Serabi provides update to regional exploration campaign at its Palito Complex

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to provide an exploration update from its activities on its regional tenement holding over the Palito complex in the Tapajos region of Para State, Northern Brazil.

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Highlights

Induced Polarisation (IP) programme completed in December 2023 over the São Domingos property identified a 1km long x 0.25km wide chargeability anomaly. The anomaly underlies several areas of artisanal activity.

Western limit of the anomaly was drilled in 2021 (7.2m @ 258 g/t (see announcement dated 7 April 2021). A follow-up wide-spaced (approx. 100m between holes) shallow depth (i.e. up to 7m) auger programme has been undertaken. Significant auger intercepts to date are as follows:

Hole 24-TRSAD-004 – 1m @ 18.46 g/t Au from 1.00m

Hole 24-TRSAD-006 – 2m @ 0.18 g/t Au from 3.00m

Hole 24-TRSAD-015 – 1m @ 0.10 g/t Au from 0.00m

Hole 24-TRSAD-015 – 1m @ 0.25 g/t Au from 6.00m

Hole 24-TRSAD-016 – 2m @ 0.54 g/t Au from 6.00m

Hole 24-TRSAD-017 – 1m @ 0.19 g/t Au from 0.00m

Hole 24-TRSAD-020 – 1m @ 0.15 g/t Au from 2.00m

Hole 24-TRSAD-024 – 0.5m @ 0.10 g/t Au from 4.00m

Significant progress has been made on the interpretation of the 14,551-sample soil geochemistry database (approx. 7,000 samples collected in 2023). This regional geochemical database covers over 70% of Serabi’s permit portfolio. In addition to the Matilda copper target, at least four similar geochemical alteration systems have been identified. Within these systems, specific targets include the Copper Hill, Ganso, and Calico, confirmed by recent drilling and the untested targets at Letícia, Juca and Isla. Data interpretation and exploration continues.

First phase drilling completed in January on the Ganso Target, indicates a large zone with geologic features and mineralogy characteristic of an upper alteration zone typical of a copper porphyry system. This new target for epithermal gold and porphyry copper-gold mineralisation is located just 13km northeast of the Matilda copper target.

Recent diamond drilling at Matilda demonstrates mineralisation extends to over 150m depth with results for the final hole 21 intersecting the depth continuation of mineralisation, previously intersected in holes 4, 6, 15, & 16 as follows:

Hole 23-MT-021 – 144m @ 0.26% Cu and 0.06 g/t Au from 228.00m

Hole 23-MT-021 – 32m @ 0.40% Cu and 0.10 g/t Au from 410.00m

Mike Hodgson CEO commented

“The new IP geophysics and soil geochemistry results, combined with the historic high-grade results from 2021, make São Domingos a highly compelling target. This new data set has helped us understand better the past successful drilling results of 2021 (7.15 m @ 258g/t). We have revised our initial geological interpretation and are a significant step closer to identifying the source that has supported extensive artisanal workings in the area.”

“Matilda continues to deliver positive results and the team is focused on understanding the mineralisation. At the same time the wider exploration results to date show that Matilda is not unique, and the regional geological system is larger and has more potential for hosting copper porphyry mineralisation than expected. The discovery of new, large targets within the extensive tenement holding demonstrates the potential of the region.

“Drilling completed in January has confirmed that the Ganso Target is the preserved upper portion of a porphyry system. This is important, not only for Serabi but also for the entire Tapajos region, as it confirms that despite the old age of the rocks, the region has a huge untested potential as a source of porphyry style copper or copper-gold and epithermal gold mineralisation.

“These are exciting times and Serabi has only just commenced unlocking the potential of the district. The discovery of the alkalic porphyry style copper-gold deposit at Matida is highly significant for the district and for Serabi. With more targets defined, we are conscious of the need to continue focused exploration with the objective of demonstrating the viability of at least one target.

“Whilst Vale have, during this week, informed us that they wish to withdraw from the exploration alliance, we do have a number of other groups keen to partner with us on the exploration for copper mineralisation. We remain excited, and these other companies seem to share our optimism, for discovering commercial copper porphyry mineralisation in our Tapajos tenements. We have very much enjoyed working with Vale and from Serabi’s perspective achieved a key objective of significantly advancing our understanding of Matilda as well as identifying other potential targets for copper porphyry mineralisation during the past 12 months”.

