Airborne survey from Sao Domingos delineates continuation of significant magnetic feature and enhance structural

For immediate release

15 February 2022

Serabi Gold plc
(“Serabi” or the “Company”)

Airborne survey from Sao Domingos delineates continuation of significant magnetic feature and enhance structural understanding

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, i is pleased to provide results from its geophysical airborne survey over its Sao Domingos Property, in the Tapajos region of Para State, Northern Brazil.

A PDF version of this announcement, including all images, can be accessed using the following link https://bit.ly/3rKKKet

Highlights

• Serabi has completed an additional 1,929 line kilometres of airborne magnetic surveying over the highly prospective Sao Domingos property, to the west of the Sao Chico operation, meaning the entire Palito complex tenement has now been surveyed.

• Results show the Mata Cobra magnetic trend that dominates the central part of the tenement and which has a coincident copper and gold soil geochemical anomaly, extends into the Sao Domingos property and extends the strike length of the Mata Cobra corridor from 25km to over 40km.

• The Sao Domingos extension of the magnetic trend is coincident with geochemical anomalism identified through mapping and soil sampling and, as with Mata Cobra, has significant artisanal mining activity on its periphery.

• The Toucano trend is one such area of artisanal mining, now identified as situated on the edge of the magnetic high. Initial drilling into the Toucano prospect at Sao Domingos recorded some very high intersections including visible gold in hole 21-SD-010 which returned a number of intersections including 7.15 metres at 258.24 grammes per tonne (“g/t”) of gold (news release dated 7 April, 2021)

• The Matilda prospect shows a subtle but distinct magnetic signature coincident with the extensive soil geochemical anomaly, interpreted to reflect a magnetite alteration halo.

• The analysis of the survey data is continuing with new targets being delineated for follow-up mapping and soil sampling later this year.

Story continues

Mike Hodgson CEO commented:

“The much anticipated results of the survey have not disappointed. We acquired the Sao Domingos tenement in late 2019. With prolific past and present artisanal gold production, multiple gold occurrences but little systematic exploration, the potential to make discoveries was clear. With a significant number of potential targets for consideration prior to the survey, the results of this survey now provide real focus. The spatial relationship between the high magnetic feature and known Sao Domingos prospects is consistent with our findings along the Mata Cobra belt which hosts several prospects we are already investigating, such as Calico, Juca, Ganso and Forquilha and provides an excellent additional screen to generate further targets. Two of these prospects are the Toucano trend which we have drilled with great success, and the very exciting Matilda geochemical anomaly that lies between Sao Domingos and Sao Chico. This new survey highlights potential beyond these targets and demonstrates the extension of the Mata Cobra magnetic anomaly to over 40km.”

Figure 1: Composite map of Palito Complex tenement showing aeromagnetics, soil geochemical anomalies and electromagnetic anomalies.
To access the image of the composite map of the Palito Complex please use the following link
https://bit.ly/3uHfEq9

RESULTS

This iinterpretation of the new airborne survey indicates the westward extension of the Mata Cobra trend and fertile structures a further 15km into the Sao Domingos area. Regionally the corridor hosts several high priority targets including Calico, Juca, Ganso and Forquilha. This has generated new targets to be followed up with geochemical sampling and reconnaissance mapping of the Sao Domingos area in 2022.

The principal targets within the newly surveyed Sao Domingos area, Toucano and Matilda, both present specific magnetic signatures.

The Toucano Trend, which was drilled in 2021 with intersections including 7.15m at 258.24 g/t gold, lies parallel to and on the periphery of the magnetic high in an area of low magnetism, interpreted as caused by magnetite destruction by alteration. This proximal relationship is mirrored by the Pedro and Fofoca prospects to the north and is similar to other prospects on the main Mata Cobra trend.

Figure 2: Composite map of Sao Domingos tenement area showing aeromagnetics and soil geochemical anomalies
To access the image of the composite map of the Sao Domingos tenement please use the following link
https://bit.ly/33hwmB9

Figure 3: Composite map of Toucano Trend showing aeromagnetics, soil geochemical anomalies and drill-hole traces
To access the image of the composite map of the Toucano Trend please use the following link
https://bit.ly/3LuQpNv

Results also show a subtle but distinct magnetic feature at the Matilda target, interpreted to represent hydrothermal magnetite occurring within potassic alteration. Inversion modelling of the magnetic data was completed and shows a deep annular (or doughnut) shaped magnetic feature, with several protrusions extending to within 200m of the surface interpreted to represent magnetite-rich potassic zonation, typical of porphyry systems. The magnetic feature occurs directly beneath the surface geochemistry anomalies of gold, copper and molybdenum.

Figure 4: Composite map of Matilda prospect showing aeromagnetics, soil geochemical anomalies and schematic cross section traces.
To access the image of the composite map of the Matilda prospect please use the following link
https://bit.ly/3uLwP9S

The magnetic interpretation of the Toucano and Matilda prospects will assist in drill targeting and focussing the broader exploration efforts during 2022 as Serabi in the highly prospective Sao Domingos tenement area.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.

Enquiries:

Copies of this announcement are available from the Company’s website at www.serabigold.com.

Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this announcement.

See www.serabigold.com for more information and follow us on twitter @Serabi_Gold

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