Exploration Update for 2026 Brownfield Explor...

Serabi Gold reports strong high-grade drill results and resource growth at Palito and Coringa.

What the company is saying

Serabi Gold plc, listed on AIM:SRB, TSX:SBI, and OTCQX:SRBIF, is providing a detailed operational update on its 2026 brownfield exploration programme at the Palito Complex and Coringa Mine in Brazil. The company frames the narrative around expanding its gold resource base, targeting a group mineral inventory of over 1.5 million ounces as part of Phase II of its organic growth strategy. Management emphasizes the completion of 20,831 metres of diamond drilling in H1-2026, with six rigs operating and a total programme target of 32,000 metres. CEO Mike Hodgson highlights high-grade drill results and the commencement of ramp development at the Serra South zone as evidence of ongoing success and resource growth potential. The announcement stresses the integration of validated drill results into updated Mineral Resource Estimates, expected in Q1-2027, and points to new structural targets and reinterpretations as drivers for future growth. The tone is confident, with a focus on technical achievement and the prospect of supporting future production increases.

What the data suggests

The update discloses that the 2025 brownfield exploration programme increased consolidated Measured and Indicated resources to 730,800 ounces of gold (2,485,800 tonnes at 9.1 g/t Au) and inferred resources to 653,300 ounces (2,506,700 tonnes at 8.1 g/t Au). In H1-2026, 20,831 metres of drilling were completed—11,522 metres across 37 holes at Palito and 9,309 metres across 42 holes at Coringa—toward a 2026 programme target of 32,000 metres. Multiple high-grade intercepts are reported, including 1.38 m at 11.85 g/t Au (with 0.42 m at 37.10 g/t Au) in hole 26-SR-055 and 1.70 m at 16.13 g/t Au (with 0.45 m at 35.59 g/t Au) in hole 26-ME-013 at Coringa. At Palito, results include 1.12 m at 6.12 g/t Au (with 0.43 m at 15.20 g/t Au) in hole 26-MS-001 and 9.93 m at 1.06 g/t Au (with 0.25 m at 6.26 g/t Au and 0.25 m at 4.95 g/t Au) in hole 26-PI-019. Ramp development at Serra South began in Q2-2026, and reinterpretation of the G1-G3 corridor at Palito has generated new drill targets for H2-2026. While the company claims these results support resource and production growth, the current resource figures remain below the 1.5 million ounce target, and updated Mineral Resource Estimates are not due until Q1-2027. The technical disclosures are comprehensive, with specific hole IDs, grades, and intervals, but the link between these results and future resource or production increases is not yet quantified.

Analysis

The announcement provides a detailed operational update with substantial realised progress: 20,831 metres of drilling completed in H1-2026, ramp development commenced at Serra South, and specific high-grade drill results are disclosed. However, several key claims—such as expanding the mineral inventory to over 1.5 million ounces and the potential for production growth—are forward-looking and not yet realised, with updated resource estimates only expected in Q1-2027. The language is optimistic, emphasizing 'success' and 'potential' without quantifying how current results will translate into future resources or production. While the technical data is credible and supports ongoing exploration, the narrative inflates the immediate impact by projecting future growth based on incomplete programmes. There is no evidence of a large capital outlay with deferred returns; the focus is on ongoing exploration rather than major development spend.

Risk flags

• ●Resource growth is not guaranteed: While high-grade drill results are disclosed, the current Measured and Indicated plus Inferred resources total 1,384,100 ounces, still short of the 1.5 million ounce target. If subsequent drilling or modelling fails to deliver a material increase, the growth narrative could weaken.
• ●Execution risk on exploration and modelling: The remaining 11,169 metres of planned drilling and the integration of new structural models must be completed on schedule and deliver positive results to support the Q1-2027 resource update. Delays or disappointing assays could push back or reduce the expected resource uplift.
• ●Production growth is aspirational: The company references supporting future production growth, but no realised production increases are disclosed or quantified. Actual production expansion will depend on successful conversion of exploration results into mineable reserves and operational ramp-up.
• ●Assay results pending for some holes: Several reported intercepts are based on internal assays, with external ALS results pending. If final assays are lower than internal estimates, headline grades could be revised downward.
• ●Capital allocation and cost control: Operating six drill rigs and ramp development at Serra South require sustained capital outlay. If exploration costs escalate or results disappoint, financial flexibility could be impacted.

