Serabi Regulatory News (SRB)

9 Sep 2005 07:00

Serabi Mining plc09 September 2005 SERABI MINING PLC DRILLING UPDATE Results point to continuing improvements to the Palito mine resource and------------------------------------------------------------------------important areas of new mineralisation------------------------------------- At the time of the Serabi's public market listing on the London AIM, theresource assessment by independent consultants Snowden reflected drill resultsto the end of 2004. These consisted of 74 drill holes, from which a preliminaryglobal resource was calculated of 1,176,000t grading 11.0g/t gold and 0.60%copper estimate (approx. 460,000oz gold equivalent) on the Palito Main Zone(PMZ). The resource could only be established where there was sufficient drilldensity at that time, which resulted in an area defined by approximately 900mstrike and 90m depth; Snowden indicated in their report that the PMZ orebodyremained open at depth and along strike. Subsequent drilling to improve knowledge of the potential resources is wellahead of the scheduled 12,000m originally reported in the listing prospectusfor the entire year 2005. Using the company's own drill rigs, an additional 66boreholes or 10,697m have been completed over the first seven months of theyear. Given the open nature of mineralisation indicated by the previous assessment,the main targets for this drilling have been: (i) to increase the size, quality and knowledge of the resource with infill drilling; (ii) to expand the strike and depth extension of the resource beyond the currently established boundaries; (iii) to test ground nearby to the PMZ for potential parallel lodes, and (iv) sterilisation drilling for planning the construction of new capital projects Table 1: Drilling progress summary at the Palito operation To December 31, 2004Area Drillholes MetresPalito Main Zone Resource (1) 74 9,892Chico do Santo 7 993Palito West 5 560Other 8 1,679------------------- ------------- -------------SUB TOTAL 94 13,124------------------- ------------- ------------- From January to August 2005Area Drillholes MetresPalito Main Zone - Infill 27 4,239PMZ - Strike Extensions 12 1,896PMZ - Depth Extensions 19 3,028Compressor Lode 4 982Sterilisation 4 552------------------- ------------- -------------SUB TOTAL 66 10,697------------------- ------------- -------------GRAND TOTAL 160 23,821 (1) Used for CPR resource calculation & includes earlier non Serabi drillingAverage dip is between 45 degrees and 50 degrees The accompanying Table 2 summarizes the results for the drilling that has takenplace since the previous review by Snowden. These results continue the trends ofearlier drilling, including the intersection of very high-grade values, which itis anticipated will provide a good basis to improve the resource base. Thedrilling has also identified new mineralisation immediately adjacent to the PMZ,christened the Compressor Lode, which could provide good additional potentialfor ore that can be accessed from the infrastructure currently under developmenton the PMZ. As part of the continuing assessment of the Palito resources, these and futuredrill results will continue to be reviewed by independent consultants Hellman &Schofield and Snowden, for incorporation into ongoing mine planning and resourceevaluation. Palito Main Zone - Infill Drilling (established resource area)-------------------------------------------------------------- Drilling within the resource area established by the most recent resourceassessment by Snowden up to December 2004 (approx. 900m strike x 90m depth) hascontinued to provide good results, which will be incorporated into the nextresource update. Noteworthy amongst these are: Drill hole Intersection SER 090 3.84m at 36.8g/t SER 092 1.05m at 34.8g/t SER 096 1.11m at 56.7g/t PDD 100 0.78m at 57.3g/t PDD 112 0.94m at 27.5g/t PDD 117 5.62m at 26.5g/t PDD 127 1.08m at 59.5g/t PDD 149 1.0m at 46.9g/t & 1.27m at 27.5g/t Some of these results came from below the 155mRL elevation (approx. 