Serabi Gold's Promising Results from Brazilian Gold Operations

• Serabi Gold has initiated a $9 million exploration program as Phase II of its growth strategy, including 30,000m of diamond drilling across its Palito Complex and Coringa Mine to expand resource ounces.
• Initial exploration at São Domingos has identified potential resources estimated at 88.5 koz of gold at 13.83 g/t Au in a subvertical mineralized zone, though this estimate remains conceptual pending further exploration.
• Significant high-grade gold intercepts were reported across multiple drill holes, including 80.50 g/t Au over 1.65m at São Domingos and 52.07 g/t Au over 0.5m at the Galena orebody in Coringa.
• The company completed 64,550 linear meters of ground geophysics (IP) surveys in 2024, identifying promising chargeability anomalies that will be targets for drilling in Q2-2025.
• Regional geological interpretation has generated approximately 70 targets across Serabi's permitted portfolio, highlighting the significant exploration potential of the company's extensive land holdings.

Serabi Gold (LSE:SRB) is a Brazilian-focused gold mining and development company with operations in the Tapajós region of Pará State, Northern Brazil. The company has consistently produced 30,000 to 40,000 ounces of gold per year from its Palito Complex and is working to double production through the ramp-up of its Coringa Mine.

The company detailed promising results from its exploration activities across its primary assets - the Palito Complex, Coringa Mine, and São Domingos target - as part of its Phase II growth strategy aimed at significantly expanding its resource base.

$9 Million Exploration Program

In January 2025, Serabi initiated a $9 million exploration program representing Phase II of its growth strategy. This program includes 30,000 meters of diamond drilling, with 16,000 meters allocated to the Coringa Mine and 14,000 meters to the Palito Complex. The primary objectives are to test new IP geophysical targets at Palito, explore extensions of known ore bodies at both sites, and investigate anomalous geochemical and geophysical trends at Coringa.

The program also includes plans for a 100-kilometer IP survey at Coringa, focusing on the southwestern and northern portions of the property. This comprehensive approach underscores the company's commitment to substantially growing its resource base.

In the press release, Mike Hodgson, CEO of Serabi Gold, commented on the progress of the exploration program:

"With strong economic tailwinds and solid gold production growth expected to continue into 2025, Serabi is encouraged by excellent initial exploration results which are setting the Company off on its path to significantly grow resources as Phase II of our growth strategy."

São Domingos' High-Grade Results

The São Domingos prospect, located approximately 12 kilometers from the São Chico mine infrastructure, has been a focal point of Serabi's recent exploration efforts. Between November 2024 and February 2025, the company completed 12 diamond drill holes totaling 3,769 meters at São Domingos.

Based on these results, the initial exploration model estimates a potential of 88.5 koz of gold at an impressive grade of 13.83 g/t Au in a subvertical mineralized zone. The company notes that this estimate remains conceptual, as insufficient exploration has been completed to define a formal mineral resource.

The São Domingos drilling program was designed to follow up on previous high-grade intercepts, including a notable intersection of 7.15 meters at 258.2 g/t Au reported in April 2021. The recent campaign has produced several significant intercepts with following details below:

The modeled zone at São Domingos has a pipe-like shape with a thickness ranging from 20 to 30 meters and a known dip-length of 155 meters. The zone remains open at depth, and its substantial thickness compared to typical bodies at Palito presents opportunities for more voluminous mining methods.

"The results of the drilling at the São Domingos target were very positive," Hodgson noted. "The exploration model shows a vertically oriented high-grade orebody that provides flexibility in the exploitation mining process, significantly increasing the mass and consequently the number of ounces produced. The planning team will evaluate the economics of the model, and we expect to have a reserve drilling and production plan soon."

Palito Complex & Coringa Mine

The company's brownfield exploration efforts are focused on expanding resources at both the Palito Complex and Coringa Mine. At Palito, a total of 2,670 meters has been drilled across the Piaui and Senna targets. While the Piaui target returned lower grades, the Senna orebody has shown promising results, including 3.4m @ 6.93 g/t Au, with higher-grade sections of 0.6m @ 27.17 g/t Au and 1.05m @ 6.42 g/t Au from hole 25-SE-001.

