Serabi Mining starts exploration programme at Palito gold project in Brazil

Serabi Mining (AIM: SRB) said that the geophysical and geochemical exploration programme on 18 targets at its Palito gold project in Brazil was now underway with an objective of expanding its gold resource above 1.5 Moz (million ounces) from the present 630,000 oz of gold equivalent.

In 2008 the company undertook an airborne geophysical survey over the Palito project area, which, combined with other exploration data defined at least eighteen priority targets which exhibit similar geophysical responses to the existing Palito mine area. The company is focused on exploring these targets to expand its global resource.

First pass ground geophysics will be undertaken on the ten targets closest to the mine site during the current wet season, which ends in April, with the results set to be used to guide a 4,000 to 5,000 metre diamond drill programme that is planned to commence in July.

The diamond drilling and deep geochemistry on promising anomalies are set to be wrapped up in September this year, while the prospecting of anomalies will take place from October to December this year.

“With a reduced burn rate, highly prospective targets and an established small scale oxide mining operation, Serabi is well positioned to see significant further progress in 2010,” said chief executive Mike Hodgson.

The exploration budget for the Palito project in 2010 is approximately US$1.7 million.

The mine has produced 110,000 gold equivalent ounces since 2005 and has a gold equivalent JORC resource of 660,000 oz (ounces) of which 187,000 oz is in the reserve category at a grade of 7.3 g/t (grammes per tonne) of gold.  http://www.proactiveinvestors.co.uk/companies/news/12721/serabi-mining-starts-exploration-programme-at-palito-gold-project-in-brazil-12721.html