45m belowground level at Shaft 1), which previously formed the lowest level for themajority of the Snowden's resource calculation. In addition, there are numerousfurther intersections that exceed the break even cut-off grade of 5.0g/t gold(6.00g/t gold equivalent) used by Snowden in their Competent Person's Report(CPR). Following the arrival of new underground drill rigs that are on order, it isexpected the rate of infill and general mining control drilling will besignificantly improved later this year. Palito Main Zone - Depth Extension---------------------------------- A number of exceptional drill results have been obtained from drilling focussedmainly on potential mineralisation below the existing resource area, althoughgood results were also obtained higher up in some of these holes too (see OtherDrilling). Included in these results are: Drill hole Intersection PDD 089 0.88m at 66.0g/t SER 093 1.87m at 34.6g/t & 1.0m at 70.0g/t PDD 095 2.0m at 57.6g/t PDD 107 1.51m at 29.4g/t & 0.75m at 29.7g/t PDD 113 0.88m at 43.0g/t & 0.92m at 76.5g/t PDD 123 2.67m at 22.7g/t PDD 126 2.10m at 73.3g/t PDD 131 1.28m at 36.5g/t PDD 135 1.59m at 41.6g/t & 1.0m at 79.5g/t While the main control of mineralisation is known to be along structurestrending NW-SE, it was previously postulated that the same mineralised zoneswould also plunge steeply to deeper levels. These new holes and some of thedeeper intersections from other holes are considered highly significant inestablishing this trend at depth and, together with ongoing drilling of thesetargets, will form the basis for long-term planning of the deeper areas of thePalito mine. Resulting from this work the number of drill intersections belowthe 145mRL depth since the December resource calculation has now increased from4 to 30. Palito Main Zone - Strike Extension----------------------------------- As previously mentioned, the main control of mineralisation at Palito is aregional NW-SE trending fracture zone. The initial resource was established overa strike length of 900m but the PMZ veins and associated alteration system areknown to extend to at least 1,600m. To evaluate this potential, step-outdrilling has now commenced along strike of the established PMZ resource area.Results from this initial work are very encouraging and include: Drill hole Intersection PDD 099 0.66m at 32.7g/t PDD 103 0.88m at 20.3g/t & 1.81m at 11.9g/t PDD 106 1.00m at 42.9g/t These results and other intersections extend the strike length of mineralisation(at a cut-off of 5.0g/t Au and above) by 120m north-west and 100 metres to thesouth-east of the established resource area, whilst still remaining open in bothdirections. Other Drilling-------------- Other drilling has also established a potential area of new mineralisationnearby to the PMZ, and a series of sterilisation holes have been carried out prior to the start of important capital projects. A combination of intersections from some of the infill drilling and otherspecifically targeted boreholes, have identified an important new area ofmineralisation to the southwest of the PMZ orebody, now referred to as the Compressor Lode, with the intersections indicating good continuity. Preliminary results from this programme include: Drill hole Intersection SER 091 0.70m at 33.7g/t SER 093 1.87m at 34.6g/t PDD 123 2.67m at 22.7g/t PDD 135 1.59m at 41.6g/t PDD 145 0.84m at 35.0g/t PDD 147 0.88m at 29.7g/t While more drilling needs to be undertaken to evaluate this area, these resultspoint to a significant new area of mineralisation, within close proximity to theexisting underground mine that could be potentially exploited from the underground infrastructure currently being developed. These drill results definea new high-grade zone over a strike length of 120m and a depth of 55m, with themineralisation remaining open in both strike directions and at depth. The Chairman, Graham Roberts said,"Drill results from the first half of the year continue to establish and expandthe potential of the Palito mining operation. On the Palito Main Zone theresults are slowly extending the strike of the known orebody, while additionalmineralisation has now been intersected as deep as 200m. Furthermore,identification of the new Compressor Lode illustrates the potential across thewider area of the Palito operation. We are already assimilating this information into operational planning andexpect to commence a review of the resource base at the end of the year. Thepace of evaluation of all these areas and at other regional projects is expectedto increase in the near future, as additional new surface and underground drillrigs already on order are delivered and deployed." Enquiries: Serabi Mining plc---------------------------- Graham Roberts, Chairman Tel: 020 7618 7752 Mobile: 07768 902 475 Clive Line, Finance