Serabi Gold upbeat on latest mining operations

Brazil-focussed mining and development company Serabi Gold updated the market on its operational, development and exploration activities in the third quarter on Wednesday.

The AIM-traded firm said gold production totalled 9,082 ounces in the period, which was a 34% improvement over the same part of 2020.

Gold production for the year-to-date was in line with guidance at 26,510 ounces.

Total ore mined during the quarter was 42,240 tonnes at 7.18 grams of gold per tonne, which was the highest quarterly mined grade since the first quarter of 2019 and a 28% improvement in grade compared to the average for 2020.

A total of 41,995 tonnes of run-of-mine ore was processed through the plant from the combined Palito and São Chico orebodies, with an average grade of 7.20 grams of gold per tonne, which was a 28% improvement on the average plant grade for 2020.

A total of 2,842 metres of horizontal development was completed during the quarter, bringing the year-to-date total to 9,376 metres.

“The company has followed up the excellent second quarter gold production with another solid 9,000 ounces of gold production for the third quarter meaning Serabi is on course to meet its 2021 production guidance,” said chief executive officer Mike Hodgson.

“Higher mined gold grades drove the much-improved gold production compared with 2020, with third quarter mined grades averaging 7.18 grams of gold per tonne, representing a very healthy increase on the average of 5.59 grams of gold per tonne for the 2020 calendar year.

“As well as very pleasing gold production, the quarter saw the much anticipated start of mining operations at our Coringa gold project, a real milestone for the company as we set forth to achieve our mid-term objective of becoming a 100,000 ounce gold producer.”

Hodgson said that with permits in place to start the mining operation, he was “delighted” to see mine development underway, and was looking forward to intersecting the first ore zone during the current quarter.

“We anticipate that the improved understanding arising from this underground ore development will deliver further economic benefits to the project.

“Finally, the quarter has seen steady mine site exploration progress at São Chico as well as further greenfield exploration at São Domingos.

“At São Chico, exploration drilling focused on the strike extension of the Julia Vein to the west of the mine.”

Results announced to date were described by Mike Hodgson as “encouraging”.

“Julia West is near surface and easy to develop, requiring minimal capital development to access.

“Drilling from both surface and underground will continue well into the next quarter.”

At 1603 BST, shares in Serabi Gold were up 1.44% at 70.5p.