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Be the first with the news that moves the market- Serabi Gold (TSX:SBI) has released further results from its step-out program at the Palito Complex in Brazil
- Serabi hopes the program will extend the known resource beyond the mine’s current limits
- The drill program will continue throughout the first half of 2020
- Once the program is complete, Serabi will begin devising a new mineral estimate for the Palito Complex
- Serabi Gold (SBI) remained steady, with shares trading at C$1.33 and a market cap of $78 million
Serabi Gold (TSX:SBI) has released further results from its exploration program at the Palito Complex in Brazil.
The company initiated the drill program earlier this year, hoping to extend the known resource beyond the mine’s current limits.
This initial 9,600-metre program took drill samples from east and west of the Sao Chico orebody. Most notably, Serabi intersected 25 grams per tonne of gold across 1.72 metres to the west of the orebody.
This suggests that the historic mine site could be widened and once again become viable.
The company operated the Palito Mine between 2003 and 2008, after which it was placed on care and maintenance. Since 2012 the company has been actively exploring the site.
According to Serabi CEO, Mike Hodgson, the early results have been encouraging.
“The intersections are indicative of being able to extend this mine limit. I would anticipate that these results will contribute to a significant expansion of the current mineral resource.
“We will continue stepping-out 100 metres at a time and expect that continued success will expand the mineral resource further,” he said.
Hodgson went on to say that he was most encouraged by an intercept directly below the known orebody. Drillers found 25.37 grams per tonne of gold across 4.08 metres about 200 metres down from mine’s lowest point.
Hogson believes strong results like this could mean the underground operations might continue deeper and extend the life of the mine.
At the time of writing, the company has completed around 40 per cent of the drill program. Serabi will complete the remaining 60 per cent over the first half of 2020.
After collecting all the new data, Serabi will commission a new mineral estimate for the Sao Chico orebody.
The company expects the new mineral estimate in the second half of 2020. Upon its release, the step-out program’s impact on the Palito Complex will become clear.
The company will release further exploration results as they become available.
Serabi Gold (SBI) remained steady, with shares trading for C$1.33 at 9.58am EST.
