Serabi Regulatory News (SRB)

1 Feb 2006 08:00

Serabi Mining plc01 February 2006 SERABI MINING PLC: DRILLING AND EXPLORATION UPDATE 2005 Important new discoveries made adjacent to the Palito mining operation during2005, while other drill results continue to confirm the potential for expansionof the Palito Main Zone LONDON: Serabi Mining plc ("Serabi" or the "Company") reports assay andexploration results from its ongoing drill programmes being carried out at the100% owned Palito Gold Mine and the Jardim do Ouro District, located in theTapajos geological region of northern Brazil. Using the company's own drillingequipment and crews, Serabi completed a total of 18,235 metres of diamonddrilling from 138 boreholes during 2005, significantly in excess of thecompany's target of 12,000 metres of drilling for the year. Highlights of the results from the 2005 drilling campaign include: - Confirmation of the potential to improve the quality and expand gold resources at the Palito Main Zone ("PMZ") at depth and along strike - Exceptional intersections northwest of the Palito Hill indicate high- grade gold mineralisation in this direction, up to 200 metres beyond current mine workings - Very high-grade intersections at the newly discovered Compressor Lode provide important near-term mining opportuntity - Continuation at depth of high-grade mineralisation at the Palito West prospect - Discovery of new area of gold mineralisation at the Bill's Pipe prospect, located within the Jardim do Ouro District nearby the Palito mine Table 1: Drilling progress summary Area Drillholes (1) Metres To December 31 Palito Main Zone Resource (2) 74 9,892 2004 Chico do Santo 7 993 Palito West 5 560 Other 8 1,679 SUB TOTAL 94 13,124 From January to PMZ - Infill (Central Zone) 27 4,239 August 2005 PMZ - Strike Extensions 12 1,896 PMZ - Depth Extensions 19 3,028 Compressor Lode 4 982 Sterilisation 4 552 SUB TOTAL 66 10,697From September to PMZ - Infill (Central Zone) 18 1,728 December 2005 PMZ - Infill (North Zone) 15 1,038 PMZ - Strike Extensions 3 527 PMZ - Depth Extensions 7 1,652 Compressor Lode 21 1,904 Palito West 4 172 Bill's Pipe 4 517 SUB TOTAL 72 7,538 GRAND TOTAL 232 31,359 (1) Average dip is between 45 degrees and 50 degrees (2) Used for CPR resource calculation & includes earlier non-Serabi drilling The accompanying Table 2 shows the results from drilling between September andDecember 2005 (beginning with drill hole PDD 152), with the highlights andcomments summarized below. Figure 1 entitled "Long Section of Palito Main Zone"illustrates the extent of drilling during 2005 as it relates to the resourceboundary as at December 2004. Figure 2 entitled "Plan View of Palito Main Zone"shows the location of the recent drilling along the entire strike length ofmineralisation. Results from other 2005 drilling prior to PDD 152 were thesubject of the company's press release dated 9 September, 2005, copies of whichare available on the company's website www.serabimining.com. All figuresreferred to in this press release can be viewed by clicking on the URL at thebottom of this release. Palito Main Zone - Infill Drilling (Central resource area) A total of 5,967 metres of infill drilling within the central December 2004resource area was completed on the Palito Main Zone during 2005. Serabi expectsthat the data from these holes will enable the company to significantly improvethe quality of the resource base. Highlights from the most recent infilldrilling in this area include: Drill Hole Intersection PDD 154 1.80m at 9.2g/t PDD 171 0.55m at 27.1g/t PDD 173 2.45m at 4.7g/t Infill drilling of the Palito Main Zone will continue during 2006 to provideinformation for effective mine