Serabi Gold plc Sao Chico Upside Enhanced With Completion Of Induced Polarization Survey

 
TIDMSRB 
 
 
   For immediate release 
 
   28 November 2018 
 
   Serabi Gold plc 
 
   ("Serabi" or the "Company") 
 
   Sao Chico upside enhanced with completion of Induced Polarization Survey 
 
 
   Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining 
and development company, is pleased to announce the completion of 
terrestrial induced polarisation ("IP") geophysical survey covering the 
strike extent of the Sao Chico structural corridor with a number of 
significant chargeability anomalies identified. 
 
   A PDF version of this news release can be accessed using the following 
link - PDF Version of news release 
https://www.globenewswire.com/Tracker?data=5ZlyQHkAg1tarDvSevl2JsxREyxCVJIdVRKLRQk1o1NspAlSwd2RiwrHWY_YaK0jVELW_V7U3EmlQmGpSaJ5jwMVEUqfYlqBAfE1OG4DH_8= 
 
 
   Highlights 
 
 
   -- Encouraging results from IP survey, identifying a number of anomalies to 
      the south, east and west of the Sao Chico deposit. 
 
   -- The Cinderella Anomaly, a chargeability and conductive high over seven 
      kilometres long, trending north east to south west is coincident with a 
      strong magnetic anomaly as well as sporadic electromagnetic anomalies. 
      This triumvirate of geophysical signatures makes this a compelling 
      target. 
 
   -- A two kilometre long, east-northeast to west-southwest trending, robust 
      chargeability anomaly, coincident with a subtle magnetic high, situated 
      only two kilometres west of the Sao Chico. 
 
   -- An elongate chargeability anomaly lying on the western edge of the survey 
      area. 
 
   -- A cluster of chargeability anomalies located in the northwest of the 
      survey area and lying within the Sao Chico strike corridor. 
 
   -- A chargeability/conductivity anomaly on the flanks of the Cinderella 
      Anomaly, also hosted within a magnetic high. 
 
   -- Extensive surface geochemistry programme to be undertaken to identify and 
      refine drilling targets for 2019. 
 
 
   Mike Hodgson, CEO of Serabi, commented: 
 
   "As the images demonstrate, the results from this survey have been 
excellent, and better than we would have expected at the outset.  The 
survey has shown abundant, high quality chargeability anomalies to the 
south, east and west of the Sao Chico Deposit. 
 
   "As I noted following our news release of 20 November 2018, the multiple 
anomalies that the airborne survey has generated are very exciting, but 
I feel that this cluster of IP anomalies all located in our exploration 
tenements, and all within seven kilometres of the Sao Chico deposit, is 
very significant.  I have always considered that Sao Chico had very good 
potential and these results open up the possibility for the discovery of 
a number of new orebodies which, though needing further evaluation, 
could provide rapid and significant resource growth. 
 
   "The Cinderella Shear is a very prominent anomaly that we first reported 
in our news release of 20 September 2018 when we reported the first 
results from this IP survey. It has also been highlighted in the results 
obtained from the airborne survey and we have also now extended its 
strike in this second part of the IP survey.  A coincidental linear 
anomaly which now extends for seven kilometres and where there has been 
historical artisanal mining activity around the areas that drain from 
the anomaly, make it an extremely significant anomaly. 
 
   "In addition, we have the excellent A, B and C anomalies along strike 
and to the west of the Sao Chico orebody, which have excellent 
chargeability properties indicative of sulphide mineralisation.  We hope 
that, following further evaluation, these will evolve to be gold hosting 
bodies much like the adjacent Sao Chico orebody. 
 
   "This survey has provided us with some real potential.  The next steps 
will be an extensive surface geochemistry programme, which we anticipate 
will further refine the anomalies and provide better target drilling 
definition for programmes to be undertaken later during 2019." 
 
