TIDMSRB
For immediate release
25 June 2021
Serabi Gold plc
("Serabi" or the "Company")
Annual General Meeting and update
Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian focused gold
mining and development company, advises that at 2.00 pm today (UK
time), it will be holding its Annual General Meeting (the
"Meeting")
Regrettably, and as advised in a news release issued on 16 June
2021, further to the Government's announcement on 14 June 2021 that
the current restrictions in relation to the COVID-19 pandemic have
been extended to 19 July 2021, the Meeting must be held with only
the minimum number of attendees to form a quorum. Those attendees
will be officers or employees of the Company. We respectfully ask
that, in line with the current Government guidance, shareholders do
not make plans to attend the Meeting in person as they will not be
permitted to enter the venue.
Details of the results of the votes cast at the Meeting will be
issued later today.
Reproduced below is the text of a statement prepared by, the
Company's Chief Executive, Mike Hodgson, which would have been
delivered to the Meeting providing an update on current
operational, development and exploration matters.
"The first five months of 2021 have seen Serabi continue to
recover from the measures that were necessarily implemented in 2020
to protect the business from the effects of COVID-19 and we are
currently on target to meet our production guidance for the year.
More importantly, with mine development rates progressing, I am
hopeful that, by the end of 2021, both the Palito and Sao Chico
orebodies combined should be ready to deliver production levels of
around 45,000 ounces of gold for 2022. Combined with the excellent
exploration results that we have achieved in recent months, the
prospects for shareholders in Serabi are looking very
attractive.
"Following on from the production recovery that began during the
fourth quarter of 2020, the first quarter of 2021 saw production
levels continue to improve significantly and, driven by improving
grades, gold production for the first quarter of 2021 was 16 per
cent better than our internal forecast. I am pleased to report that
this momentum has continued into the second quarter which, with a
few days of the month left to go, should deliver approximately
9,000 ounces of gold production in line with our estimates for the
quarter and keeping us on track to deliver our guidance of 33,000
to 36,000 ounces for the calendar year.
"With the successful equity placing completed during March 2021
raising gross proceeds of GBP12.5 million, we have been able to
fully repay the convertible loan notes issued during 2020 and
settle the remaining purchase consideration for the Coringa
project. With US$16.4 million in cash at the end of May and no debt
obligations, the Company is in a very strong financial position and
will continue to pursue a significant exploration and development
programme during 2021, starting with the initial portal development
for Coringa during July 2021.
"The exploration programme for 2021 anticipates an approximate
30,000 metre drilling campaign of which, to date, we have completed
approximately 9,100 metres using three rigs. The rate should
improve from mid-year as the dry season dominates combined with the
impact of a fourth rig which will shortly arrive at the mine-site.
Presently the Company has rigs drilling at Palito, São Chico and
São Domingos. The programme at the São Domingos prospect has
initially focused on the Toucano zone, with approximately 2,900
metres drilled. We are planning a second infill programme and new
drill pads are being prepared. Results so far have been excellent.
Multiple narrow, high grade veins has been intersected, located
within a 50 metre wide mineralised alteration zone. This alteration
zone, along with the contained high grade veins have so far been
traced over 400 metres strike, with surface indications for the
zone to have the potential to extend for a strike length of up to
600 metres. It is early days but, if the current drilling success
continues, the possibility of a future open pit opportunity may
exist. Whilst site preparations continue at Toucano, the rig has
moved to the Atacadão zone. This area is just one kilometre from
Toucano and the two zones may link up. Atacadão has multiple
artisanal workings, and the previous owner and operator undertook
an 11-hole drill programme in 2007, which intersected multiple
high-grade structures reportedly some up to 60g/t Au. With the
original core and samples now lost, we can, however, only use this
data as a guide. We will commence drilling this month, before the
rig returns to Toucano.
