Serabi Gold 'well on track' to full-year targets

Brazil-focused gold mining and development company Serabi Gold held it annual general meeting on Thursday morning, with CEO Mike Hodgson telling investors that production for the second quarter at the Palito and Sao Chico mines was following the positive trends set in the first quarter.

“As I noted in April's first quarter operational update, gold production from our Palito and Sao Chico Mines continues to be excellent with the second quarter following the trend set by the first quarter of 2016 and our strong finish to 2015,” the chief of the AIM-traded firm said.

“The first quarter yielded gold production of 9,771 ounces, a record level since operations commenced in 2014.

“At this current time and barring any unforeseen circumstances, I anticipate that gold production for the second quarter will be at a similar level,” he added.

Hodgson explained that this puts Serabi well on target to achieving its guidance for the full year of 37,000 ounces.

At the same time, Hodgson also indicated that underground exploration programmes for production planning and resource extension are about to commence.

He added that geophysics programmes for Currutela, Piaui and new tenements located to the west of Sao Chico are planned for the second half of the year.

Investors seemed pleased with the news - at 1120 BST, shares in Serabi Gold were up 8.11% at 5p.