   PLEASE USE THE FOLLOWING LINKS TO ACCESS IMAGES SHOWING SOME OF THE 
SURVEY RESULTS 
 
   Figure 1 
https://www.globenewswire.com/Tracker?data=WKK5v-snwD4Gz3xKH-j20_fks165gqXnOttfWmTIG7WArbOQ-IZe28jUt-hEpvtZpJ7amWd6TiBym5RJz1jl2g== 
 
 
   Figure 1 : - 115m depth slice through chargeability model. Red highs 
indicate high chargeable features which may reflect sulphide bearing 
mineralised zones. 
 
   Key to zones marked on images 
 
   FEATURE A - A two kilometre long, east-northeast to west-southwest 
trending, robust chargeability anomaly coincident with a subtle magnetic 
high, situated only two kilometres west of the Sao Chico mine and one 
kilometre west of the recently reported high grade intersections from 
West Vein drilling (see news release of 20 September 2018). This 
anomalous area lies within the Sao Chico structural corridor at the 
intersection of several interpreted fault sets, similar to the setting 
of the current Sao Chico operations. 
 
   FEATURE B - An elongate chargeability anomaly, parallel to Feature A and 
lying on the western edge of the survey area. 
 
   FEATURE C - A cluster of chargeability anomalies located in the 
northwest of the survey area and lying within the Sao Chico strike 
corridor. 
 
   FEATURE D - A chargeability/conductivity anomaly on the flanks of the 
Cinderella Anomaly, also hosted within a magnetic high. 
 
   Figure 2 
https://www.globenewswire.com/Tracker?data=WKK5v-snwD4Gz3xKH-j205Hbjt58gw1LhsU2p0KS0TWlyeZp56y53NtlW2TNQmIg_5MWJeBZnlTrIUsLihp3BA== 
 
 
   Figure 2 : - 175m depth slice through chargeability model. Red highs 
indicate high chargeable features which may reflect sulphide bearing 
mineralised zones. 
 
   Figure 3 
https://www.globenewswire.com/Tracker?data=WKK5v-snwD4Gz3xKH-j20_vGlU8VLISWBTaR_c9_4bH8F8Ju7ObLnId33ObYHiWJg30h_ojP3XmizsCczHkM_w== 
 
 
   Figure 3 : - 85m depth slice through resistivity model. Red highs 
indicate low resistivity (high conductivity) within the hard rock. This 
image highlights a number of NE-SW and WNW-ESE lineaments (structures). 
 
   Figure 4 
https://www.globenewswire.com/Tracker?data=WKK5v-snwD4Gz3xKH-j2030N-QK0jdfqDD9oBq0w9Av66-gvtUCzu54g3VgMqirKgyCFcjoZwqd7nRalWwRRsQ== 
 
 
   Figure 4: Calculated Vertical Magnetic Gradient Image of the IP survey 
area. This image displays as red highs areas where the magnetic 
signature changes abruptly. Interpreted as changes in lithology or 
faults, the image highlights a number of NE-SW and WNW-ESE lineaments 
(structures) which are coincident with the IP conductivity highs in the 
figures above. This provides greater confidence for the targets within 
the chargeability and conductivity highs lying within structures. 
 
   Figure 5 
https://www.globenewswire.com/Tracker?data=WKK5v-snwD4Gz3xKH-j209gzHhLaFfkFN-GbIfHsfwqufzRm7Pi_eaac-W5VqP3yg1JNjOkjna_h288h2JSxAg== 
 
 
   Figure 5: VRMI Magnetic Image of the IP survey area with the magnetic 
high associated with the Cinderella Anomaly being very prominent 
(Feature D). 
 
   Results 
 
   Geomag S/A Prospecções Geofísicas were contracted by 
Serabi to complete the data acquisition over approximately four months 
between 28 June 2018 and 12 November 2018 employing a mixed 
dipole/dipole configuration. The IP survey covered a 10 kilometre strike, 
capturing the structural trend which hosts the Sao Chico ore body and 
numerous historical artisanal gold occurrences. The purpose of the 
survey was to delineate both electrically resistive/conductive and 
chargeable features, which would indicate quartz veins and sulphide 
bearing mineralisation. 
 