Detailed Results and Technical Discussion

The planned 2024 exploration programme will focus on brownfield exploration at Coringa and Palito to increase resources, and continued testing and delineation of new targets being identified within the Serabi exploration tenement package including the prospect of further definition drilling at Matilda. New targets continue to be identified and most have no drilling, so more news can be expected during the year from the exploration activities - A summary of regional targets and discoveries to date is show in the map below:

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Figure 1. Map showing regional targets and discoveries to date.

Matilda:

Results for the last two drill holes of the 2023 campaign have been received. Drillhole 23-MT-021 was drilled below the shallow high-grade zone intercepted in drillholes 23-MT-004 and 23-MT-006, to test the mineralised zone at depth. Long intervals at greater than 0.20% Cu, including 144m @ 0.26% Cu from 228m, demonstrate the continuity of grade at depth, while zones equal to or greater than 0.40% Cu, including 32m @ 0.40% Cu and 0.1 g/t Au from 410m, indicate the potential for sustained intervals of mineralisation at potentially commercial grades.

Results for 23-MT-021 are shown below.

18m @ 0.26% Cu from 24m

56m @ 0.26% Cu from 122m

144m @ 0.26% Cu from 228m

Incl. 18m @ 0.47% Cu from 242m

Incl. 18m @ 0.46% Cu from 352m

46m @ 0.35% Cu from 396m

Currently, the large amount of data produced in 2023 continues to be processed and evaluated. Together with a second round of definition drilling the Board expects that this should significantly enhance our understanding of the potential mineral resource at Matilda.

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Figure 2 Section showing the 23-MT-021 related to the previous drilling and copper shells at Matilda

São Domingos:

A 5.85 line km pole-dipole induced polarization (IP) survey was conducted over the São Domingos target, covering the historic drilling at Tucano which returned a gold intersection of 7.15m @ 258.24 g/t (see announcement dated 7 April 2021). The IP survey identified a robust 500m x 750m chargeability anomaly to the east of the drilling. The anomaly has an elongated splay that extends beneath the known breccia-hosted mineralisation along an interpreted E-W structure (see Figure 3 below).

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Figure 3. Sao Domingos Plan View Map showing the auger results over the chargeability anomaly

Previous drilling at Tucano intercepted a magmatic-hydrothermal breccia, with gold grades correlated with pyrite abundance. The breccia was interpreted to be related to an unidentified intrusion, with potential for intrusion-related-gold or porphyry copper-gold mineralisation associated with the intrusion. The new chargeability anomaly is therefore a high priority target for drill testing.

Soil sampling over the IP anomaly identified a 1km x 1km gold anomaly associated with the chargeability anomaly. Extensive artisanal mining in alluvium surrounds the anomaly but to date, no source of the alluvial gold has been confidently identified.

A shallow depth (ie up to 7m) auger programme to sample saprolite is currently underway to assist in planning a diamond drilling programme. Initial results to date include:

Hole 24-TRSAD -004 – 1m @ 18.46 g/t Au from 1.00m

Hole 24-TRSAD -006 – 2m @ 0.18 g/t Au from 3.00m

Hole 24-TRSAD -015 – 1m @ 0.10 g/t Au from 0.00m

Hole 24-TRSAD -015 – 1m @ 0.25 g/t Au from 6.00m

Hole 24-TRSAD -016 – 2m @ 0.54 g/t Au from 6.00m

Hole 24-TRSAD -017 – 1m @ 0.19 g/t Au from 0.00m

Hole 24-TRSAD -020 – 1m @ 0.15 g/t Au from 2.00m

Hole 24-TRSAD -024 – 0.5m @ 0.10 g/t Au from 4.00m

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Figure 4 Map showing IP chargeability anomaly, gold in soils and Tucano auger drillhole locations.

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Figure 5. Oblique view looking NW showing IP chargeability anomaly and Tucano drilling.

Ganso:

6 drillholes for a total of 1,168m were drilled at Ganso in late 2023 with the last hole being completed in January 2024. Drilling intercepted pyroclastic lithologies with extensive advanced argillic alteration characterised by quartz-alunite ± kaolinite, with pyrite and minor vuggy quartz. At depth, drilling intercepted pervasive phyllic alteration characterised by quartz-sericite-pyrite, and minor zones of relict potassic alteration characterised by K-feldspar-biotite-magnetite.

