28th Jan 2015 11:27
LONDON (Alliance News) - Serabi Gold PLC shares rose by nearly a quarter Wednesday, after it said it has finished sampling veins and received assay results for the Sao Chico gold mine in northern Brazil, resulting in a "drilled resource approaching one ounce per tonne."
Serabi shares were up 24.2% to 6.05 pence per share on Wednesday morning.
On January 20, Serabi said it had intersected the main vein at the project and identified the structure of the mine. The sub-vertical intersection of the vein recorded an average width of 3.6 metres with a gold grade of 42 grammes of gold per tonne.
The company said the orebody has been intersected and fully exposed by a four metre high and four metre wide gallery that has crossed the main vein perpendicular to its strike. Serabi will develop the vein to allow regular sampling and to gain a better understanding of the orebody, it said.
In addition, the company will be deepening the main ramp at the mine, which will intersect the main vein once again and Serabi will also evaluate this intersection.
The company plans to undertake over 750 metres of ramp development and 2,700 metres of ore development at Sao Chico during the course of 2015.
"Obviously this is outstanding news. With a drilled resource of approaching one ounce per tonne, we expected high grades to be intersected, but most encouraging is the width we have encountered. We will now drive east and west following the main vein to fully evaluate its potential," said Chief Executive Mike Hodgson.
"With the ongoing development under way and the new drill programme set to begin early next month, I am looking forward to providing regular updates," he added.
By Joshua Warner; [email protected]; @JoshAlliance
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