planning, but will shift the focus to the use ofunderground drill rigs in order that the surface rigs can be directed towardsresource expansion along strike and at depth at Palito, as well as on otherprojects throughout the Jardim do Ouro District and Tapajos Region. Palito Main Zone - Infill Drilling (North resource area) A significant amount of drilling was carried out along strike to the north ofthe Palito Main Zone on the other side of Palito Hill, located up to 200 metresahead of the existing mine workings. Results from drilling in this area are veryencouraging, with a number of very high-grade intercepts at shallow depthsencountered. Recent highlights include: Drill Hole Intersections PDD 200 2.31m at 5.2g/t PDD 202 0.50m at 53.2g/t PDD 205 3.07m at 5.3g/t PDD 211 0.91m at 262.9g/t PDD 214 0.57m at 29.4g/t PDD 216 2.85m at 57.0g/t Palito Main Zone - Strike Extensions The drilling focus during 2005 was mainly on infill, strike and depth extensionsand follow-up on the newly discovered Compressor Lode. Drill results obtainedimmediately south of the established operation are expected to result in anextension of the strike length of the Palito Main Zone resource mineralisationfrom approximately 900 metres to 985 metres. Mineralisation remains open in bothdirections. Highlights during the latter part of the year's drilling programmeinclude: Drill Hole Intersections PDD 204 1.74m at 9.2g/t PDD 208 0.53m at 18.0g/t As previously indicated, strongly anomalous gold soil geochemistry indicatesthat the Palito Main Zone mineralisation could extend up to 2,000 metres. Thecompany plans to test the full extent of the strike length of the Palito MainZone during 2006. Palito Main Zone - Depth Extensions Serabi continued to test the depth extensions of the Palito Main Zone during2005, with a further 1,652 metres of drilling completed in addition to the 3,028metres of deep drilling undertaken in the earlier part of 2005. Highlights fromthe most recent deep drilling campaign include: Drill Hole Intersection PDD 153 0.61m at 25.0g/t PDD 159 0.91m at 83.2g/t PDD 159 0.48m at 69.1g/t PDD 165 0.75m at 14.1g/t PDD 219 0.90m at 26.1g/t It is noteworthy that there are now a total of 34 drill intersections below145mRL; the 2004 resource calculation had only included 4 drill intersectionsbelow this elevation. The deepest mineralisation encountered to date has been atthe 56 mRL, which is located approximately 144 metres below the bottom of theexisting shaft. The Palito Main Zone remains open at depth along the entirestrike length. Compressor Lode Since the announcement of the discovery of the Compressor Lode adjacent to thePalito Main Zone in the company's press release dated 9 September 2005, Serabihas completed an additional 21 drill holes, for a total of 25 drill holes (2,886metres). Now that additional drilling has been completed, Serabi believes thatthe Compressor Lode area actually contains at least four separate high-gradeveins, with a known strike length of 120 metres and a depth of 100 metres(increased from a previously known depth of 55 metres). Figure 3 entitled "PlanView of the Compressor Lode" illustrates the location of these veins as well asthe drill intersections. The mineralisation at the Compressor Lode remains openat depth. It is expected that the results of this drilling will enable thecompany to incorporate the Compressor Lode into the mine plan for 2006.Highlights from the drilling programme in this area include: Drill Hole Intersections PDD 163 0.77m at 40.7g/t PDD 163 0.92m at 25.9g/t PDD 183 1.00m at 58.9g/t PDD 185 0.92m at 66.6g/t PDD 187 2.49m at 20.7g/t PDD 191 1.56m at 42.5g/t PDD 193 1.98m at 19.1g/t PDD 196 2.34m at 12.7g/t PDD 197 0.46m at 