RE: Chairman's statementCHAIRMAN'S STATEMENT
Serabi has undergone significant change over the past two years which has now culminated in the listing of the shares on the Toronto Stock Exchange and the appointment of additional non-executive Board members to help the Company in its next stage of development.
The Tapajos region of Brazil, where artisanal production is reported as having been up to 30 million ounces, must be considered to be a highly prospective gold region. To date only some 5 million ounces of hard rock resources have been identified, the majority of which lies along the geologically significant Tocantinzinho structural trend, implying that a significant level of hard rock resource still remains to be identified. The Palito mine and the tenements that Serabi's exploration activity is focussed on, lie at the south-eastern end of this structural trend close to the main infrastructure and population areas, a location that has been described as the "front door to the Tapajos".
Exploration always requires an element of fortune, but the odds can be moved in your favour by adopting a systematic and structured approach. Serabi has put such an approach in place and having already generated a number of drill targets has followed this up with further programmes that we hope will allow it to create a pipeline of opportunities within its tenement area from which it can, over time, add significantly to its existing resource base. We hope that the use of airborne geophysics to screen large areas and generate focused ground based exploration, will prove to be a significant tool to unlock some of the potential of this region but I am sure that it will not be the only technique that might be successful in locating deposits in this geologically exciting area.
I am excited to be involved with the Company at this stage of its development, and know that the other new members of the Board feel the same. Bill Clough who founded the Company has stepped down from the Board and it was his pioneering spirit and vision that identified the potential of the Tapajos region in the first instance. Bill and his team put in place significant foundations on which Serabi can now build and which will add great value to the exploration success that we all hope Serabi is now set to achieve.
This is my last address to shareholders as Chairman of the Company as I have elected to step down in order to assist the Company in fulfilling its Canadian securities obligations, though I will remain on the Board in a non-executive capacity. I welcome Mr Sean Harvey, one of the new non-executive directors as the new Chairman of the Board. I have had a long acquaintance with Sean, and know that his excellent reputation in North America will allow the Company to maintain a high profile there and maximise the benefits that can be achieved from its new TSX listing.