Serabi Gold plc Further Expansion Of Sao Chico Exploration Tenements
October 19 2020 - 2:00AM
UK Regulatory
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: +44 (0)20 7246 6830
Chief Executive Mobile: +44 (0)7799 473621
Clive Line Tel: +44 (0)20 7246 6830
Finance Director Mobile: +44 (0)7710 151692
Email: contact@serabigold.com
-----------------------------
Website: www.serabigold.com
-----------------------------
Beaumont Cornish Limited
Nominated Adviser
Roland Cornish Tel: +44 (0)20 7628 3396
Michael Cornish Tel: +44 (0)20 7628 3396
Peel Hunt LLP
UK Broker
Ross Allister Tel: +44 (0)20 7418 9000
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
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October 19, 2020 02:00 ET (06:00 GMT)
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