south-west and south-east of the established Palito resources. -The geophysical results for the areas to the south-west and south-east along strike are indicative of bodies that are potentially larger than Palito itself. -Views Palito as also having a potentially important strategic position, located, as it is, close to the main north-south highway of the region and with access to an established power grid. -Pleased to conclude a GBP3.6 million share subscription with Eldorado at 3 pence per share earlier this month, who as a result now have a 26.8% interest in Serabi. -Confident that both the suspension and fine placed upon Serabi Mineracao Limitada will be lifted in the near future. -Shares at 0800 GMT up 0.1 pence, or 2.4%, at 2.2 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; iain.packham@dowjones.com (END) Dow Jones Newswires June 29, 2010 04:02 ET (08:02 GMT)