Serabi Gold plc Further Expansion Of Sao Chico Exploration Tenements

 
TIDMSRB 
 
 
   For immediate release 
 
   19 October 2020 
 
   Serabi Gold Plc 
 
   ("Serabi" or the "Company") 
 
   Further expansion of Sao Chico exploration tenements 
 
   Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining 
and development company, is pleased to announce that it has acquired the 
Sao Domingos exploration license to the west of the Sao Chico deposit. 
 
   A PDF version of this news release including all diagrams can be 
accessed using the following link 
https://www.globenewswire.com/Tracker?data=WpFWXXP5GVbvs-1pNF1FAxo4-zu4shc32fFg6I8FRiZIHDsn6NFsNeRnDIMsV5k_KzDCivg4QKMdvZZcLfB5eYEyOs71Vo9aqkLUzM6YdVU= 
https://bit.ly/3jc0eRf 
 
   Sao Domingos will add a further 4,999 hectares to Serabi's portfolio. 
It is contiguous and west of its existing exploration interests and 
Company's Sao Chico deposit, and most significantly lies along strike 
from Sao Chico.  The tenement hosts multiple active and abandoned 
artisanal workings which have produced significant levels of gold. 
 
   Click on the following link to access a map showing the location of the 
new tenement 
https://www.globenewswire.com/Tracker?data=WpFWXXP5GVbvs-1pNF1FA85xp2kCDGgnPzULGcEDQmMo4NAppPxwZpFyMqcASJI2ZMkx8Lb6XgORFTO34YEvnjwdzlq3LdRy2x7i_zGHL9k= 
https://bit.ly/349xuo4 
 
   Figure 1 -- map showing location of new tenement 
 
   The property has been subject to past exploration activity in the late 
2000's and early 2010's including a limited surface diamond drilling 
programme.  A limited number of samples taken by Serabi personnel in 
2016/2017 from the tailings of artisanal workings returned grades of as 
high as 14 g/t. 
 
   Mike Hodgson, CEO of Serabi, commented 
 
   "The Sao Domingo tenement has been a property we have had an interest in 
for some years.  We see this acquisition as an excellent addition to the 
Sao Chico project as we try to realise the value of the immediate 
surrounding district.  The Sao Domingo tenement hosts a number of 
historic artisanal workings, with many examples of exceptionally 
high-grade ore being mined.  Two stand out prospects, Toucano and 
Atacadao, typify this and are of particular interest. Toucano is an 
artisanal open pit which is reported to have produced exceptional grades, 
mining a 20 metre wide mineralised zone to depths of 40 metres and 
extending over a strike length of one kilometre. 
 
   "At Atacadao, a 11 hole drill programme was completed in 2006, testing 
the mineralisation under the artisanal workings.  The results of this 
modest programme intersected high grade gold mineralization ranging from 
3 to 60g/t gold at an average true width of between 0.2 to 0.8 metres 
The mineralogy appears very comparable to what we have found at Palito 
and Sao Chico. 
 
   The prospectivity of the Sao Domingos tenement is extremely exciting and 
complements the potential of the previous tenement announced on 25 
August which hosts the extension of the Fofoca artisanal operation 
located just to the north of the tenement. 
 
   Click on the following link to access a map showing historic artisanal 
operations in new tenement and regional structural trends - 
https://www.globenewswire.com/Tracker?data=WpFWXXP5GVbvs-1pNF1FA6KkQIcw-0iD1jSfVguLYt9or3G-0H2wTAx-r9rj4SqagBBq7quLbr1_jrrKsUzVbbkuRilR0rhR4E98FvrpiPE= 
https://bit.ly/3o4HjeI 
 
   Figure 2 -- map showing historic artisanal operations in new tenement 
and regional structural trends 
 
   "Toucano is a walk up, drill ready target.  Considering the reported 
widths that have been mined, any significant depth extension to this 
prospect could result in a significant discovery for Serabi.  Atacadao 
has reported gold intersections from previous drilling which reinforces 
the potential around this area including the Colibri prospect to the 
south west.  I am therefore very pleased that Serabi has secured this 
additional tenement and believe that excellent potential exists for 
further high-grade satellite ore bodies to be identified." 
 
   Transaction details 
 
   The exploration tenement has been acquired from BRAZIL AMERICAS 
INVESTMENTS & PARTICIPATION MINERAÇÃO LTDA (BAIP).  Under the 
terms of the agreement between BAIP and Serabi, Serabi has acquired the 
tenement for a consideration of US$100,000 in cash and a 2% Net Smelter 
Return Royalty ("NSR") over future gold production generated from the 
licence area. Serabi has paid US$50,000 upon signing of the acquisition 
agreement and will pay a further US$50,000 upon completion of the 
transfer of the mineral rights.  Upon completion of a JORC or NI 43-101 
compliant technical report, Serabi can elect to purchase half the 
royalty (1%) for the greater of US$10 per gold ounce (for resources 
identified within this licence area) or US$500,000. 
 
   This announcement contains inside information for the purposes of 
Article 7 of Regulation 596/2014.  The person who arranged the release 
of this statement 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 
Roland Cornish                 Tel: [phone] 
Michael Cornish                Tel: [phone] 
 
Peel Hunt LLP 
 UK Broker 
Ross Allister                  Tel: [phone] 
 
 
 
   Copies of this release 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 news 
release. 
 
   ENDS 
 
   Attachment 
 
 
   -- Further expansion of Sao Chico exploration tenements 
      https://ml-eu.globenewswire.com/Resource/Download/42aca5bf-d1af-4ee3-a763-915802c38e6e 
 
 
 
 
 
 
 

(END) Dow Jones Newswires

October 19, 2020 02:00 ET (06:00 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.