Ore Reserve and Mineral Resource Update

Tag : mineral resources

The mineral resource estimate outlined is based on a total of 25different veins of a minimum 70cm width, located within the largermineralised sections of the Palito Main Zone (PMZ), the Palito Westzone (PW), Chico da Santa area (CS) and the Ruari's Ridge zone(RR). Each vein has been interpreted and modelled in 3D usingGemcom modelling software. Samples contained within, andrepresentative of these modelled ore envelopes have been selectedand variography performed. Following this, the ordinary krigingalgorithm was used to interpolate gold and copper block models.Tonnage and grade have then been estimated from the modelled oreenvelopes and the grade block models.
The grade block models for the different orebodies were validatedby NCL and Serabi staff, who concluded that these models wereconsistent with the original geological data available.
The PMZ resource mostly consists of eight vein structures . Two ofthe eight vein structures, the G3 and G2 veins, make up the bulk ofthe resource. These two veins have to date formed the majority ofthe 95,000 ounces gold equivalent mine production at Palito sincethe beginning of 2005. Significantly there is good evidence thatboth mineralised features remain open to the south and at depth. Itshould be noted that since the March 31st disclosure date furtherdrilling of the PMZ as well as the other zones has been completed,though we await further assays. To date, over 2,350 drill-holesamples and 750 underground channel samples are outstanding.However, preliminary visual interpretation of the drill coreindicates the potential for the PMZ to continue at least a further300 metres to the south, and is still open at depth.
Palito West consists of six veins which also remain open to thenorth and south. As with the PMZ, we await assay confirmation ofmore recent drilling but visual interpretation of recent drill coreindicates a potential strike extension of at least 200 metres tothe north on two of the six veins since this estimation was carriedout.
The Chico da Santa area to the east of the PMZ consists of fivemineralised vein-type orebodies, and all remain open to the north,south and at depth. Finally the Ruari's Ridge zone comprises ofseven mineralised vein structures extending over a strike length ofup to 900 metres and with gold and copper grades down to 300 metresdepth.
Ore Reserves
Within the total mineral resource estimate, NCL Brasil Ltda hasestimated an ore reserve of 187,500 ounces gold equivalent,comprising of 732,500 tonnes @ 7.34 g/t gold and 0.22% copper. Itshould be noted that these reserves are derived from the Measuredand Indicated resource categories within the Total Mineral Resourceof 0.67 million ounces tabulated above, and are NOT additional.
In reporting an ore reserve at Palito for the first time, it isimportant to note the parameters adopted at the base of the table.
Commenting on the resource and reserve update Mike Hodgson, ChiefExecutive Officer of Serabi Mining plc said:
"This is the first disclosure of an ore reserve at the PalitoOperations, and it better positions the company to plan futureproduction, and at current production rates indicates a minimumapproximate mine life of a further 4 years. NCL Brasil Ltda havebeen working with Serabi at Palito since last year in order toreview the Company's resources, related practices and mineplanning. Their expertise, combined with that of our in-housetechnical team, applied in this resource and reserve estimation,further underpins our production planning and outlook.
Meanwhile, exploration success is continuing at Palito andsignificant drilling undertaken since the 31 March reviewdemonstrates strike and dip extensions of known orebodies alreadyin production at the mine and we are therefore confident that boththe mineral resource and ore reserve can continue to grow. As allthe known structures at Palito are sub-vertical dipping mineralizedveins, it makes commercial sense to drill these structures to alimited depth and then further evaluate from underground mineworkings at a later date once the relevant upper levels have beendeveloped. It is therefore unrealistic to drill out these types ofdeposits to completion but it is not unusual to see them continueto operate over many years."
Qualified Person's Statement
The information contained within this press release has beenreviewed and verified by Mr Rodrigo Melo for the resource estimateand by Carlos Guzman for the reserve estimate, both of NCL BrasilLtd.
Both meet the requirements as the Qualified Person for the purposesof the AIM Guidance Note on Mining, Oil and Gas Companies datedMarch 2006. Mr Melo is a Bachelor of Geology for the University ofMinas Gerais, Brazil (1985). He is a member of the AustralasianInstitute of Mining and Metallurgy (membership number 209332) and aregistered Geologist with the Regional Council of Engineering. Hehas worked as a geologist and project manager in the mineralsindustry for 22 years. Mr Guzman is a Mining Engineer for theUniversidad de Chile, Santiago, Chile (1995). He is a member of theAustralasian Institute of Mining and Metallurgy (membership number220036). He has worked as a mining engineer for 13 years.
NCL is a consulting company formed in Santiago, Chile in 1985. Itsmain objective is to provide focused advice and solutions formining companies requiring specialised services mainly in thefields of ore resources estimation, mine design and planning (foropen pit and underground methods), mine equipment selection,optimisation of mining operations and mining cost estimation. In2001, NCL formed NCL Brazil Ltda, a company established in BeloHorizonte, Brazil.
A PDF version of this release can be accessed by clicking on thelink at the end of this release
Notes to Editors
The Tapajos region of northern Brazil encompasses an area ofapproximately 100,000 km^2, primarily situated in south-west ParaState. It has a significant history of alluvial gold productionwith estimated gold production of some 30 million ounces havingbeing recovered, primarily from artisanal workings.
Present in the Tapajos since 1999, Serabi has established the only'hard rock' mine in the region to date at its Palito gold mine.
Serabi has a significant exploration programme focused on theTapajos region, operates four surface drilling rigs and has its ownassay laboratory.
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PDF version: http://hugin.info/137617/R/1234405/262977.pdf
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SOURCE: Serabi Mining plc

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