For immediate
release 12
April 2017
Serabi Gold plc("Serabi" or the
"Company")
High gold grades maintained, as Serabi
produces almost 10,000 ounces for the first quarter of 2017
Serabi Gold plc (AIM:SRB, TSX:SBI), the
Brazilian focused gold mining and development company, is pleased
to report first quarter production of almost 10,000 ounces of gold,
in line with production guidance and provides an accompanying
operational update on its Palito and Sao Chico high grade gold
operations in the Tapajos region of Para State, Northern
Brazil.
HIGHLIGHTS
- Strong first quarter production of 9,861 ounces of gold, on
budget and in line with guidance.
- Mine production totalled 36,918 tonnes at 10.12 grammes per
tonne ("g/t") of gold.
- 46,663 tonnes of ore processed through the plant for the
combined mining operations, at a combined grade of 7.09 g/t of
gold.
- 2,251 metres of horizontal mine development completed in the
quarter.
- At Palito, expansion of working areas continues, with
development and production now coming from eight veins from the 25
included in the geological resource.
- Test stopes using long-hole mining are underway in the Senna
vein, with good success to date. The Senna vein is showing
wider widths, potentially allowing for an increased level of
mechanisation. Four sublevels are already in development with a new
cross cut being established at the 180mRL.
- At Palito Main Zone, the main ramp has now reached the -50mRL,
where the G3 vein is now under development.
- At Sao Chico the main ramp has now been deepened to the 56mRL,
approximately 190 vertical metres below surface.
Production is coming from the 140mRL, and with sublevels developed
on levels 128mRL, 116mRL, 100mRL, 86mRL and 70mRL, development is
well ahead of production.
- By the end of the first quarter, surface ore stocks were
approximately 13,000 tonnes (31 December 2016: 21,000 tonnes) with
an average grade of 4.0 g/t of gold.
- Ground induced polarisation ("IP") survey undertaken at
Sao Chico has identified some excellent targets within 500 metres
of the current operation.
- At the year end, the combined surface stockpiles at Palito and
Sao Chico totalled 21,000 tonnes of ore with an average grade of
4.0 g/t of gold.
Mike Hodgson, CEO, said:
"A successful 2016 has been followed by a
strong first quarter to 2017, with almost 10,000 ounces of gold
being produced for the quarter; on budget and in line with
guidance.
"Mine production from both the Palito and Sao
Chico orebodies showed steady progress. Eight veins are now
being worked in the Palito orebody, with four new veins coming on
stream this quarter, significantly improving optionality. The
Pipocas, G3 and Senna veins continue to form the backbone of
production, whilst development of the new Zonta vein to the west of
Senna, ongoing development of the G1 and G2 veins, and veins within
the Chico da Santa zone demonstrate the abundance of opportunity
that exists at Palito.
"Ore development and production from
the Sao Chico orebody continued in line with schedule and with
excellent mined grades, at an average grade of over 12 g/t,
achieved for the quarter. The main ramp has now reached the
56mRL with the Main Vein being intersected early in April.
Stope ore production is currently focused on the 140mRL whilst
development is progressing on five levels below and is nicely ahead
of stoping activity.
"In the plant, the quarterly performance was
very satisfying and the milled throughput of 46,000 tonnes for the
quarter represents a 10 per cent improvement over the previous
highest quarterly production level. As has previously been
reported, the introduction of the third mill last year was
principally to establish much needed contingency, however, we are
making inroads into the surface stockpiles, though we still remain
largely limited by overall plant capacity.
"In the latter half of 2016 the Company
reported that, following the extension of its exploration license
holdings around the Sao Chico orebody, it had recommenced surface
exploration, with an IP geophysical survey. The purpose of
the survey was to trace the trend of the Main Vein, which has
sufficient sulphides to provide a clear conductivity anomaly and
which in turn, we hoped, would provide targets for a subsequent
drill programme. Due to the wet season arriving early, the
programme had to be suspended, but nevertheless we processed the
data from those areas where work had been completed. The
initial results that have become available during this first
quarter of 2017 are extremely promising. The survey was
designed to traverse the known orebody to provide orientation, and
focus to the east and west of the current strike. The results
to date show two excellent anomalies 600 metres to the north and
300 metres to the south of the current workings, which, from a
geophysical perspective, look even stronger than the orebody being
mined. These anomalies appear to suggest a geometry
consistent with the known orebody and could suggest parallel
mineralisation. We are set to recommence the programme this
coming quarter, though clearly we have already generated some
exciting drill targets.
