Serabi Gold updates mineral figures for Palito and Sao Chico

Brazil-focussed gold mining and development company Serabi Gold announced the filing of the technical report for its Palito Mining Complex on Friday, along with updated estimates of mineral reserves and mineral resources for each of the Palito and Sao Chico orebodies.

The AIM-traded firm reported a combined estimated proven and probable mineral reserve for the Palito and Sao Chico ore-bodies of 182,000 ounces of contained gold - 703,000 tonnes at an average diluted grade of 8.05 g/t - supporting in excess of four years of production.

It said mineral reserves for the Palito ore-body were estimated at 157,000 ounces of contained gold - 613,000 tonnes at an average diluted gold grade of 7.99 g/t.

Mineral reserves for the Sao Chico ore-body were 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 the 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.

The mineral resource and reserve estimates excluded previously-announced gold discoveries made by Serabi, including the Currutela, Copper Hill, Piaui and Palito South areas, where there was currently insufficient geological data to estimate a mineral resource.

An infill drill programme was currently underway, that would provide additional geological date on each of those project areas.

“I am very pleased with the results of this study,” commented CEO Mike Hodgson.

“It is a great comfort to me that the study has confirmed that the company has, what I consider to be, significant mineral resources and mineral reserves defined at both Palito and Sao Chico, and, in my experience, it is a very healthy position for an underground, vein mining operation to have over four years of mineral reserves defined.”

Hodgson said it was a reflection of the investment that the company had made in ensuring that exploration and development was completed well in advance of production, thereby generating the levels of geological data required to define new mineral resources and mineral reserves.

“With the recently-announced acquisition of the Coringa gold project that was completed on 21 December, the company now has … declared measured and indicated mineral resources of over 500,000 ounces and aggregate inferred mineral resources of over 410,000 ounces.”