Exploration drilling extends the newly developed Mogno and Ipe lodes

For immediate release

1


1


May


2021

Serabi


Gold plc



(“


Serabi


” or the “Company”)

Successful


h


igh-


g


rade


e


xploration


d


rilling extends the newly developed


Mogno


and


Ipe


lodes


at depth and potentially along strike.

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to update the market on exploration drilling results from the Palito Mine where the combination of surface and underground exploration drilling has confirmed depth and plunge continuity of the high grades in the Mogno and Ipe lodes.

A PDF version of this announcement, including all images, can be accessed using the following link



https://bit.ly/




3




fc7mNq

Highlights

Drilling on the Mogno and Ipe veins at the Palito Mine has confirmed depth extensions by over 100 metres below the lowest mined level. Furthermore, step out drilling indicates additional payable ore shoots up to 600 metres along strike in both directions.

Significant down plunge intersections on the

Mogno

lode from underground exploration drilling include:

• PUD0578 –
  
  0.
  
  
  75
  
  
  m @
  
  
  3
  
  
  9.
  
  
  96
  
  
  g/t Au
  
• PUD0635 –
  
  0.
  
  
  50
  
  
  m @
  
  
  12.
  
  
  52
  
  
  g/t Au
  
• PUD0679 –
  
  1.00
  
  
  m @
  
  
  51.76
  
  
  g
  
  
  /t Au
  
• PUD0681 –
  
  0.
  
  
  8
  
  
  5
  
  
  m @
  
  
  35.31 g
  
  
  /t Au
  
• PUD0684 –
  
  1.25
  
  
  m @
  
  
  17.29 g
  
  
  /t Au
  

Down plunge intersections on the

Ipe

lode from underground drilling include:

• PUD0684 –
  
  2.05
  
  
  m @
  
  
  13.54 g
  
  
  /t Au
  
• PDD0566 –
  
  0.89m @ 36.62
  
  
  g/t Au
  

Surface drilling has highlighted a number of potential new ore shoots along strike on both lodes. On the Ipe vein, PDD0565 intersected

0.95m @ 3.49g/t Au

600 metres to the NW of the mine current development, and PDD0573 intersected

1.25m @ 3.64g/t Au

400 metres to the SE of the current mine development, opening up the possibility of a very significant resource increase.

On the Mogno Vein previous drilling undertaken in 2018 also indicated this vein to be gold bearing 600 metres to the SE of the current mining area with PDD0533 having intersected

0.5m @ 1.38g/t Au

whilst PDD0534 intersected

0.5m @ 2.06g/t Au

.

Mike Hodgson, CEO of Serabi, commented:

“


The


Ipe


and


Mogno


lodes are increasing their contribution of the Palito Mine ore feed due to their relative shallow depth


and high grades


.


Both these veins are being mined less than 200


m


etres


from


surface so are easily accessed and with the main ramp already deepened to over 350 metres from surface, both


Ipe


and


Mogno


do not require much capital development.

“


Both shoots are extremely rich in both


gold and copper


with


grade


s


similar to


the G3 vein which was


a


major contributing vein to Palito production in previous years. The confirmation that these veins


are


continu


ing a


t depth is


excellent news


and bodes well for the future of the operation.


Furthermore


, the


drill results indicate significant


potential to extend resources laterally


along strike


. We will continue


drill t


e


st


ing these strike ex


t


ensions


over the coming months, and if we see


a replication of


the ore shoots currently being mined,


this will confirm the


potential for these two vein structures


to continue


make a


major


long-term


contribu


tion


to gold productio


n.

“


With drilling still ongoing


at the


Sao C


hico


and S


ao


Domingos


prospects


and a fou


r


th r


i


g


arriving in


June, we look forward to


providing further


exploration


results


to the market


over the coming months


.


”

Results

To view the image of the


Mogno


Longsection


, please click on this link –


https://bit.ly/3bjaExc

Mogno




Longsection

To view the image of the


Ipe


Longsection


, please click on this link –


https://bit.ly/33tfNhY

Ipe




Longsection

To view the image of the


Plan view of the Palito workings showing the location of


Ipe


and


Mogn


, please click on this link


–


https://bit.ly/3f90Gzz

Plan view of the Palito workings showing the location of




Ipe




and




Mogno




, relative to the main mine

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.

Enquiries:

Copies of this announcement are available from the Company’s website at

www.serabigold.com

.

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement.

GLOSSARY OF TERMS

Assay Results


Assay results reported within this release for surface drilling have been provide by ALS laboratories in Brazil whilst assay results for underground drilling are those provided by the Company’s own on-site laboratory facilities at Palito and have not yet been independently verified.  Serabi closely monitors the performance of its own facility against results from independent laboratory analysis for quality control purpose.  As a matter of normal practice, the Company sends duplicate samples derived from a variety of the Company’s activities to accredited laboratory facilities for independent verification. Since mid-2019, over 10,000 exploration drill core samples have been assayed at both the Palito laboratory and certified external laboratory, in most cases the ALS laboratory in Belo Horizonte, Brazil. When comparing significant assays with grades exceeding 1 g/t gold, comparison between Palito versus external results record an average over-estimation by the Palito laboratory of 6.7% over this period. Based on the results of this work, the Company’s management are satisfied that the Company’s own facility shows sufficiently good correlation with independent laboratory facilities for exploration drill samples. The Company would expect that in the preparation of any future independent Reserve/Resource statement undertaken in compliance with a recognised standard, the independent authors of such a statement would not use Palito assay results without sufficient duplicates from an appropriately certificated laboratory

Qualified Persons Statement


The scientific and technical information contained within this announcement has been reviewed and approved by Michael Hodgson, a Director of the Company. Mr Hodgson is an Economic Geologist by training with over 26 years’ experience in the mining industry. He holds a BSc (Hons) Geology, University of London, a MSc Mining Geology, University of Leicester and is a Fellow of the Institute of Materials, Minerals and Mining and a Chartered Engineer of the Engineering Council of UK, recognising him as both a Qualified Person for the purposes of Canadian National Instrument 43-101 and by the AIM Guidance Note on Mining and Oil & Gas Companies dated June 2009.

Forward Looking Statements


Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ‘‘believe’’, ‘‘could’’, “should” ‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘will’’ or the negative of those, variations, or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors’ current expectations and assumptions regarding the Company’s future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reflect the Directors’ current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

ENDS

Attachment

• 
  Palito Exploration Update May 21