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:
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"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.
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