Exploration Update for 2026 Brownfield Exploration Programme at Palito and Coringa Delivering High Grade Results

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

What the company is saying

Serabi Gold plc (AIM:SRB, TSX:SBI, OTCQX:SRBIF) is updating investors on its 2026 brownfield exploration programme at the Palito Complex and Coringa Mine in Brazil. The company frames this as the second year of Phase II in its organic growth strategy, targeting an increase in group mineral inventory to over 1.5 million ounces of gold. The announcement emphasizes operational progress: 20,831 metres of diamond drilling completed in H1-2026, with 11,522 metres at Palito and 9,309 metres at Coringa, and a total of 32,000 metres planned for 2026 using six rigs. Management highlights high-grade drill intercepts across multiple zones, including Serra South, Meio, Serra, Cabaça, Encosta, Massa, and Piauí, and notes that ramp development at Serra South began in Q2-2026. CEO Mike Hodgson states that these results demonstrate the potential for larger resources to support production growth and reiterates that updated Mineral Resource Estimates for both projects are expected in Q1-2027. The company positions itself as leveraging its exploration and permitting expertise in Brazil, focusing on near-mine targets and new structural corridors.

What the data suggests

The disclosed figures show that Serabi’s 2025 brownfield exploration increased Measured and Indicated resources to 730,800 ounces (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, split between Palito (11,522 metres, 37 holes) and Coringa (9,309 metres, 42 holes), with a full-year target of 32,000 metres. Drill highlights include 1.38 m @ 11.85 g/t Au (including 0.42 m @ 37.10 g/t Au) at Coringa Serra South, 2.20 m @ 5.89 g/t Au (including 0.40 m @ 13.40 g/t Au) and 1.19 m @ 6.87 g/t Au (including 0.49 m @ 16.55 g/t Au) at Serra South, and 1.70 m @ 16.13 g/t Au (including 0.45 m @ 35.59 g/t Au) at Meio. At Palito, notable intercepts include 1.12 m @ 6.12 g/t Au (including 0.43 m @ 15.20 g/t Au) at Massa and 9.93 m @ 1.06 g/t Au (including 0.25 m @ 6.26 g/t Au and 0.25 m @ 4.95 g/t Au) at Piauí. Ramp development at Serra South is underway, and new targets have been identified at Palito’s G1-G3 corridor. All validated results will feed into updated Mineral Resource Estimates due Q1-2027. The data confirms ongoing resource growth and high-grade mineralisation, but the ultimate scale and economic impact will depend on the forthcoming resource update.

Analysis

The announcement provides substantial realised operational data, including metres drilled, number of holes, and specific high-grade intercepts at both Palito and Coringa, as well as a clear increase in Measured and Indicated resources from the 2025 programme. However, a significant portion of the narrative is forward-looking, focusing on the objective to expand resources to over 1.5 million ounces and the anticipated Q1-2027 resource estimate update. The CEO's language about 'continuing to yield success' and 'potential to delineate a larger resource' is aspirational and not yet substantiated by updated resource figures for 2026. While the operational progress is credible and well-detailed, the most material benefits (resource growth, production expansion) remain contingent on future drilling and resource estimation. There is no evidence of large capital outlay beyond ongoing exploration, and the timeline for the next major catalyst (resource update) is within 6-12 months, supporting a 'near_term' execution distance. The tone is upbeat but not excessively promotional, with moderate narrative inflation around future potential.

Risk flags

• ●Resource expansion is not guaranteed: While high-grade intercepts are reported, the ability to convert these into significant resource growth depends on continuity, tonnage, and successful follow-up drilling. If subsequent drilling fails to confirm extensions or grade consistency, the impact on resource estimates may be limited.
• ●Timeline risk: The exploration programme is scheduled to complete in October 2026, with resource updates in Q1-2027. Any delays in drilling, assay turnaround, or geological modelling could push back these milestones, affecting the timing of potential value catalysts.
• ●Operational concentration: Both Palito and Coringa are located in Brazil and represent the company’s primary assets. This geographic and operational focus exposes Serabi to country-specific permitting, regulatory, and logistical risks, as well as potential disruptions from local factors.
• ●Forward-looking targets: The stated goal of expanding group mineral inventory to over 1.5 million ounces is aspirational and not yet supported by current resource estimates. If future drilling or resource modelling falls short of this target, investor expectations may not be met.
• ●Assay and modelling uncertainty: Some drill results are based on internal assays pending external laboratory confirmation. Discrepancies between internal and final lab results could affect the reported grades and widths, impacting the credibility of resource growth claims.

Bottom line

Serabi Gold’s update demonstrates tangible exploration progress at Palito and Coringa, with high-grade drill results and a clear increase in Measured and Indicated resources to 730,800 ounces and inferred resources to 653,300 ounces as of 2025. The company is executing an aggressive 32,000-metre drill programme in 2026, with six rigs active and ramp development underway at Serra South. While the reported intercepts are encouraging and support the narrative of resource growth, the key value driver will be the updated Mineral Resource Estimates due in Q1-2027. The company’s messaging is confident, but the ultimate impact of these results will depend on the scale and quality of resource additions. Investors should watch for assay confirmation, continuity in high-grade zones, and timely delivery of the resource update. The most important takeaway is that Serabi is making operational progress, but the material upside remains contingent on future resource conversion and economic studies.

Announcement summary

(AIM:SRB, TSX:SBI, OTCQX:SRBIF) Serabi Gold plc provided an 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 Palito and Coringa 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. 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). During H1-2026, 20,831 metres of diamond drilling were completed, comprising 11,522 metres across 37 holes at Palito and 9,309 metres across 42 holes at Coringa. The 2026 programme totals 32,000 metres across both sites, with six drill rigs currently operating. 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 at Serra South; 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 at Serra South; 1.70 m at 16.13 g/t Au (including 0.45 m at 35.59 g/t Au) in hole 26-ME-013 at Meio; 1.00 m at 6.85 g/t Au (including 0.25 m at 25.80 g/t Au) in hole 26-SR-062 at Serra; 1.00 m at 10.11 g/t Au (including 0.25 m at 40.30 g/t Au) in hole 26-FC-005 at Cabaça; and 1.50 m at 4.01 g/t Au in hole 26-ME-006 at Encosta. At Palito, highlights 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 at Massa, and 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 at Piauí. The exploration team is focusing on priority trends and new structural targets, including the G1-G3 corridor at Palito, with drilling to follow in H2-2026. Ramp development of the Serra South zone at Coringa commenced in Q2-2026. At Pista, rock-chip results of up to 7.46 g/t Au have been reported. The company notes that all validated results will be incorporated into updated Mineral Resource Estimates expected in Q1-2027. Mike Hodgson, CEO of Serabi, stated that Phase II of the organic growth strategy continues to yield success, with high-grade drill results supporting the potential to delineate a larger resource at both Palito and Coringa to support production growth. 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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