Serabi Mining, the Brazil-focused gold exploration company, says test drilling suggests the size of its Palito deposit may be 80% greater than first thought.
The drilling programme, which began in late October and ran through to the middle of November, involved digging eight holes. Test results received from the first five have "returned Bonanza grade gold and high grade copper".
Serabi's chief executive Mike Hodgson said of the results:
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The grades are of course very pleasing and suggest that the high grade nature of the ore that makes Palito such a compelling opportunity continue along the mineralized zone. The relative shallowness of the intersections (mostly between 45 metres and 80 metres vertical depth) is also indicative of the possibility to initially use open pit mining methods which can reduce the complexity and risk of future mining operations."
Shares in Serabi rose 6.5% to reach 10.65p at 10.57.
BS
-
ScottishPower launches half-price electricity at weekendsNews ScottishPower is offering 50% off electricity at weekends, which could slash hundreds off your bill. We look at who can get it and how to apply
-
Trump calls “tariff” the “most beautiful word in the dictionary”, but investors may disagreeDonald Trump has promised to slap Mexico, Canada and China with new tariffs on day one of his presidency. What does it mean for the economy and investors?
