TIDMSRB
Robust first quarter for 2023
Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold
mining and development company, is pleased to report operational
results for the first quarter of 2023 and provide a review of its
development and exploration activities.
HIGHLIGHTS
-- First quarter gold production totalled 8,005 ounces, a 13% improvement on
the corresponding quarter in 2022.
-- Plant feed grades were the highest since the third quarter of 2021,
benefitting in part from higher grade ore from Coringa.
-- The Coringa mine development continued to progress well with the high
grade portion of the ore being transported to Palito and contributing
over 2,200 ounces towards the first quarter total.
-- Cash held at 31 March 2023 was US$13.2 million.
Mike Hodgson, CEO of Serabi, commented:
"The Company has started the year with over 8,000 ounces of gold
produced during the first quarter, a very satisfying result, and
the strong end to the period has carried over onto the start of the
second quarter.
"The quarter saw steady mine output from Palito, and the
reported average quarterly plant feed grade of 6.49 grammes per
tonne ("g/t") is the highest since the third quarter of 2021. This
was a result of better Palito Run of Mine ("ROM") grades but also
some excellent plant feed from the Coringa mine development, which
averaged over 9 g/t for the quarter.
"The mine development at the Coringa Project is continuing as
planned, and whilst the mine is still very much only a pilot
operation, the development grades as we explore and evaluate the
orebody have been spectacular. Investors will recall the Coringa
mine is operating under a trial mining license which allows the
mine to be developed and mined. Ore is brought to surface and
stockpiled, with the higher grade portion being trucked to Palito
for processing. The plant feed grades have been excellent, and the
modest volume of development ore that has come to the Palito Plant
has contributed over 2,200 ounces of gold, replacing reduced
production from Sao Chico.
"It is an exciting time for the Company and this solid start to
2023 provides an excellent platform for the year ahead. Coringa
permitting continues to progress with the imminent completion of
the indigenous study ("ECI"). We very much hope the ECI will be
positively received by the various government agencies and will
result in the award of the installation License ("LI") in the
coming months."
OPERATIONAL RESULTS
Total production for the first quarter of 2023 was 8,005 ounces.
Coringa contributed 2,229 ounces to this total.
Total ore mined from the Palito Complex during the quarter was
29,691 tonnes at 6.33 g/t compared to 38,293 tonnes at 6.20 g/t of
gold for the fourth quarter of 2022. Development mining operations
at Coringa generated a total of 9,841 tonnes at 7.63 g/t in the
quarter.
39,004 tonnes of ROM ore was processed through the Palito plant
during the quarter, with an average grade of 6.75 g/t of gold,
compared with 42,692 tonnes at 6.01 g/t in the fourth quarter of
2022. This included 7,731 tonnes of Coringa ore at a feed grade of
9.22 g/t gold.
A total of 2,010 metres of horizontal development has been
completed at Palito during the quarter, of which 930 metres was ore
development. The balance is the ramp, cross cuts and stope
preparation development. Horizontal development at Coringa totalled
452 metres, of which 395 metres was in ore.
SUMMARY PRODUCTION STATISTICS FOR 2023 AND 2022
--------------------------------------------------------------------------------
Qtr 1 YTD Qtr 1 Qtr 2 Qtr 3 Qtr 4 Full Year
2023 2023 2022 2022 2022 2022 2022
Group
Gold
production
(1)(2) Ounces 8,005 8,005 7,062 8,418 8,542 7,798 31,819
Mined ore Tonnes 41,546 41,546 40,606 44,008 46,863 42,264 173,741
Gold grade (g/t) 6.49 6.49 5.95 6.26 6.22 6.01 6.12
Milled ore Tonnes 39,004 39,004 41,357 43,488 44,867 42,692 172,404
Gold grade (g/t) 6.75 6.75 5.72 6.43 6.34 6.05 6.14
-------------------- ------ ------ ------ ------ ------ ------ ---------
Palito
Complex
Gold
production
(1)(2) Ounces 5,776 5,776 7,062 8,418 7,972 7,355 30,807
Mined ore Tonnes 29,691 29,691 40,606 44,008 43,180 38,293 166,087
Gold grade (g/t) 6.33 6.33 5.84 6.26 6.28 6.20 6.15
Milled ore Tonnes 31,273 31,273 41,357 43,488 42,257 39,573 166,675
Gold grade (g/t) 6.14 6.14 5.72 6.43 6.30 6.17 6.16
Horizontal
development Metres 2,010 2,010 2,938 3,353 2,458 2,245 10,994
Coringa
Gold
production
(1)(2) Ounces 2,229 2,229 570 443 1,013
Mined ore Tonnes 9,841 9,841 3,683 3,971 7,654
Gold grade (g/t) 7.63 7.63 5.46 4.15 4.78
Milled ore Tonnes 7,731 7,731 2,610 3,119 5,729
Gold grade (g/t) 9.22 9.22 7.00 4.58 5.68
Horizontal
development Metres 452 452 212 302 632 645 1,791
------------ ------- ------ ------ ------ ------ ------ ------ ---------
(1) The table may not sum due to rounding.
