Serabi Gold plc Significant New Exploration Targets Revealed By Regional Airborne Survey

 
TIDMSRB 
 
 
   For immediate release 
 
   20 November 2018 
 
   Serabi Gold plc 
 
   ("Serabi" or the "Company") 
 
   Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining 
and development company, is pleased to announce the results from its 
recent airborne geophysical survey covering the southern portion of its 
the Jardim Do Ouro tenement. 
 
   Highlights 
 
 
   -- The electromagnetic ("EM") results obtained have delineated a series of 
      discrete "apparent conductivity" anomalies.  These anomalies probably 
      indicate sulphide bodies which the Company hopes will be gold bearing. 
      The anomalies extend to depths of up to 250 metres along two distinct 
      orientations within the tenement package. 
 
   -- Numerous airborne anomalies correlate well with known areas of 
      terrestrial Induced Polarisation ("IP") chargeability anomalies 
      surrounding the Sao Chico deposit including the recently reported (news 
      release of 20 September 2018) Cinderella Shear. 
 
   -- Residual magnetic mapping delineated several structural features 
      coincident with known mineralised and IP chargeability anomalies. 
 
   -- The magnetic 'highs' also probably suggest zones of alteration and 
      reflect both magnetic alteration and hydrothermal, magnetite destructive 
      zones. 
 
   -- Soil geochemistry sampling and additional drilling to be undertaken 
      during 2019 to further delineate potential targets. 
 
 
   A PDF version of this news release can be accessed using the following 
link - 
https://www.globenewswire.com/Tracker?data=6jTu07EW4riYUsDQx8k-Pa-FHs7MWkc5w-TXs14vT3kwCOk3XIMxE8HsaybeEssb5OER85w3X8SAF_PlEmCY-B7cE0_fBJHIPmn2rlZmvZU= 
https://bit.ly/2OSfi7w 
 
   Mike Hodgson, CEO of Serabi, commented: 
 
   "We have had to wait a significant amount of time to be able to 
undertake this survey which complements the smaller surveys that the 
Company undertook in 2008 and 2011. We are delighted with the results. 
 
   "Until earlier this year, our exploration activities had been 
essentially suspended since 2011, and what work has been completed has 
been confined to 'headframe exploration' around the Palito and Sao Chico 
orebodies.  It is very exciting to finally be able to undertake some 
initial regional exploration activity.  Serabi's tenements located 
between Palito and Sao Chico have, until now, been largely untested, 
notwithstanding that the areas have been the subject of considerable 
historical artisanal gold production over the years. This survey is the 
first real indication of the potential that exists within the Company's 
wider exploration tenements and, at the same time, complements the 
ground geophysics work that is ongoing around Sao Chico. 
 
   "What stands out most in the results of this airborne survey is the 
extremely pronounced magnetic high that runs east west across the 
tenements (see Figure 1).  This is a regional feature and we see many of 
the electromagnetic anomalies lying on the flanks of this magnetic high. 
 
 
   "A smaller but nonetheless very exciting anomaly is the 'Cinderella 
shear' which is located traversing the Sao Chico mining license area in 
a south west to north east trend.  The airborne survey results highlight 
an eight kilometre long magnetic and electromagnetic high which is very 
coincidental with the four kilomtere long chargeability 'high' 
identified by the ground geophysics IP survey, as reported in the 
Company's news release of 20 September 2018. 
 
   "The survey has also identified an extremely interesting EM anomaly 
trending north-south and located to the south east and east of the Sao 
Chico tenement. Our current ground geophysics and drill programmes have 
not extended out this far and this is therefore untested ground.  As a 
completely new find and considering that it extends for more than 10 
kilometres, is a very exciting development. 
 
   "The Company's next steps will be to undertake soil geochemistry 
sampling over the areas of these anomalies. Programmes will be designed 
to further define the anomalous zones to provide better targeting for 
subsequent drilling which I hope we can undertake during 2019. 
 
   "The results of the survey are better than we had hoped for. The scale 
of some of the features that have been identified are significantly 
larger than the signatures that we see for the existing Palito and Sao 
Chico orebodies. I am looking forward to the Company being able to start 
the initial follow-up work which will provide a clearer indication of 
the future potential". 
 
   PLEASE USE THE FOLLOWING LINKS TO ACCESS IMAGES SHOWING SOME OF THE 
SURVEY RESULTS 
 
   https://bit.ly/2KfvNKa 
 
   Figure 1 : VRMI magnetic image showing coincident mid (100-175m depth -- 
orange colour) and late-time (175-250m depth --red) EM conductivity 
anomalies.  The above figure includes magnetic images generated by 
previous surveys conducted by the Company in 2008 and 2011. 
 
   https://bit.ly/2PCbpZJ 
 
   Figure 2: Plan showing EM conductivity mid-time (100-175m depth -- 
orange colour) and late-time (175-250m depth --red) EM anomalies on 
early time conductivity image (showing area covered by the recent survey 
only) 
 
   https://bit.ly/2RZPuIs 
 
   Figure 3: Plan showing EM conductivity mid-time (100-175m depth -- 
orange colour) and late-time (175-250m depth --red) EM anomalies on 
derived EM apparent chargeability image (showing area covered by the 
recent survey only). 
 
   https://bit.ly/2r2hXSJ 
 
   Figure 4: Plan showing EM conductivity mid-time (100-175m depth -- 
orange colour) and late-time (175-250m depth --red) EM anomalies on 
derived calculated vertical magnetic gradient image (showing area 
covered by the recent survey only). 
 
   The survey was undertaken by CGG Brazil, formerly Fugro, who were 
contracted to complete a 4,400 line kilometre HELITEM30C electromagnetic 
and magnetic airborne geophysical survey during July 2018. The survey 
consisted of a series of traverses oriented at 30deg/210deg, spaced 100 
metres apart, with a total of 4,002 kilometres flown.  A further 401 
line kilometres of 1,000 metre spaced traverses were flown, as tie lines, 
perpendicular to the orientation of the general survey traverses. 
 
   The purpose of the survey was to map the geology and structure of the 
tenement area and to highlight both conductive and chargeable features 
indicating potential sulphide mineralised bodies within the host 
lithology.  The results revealed a number of significant conductive and 
chargeable anomalies. 
 
   CGG completed the data acquisition between 4 July 2018 and 19 July 2018 
using a helicopter mounted HELITEM30C system, employing a 30 metre 
diameter loop suspended beneath the helicopter. A nominal survey height 
of 35 metres above ground was maintained for the data acquisition. 
 
   CGG completed subsequent data processing providing details of flight 
path recoveries, altitude data magnetics and electro-magnetic data. 
 
   Serabi is currently undertaking further evaluation of the data with an 
independent geophysicist, in addition to follow-up structural 
interpretation, ground inspection and 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. 
 
   "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 
 
 
   -- News Release - Airborne EM Survey Results 
      https://prlibrary-eu.nasdaq.com/Resource/Download/0024f97d-1e33-407b-9480-94d39511f52f 
 
 
 
 
 

(END) Dow Jones Newswires

November 20, 2018 02:00 ET (07:00 GMT)

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