Bottom line

Serabi Gold's update demonstrates tangible exploration progress at Palito and Coringa, with over 20,800 metres drilled in H1-2026 and multiple high-grade gold intercepts reported. The 2025 programme already lifted consolidated resources to 730,800 ounces Measured and Indicated and 653,300 ounces Inferred, but the company's stated goal of exceeding 1.5 million ounces remains unfulfilled pending further drilling and a Q1-2027 resource update. The technical disclosures are detailed and credible, but the link between current results and future production or resource growth is not yet proven. Investors should watch for completion of the remaining drilling, the outcome of pending assays, and the delivery of updated Mineral Resource Estimates in early 2027. The most important takeaway is that while operational momentum is strong, the investment case for a step-change in resource scale or production remains contingent on future results.

Announcement summary

(AIM:SRB, TSX:SBI, OTCQX:SRBIF) Serabi Gold plc provided a comprehensive update on its 2026 brownfield exploration programme at the Palito Complex and Coringa Mine in Brazil. The primary objective of the 2026 drill programme is to expand the company’s known gold resources by targeting high-probability near-mine mineralization at both sites as part of Phase II of its organic growth strategy, aiming to increase the Group mineral inventory to over 1.5 million ounces of gold. The programme is expected to complete in October 2026, with updated Mineral Resource Estimates for Palito and Coringa anticipated in Q1-2027. As of H1-2026, a total of 20,831 metres of diamond drilling have been completed, comprising 11,522 metres across 37 holes at Palito and 9,309 metres across 42 holes at Coringa. The 2026 brownfield exploration programme will total 32,000 metres across both sites, with six drill rigs currently operating. The 2025 brownfield exploration programme increased consolidated Measured and Indicated resources to 730,800 ounces of contained gold (2,485,800 tonnes at 9.1 g/t Au) and consolidated inferred resources to 653,300 ounces (2,506,700 tonnes at 8.1 g/t Au). Recent drill highlights at Coringa include: 1.38 m at 11.85 g/t Au (including 0.42 m at 37.10 g/t Au) in hole 26-SR-055; 2.20 m at 5.89 g/t Au (including 0.40 m at 13.40 g/t Au) and 1.19 m at 6.87 g/t Au (including 0.49 m at 16.55 g/t Au) in hole 26-SR-059; 1.70 m at 16.13 g/t Au (including 0.45 m at 35.59 g/t Au) in hole 26-ME-013; 1.00 m at 6.85 g/t Au (including 0.25 m at 25.80 g/t Au) in hole 26-SR-062; 1.00 m at 10.11 g/t Au (including 0.25 m at 40.30 g/t Au) in hole 26-FC-005; and 1.50 m at 4.01 g/t Au in hole 26-ME-006. At Palito, notable results include 1.12 m at 6.12 g/t Au (including 0.43 m at 15.20 g/t Au) in hole 26-MS-001. The exploration team has identified new prospective models and reinterpretations, focusing on priority trends and optimizing resource allocation. At Coringa, ramp development of the Serra South zone commenced in Q2-2026, and the discovery of Serra South in 2025, located approximately 500 metres southeast of the current Serra zone, validates the exploration model. At Palito, drilling at Senna, G3, Barrichello, Piauí, and Massa continues to confirm mineralization, with highlights such as 9.93 m at 1.06 g/t Au (including 0.25 m at 6.26 g/t Au and 0.25 m at 4.95 g/t Au) in hole 26-PI-019, and 0.28 m at 7.22 g/t Au in hole 26-TA-001. The reinterpretation of the G1-G3 corridor at Palito has identified new structural drill targets, with drilling planned for H2-2026. CEO Mike Hodgson stated that Phase II of the organic growth strategy continues to yield success, with high-grade drill results supporting the potential for a larger resource and production growth at both Palito and Coringa. The company will continue to leverage its exploration and permitting expertise and in-country relationships to execute its strategy of creating a premier gold growth company in Brazil.

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