At Coringa, drilling has been conducted across multiple targets, including the Valdete, Serra, Galena-Mãe de Leite trend, and Jatobá targets, totaling 1,778 meters of diamond drilling. Notable results include:

• Hole 25-JA-003: 0.5m @ 27.78 g/t Au from 120m (Jatobá orebody)
• Hole 25-GA-001: 0.5m @ 52.07 g/t Au from 150m (Galena orebody)

The Jatobá target, located approximately 400 meters north of the Serra body, had not been previously tested with drilling. The recent intercept has opened new perspectives on the potential of this body at depth. The company continues to evaluate these results to determine next steps for the Jatobá target.

Identifying New Targets

During 2024, Serabi completed 64,550 linear meters of ground geophysics (IP induced polarization) in the Palito region. The IP method has proven effective in identifying potential mineralization in the Palito area due to the association between gold and sulphides.

The survey focused on the west-northwest portion of the Palito mine, searching for extensions of known ore bodies. The results revealed encouraging chargeability anomalies that have been integrated with surface geochemistry data to determine optimal drilling locations. The company plans to begin drilling these targets in Q2-2025, following the end of the wet season and the preparation of access points and drill platforms.

The first target to be tested from this interpretation is Onça, which is interpreted as an extension of the Piaui orebody. Onça exhibits an anomalous signature in the IP survey and significant gold soil anomalies on the surface, making it a priority target for the upcoming drilling campaign.

Generating Future Opportunities

Beyond its current operations, Serabi has conducted extensive regional geological interpretation across its permitted portfolio. This work has generated approximately 70 targets that have been ranked according to geochemical results, geological knowledge, data availability, and location within defined clusters.

The company is developing a work program for these targets, which would require an estimated initial 18-month program of 30,000 meters of drilling at a cost of approximately $10 million as a first phase to advance these anomalies into prospects.

"In addition to the work being carried out on the brownfield targets, the exploration team is continuing interpretation work on the greenfield targets," Hodgson explained. "An abundance of copper/gold targets found during the regional soil and drilling campaigns demonstrate the prospectivity of our property that is still underdeveloped and underexplored. We are in the final phase of maturing our targets to execute the regional exploration program in the oncoming years."

Future Growth Outlook

The exploration results reported by Serabi Gold align with the company's strategic objective of significantly expanding its resource base. The CEO has indicated that the company is progressing toward its goal of delineating a consolidated 1.5 to 2.0 million ounces of gold resources in the coming years, which would represent substantial growth from its current position.

The combination of promising results from brownfield exploration at Palito Complex and Coringa Mine, the high-grade intercepts at São Domingos, and the abundance of regional targets provides multiple avenues for resource growth. Additionally, the identification of copper-gold porphyry potential across the company's property portfolio adds another dimension to its long-term growth prospects.

For Investors

For investors looking at Serabi Gold, the current exploration program represents a significant growth catalyst with the potential to substantially increase the company's resource base and future production capacity. The high-grade nature of many of the intercepts reported aligns with the company's existing operations, which focus on high-grade, underground mining.

The company's two-pronged approach – focusing on near-mine resource expansion while also advancing regional exploration – provides both near-term and long-term growth potential. The proximity of the São Domingos target to existing infrastructure at São Chico potentially offers a relatively quick path to development if resource definition is successful.

Serabi's established production base provides cash flow to support exploration activities, while the current exploration program aims to provide the resource growth needed to achieve the company's stated goal of doubling production through the ramp-up of the Coringa Mine and potential development of new discoveries.

As with any gold exploration and development company, investors should consider both the opportunities presented by successful exploration and the inherent risks associated with resource definition, project development, gold price fluctuations, and operating in Brazil. The conceptual nature of the resource estimates at São Domingos highlights that further work is required to confirm the economic viability of this target, despite the encouraging initial results.