Serabi said the drilling, part of an ongoing exploration programme, had returned multiple high-grade gold intersections from a newly discovered pay shoot on the G3 vein around 200m to the south of the current mine workings.

The newly identified intersections were 2m at 29.82g/t gold from 337.85m, including 1.3m at 44.75g/t Au; 1.5m at 8.08g/t Au from 371.7m, including 0.89m at 12.88g/t Au; 0.65m at 3.87g/t Au from 290.83m; and 2m at 33.76g/t Au from 76.75m, including 1m at 64.63g/t Au.

Serabi CEO Mike Hodgson said the drilling results indicated the continuity of the vein, which currently had a 1.5km strike length.

"This recent drilling indicates the vein remains open to the south and reinforces our belief that the Palito orebody will ultimately extend and be continuous with the Currutela prospect. Additionally, the success of this exploration drilling has helped to identify the longer term production potential of the Palito Complex," he said.

Hodgson added that the ongoing drill programmes on both the Palito and Sao Chico orebodies were focussed on strike extensions of the main veins and designed to provide organic growth opportunities.

He said the company was also carrying out wider, regional exploration activities, such as airborne and ground-based geophysical surveys and soil geochemical sampling.

Serabi's shares rose 2.94% Friday to 52.5p (US68c).