PRESS RELEASE
26 March 2007
SERABI MINING plc (“Serabi” or “the Company”)
EXPLORATION UPDATE
Highlights
 Palito Main Zone continues to produce good results, which has recently included the discovery of a
new mineralisation between the G2S and G3S lodes and a high-grade zone intersected southwest of the G1S lode.
 Chico do Santo prospect demonstrates significant strike and dip extension, with three parallel
zones intersected over a 200m strike length and 200m dip extent.
 Further drilling at the Ruari’s Ridge prospect returns encouraging results from two sub-parallel
mineralised zones intersected over a 600m strike and 200m dip extent.
 Drilling at Palito West intersects a potential new zone of high-grade mineralisation to the east of
the previous exploration focus, which will become the first satellite ore source developed for Palito.
 The Tatu prospect emerges as an attractive drill target following delineation of linear magnetic
anomalies, juxtaposed to high-grade gold values in rock chips and soil anomalism.
 Regional Tapajos exploration continues with green field exploration at Pizon and Sucuba projects.
Palito and Jardim do Ouro
Palito Main Zone
Following commencement of underground drilling earlier in the year, results continue to identify areas of new
mineralisation, as well as assisting in mine planning. Noteworthy is the intersection of a new high-grade
mineralised zone between the G2S and G3S lodes, in the southern areas of the Palito Main Zone. At this
location underground drill hole PUD-185* intersected 1.29m @ 250.2g/t Au and PUD-177* intersecting 1.57m
@ 43.32g/t Au, approximately 15m apart.
Underground exploration drilling seeking additional zones to the south-west of the G1S lode and south-east of
the Compressor Lode, also returned very good results; PUD-182 intersecting two adjacent high grade zones
including 0.94m @ 22.86g/t Au and 0.51g/t @ 17.10g/t Au.
Meanwhile limited surface exploration drilling has continued along the Palito Main Zone, including preliminary
drilling along the north and south strike extensions of the mineralisation. Some encouraging results were
obtained in this area where weak mineralised intersections were encountered within massive sulfide veins and
breccias. A more detailed drill programme will be carried out in the areas during 2007.
Results to-date included:
Palito North
Palito South
Drill hole
PDD-276
Intersections
1.50m @ 1.31g/t Au from 72.40m
PDD-277
1.71m @ 1.32g/t Au from 71.79m
0.89m @ 1.63g/t Au from 76.50m
PDD-283
0.53m @ 3.87g/t Au from 169.86m
PDD-272
PDD-269
1.00m @ 1.17g/t Au from 66.57m
0.69m @ 5.42g/t Au from 133.18m
Serabi Mining ■ Press Release ■ 1
Positive drill results along the Palito Main Zone have shown a strong correlation with surface geophysical
surveys previously carried out to identify the massive sulphide mineralisation, characteristic of the gold-copper
ore deposits found at Palito. Considering the higher costs associated with deep drilling now required to assess
the depth potential of mineralisation, it is essential that such holes are located with the greatest precision
possible in order to maximise the value of each hole. Therefore in the latter part of 2006 we deferred further
deep drilling in order to expand the geophysical programme on surface. We expect a resumption of deep drilling
following an assessment of these results during the second quarter 2007. Meanwhile, exploration and resource
drilling will be confined to shallower targets as part of the ongoing drill programme for mine planning and
scheduling.
Chico do Santo
This prospect, 300m north-east of the Palito Main Zone, has demonstrated some significant early potential from
earlier work. Recent results from a new drill programme have outlined at least three parallel mineralised bodies,
broadly dipping 70° to the NE and demonstrating robust continuity along 200m of strike.
A programme of shallow reverse circulation (RC) drilling and trenching, and deeper diamond drilling is now in
progress. Twelve (12) holes of an initial twenty (20) hole drill programme have been completed with significant
results including:
Drill Hole
RC-CS-02*
RC-CS-04*
RC-CS-06*
RC-CS-07*
Intersections
1m @ 3.17g/t Au from 6m
1m @ 4.30g/t Au from 80m
1m @ 2.59g/t Au from 93m
1m @ 1.02g/t Au from 29m
3m @ 7.56g/t Au from 31m
including 2m @ 10.68g/t from 31m
*Sample analysis completed at Serabi’s laboratory at Palito Mine
In addition diamond drilling; targeting the down dip extension of these lodes demonstrates the depth continuity
of these lodes. Results include:
Drill Hole
Intersections
PDD-275
2.65m @ 2.65g/t Au from 161.4m
1.50m @ 1.18g/t Au from 189.29m
PDD-278
PDD-280
1.81m @ 1.73g/t Au from 183.56m
0.95m @ 1.18g/t Au from 197.68m
PDD-285
0.87m @ 8.10g/t Au from 188.70m
0.50m @ 2.05g/t Au from 295.73m
0.50m @ 12.34g/t Au from 323.10m
Results of 6.5m @ 2.62g/t Au from a channel sample at the collar of RC-CS-08, (including 1.1m@ 6.1g/t and
0.5m @ 7.98g/t) and rock chip results including 7g/t, some 60m to the NW, demonstrate the potential for shallow
oxide mineralisation at surface along these narrow high grade zones.
