Serabi Gold pleased with second quarter progress

The AIM-traded firm also noted the completion of a £6.4m brokered share placement to follow the $15m investment made by Greenstone Resource II during the second quarter.

On the operational front, it said mine production for the period totalled 36,071 tonnes at 8.12 grams per tonne of gold.

A total of 38,155 tonnes of run of mine ore was processed through the plant from the combined Palito and Sao Chico orebodies, with an average grade of 7.71 g/t of gold.

An additional 4,861 tonnes of historical tailings were also processed through the leaching circuit at a grade of 4.38 g/t of gold.

Horizontal mine development completed during the quarter was 2,744 metres.

Palito development and production was still focussed on the four main sectors of Senna, Pipocas, G3 and Mogno, the Serabi board reported, whilst in the Sao Chico orebody, the main ramp was now “close” to reaching the next planned level at -15mRL - approximately 280 vertical metres below surface.

Production was coming from levels 70 and 56mRL, with levels 10 and -3mRL in development.

Step-out surface drilling was said to be underway on both the Palito and Sao Chico orebodies, with initial drilling results to be released during the third quarter.

By the end of the quarter, surface ore stocks were approximately 7,800 tonnes - down from 10,200 tonnes at the end of March - with an average grade of 3.5 g/t of gold, together with approximately 36,000 tonnes of flotation tailings grading approximately 3.0 g/t gold.

“During the year we expect to generate steady positive news flow, starting with an exploration update early in the third quarter, as well as licensing progress at Coringa,” said Serabi Gold chief executive Mike Hodgson.

“Our ambition remains to establish ourselves as a significant gold producer in Brazil with a target of an annualised production rate of 100,000 ounces within the next two years.”