"The exploration efforts at Palito and Sao Chico are principally
focusing on strike and lateral extensions of the known deposits. At
Palito one rig is drilling the newly developed Ipe and Mogno veins
to the northeast of the deposit, and will then focus on drilling
the potential southern extension of the entire Palito orebody,
towards the Currutela prospect approximately two kilometres to the
south, where we hope to find continuity between the two areas. At
Sao Chico, we have and will continue to drill extensions of the
Main Vein, as well as the Julia vein to the west, and investigate
potential new parallel structures to the north and south of the Sao
Chico deposit.
"We have now completed the recruitment of an initial team of
about 45 mining personnel, who will be mobilised to Coringa in
early July to start work on the development of the mine portal for
the Serra deposit. With the portal entrance completed the ramp
development will be undertaken and when the ore veins are
intersected some initial development drives following the veins
will be started. This on-lode development will improve the
understanding of the vein width and continuity, allowing us to
optimise the mining methodology and to extract bulk samples to test
the Serra ore for its suitability for ore-sorting which may provide
a further opportunity for enhancing the economics of this project.
We anticipate that the initial portal and ramp development phase
may take 6 to 8 months, during which time we will continue to
progress the approval of the Installation Licence which is required
for the construction of the process plant and other necessary site
infrastructure. We remain confident that the Installation Licence
will be approved before the end of 2021 and with a 9 to 12 month
period required for the plant and site infrastructure, expect that
the plant could be operational early in 2023. With mine development
continuing throughout this period, we should have established a
meaningful ore stockpile in advance of the plant being switched on,
ensuring that the production ramp-up can be as smooth and as quick
as possible. Some initial indicative term sheets for debt, to
finance the balance of the Coringa development costs, have been
received and the Company hopes to be able to improve on these by
reducing the perceived geological and mining risk through the
initial underground development activity being completed this
year.
"Whilst Brazil continues to be affected by COVID-19, being a
camp-based operation and able to restrict the number of individuals
entering the sites each day, combined with the strict protocols we
have implemented, has ensured that the virus has not had a
significant effect on day-to-day operations this year. We have been
able to operate with a full staffing complement for the whole of
2021 and this has helped in our efforts to regain the lost
development that occurred during 2020. Our COVID-19 procedures have
also meant that we have been able to bring contractors and their
staff back to the mine-site which is vital for the continued
success of the exploration programme. We continue to hold the
health and safety of our in-country employees as a top priority and
are constantly monitoring the situation.
"Provided that there is no significant change in the current
situation, I am optimistic that the Company will deliver on its
production guidance for the year and by the end of 2021 will have
made significant progress with the initial mine development at
Coringa and delivered continued exploration success The exploration
programmes are focused on expanding the existing mineral resources
and demonstrating the potential to establish future satellite
deposits which will provide further production growth and longevity
for Serabi. I look forward to being able to update shareholders
with further news on all three of these fronts over the coming
months."
See
https://www.globenewswire.com/Tracker?data=dUrhzBLNv4iFL6YD6w9oGebJIh1G_MiosCEJzE-m9OuNWU60qOnJEgs3wii1HW146s6YFtoNMEWfjvBTE-sSohPaK7Br4IA2aHTBi8AWLG4=
www.serabigold.com for more information and follow us on twitter
@Serabi_Gold
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 Limited
Nominated Adviser and Financial Adviser
Roland Cornish / Michael Cornish Tel: +44 (0)20 7628 3396
Peel Hunt LLP
Joint UK Broker
Ross Allister / Alexander Allen Tel: +44 (0)20 7418 9000
Tamesis Partners LLP
Joint UK Broker
Charlie Bendon / Richard Greenfield Tel: +44 (0)20 3882 2868
Camarco
Financial PR
Gordon Poole / Nick Hennis Tel: +44(0) 20 3757 4980
Forward Looking Statements
Certain statements in this announcement are, or may be deemed to
be, forward looking statements. Forward looking statements are
identi ed 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 re ect
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.
Qualified Persons Statement
The 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 30 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.
Attachment
-- MJH AGM statement 2021 (WEB) vFINAL
https://ml-eu.globenewswire.com/Resource/Download/756ef224-1654-44ec-a547-a9c3881e9657
(END) Dow Jones Newswires
June 25, 2021 02:00 ET (06:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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