Serabi Gold reports strong trading in first quarter

The AIM-traded, Brazil focused gold mining and development firm produced 9,771 ounces of gold during the quarter, compared with 7,924 ounces a year earlier.

Mine production totalled 37,546 tonnes. Of that, 26,752 tonnes was at a grade of 11.84 grams per tonne from Palito, and 10,794 tonnes was at a grade of 9 grams per tonne from Sao Chico.

36,615 tonnes of ore was processed through the plant for the combined mining operations.

The company also completed 2,926 metres of horizontal mine development during the quarter, with 1,901 at Palito and 1,025 at Sao Chico.

Serabi’s board said installation of the third ball mill was almost complete, along with the second flotation line and enhancements in the carbon-in-pulp plant. The works are on schedule to be completed by the start of May.

At the end of the quarter, the combined surface stockpiles at Palito and Sao Chico totalled 17,000 tonnes at a grade of 5.3 grams of gold per tonne.

"The first quarter of 2016 has been very satisfying, building on the Company's strong finish to 2015. This has been the best quarter to date in terms of both ore production from the mines and the volume of ore processed through the plant,” said Serabi Gold CEO Mike Hodgson.

"The first quarter, which coincides with the height of the rainy season, was always going to be our most challenging as we did not have the benefit of the plant expansion. Nonetheless we have got very close to breaking the 10,000 ounce per quarter threshold which is an excellent result and comfortably in-line with our guidance of 37,000 ounces for the year as a whole.”