Serabi Gold drills 4.11 g/t gold over 5.90 metres at Palito, Brazil

Serabi Gold PLC [SBI-TSX; SRBIF-OTC; SRB-LSE AIM] updated the market on further positive development from the 100%-owned Palito project in northern Brazil where brownfield diamond drilling has continued to define mineralization at the Piaui prospect within a series of parallel mineralized structures located just 500 metres from the current underground mine infrastructure.

Shallow drilling confirms the continuity of three major parallel mineralized structures and identifies further smaller parallel zones. Visible gold encountered in drill hole PDD0619 within a zone grading 2.6 metres at 13.37 g/t gold, including 0.75 metres at 33.74 g/t gold from 28.55 metres.

High-grade intercepts include 0.41 metres at 16.89 g/t gold from 26.40 metres, 1.94 metres at 11.86 g/t gold, including 0.70 metres at 19.15 g/t gold from 35.30 metres (PDD0618); 0.65 metres at 14.28 g/t gold from 43.1 metres, 5.90 metres at 4.11 g/t gold, including 1.00 metre at 17.56 g/t gold from 69.75 metres (PDD0617); 2 metres at 3.69 g/t gold, including 1.00 metre at 6.54 g/t gold from 12.0 metres (PDD0616); and 1.60 metres at 2.70 g/t gold including 0.50 metres at 6.30 g/t gold from 113.55 metres (PDD0612).

Mike Hodgson, CEO, commented: “The Piaui prospect is shaping up to be an excellent near mine opportunity for Serabi. This excellent set of drill results supports the strong results generated in 2011 with high grades over significant mineable widths. Piaui is close to the existing mine infrastructure and therefore can be brought into the mine plan in a short period of time and at low capital cost. We look forward to updating the market with further results when we complete a phase of deeper drilling later in the year.”