134.7g/t Palito West The company recently resumed limited testing of the Palito West target, aparallel structure that lies within 200 metres southwest of the Palito MainZone, and from which numerous high-grade results have previously been obtainedfrom channel sampling. Drill results indicate the continuing occurrence ofhigh-grade veins within 40 metres of surface. Noteworthy amongst the 4 drillholes recently completed at Palito West are: Drill Hole Intersections PDD 178 0.79m at 20.3g/t PDD 180 0.64m at 79.5g/t The very high-grade veins at Palito West have not yet been tested to the southor at depth and further drilling is planned during 2006 to assess the potentialto extend the mineralisation. Bill's Pipe Importantly, Serabi also recently commenced drilling elsewhere in the Jardim doOuro District surrounding the Palito Mine. The first area tested by drilling isthe Bill's Pipe target, which is the location of a large gold in soil anomalypreviously identified by the company. Initial trenching of the area had providedencouraging results. Trench TC09 encountered 2.0 metres grading 17.6 g/t,trench TC21 yielded 1.5 metres at 10.8 g/t and trench TC22 returned 1.0 metre at2.5 g/t gold. Early drilling results are promising and the company expects to continue withfurther work during 2006 on this exciting target. Highlights from the Bill'sPipe drilling campaign thus far include: Drill Hole Intersections PDD 212 0.51m at 27.0g/t PDD 212 0.95m at 20.7g/t Deeper holes PDD 215 and PDD 217 intersected narrow but so far lower grademineralised zones. Figure 4 entitled "Plan View of Bill's Pipe" highlights thesize of the gold in soil anomaly as compared to the Palito Main Zone and Ruari'sRidge. The figure also plots the location of the trenching and drill holescompleted at Bill's Pipe during 2005. Commenting on the drill progress made during 2005, Graham Roberts, Chairman ofSerabi said, "The 2005 drilling results confirm the high-grade nature and growing extent ofgold-copper mineralisation at Jardim do Ouro and the Palito Gold Mine. Both thePalito Main Zone and the newly discovered Compressor Lodes are returningexceptional results, while our understanding of the north area at Palito is alsogrowing where we are pleased to see a number of high-grade intercepts. Overall,we expect the results from the 2005 drilling will provide a strong basis forimprovement of the resource base at Palito, which will be reported toshareholders as soon as the year-end review is completed. We are also pleased to report that we have begun drilling at the company's otherprojects in its exploration portfolio. Early results from Bill's Pipe areencouraging and we will be continuing to test this target as well as otherpriority targets within the Jardim do Ouro District and the broader TapajosRegion during the course of 2006." Enquiries: Serabi Mining plc Graham Roberts Tel: 020 7220 9550Chairman Mobile: 07768 902 475 Clive Line Tel: 020 7220 9553Finance Director Mobile: 07710 151 692 Chris Sattler Tel: 020 7220 9552Corporate Development Mobile: 07717 748 275 E-mail: contact@serabimining.comWebsite: www.serabimining.com http://www.rns-pdf.londonstockexchange.com/rns/7262x_-2006-1-31.pdf Table 2: Drilling results from PDD152 to PDD223 Hole ID(1) Gold Copper From To Length(2) Grade Grade (metres) (metres) (metres) (gpt) (%) PDD0152 NSI PDD0153 53.28 54.15 0.87 4.70 0.16 59.10 59.88 0.78 3.36 0.11 138.39 139.00 0.61 25.00 0.14 143.64 144.47 0.83 8.03 0.10 179.25 180.28 1.03 4.86 0.44 PDD0154 30.71 31.68 0.97 2.06 0.01 88.54 90.34 1.80 9.18 0.40 PDD0155 21.65 22.15 0.50 2.45 0.04 PDD0156 87.36 87.87 0.51 2.32 0.04 PDD0157 70.60 71.15 0.55 9.77 0.21 PDD0158 NSI PDD0159 65.89 66.37 0.48 69.10 2.52 