Brazil-focused gold miner and developer Serabi Gold has received the results from its ongoing surface and underground exploration diamond drilling programme undertaken on the Sao Chico orebody at its Palito Complex.
A 9 600 m step-out surface diamond drill programme began early in the fourth quarter to test the east and west continuity of the Sao Chico orebody. An underground drilling services contractor is currently also undertaking an 8 000 m underground drilling programme to test the depth continuity.
Drilling completed to date indicates payable strike continuity of mineralisation for 200 m to the east and west of current mining limits.
Key intercepts to the west include intersections grading 21.03 g/t and 15.39 g/t, while key intercepts to the east include intersections of 16.61 g/t and 27.35 g/t.
Underground drilling also confirms extension of the current Sao Chico orebody for a further 100 m below the lowest level of current development, which is itself about 250 vertical metres below the surface.
Key intercepts at depth include intersections of 34.42 g/t and 114.49 g/t.
Drilling has also started on the geophysical anomalies that lie immediately to the west of the Sao Chico orebody. A 6 000 m reverse circulation (RC) drilling programme began in early December to test the anomalies first highlighted in a news release issued during the month prior.
Commenting on the results of the study, Serabi CEO Mike Hodgson noted that the company was embarking on an “aggressive surface and underground drilling programme”, which mostly focused in, and around, the Sao Chico orebody to assess its long-term potential.
“We have always seen the strong potential in and around Sao Chico and exploration success here is key to our next expansion plans should they be justified,” he said, adding that these early drill results immediately extending the resource beyond the current mining limits had returned “some excellent intersections” over minable widths in all directions.
Serabi’s initial plan is to drill over an area, beyond the current mine workings, of up to 300 m to the east, 500 m to the west, and about 250 m at depth.
The company has completed about 20% of the planned programmes, which are expected to be concluded by the end of June this year. Serabi’s objective is that the drill programme will provide enough new information to allow the company to commission the preparation of an updated geological resource and mineral reserve for the Sao Chico orebody during the third quarter of 2020.
“The recent startup of the RC drilling into the large terrestrial geophysical anomalies just two kilometres to the west of the Sao Chico orebody is also very exciting. These anomalies, which we originally confirmed in November 2018, are quite spectacular when compared to the equivalent geophysical anomaly that overlies the Sao Chico orebody, which has produced approximately 75 000 oz of gold to date”.
Strong exploration success here could lead to an expansion in production from the Sao Chico orebodies in the longer term.
The programme should take about six months to complete although drilling will need to be suspended about every two months to allow for the processing of results.
With this in mind, Serabi anticipates a 2020 production guidance of between 45 000 oz and 46 000 oz.