(2) Production numbers are subject to change pending final assay analysis from refineries.
CORINGA UPDATE
The Company provided a full update regarding activities and the
status of the Coringa project on 22 March 2023. As noted in that
update Brazilian law provides for automatic extension of the trial
mining licence or Guia de Utilização ("GUIA") and the GUIA
Operating Licence ("LOG") if a formal renewal has not been issued
at the date of their initial expiry and provided that renewal
applications have been submitted prior to the expiry date. The
automatic extension period for the GUIA, which is limited to 12
months from the expiry date, currently runs until 8 February 2024
taking account of a previous six month COVID related extension to
the original expiry dates for the GUIA and LOG of 8 August
2022.
FINANCE UPDATE
Cash balances at the end of March 2023 were US$13.9 million.
This compares with a cash balance of US$7.2 million at the end of
December 2022. During the quarter, the Group secured a US$5.0
million loan from Santander Bank in Brazil repayable in February
2024. This ensures that the Group has adequate working capital to
repay a similar loan of US$5.0 million that becomes due in May
2023.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018.
The person who arranged for the release of this announcement on
behalf of the Company was Clive Line, Director.
Enquiries
SERABI GOLD plc
Michael Hodgson t +44 (0)20 7246 6830
Chief Executive m +44 (0)7799 473621
Clive Line t +44 (0)20 7246 6830
Finance Director m +44 (0)7710 151692
e contact@serabigold.com
https://www.globenewswire.com/Tracker?data=IzEEhrLde5ODOrO7-z9bHO8qagKIaf_lYmZ0HmPrfhXYAbvIgnbDFj2qz5ysp5oHtnQ_Usi2PrV_H6bGWiJtdkSirrt6tgo-cmlNi_qHKew=
www.serabigold.com
BEAUMONT CORNISH Limited
Nominated Adviser & Financial Adviser
Roland Cornish / Michael Cornish t +44 (0)20 7628 3396
PEEL HUNT LLP
Joint UK Broker
Ross Allister t +44 (0)20 7418 9000
TAMESIS PARTNERS LLP
Joint UK Broker
Charlie Bendon/ Richard Greenfield t +44 (0)20 3882 2868
CAMARCO
Financial PR
Gordon Poole / Emily Hall t +44 (0)20 3757 4980
Copies of this announcement are available from the Company's
website at www.serabigold.com.
See
https://www.globenewswire.com/Tracker?data=IzEEhrLde5ODOrO7-z9bHNfsLScxvrTkE1r3guZJpSN-qD_I6GkqizzrDzWBw1XKQJrI00sLpPMvXwU36x1kzD_eZjT13cXHmLu-KH3R6MA=
www.serabigold.com for more information and follow us on twitter
@Serabi_Gold
GLOSSARY OF TERMS
The following is a glossary of technical terms:
"Ag" means silver.
------------------ ------------------------------------------------------------
"Au" means gold.
------------------ ------------------------------------------------------------
"assay" in economic geology, means to analyse 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.
------------------ ------------------------------------------------------------
"CIM" means the Canadian Institute of Mining, Metallurgy
and Petroleum.
------------------ ------------------------------------------------------------
"chalcopyrite" is a sulphide of copper and iron.
------------------ ------------------------------------------------------------
"Cu" means copper.
------------------ ------------------------------------------------------------
"cut-off grade" the lowest grade of mineralised material that qualifies
as ore in a given deposit; rock of the lowest assay
included in an ore estimate.
------------------ ------------------------------------------------------------
"dacite porphyry a silica-rich igneous rock with larger phenocrysts
intrusive" (crystals) within a fine-grained matrixi
------------------ ------------------------------------------------------------
"deposit" is a mineralised body which has been physically delineated
by sufficient drilling, trenching, and/or underground
work, and found to contain a sufficient average grade
of metal or metals to warrant further exploration
and/or development expenditures; such a deposit does
not qualify as a commercially mineable ore body or
as containing ore reserves, until final legal, technical,
and economic factors have been resolved.
------------------ ------------------------------------------------------------
"electromagnetics" is a geophysical technique tool measuring the magnetic
field generated by subjecting the sub-surface to electrical
currents.
