Serabi Gold shares shine as reserve estimates increase

Shares in Serabi Gold shone on Monday as the company reported solid resource and reserve estimates for its Tapajos mining and processing operations in Brazil.

The AIM-listed shares were up 10% to 3.44p as Serabi revealed proven and probable mineral reserve for the Palito and Sao Chico ore-bodies of 182,000 ounces of gold, which would support more than four years' worth of production.

The company said mineral reserves for the Palito ore-body are estimated at 157,000 ounces of contained gold (613,000 tonnes at an average diluted gold grade of 7.99 grammes per tonne (g/t).

Mineral reserves for the Sao Chico ore-body are estimated at 24,000 ounces of contained gold (90,000 tonnes at an average diluted gold grade of 8.43 g/t).

Measured and Indicated mineral resources for the Palito ore-body increased by 31%, compared with the previous resource estimation of June 2012, to 271,000 ounces of contained gold with a further Inferred mineral resource of 177,000 ounces of contained gold.

Measured and Indicated mineral resources for Sao Chico ore-body increased by 44%, compared with the October 2012 resource estimation, to 36,000 ounces of contained gold with an additional inferred mineral resource of 54,000 ounces of contained gold.