Serabi Gold drills 44.75 g/t gold over 1.3 metres at Palito, Brazil

Serabi Gold PLC [SBI-TSX; SRB-AIM] provided an exploration update from its 100%-owned Palito mine in the Tapajos region of Para state, northern Brazil.

Highlights: Underground drilling into the G3 vein has demonstrated continuity of strong mineralization below the current mined areas with intercepts, including 1.3 metres at 44.75 g/t gold from 337.85 metres (PDD0557); 0.55 m at 45.2 g/t Au from 190.6 m (PDD0590); 0.9 m at 23.33 g/t Au from 286.3 m (PUD0786); 0.75 m at 24.92 g/t Au from 230 m (PUD0825); and 0.5 m at 32.11 g/t Au from 238.1 m (PUD0827).

G3 has historically been a significant contributor to Palito's production, with approximately 65,000 ounces mined from surface to a vertical depth of approximately 300 metres and over approximately 800 metres of strike.

The current drilling campaign is focused on testing a panel of potential mineralization of approximately 300 metres by 600 metres that represents an extension of G3 to the northwest and down dip. Drilling planned for 2024 will test an additional southerly extension panel of approximately 500 metres by 500 metres.

Good progress is being made with the independent mineral reserve and resource estimate, although it has been decided to include the current round of G3 drilling, which will cause a delay in the completion of the estimate into the third quarter.

Mike Hodgson, CEO, said: "Underground drilling at the Palito mine continues to deliver excellent results. The G3 vein was a major source of gold production for much of Palito's earlier mine life, with the benefit of also being one of the widest orebodies. With the deepening of other sectors within the mine, and particularly Palito West and Chico da Santa, which are the sectors either side of the Palito Main zone, within which G3 occurs, drilling out the deeper portions of G3 is now becoming possible.

"In 2023, we plan to complete the drilling of the northwest extension of the G3 vein, an area of approximately 300 metres of vertical extent and approximately 600 metres of strike. We also expect to be in a position to drill out the southeast extension of G3 in 2024, a panel with a vertical extent of approximately 500 metres and strike of approximately 500 metres.

"Given the success of the drilling, we have taken the decision to include these latest results within the forthcoming mineral reserve and resource estimate. This will cause a short delay in completing the estimate, although we still hope to have it completed in the third quarter."

The G3 Vein is situated within the Palito Main Zone of the Palito Mine and has historically been one of the most important sources of gold production with good continuity of width and grade. In total it is estimated that 65,000 ounces of gold has been extracted from the G3 Vein. Mining ceased when a fault structure was encountered, with limited drilling below this fault to justify further development.

With mining in the parallel sectors of Palito West and Chico da Santa extending to depth, it has been possible to position drill rigs to drill test the depth and lateral extent of the G3 Vein. The drill results demonstrate that mineralization continues strongly below the fault although in places the fault can cause a minor off-set in the vein.

These results support the decision to advance development to lower levels in the northwest of the G3 Vein. Further drilling planned for 2024 should enable the southeast extension of G3 to be tested.

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