"Exploration and evaluation drilling
underground continued with approximately 1,950 metres of diamond
drilling completed. This drilling is focusing on deeper
drilling into inferred resources in the Senna, Pipocas and G3 veins
in the Palito orebody, and similarly the down dip extension of the
Main Vein in the Sao Chico orebody, with a view to converting
substantial inferred resource to indicated status.
"Following the excellent operational
performance of 2016, it is very pleasing to see this being
continued with a very good first quarter. Grades coming out
of the Sao Chico orebody have been excellent, the plant has
processed record tonnages and the operation remains mill
constrained. The exploration results which indicate excellent
anomalies adjacent to the Sao Chico orebody, are obviously very
exciting for us, and we want to progress these as soon as is
practical."
Results
Total production for the first quarter of 2017
was 9,861 ounces of gold, generated from the processing of the run
of mine ("ROM") ore from the Palito and Sao Chico orebodies,
combined with the Palito surface coarse ore and the stockpiled
flotation tailings accumulated from Palito mine production in
2014.
Gold production for the first quarter came from
the processing of 46,663 tonnes of ore at overall combined grades
of 7.09 g/t gold, which was sourced from mined ore from the Palito
and Sao Chico orebodies, supplemented with lower grade surface
stockpiled ROM and flotation tailings. Mined tonnage for the
quarter totalled 36,918 tonnes with a grade of 10.12 g/t of
gold.
At 31 March 2017, there were coarse ore stocks
of approximately 13,000 tonnes with an average grade of 4.0 g/t of
gold, and approximately 17,000 tonnes of flotation tails with an
average grade of 2.5 g/t of gold. This stock is being consumed,
albeit not as quickly as forecast and for now the operation remains
plant constrained.
A total of 2,251 metres of horizontal
development has been completed during the quarter, of which 1,176
metres was ore development. The balance is the ramp, cross
cuts and stope preparation development.
2017 Guidance
The Company forecast 40,000 ounces of gold
production for the year, with an AISC of between $950 and $975 per
ounce, broadly in line with the cost guidance of 2016. Gold
production for the first quarter is in line with the Company's
forecast.
The 2017 guidance of 40,000 ounces is an eight
per cent improvement on Serabi's initial guidance for 2016 which
was 37,000 ounces. Management hope that, with the production
efficiencies and improvements that can be implemented in 2017,
Serabi will again be able to improve on its production guidance, as
it did in 2016, where the Company exceeded its initial guidance by
6.5 per cent to produce 39,390 ounces.
|
|
Quarter 1 |
Quarter 1 |
Quarter 2 |
Quarter 3 |
Quarter 4 |
Total |
Total |
2017 |
2016 |
2016 |
2016 |
2016 |
2016 |
2015 |
Horizontal development
- Palito |
Metres |
1,669 |
1,900 |
1,910 |
1,607 |
1,928 |
7,345 |
6,800 |
Horizontal development
- Sao Chico |
Metres |
582 |
1,025 |
1,031 |
1,042 |
696 |
3,794 |
2,800 |
Horizontal development
- Total |
Metres |
2,251 |
2,925 |
2,941 |
2,649 |
2,694 |
11,209 |
9,600 |
|
|
|
|
|
|
|
|
|
Mined ore - Palito |
Tonnes |
26,093 |
26,752 |
25,198 |
31,916 |
34,611 |
118,477 |
111,751 |
|
Gold grade (g/t) |
9.07 |
11.84 |
10.48 |
9.52 |
7.38 |
9.62 |
10.05 |
Mined ore - Sao
Chico |
Tonnes |
10,825 |
10,794 |
8,408 |
11,217 |
9,968 |
40,387 |
24,096 |
|
Gold grade (g/t) |
12.64 |
9.00 |
6.81 |
9.88 |
14.38 |
10.12 |
8.66 |
Mined ore - Total |
Tonnes |
36,918 |
37,546 |
33,606 |
43,133 |
44,579 |
158,864 |
135,847 |
|
Gold grade (g/t) |
10.12 |
11.02 |
9.56 |
9.61 |
8.94 |
9.74 |
9.8 |
|
|
|
|
|
|
|
|
|
Milled ore |
Tonnes |
46,663 |
36,615 |
39,402 |
42,464 |
40,485 |
158,966 |
130,299 |
|
Gold grade (g/t) |
7.09 |
8.58 |
8.17 |
8.08 |
7.6 |
8.11 |
8.43 |
Gold production |
Ounces |
9,861 |
9,771 |
9,896 |
10,310 |
9,413 |
39,390 |
32,629 |
- Gold production figures are subject to amendment pending final
agreed assays of the gold content of the copper/gold concentrate
and the gold bullion when smelting and refining processes are
completed.