The lithologies, alteration assemblages and parageneses are consistent with a lithocap setting. The positive identification of the Ganso target as a lithocap is important as it indicates that Ganso is potentially the upper part of an alkalic porphyry style system, with potential for high-sulphidation epithermal mineralisation above or laterally displaced from porphyry style, copper and/or gold mineralisation at depth. The drilling suggests that the lithocap-porphyry transition has been intercepted, and that the entire porphyry system may be preserved at depth.

Field mapping identified possible extents of the lithocap across an area of 1km x 1.5km, coincident with a Bi-Mo-Pb-Sb-Ba geochemical anomaly, a typical high-level epithermal signature. Spotty but locally very high grade (>1 ppm) soil samples occur within the multielement anomaly. To date, only a small portion of the southern edge of the lithocap has been drill tested. EM conductor anomalies remain untested by drilling and these may represent clay-rich alteration in the upflow zone generated by a porphyry system at depth.

Follow up drilling and geophysics is being planned to test both the epithermal gold and porphyry potential. Discussions are underway to include Short Wave Infrared and whole rock analysis to help identify exploration vectors during the drilling programs.

Following the discovery of Matilda, the identification of the Ganso target as a lithocap has confirmed the regional potential of the Serabi exploration permits and led to a re-evaluation of similar new and existing targets, such as Letícia, Calico and Juca.

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Figure 6. Map showing drillhole locations, geochemical anomalies and EM anomalies with DTM background at Ganso

Regional Soil Sampling:

A total of 6,772 soil samples were collected over the regional tenement during 2023. These new soil samples supplement the historical soil sample database and provide regional scale surface geochemistry coverage of over 70% of Serabi’s Palito Complex tenement package. The combination of surface geochemistry and aero geophysics has a proven track record of generating exploration targets for Serabi, including the Matilda, Ganso, Calico and Juca targets.

Interpretation from the new survey is ongoing, however new targets already identified include:

Isla – 3.5km long >300ppm copper anomaly associated with a structurally emplaced mafic-ultramafic unit.

Isla South – magnetic and copper soil anomaly in a similar structural setting as Matilda.

Letícia – 4km anomalous gold trend.

Letícia North – 2km x 800m soil geochemistry target with characteristics of a potential lithocap.

Juca – circular 1km diameter intrusion related gold soil anomaly.

Calico North – 5km x 2km anomalous gold trend interpreted to represent the south-western extension of the Palito vein system.

Calico – 1km diameter soil geochemistry target with characteristics of a potential lithocap.

Ganso – 1.5km diameter soil geochemistry anomaly dominated by advanced argillic and phyllic alteration with potassic alteration intersected at depth in recent drilling.

Ganso East – 1km x 500m target with similar geophysical and multi-element soil geochemistry to Ganso.

São Domingos IP target – extensive zone of anomalous gold associated with IP chargeability anomaly.

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Figure 7. Showing the soil sample grid cover in Serabi’s permits.

Reported intercepts calculated based on a minimum weighted average grade using a minimum mineralisation width of 10 m, lower cut of 0.15% Cu and a maximum internal waste interval of 15 m. Analyses were performed by ALS Laboratories a Certified geochemical laboratory. * Note: Geometries of the mineralisation model, and changes to the minimum mineralisation width and internal wate parameters used for 3D modelling has generated differences in the results presented in the previous press release “ Matilda Copper Project – exploration update from September 7 th 2023” due to the new results received, geological knowledge acquire and modelling applied. All results are correct based on the parameters used and geological knowledge at the time.

NSI – No Significant Intersection.

GLOSSARY OF TERMS

The following is a glossary of technical terms:

Assay Results

Assay results reported within this release include those provided by the Company's own on-site laboratory facilities at Palito and have not yet been independently verified. Serabi closely monitors the performance of its own facility against results from independent laboratory analysis for quality control purpose. As a matter of normal practice, the Company sends duplicate samples derived from a variety of the Company's activities to accredited laboratory facilities for independent verification. Since mid-2019, over 10,000 exploration drill core samples have been assayed at both the Palito laboratory and certified external laboratory, in most cases the ALS laboratory in Belo Horizonte, Brazil. When comparing significant assays with grades exceeding 1 g/t gold, comparison between Palito versus external results record an average over-estimation by the Palito laboratory of 6.7% over this period. Based on the results of this work, the Company's management are satisfied that the Company's own facility shows sufficiently good correlation with independent laboratory facilities for exploration drill samples. The Company would expect that in the preparation of any future independent Reserve/Resource statement undertaken in compliance with a recognised standard, the independent authors of such a statement would not use Palito assay results without sufficient duplicates from an appropriately certificated laboratory.