------------------ ------------------------------------------------------------
"garimpo" is a local artisanal mining operation
------------------ ------------------------------------------------------------
"garimpeiro" is a local artisanal miner.
------------------ ------------------------------------------------------------
"geochemical" refers to geological information using measurements
derived from chemical analysis.
------------------ ------------------------------------------------------------
"geophysical" refers to geological information using measurements
derived from the use of magnetic and electrical readings.
------------------ ------------------------------------------------------------
"geophysical include the exploration of an area by exploiting differences
techniques" in physical properties of different rock types. Geophysical
methods include seismic, magnetic, gravity, induced
polarisation and other techniques; geophysical surveys
can be undertaken from the ground or from the air.
------------------ ------------------------------------------------------------
"gossan" is an iron-bearing weathered product that overlies
a sulphide deposit.
------------------ ------------------------------------------------------------
"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.
------------------ ------------------------------------------------------------
"hectare" or a is a unit of measurement equal to 10,000 square metres.
"ha"
------------------ ------------------------------------------------------------
"igneous" is a rock that has solidified from molten material
or magma.
------------------ ------------------------------------------------------------
"IP" refers to induced polarisation, a geophysical technique
whereby an electric current is induced into the sub-surface
and the conductivity of the sub-surface is recorded.
------------------ ------------------------------------------------------------
"intrusive" is a body of rock that invades older rocks.
------------------ ------------------------------------------------------------
"mineralisation" the concentration of metals and their chemical compounds
within a body of rock.
------------------ ------------------------------------------------------------
"mineralised" refers to rock which contains minerals e.g. iron,
copper, gold.
------------------ ------------------------------------------------------------
"Mo-Bi-As-Te-W-Sn" Molybdenum-Bismuth-Arsenic-Tellurium-Tungsten-Tin
------------------ ------------------------------------------------------------
"monzogranite" a biotite rich granite, often part of the later-stage
emplacement of a larger granite body.
------------------ ------------------------------------------------------------
"mt" means million tonnes.
------------------ ------------------------------------------------------------
"ore" means a metal or mineral or a combination of these
of sufficient value as to quality and quantity to
enable it to be mined at a profit.
------------------ ------------------------------------------------------------
"oxides" are near surface bed-rock which has been weathered
and oxidised by long term exposure to the effects
of water and air.
------------------ ------------------------------------------------------------
"ppm" means parts per million.
------------------ ------------------------------------------------------------
"saprolite" is a weathered or decomposed clay-rich rock.
------------------ ------------------------------------------------------------
"sulphide" refers to minerals consisting of a chemical combination
of sulphur with a metal.
------------------ ------------------------------------------------------------
"vein" is a generic term to describe an occurrence of mineralised
rock within an area of non-mineralised rock.
------------------ ------------------------------------------------------------
"VTEM" refers to versa time domain electromagnetic, a particular
variant of time-domain electromagnetic geophysical
survey to prospect for conductive bodies below surface.
------------------ ------------------------------------------------------------
Assay Results
Assay results reported within this release include those
provided by the Company's own on-site laboratory facilities at
Palito and have not yet been independently verified. Serabi closely
monitors the performance of its own facility against results from
independent laboratory analysis for quality control purpose. As a
matter of normal practice, the Company sends duplicate samples
derived from a variety of the Company's activities to accredited
laboratory facilities for independent verification. Since mid-2019,
over 10,000 exploration drill core samples have been assayed at
both the Palito laboratory and certified external laboratory, in
most cases the ALS laboratory in Belo Horizonte, Brazil. When
comparing significant assays with grades exceeding 1 g/t gold,
comparison between Palito versus external results record an average
over-estimation by the Palito laboratory of 6.7% over this period.
Based on the results of this work, the Company's management are
satisfied that the Company's own facility shows sufficiently good
correlation with independent laboratory facilities for exploration
drill samples. The Company would expect that in the preparation of
any future independent Reserve/Resource statement undertaken in
compliance with a recognised standard, the independent authors of
such a statement would not use Palito assay results without
sufficient duplicates from an appropriately certificated
laboratory.
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, recognizing 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.
Neither the Toronto Stock Exchange, nor any other securities
regulatory authority, has approved or disapproved of the contents
of this news release
(END) Dow Jones Newswires
April 19, 2023 02:00 ET (06:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
Serabi Gold (LSE:SRB)
Historical Stock Chart
From Apr 2024 to May 2024
Serabi Gold (LSE:SRB)
Historical Stock Chart
From May 2023 to May 2024