Director Tel: 020 7618 7754Mobile: 07710 151 692 Chris Sattler, Manager, Corporate DevelopmentTel: 020 7618 7774Mobile: 07717 748 275 E-mail: contact@serabimining.com APPENDIX Table 2: Drill results at the Palito operation post resource calculation -January to August 2005 From To LengthHole ID 1 (metres) (metres) (meters) 2 Grade g/tSER086 NSISER087 20.77 21.63 0.86 4.03 155.11 155.61 0.50 2.12SER088 NSIPDD089 150.47 151.35 0.88 66.00SER090 30.62 31.50 0.88 5.61 49.11 52.11 3.00 9.59 54.11 57.95 3.84 36.75 59.78 60.23 0.45 2.09SER091 19.27 19.97 0.70 33.70 118.40 119.38 0.98 3.83 128.47 129.17 0.70 2.03SER092 39.64 40.60 0.96 2.06 55.06 56.11 1.05 34.80 73.38 74.40 1.02 2.91SER093 61.88 63.16 1.28 7.71 71.33 73.20 1.87 34.57 129.43 130.43 1.00 70.00 150.70 151.97 1.27 2.71PDD094 49.55 50.15 0.60 3.10PDD095 46.28 49.26 2.98 3.62 62.58 63.58 1.00 2.77 68.43 69.43 1.00 4.08 99.03 101.03 2.00 57.60 152.98 153.48 0.50 11.95PDD096 34.92 35.70 0.78 5.38 38.92 40.03 1.11 56.70PDD097 45.51 46.57 1.06 4.84 109.88 110.67 0.79 2.01 113.58 114.71 1.13 2.48 140.78 141.78 1.00 2.27PDD098 31.20 32.02 0.82 11.65PDD099 114.83 115.74 0.91 2.78 131.72 132.38 0.66 32.70 170.48 171.34 0.86 7.37PDD100 43.85 44.63 0.78 57.30 84.28 84.78 0.50 7.53 98.70 99.70 1.00 5.77 81.84 82.50 0.66 2.14PDD101 81.84 82.50 0.66 2.14 121.52 121.98 0.46 24.90PDD102 NSIPDD103 98.12 98.72 0.60 2.20 114.16 115.04 0.88 20.30 125.00 125.70 0.70 2.68 133.96 135.77 1.81 11.90PDD104 69.50 70.50 1.00 2.76PDD105 144.26 146.13 1.87 2.66 147.12 148.00 0.88 2.09PDD106 65.72 66.72 1.00 42.90 124.13 127.00 2.87 2.79 126.09 127.00 0.91 6.30PDD107 71.85 73.36 1.51 29.40 75.31 76.06 0.75 29.70 98.77 99.33 0.56 2.20 158.87 159.37 0.50 4.35 173.08 173.58 0.50 9.81PDD108 76.20 76.72 0.52 5.42 89.20 90.20 1.00 2.25 106.78 107.94 1.16 5.39PDD109 71.09 72.59 1.50 2.78 116.43 118.04 1.61 11.00PDD110 101.20 102.37 1.17 2.37 110.33 110.97 0.64 5.75PDD111 37.88 39.12 1.24 6.31 99.70 100.76 1.06 17.50 161.46 161.96 0.50 37.20PDD112 55.05 55.99 0.94 27.50PDD113 113.82 114.70 0.88 43.00 149.08 150.00 0.92 76.50PDD114 NSIPDD115 22.58 24.86 2.28 2.33 139.23 140.23 1.00 5.00 162.84 163.84 1.00 2.00PDD116 NSIPDD117 86.38 92.00 5.62 26.50PDD118 87.33 88.54 1.21 6.34 94.96 95.64 0.68 2.40 141.32 141.78 0.46 2.30PDD119 101.66 102.77 1.11 2.25PDD120 NSIPDD121 53.65 54.30 0.65 28.50 98.00 99.05 1.05 2.85 100.71 101.63 0.92 2.75 114.95 115.45 0.50 16.10PDD122 NSIPDD123 62.09 64.76 2.67 22.80 137.98 138.73 0.75 18.00 210.11 211.18 1.07 9.80PDD124 113.00 113.59 0.59 7.40PDD125 33.42 34.02 0.60 2.30 47.55 48.05 0.50 3.05 52.76 53.67 0.91 5.30 56.25 57.02 0.77 2.30 103.31 103.87 0.56 3.75PDD126 89.08 91.69 2.61 6.12 93.87 95.97 2.10 73.30PDD127 75.33 76.12 0.79 9.40 132.00 133.08 1.08 59.50 170.55 171.55 1.00 6.20PDD128 29.93 30.76 0.83 2.95 98.76 99.26 0.50 31.00 112.04 113.33 1.29 2.75PDD129 29.05 29.55 0.50 16.80 80.27 81.08 0.81 4.90 119.06 120.06 1.00 14.40 123.50 124.42 0.92 4.70 165.35 165.85 0.50 3.15PDD130 107.05 108.05 1.00 2.50 110.50 111.00 0.50 11.80 126.75 128.15 1.40 2.55PDD131 93.98 94.52 0.54 24.30 120.24 121.22 0.98 6.55 122.77 123.27 0.50 44.10 165.00 166.28 1.28 36.50PDD132 105.10 105.78 0.68 2.00PDD133 84.48 85.38 0.90 6.10 162.81 163.81 1.00 4.10 214.39 215.30 0.91 8.70PDD134 42.62 43.12 0.50 7.80 69.64 70.57 0.93 3.25PDD135 13.78 15.37 1.59 41.60 45.25 46.57 1.32 4.35 59.89 60.43 0.54 8.75 67.59 69.23 1.64 6.25 87.95 88.76 0.81 5.75 102.83 103.75 0.92 3.75 145.38 148.00 2.62 5.43 149.67 150.55 0.88 9.00 160.68 161.21 0.53 5.00 169.98 170.98 1.00 79.50PDD136 13.86 14.72 0.86 2.15PDD137 NSIPDD138 120.54 122.14 1.60 7.02PDD139 NSIPDD140 NSIPDD141 NSIPDD142 67.53 68.51 0.98 3.25PDD143 89.29 90.21 0.92 2.20PDD144 NSIPDD145 153.34 154.18 0.84 35.00PDD146 34.16 35.03 0.87 3.25 73.71 74.21 0.50 9.75 93.08 94.15 1.07 2.65 108.50 109.48 0.98 5.30PDD147 46.10 46.98 0.88 29.70 119.79 120.39 0.60 6.75PDD148 33.75 34.60 0.85 2.10 76.34 77.10 0.76 21.30 126.93 127.60 0.67 5.10 128.68 129.26 0.58 15.65 135.30 135.80 0.50 4.75PDD149 97.12 98.12 1.00 46.90 127.66 128.46 0.80 10.80 133.32 134.59 1.27 27.50 136.30 136.82 0.52 2.55PDD150 75.55 76.38 0.83 11.95 143.63 144.13 0.50 36.15PDD151 191.20 191.93 0.73 2.30 204.44 204.94 0.50 4.55 229.05 230.44 1.39 4.38 (1) Average dip -45 degrees to -50 degrees (2) NSI = no signifcant intersection This information is provided by RNS The company news service from the London Stock Exchange