The ongoing exploration programme at Chico do Santo, will continue to evaluate the potential of this prospect as
a production satellite for the Palito operation. Drilling and trenching is aimed at further defining the known
mineralised zones and exploring for the potential of additional parallel zones to the north-east and south-west.
Ruari’s Ridge
Located some 500m south-west of the Palito Main Zone, this area of strong gold geochemical anomalism, on
the flank of a magnetic high is currently subject to an ongoing diamond drilling programme.
Preliminary wide-spaced drilling along this anomaly has intercepted two (2) sub-parallel, continuous zones of
mineralisation, which are interpreted as dipping steeply to the north-east and extending over 600m in strike and
200m down dip. The north-west strike continuity has been closed, however, the zones remain open to the southeast, where soil geochemical anomalism continues along the strike projection. This south-east continuation is
focus of current diamond drilling. Drilling will additionally explore for other possible areas of nearby
mineralization, including parallel zones to the north-east and south-west. Untested soil geochemical anomalism
in the area lies to the south-east and south-west of the current drilled areas.
Serabi Mining ■ Press Release ■ 2
Significant gold results returned to date from this drilling include:
Drill Holes
Intersections
PDD-255
1.00m @ 4.63g/t Au from 120.23m
0.62m @ 3.21g/t Au from 302.26m
0.50m @ 1.85g/t Au from 346.63m
0.61m @ 2.19g/t Au from 357.63m
PDD-258
PDD-261
1.07m @ 3.32g/t Au from 207.42m
0.60m @ 3.69g/t Au from 25.3m
PDD-271
0.27m @ 7.19g/t Au from 83.00m
0.49m @ 4.28g/t Au from 344.73m
1.55m @ 6.49g/t Au from 365.09m
PDD-289
1.07m @ 1.18g/t Au from 42.50m
Palito West
This prospect some 200m south-west of Palito, has been the subject of ongoing exploration drilling.
Intersections in drill holes PDD-270, 273 and 281 have defined a new higher grade zone to the east of the
previously defined zones of mineralisation at Palito West. This zone will now be the subject of a follow-up
programme.
Drill Hole
PDD-270
Intersections
0.62m @ 2.28g/t Au from 122.88m
0.71m @ 1.55g/t Au from 196.79m
0.66m @ 13.62g/t Au from 207.51m
PDD-273
0.43m @ 5.47g/t Au from 97.84m
0.62m @ 2.53g/t Au from 154.24m
PDD-281
1.00m @ 13.94g/t Au from 23.54m
PDD-284
0.62m @ 2.04g/t Au from 44.00m
0.94m @ 10.76g/t Au from 83.50m
A preliminary assessment of the sampling results has demonstrated that Palito West will become Serabi’s first
satellite ore production. An ‘on-lode’ shaft sinking operation has commenced and will be followed by orebody
development. Although this is situated close to the current underground mining operation, it represents a first
step to realising the wider potential of the Jardim do Ouro district.
Tatu
The Tatu prospect, an area of historical artisinal mining activity, occurs approximately 2.5 kilometres north northeast of the Palito Main Zone. The area contains numerous abandoned pits and shafts, which are thought to
have exploited a gold-rich, magnetite-quartz vein alteration zone. Sampling of surface float material in the area
has returned results including 191g/t, 30g/t, 26.5g/t and 11.25g/t Au.
Serabi recently completed a detailed ground magnetometer survey of the area, totalling some 16.5 linekilometres. The result of this magnetic survey demonstrates a significant magnetic anomaly occurs parallel with
soil geochemistry anomalism and with areas of past mining activity.
A first pass drill programme will commence on this prospect in the coming months, targeting the co-incident
magnetic, geochemical and historically mined areas.