73.00 73.50 0.50 3.80 0.48 119.22 120.28 1.06 7.25 0.22 122.74 123.24 0.50 6.00 0.34 128.54 129.14 0.60 2.53 0.10 132.73 133.51 0.78 3.77 0.06 185.59 186.50 0.91 83.20 6.77 210.40 211.40 1.00 5.54 0.04 222.87 223.84 0.97 5.58 2.47 PDD0160 NSI PDD0161 NSI PDD0162 40.29 41.07 0.78 2.84 0.14 PDD0163 21.35 22.96 1.61 5.52 0.19 47.17 48.09 0.92 25.90 0.45 93.18 93.68 0.50 3.12 0.03 95.73 96.23 0.50 8.54 0.03 126.62 127.39 0.77 40.70 0.26 135.50 136.22 0.72 5.26 1.12 234.01 234.99 0.98 2.41 0.30 PDD0164 31.15 31.82 0.67 2.29 0.08 32.65 34.44 1.79 8.38 0.14 PDD0165 127.67 128.30 0.63 11.05 1.38 160.48 161.07 0.59 13.55 0.23 176.22 176.72 0.50 5.16 0.29 182.04 182.54 0.50 5.00 0.05 185.70 186.43 0.73 4.11 0.17 207.87 208.62 0.75 14.10 0.25 PDD0166 44.83 45.33 0.50 3.91 0.16 48.15 48.65 0.50 10.90 0.10 PDD0167 0.00 0.92 0.92 4.92 0.05 9.02 10.19 1.17 2.85 0.01 15.65 16.15 0.50 4.18 0.10 PDD0168 60.40 60.80 0.40 8.75 0.12 PDD0169 0.00 0.70 0.70 2.73 0.05 24.93 25.43 0.50 13.45 0.08 PDD0170 NSI PDD0171 20.67 21.22 0.55 27.10 0.06 PDD0172 NSI PDD0173 7.95 10.40 2.45 4.67 0.03 PDD0174 26.16 27.03 0.87 3.00 0.26 PDD0175 17.00 18.63 1.63 2.25 0.12 35.73 36.23 0.50 3.81 0.11 PDD0176 20.73 21.23 0.50 14.85 0.43 PDD0177 44.97 45.43 0.46 5.93 0.08 52.06 52.88 0.82 4.33 0.08 PDD0178 35.64 36.43 0.79 20.30 0.43 PDD0179 20.08 20.64 0.56 6.56 0.43 PDD0180 35.94 36.58 0.64 79.50 0.64 PDD0181 NSI PDD0182 NSI PDD0183 8.10 9.10 1.00 58.92 0.06 PDD0184 NSI PDD0185 14.05 14.97 0.92 66.60 0.21 PDD0186 26.76 27.38 0.62 5.33 0.14 PDD0187 29.16 31.65 2.49 20.67 0.53 PDD0188 NSI PDD0189 36.13 36.62 0.49 3.63 0.12 60.88 61.62 0.74 3.85 0.21 PDD0190 40.46 41.33 0.87 7.35 0.64 PDD0191 24.35 25.65 1.30 7.62 0.06 40.02 41.58 1.56 42.47 1.46 53.50 53.98 0.48 5.41 0.10 55.27 55.77 0.50 2.10 0.06 PDD0192 37.98 38.79 0.81 2.95 0.21 72.13 73.17 1.04 5.73 0.20 80.07 80.57 0.50 2.03 0.02 PDD0193 23.79 24.59 0.80 2.61 0.07 36.92 38.90 1.98 19.14 0.13 PDD0194 NSI PDD0195 58.72 59.21 0.49 2.07 0.03 75.22 76.22 1.00 2.01 0.03 100.30 101.30 1.00 11.38 0.08 102.28 102.78 0.50 4.62 0.20 112.29 113.78 1.49 2.84 0.01 PDD0196 88.74 89.63 0.89 5.41 0.03 95.21 95.72 0.51 2.79 0.06 122.19 124.53 2.34 12.69 0.24 PDD0197 52.61 53.12 0.51 17.56 0.02 57.44 57.93 0.49 6.41 0.04 76.11 76.61 0.50 4.45 0.02 108.56 109.02 0.46 134.68 0.80 PDD0198 25.12 26.10 0.98 2.90 0.06 34.08 34.58 0.50 3.80 0.04 PDD0199 23.40 24.08 0.68 9.82 0.08 PDD0200 24.78 27.09 2.31 5.15 0.27 63.56 64.06 0.50 3.73 0.02 65.48 65.98 0.50 2.82 0.03 PDD0201 NSI PDD0202 27.14 27.64 0.50 53.23 0.14 PDD0203 43.19 46.68 3.49 2.76 0.05 PDD0204 152.59 154.33 1.74 9.20 0.14 PDD0205 24.07 24.57 0.50 8.87 0.33 39.36 39.88 0.52 5.82 0.08 45.05 48.12 3.07 5.26 0.04 PDD0206 45.78 46.30 0.52 6.30 0.08 PDD0207 NSI PDD0208 220.52 221.05 0.53 18.00 0.10 PDD0209 NSI PDD0210 17.83 18.41 0.58 5.18 0.03 19.36 19.86 0.50 2.00 0.05 46.92 47.90 0.98 4.00 0.02 54.64 55.26 0.62 3.09 0.22 68.80 69.87 1.07 2.27 0.04 PDD0211 16.41 17.35 0.94 2.13 0.02 59.69 62.30 2.61 3.74 0.01 92.10 93.01 0.91 262.90 0.02 PDD0212 21.79 22.30 0.51 27.00 0.69 23.32 24.27 0.95 20.70 0.13 31.73 32.60 0.87 3.82 0.00 PDD0213 100.33 100.86 0.53 5.05 0.00 PDD0214 43.29 43.86 0.57 29.40 0.20 PDD0215 36.22 36.82 0.60 2.14 0.05 104.14 105.13 0.99 2.18 0.08 PDD0216 36.00 38.85 2.85 57.01 0.88 51.02 51.93 0.91 2.34 0.06 PDD0217 27.90 29.40 1.50 3.77 0.01 PDD0218 39.17 39.80 0.63 4.91 0.42 PDD0219 185.04 185.94 0.90 26.10 0.01 PDD0220 238.40 238.90 0.50 4.23 0.08 PDD0221 NSI PDD0222 Pending PDD0223 26.40 27.33 0.93 4.41 0.07 (1) Average dip -45 degrees to -50 degrees (2) NSI = no significant intersection This information is provided by RNS The company news service from the London Stock Exchange