Serabi Gold produces almost 10,000 oz in Q1, targets 40,000 oz in 2017

Shares in Serabi Gold rose 10% after it produced almost 10,000 ounces on fold in the first quarter of 2017, and forecast output of 40,000 ounces for the year.

"Total production for the first quarter of 2017 was 9,861 ounces of gold, generated from the processing of the run of mine (ROM) ore from the Palito and Sao Chico orebodies, combined with the Palito surface coarse ore and the stockpiled flotation tailings accumulated from Palito mine production in 2014," the company said.

The output for the quarter came from the processing of 46,663 tonnes of ore at overall combined grades of 7.09 g/t gold, which was sourced from mined ore from the Palito and Sao Chico orebodies, supplemented with lower grade surface stockpiled ROM and flotation tailings.

Mined tonnage for the quarter totalled 36,918 tonnes, with a grade of 10.12 g/t of gold.

On 2017 guidance, Serabi forecast 40,000 ounces of gold production for the year, with an All-in sustaining cost of $950-$975 an ounce, broadly in line with the cost guidance of 2016.

"Management hope that, with the production efficiencies and improvements that can be implemented in 2017, Serabi will again be able to improve on its production guidance, as it did in 2016," the company said.

At 13:23 GMT, shares in AIM-quoted Serabi Gold were up 10% to 5.5p each.