   The survey totalled 107 line kilometres, with survey lines (traverses) 
spaced 200 metres apart.  This survey now complements the 30 line 
kilometre IP survey that was completed in 2016. 
 
   Raw data files and inversions were provided by Geomag to Serabi Gold and 
data processing was completed by Mr David McInnes, an independent 
consulting geophysicist, at Montana GIS. 
 
   The surveyed area provides a comprehensive electrical resistivity and 
chargeability map of the Sao Chico district and, together with the 
detail airborne electromagnetic and magnetic surveying recently 
completed and reported in the Company's news release of 20 November 
2018, provides an excellent foundation for the Company's exploration 
activities in 2019. 
 
   Currently Serabi is undertaking further evaluation of the data in 
conjunction with its consultant independent geophysicist, in addition to 
follow-up structural interpretation, ground inspection, geochemical and 
geological sampling of the anomalous areas derived from this survey. 
 
   This announcement is inside information for the purposes of Article 7 of 
Regulation 596/2014. 
 
   The person who arranged for the release of this announcement on behalf 
of the Company was Clive Line, Director. 
 
   Enquiries: 
 
 
 
 
Serabi Gold plc 
Michael Hodgson                           Tel: [phone] 
Chief Executive                           Mobile: [phone] 
 
Clive Line                                Tel: [phone] 
Finance Director                          Mobile: [phone] 
 
Email: [e-mail] 
---------------------------------------- 
Website: www.serabigold.com 
---------------------------------------- 
 
Beaumont Cornish Limited 
 Nominated Adviser and Financial Adviser 
Roland Cornish                            Tel: [phone] 
Michael Cornish                           Tel: [phone] 
 
Peel Hunt LLP 
 UK Broker 
Ross Allister                             Tel: [phone] 
James Bavister                            Tel: [phone] 
 
Blytheweigh 
 Public Relations 
Tim Blythe                                Tel: [phone] 
Camilla Horsfall                          Tel: [phone] 
 
 
   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 
 
   The following is a glossary of technical terms: 
 
   "Au" means gold. 
 
   "assay" in economic geology, means to analyse the proportions of metal 
in a rock or overburden sample; to test an ore or mineral for 
composition, purity, weight or other properties of commercial interest. 
 
   "development" - excavations used to establish access to the mineralised 
rock and other workings 
 
   "DNPM" is the Departamento Nacional de Produção Mineral. 
 
   "elongate"- long in relation to width. 
 
   "grade" is the concentration of mineral within the host rock typically 
quoted as grammes per tonne (g/t), parts per million (ppm) or parts per 
billion (ppb). 
 
   "g/t" means grams per tonne. 
 
   "granodiorite" is an igneous intrusive rock similar to granite. 
 
   "igneous" is a rock that has solidified from molten material or magma. 
 
   "Intrusive" is a body of igneous rock that invades older rocks. 
 
   "on-lode development" - Development that is undertaken in and following 
the direction of the Vein 
 
   "mRL" -- depth in metres measured relative to a fixed point -- in the 
case of Palito and Sao Chico this is sea-level.  The mine entrance at 
Palito is at 250mRL. 
 
   "saprolite" is a weathered or decomposed clay--rich rock. 
 
   "stoping blocks" -- a discrete area of mineralised rock established for 
planning and scheduling purposes that will be mined using one of the 
various stoping methods. 
 
   "vein" is a generic term to describe an occurrence of mineralised rock 
within an area of non-mineralised rock. 
 
   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 identi ed 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 re ect 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 
 
 
   -- Sao Chico upside enhanced with completion of Induced Polarization Survey 
      https://prlibrary-eu.nasdaq.com/Resource/Download/f198bedf-641f-448b-a2f4-40aab6703fd4 
 
 
 
 
 

(END) Dow Jones Newswires

November 28, 2018 02:00 ET (07:00 GMT)

Copyright (c) 2018 Dow Jones & Company, Inc.