Bill’s Pipe
The Bills Pipe prospect approximately 500m north of the Palito Main Zone has been the focus of an eleven (11)
hole, shallow reverse circulation (RC) drill programme, designed to test a major gold geochemical anomaly and
encouraging trench sampling results. This programme produced results including:
Drill Hole
RC-BP-08*
RC-BP-06*
Intersections
11m @ 1.67g/t Au from 1m
3m @ 5.81g/t Au from 27m
*Sample analysis completed at Serabi’s laboratory at Palito Mine
Serabi Mining ■ Press Release ■ 3
Based on results to-date, the mineralisation is currently difficult to correlate between drill holes, and may be
related to supergene enrichment and dispersion within the saprolite profile surrounding very high grade, but
narrow zones of vein hosted mineralisation. It is planned to further assess the potential of the more coherent
supergene mineralisation through a programme of trenching.
Rio Novo South
The Rio Novo project, which lies approximately five kilometres south-east and along the interpreted strike of the
Palito Main Zone, is the subject of an ongoing exploration and drill programme.
A six-hole diamond drilling program targeting two areas of historic artisinal mining activities and two large goldin-soil geochemical anomalies is nearing completion. Amongst results received to-date has included:
Drill Hole
FRN-002
Intersections
0.60m @ 2.32g/t Au from 117.40m
A review of the future exploration programme on the Rio Novo project will be completed once the current
programme is completed and all results have been obtained.
Tapajos Regional
Pizon
A campaign of broad spaced soil geochemistry, field mapping and grid auger drilling has been completed over
the immediate area of an old artisanal mining area. A regional, first pass stream sediment sampling programme
has also been commenced on the Pizon tenement holdings.
The geochemistry and field mapping programme is aimed at extending an area of known anomalism and better
defining areas for detailed follow-up. The auger drilling programme is focused on an historic discovery hole
drilled by Rio Tinto, which reported 32m @ 5.2g/t and is designed to target a possible follow-up drill programme.
Results from the geochemistry and auger sampling campaign have defined two gold soil anomalies, which
correspond to intrusive acid porphyry bodies emplaced in an acid volcanic terrain. These intrusive bodies are
intensely fractured and associated with potassic alteration.
The Pizon project will continue to be a focus for more regional exploration being undertaken in the tenements
surrounding the defined anomalism. Stream sediment sampling will continue to project a broad coverage
screening of the area, and follow-up surface geochemistry will be undertaken in the anomalous areas defined to
better target future drilling programmes.
Jutai
A review of the Jutai project is currently in progress. Previous work indicates the presence of gold hosted within
a saprolite, characterised by fine-grained free gold which is amenable to gravity based separation. This review is
now focusing on the historic resource area and will include preliminary metallurgical test work and a more
detailed assessment of the nature of the mineralisation.
Sucuba
An extension of the soil geochemistry programme has been completed a further 1.2 kilometres west of the
existing geochemical grid and previously reported in our September 2006 Exploration Update. Results confirm a
westward continuation of the gold-in-soil anomaly, although of weaker tenor, for a further one kilometre, which
remains open.
A drill programme will be carried out to extend and better define the more significant exploration results from drill
holes reported in the previous update.
Technical and geological information in this report has been read and approved by Serabi’s Chief Geologist, Mr
Chris Spurway. Mr Spurway BSc (Honours) is a graduate of the University of Sydney in Geology. He is a
member of the AusIMM and has worked for over 16 years in mineral exploration including three years in Brazil.
All preparation and analysis of samples have been completed at SGS Laboratories, Brazil unless marked(*),
which indicates results from the Company’s own laboratory, awaiting independent validation.
Serabi Mining ■ Press Release ■ 4
Enquiries
Serabi Mining plc
Graham Roberts
Chairman
Tel: 020 7220 9550
Mobile: 07768 902475
Numis Securities Limited
John Harrison
Tel: 020 7260 1234
James Black
Tel: 020 7260 1234
Clive Line
Finance Director
Tel: 020 7220 9553
Mobile: 07710 151 692
Parkgreen Communications
Simon Robinson Tel: 020 7851 7480
E-mail:
Website:
contact@serabimining.com
www.serabimining.com
Clare Irvine
Tel: 020 7851 7480
clare.irvine@parkgreenmedia.com
Ruari’s Ridge
Serabi Mining ■ Press Release ■ 5
Chico do Santa
Serabi Mining ■ Press Release ■ 6