LONDON (ShareCast) - (Sharecast News) - Serabi Gold updated the market on its $9m exploration programme across its Palito Complex, Coringa Mine, and São Domingos prospect in northern Brazil on Monday.
The AIM-traded firm said the campaign, launched in January as the second phase of its growth strategy, aimed to expand mineral resources through 30,000 metres of diamond drilling and an extensive geophysical survey.

At São Domingos, Serabi said it had drilled 12 holes totalling 3,769 metres, targeting a zone first identified in 2021 for its visible gold.

Early modelling of one of five identified ore bodies suggested a conceptual potential of 88,500 ounces at 13.83 grams of gold per tonne.

While the estimate remained speculative, new intercepts included 1.65 metres at 80.5 grams per tonne and 1.5 metres at 30.13 grams per tonne, indicating continued high-grade potential in the area.

Elsewhere, drilling at the Palito Complex returned results such as 0.6 metres at 27.17 grams per tonne from the Senna orebody, while drilling at Coringa reported 0.5 metres at 52.07 grams per tonne from the Galena orebody.

Those results supported Serabi's strategy to expand known ore zones and explore new geophysical targets.

In addition to drilling, a 100-kilometre induced polarisation (IP) survey was underway at Coringa, following the completion of a similar programme at Palito in late 2024.

The Palito survey identified chargeability anomalies that aligned with known orebody extensions, with drilling on the targets set to begin in the second quarter.

Serabi said it had also completed interpretation of about 15,000 soil samples covering the majority of its permitted portfolio, generating 70 ranked exploration targets.

Those included prospects with geological characteristics consistent with copper porphyry systems similar to the Matilda target.

"With strong economic tailwinds and solid gold production growth expected to continue into 2025, Serabi is encouraged by excellent initial exploration results which are setting the company off on its path to significantly grow resources as Phase II of our growth strategy," said chief executive officer Mike Hodgson.

"The drilling results from the Senna orebody at the Palito Complex, as well as Jatobá and Galena in Coringa, confirm that we are progressing towards our goal of delineating a consolidated 1.5 to 2.0 million ounces in the coming years.

"The results of the drilling at the São Domingos target were very positive."

Hodgson said the exploration model showed a vertically=oriented high-grade ore body that provides flexibility in the exploitation mining process, significantly increasing the mass and consequently the number of ounces produced.

"The planning team will evaluate the economics of the model, and we expect to have a reserve drilling and production plan soon.

"In addition to the work being carried out on the brownfield targets, the exploration team is continuing interpretation work on the greenfield targets.

"An abundance of copper/gold targets found during the regional soil and drilling campaigns demonstrate the prospectivity of our property that is still underdeveloped and underexplored.

"We are in the final phase of maturing our targets to execute the regional exploration programme in the oncoming years."

At 1011 BST, shares in Serabi Gold were down 9.85% at 121.7p.

Reporting by Josh White for Sharecast.com.

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