- Gold production totals for 2017 include treatment of 4,941
tonnes of flotation tails (2016 full year: 16,716 tonnes)
This announcement is inside information for the
purposes of Article 7 of Regulation 596/2014.
Enquiries:
Serabi
Gold plc |
|
Michael
Hodgson |
Tel: +44
(0)20 7246 6830 |
Chief
Executive |
Mobile:
+44 (0)7799 473621 |
|
|
Clive
Line |
Tel: +44
(0)20 7246 6830 |
Finance
Director |
Mobile:
+44 (0)7710 151692 |
|
|
Email:
contact@serabigold.com |
|
Website: www.serabigold.com |
|
|
|
Beaumont
Cornish LimitedNominated Adviser and Financial Adviser |
|
Roland
Cornish |
Tel: +44
(0)20 7628 3396 |
Michael
Cornish |
Tel: +44
(0)20 7628 3396 |
|
|
Peel
Hunt LLPUK Broker |
|
Matthew
Armitt |
Tel: +44
(0)20 7418 8900 |
Ross
Allister |
Tel: +44
(0)20 7418 8900 |
|
|
Blytheweigh Public Relations |
|
Tim
Blythe |
Tel: +44
(0)20 7138 3204 |
Camilla
Horsfall |
Tel: +44
(0)20 7138 3224 |
Copies of this announcement are available from
the Company's website at www.serabigold.com.
Neither the Toronto Stock Exchange, nor any
other securities regulatory authority, has approved or disapproved
of the contents of this announcement.
GLOSSARY OF TERMS
The following is a glossary of technical
terms:
"Au" means gold.
"assay" in economic geology, means to
analyze the proportions of metal in a rock or overburden sample; to
test an ore or mineral for composition, purity, weight or other
properties of commercial interest.
"development" - excavations used to
establish access to the mineralised rock and other workings
"DNPM" is the Departamento Nacional de Produção
Mineral.
"grade" is the concentration of mineral within
the host rock typically quoted as grams per tonne (g/t), parts per
million (ppm) or parts per billion (ppb).
"g/t" means grams per tonne.
"granodiorite" is an igneous intrusive rock
similar to granite.
"igneous" is a rock that has solidified from
molten material or magma.
"Intrusive" is a body of igneous rock that
invades older rocks.
"on-lode development" - Development that is
undertaken in and following the direction of the Vein
"mRL" - depth in metres measured relative
to a fixed point - in the case of Palito and Sao Chico this is
sea-level. The mine entrance at Palito is at 250mRL.
"saprolite" is a weathered or decomposed
clay-rich rock.
"stoping blocks" - a discrete area of
mineralised rock established for planning and scheduling purposes
that will be mined using one of the various stoping
methods.
"vein" is a generic term to describe an
occurrence of mineralised rock within an area of non-mineralised
rock.
Qualified Persons StatementThe scientific
and technical information contained within this announcement has
been reviewed and approved by Michael Hodgson, a Director of the
Company. Mr Hodgson is an Economic Geologist by training with over
26 years' experience in the mining industry. He holds a BSc (Hons)
Geology, University of London, a MSc Mining Geology, University of
Leicester and is a Fellow of the Institute of Materials, Minerals
and Mining and a Chartered Engineer of the Engineering Council of
UK, recognising him as both a Qualified Person for the purposes of
Canadian National Instrument 43-101 and by the AIM Guidance Note on
Mining and Oil & Gas Companies dated June 2009.
Forward Looking StatementsCertain
statements in this announcement are, or may be deemed to be,
forward looking statements. Forward looking statements are
identified by their use of terms and phrases such as ''believe'',
''could'', "should" ''envisage'', ''estimate'', ''intend'',
''may'', ''plan'', ''will'' or the negative of those, variations or
comparable expressions, including references to assumptions. These
forward looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such forward
looking statements reflect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors. A number of factors could cause actual results to differ
materially from the results discussed in the forward looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements.
ENDS
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