Progress Update on Palito Gold Project
(Thomson Reuters ONE) - SERABI MINING plc ("Serabi" or "the Company") update ON PALITO GOLD PROJECT in BRAZILSerabi , the AIM-traded gold exploration and production is pleased to provide aprogress update on the Company's 100% owned Palito gold project in the Tapajosregion of northern Brazil.· Geophysical and geochemical exploration programme on 18 targets atPalito gold project now underway· Palito district is highly prospective for gold with extensiveartisanal workings· Objective of expanding gold resources above 1.5 million ounces· Cash on hand year end 2009 of £2.5m· Gold production from small scale surface mining operationscontinuesMike Hodgson, Chief Executive comments:"Serabi has developed considerably over the last twelve months, culminating inour successful financing December last year. The Company's prime focus is onexpanding the project's hard rock resource to over one and a half millionounces, from its present 630,000 ounces of gold equivalent. With a reduced burnrate, highly prospective targets and an established small scale oxide miningoperation, Serabi is well positioned to see significant further progress in2010. I look forward to updating shareholders on our exploration results in duecourse."Exploration programmeIn 2008 the Company undertook an airborne geophysical survey over the Palitoproject area. The electromagnetic survey combined with other exploration datadefined at least eighteen priority targets which exhibit similar geophysicalresponses to the existing Palito mine area. Fifteen of the targets are withinthree kilometers of the mine and of these fifteen, seven are situated within theCompany's existing mine licence. The remaining targets are located within theCompany's surrounding exploration licences. Serabi is focused on exploring theseinitial eighteen targets for quartz vein and massive sulphide hosted goldresources, with the objective of increasing Palito's global resource to aboveone million ounces.First pass ground geophysics (electromagnetic and induced polarization) will beundertaken on the ten targets closest to the mine site during the current wetseason, which ends in April. In tandem with the geophysical survey, shallow(<10m depth) auger drilling will be undertaken to generate geochemical databelow the surface horizon, which otherwise has the potential to be contaminatedby garimpeiro gold mining activities. The results will be used to guide a 4,000- 5,000m diamond drill programme that is planned to commence in July. Theexploration budget for the Palito project in 2010 is approximately US$1.7million.The company's exploration activities over the next 12 months are summarizedbelow:+--------------------------------------------------+---------------------------+|GEOPHYSICS ON ANOMALIES 1 TO 10 (TENDERS, |JAN 2010 to MAY 2010 ||MOBILISATION AND SURVEY) | |+--------------------------------------------------+---------------------------+|GEOPHYSICAL INTERPRETATION |APRIL 2010 to JUNE 2010 |+--------------------------------------------------+---------------------------+|DIAMOND DRILLING OF ANOMALIES |JULY 2010 to SEPT 2010 |+--------------------------------------------------+---------------------------+|DEEP GEOCHEMISRTY - AUGUR ANOMALIES 1-10 WHERE |END APRIL 2010 to SEPT 2010||REQUIRED | |+--------------------------------------------------+---------------------------+|PROSPECTING ANOMALIES 11-18 |OCT 2010 to DEC 2010 |+--------------------------------------------------+---------------------------+The Company's exploration assets outside the Palito project remain in goodstanding and discussions with third parties in respect of potential jointventures or sale of these assets are being advanced in order that the Companycan maintain its focus on expanding resources at Palito..Mining OperationsGold is presently being produced at Palito from the mining of free-diggingsurface oxide deposits. Generally this ore does not require crushing and isprocessed directly through the existing CIP plant. There are no resource figuresfor the extent of the oxide ores and while additional areas of potentialcontinue to be assessed, the Company remains mindful that the quantity ofsuitable ore material will be finite.Mining of the primary (hard rock) gold and copper bearing quartz veins is notbeing undertaken and the underground portion of the mine remains on care andmaintenance. The mine has produced 110,000 gold equivalent ounces since 2005 andhas a gold equivalent JORC resource of 660,000 ounces of which 187,000 ounces isin the reserve category at a grade of 7.3 g/t Au.By the end of 2009 the company produced 5,500 ounces of gold from surface miningof veins at the Senna and Palito West zones. The Company is also investigatingthe potential for retreatment of gold bearing tailings. Revenues from theCompany's surface oxide mining activities continue to approximately cover thecost of maintaining the operations and overheads at the Palito project. A link to a map showing the geophysical targets is attached to this release Map of Geophysical targetsAbout Serabi Mining plcSerabi is a AIM traded gold explorer and producer focused on Brazil. TheCompany's flagship asset is its 100% owned Palito gold project in the Tapajosregion of northern Brazil. The Tapajos region is highly prospective for gold andis estimated to have yielded 30 million ounces in the last 35 years fromartisanal mining activities. The Palito project hosts the Palito mine, which hasa JORC gold equivalent resource of 660,000 ounces within a series of high gradegold (>5 g/t) and copper bearing quartz veins in granite. The Palito district issubject to extensive artisanal alluvial gold mining and Serabi is undertaking anexploration programmes to define new hard rock sources, with an initialobjective of increasing Palito's gold resource beyond one million ounces.Further information on the company is available at www.serabimining.com
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Datum: 28.01.2010 - 02:01 Uhr
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