Improved Production for Second Quarter of 2023
Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to report operational results for the second quarter of 2023 and provide a review of its development and exploration activities.
HIGHLIGHTS
- Second quarter gold production totalled 8,518 ounces, a 6% improvement on the first quarter in 2023.
- Mined grades were 6.94 g/t gold, the highest since the third quarter of 2021. Mined grades at Palito averaged 6.68 g/t gold.
- Coringa mine development continued to progress well with mined grades of 7.83 g/t gold. The development ore transported to Palito plant contributed over 2,000 ounces of gold production for the quarter.
- The Vale Exploration Alliance is progressing well with 7 diamond drillholes for 3,200 metres completed at the Matilda prospect. A number of other regional targets have also tested with total drilling exceeding 5,500 metres. Assay results from Matilda and the other targets are anticipated within the coming weeks.
- Cash held at 30 June 2023 was US$13.3 million (US$12.3 million net of cash held under the Vale Exploration Alliance) compared to US$7.2 million at 31 December 2022.
Mike Hodgson, CEO of Serabi, commented:
“An excellent second quarter to follow the first quarter production of 8,005 ounces, keeps the company on course to meet its guidance for this year of between 33,500 to 35,000 ounces.
“The quarter saw improved grades coming from Palito, along with continued high grade development ore from Coringa, which resulted in a plant feed grade of 6.84g/t gold, which we have not achieved since the third quarter of 2021.
“Mine development at Coringa continued to be very successful. The payability of the development is quite remarkable, with very limited low-grade or waste zones being encountered as the orebody is developed. The mine is still in development and only operating under the GUIA trial mining license. Even so, the small volumes of ore that are being extracted and transported to the Palito plant are proving to be very beneficial, with over 2,000 ounces of gold production attributed to Coringa in the second quarter.
“On the exploration front, the relationship with Vale is working well and the first phase of drilling was completed on the Matilda copper porphyry prospect with seven holes now drilled. Samples have gone for multi-element external assaying, and we eagerly await the results. With three rigs on site, the focus has shifted to other regional targets with a second round of drilling planned at Matilda when the assays from phase 1 have been received and the geological picture updated.
“Management remains hopeful that we are entering the final stages of satisfying the requests of the court and public prosecutor regarding the future licencing of Coringa and in particular that the project presents minimal impact to the environment and communities that live nearby. The indigenous study report (“ECI”) was completed in April. It has been circulated through the technical committees of the Indigenous communities with comments received and being incorporated into a revised draft. In parallel, independent consultations have been carried out with the indigenous communities to seek project support, which have progressed very well. With the demands fulfilled, this should result in a cancellation of the court decision and open the door for SEMAS, the environmental agency, to issue the installation License (“LI”) shortly thereafter.”
Improved Production for Second Quarter of 2023 (globenewswire.com)