TIDMSRB
Robust Production for Third 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 third quarter of 2023 and provide a review of its
development and exploration activities.
QUARTER HIGHLIGHTS
-- Serabi's operational improvement continues with third quarter gold
production totalled 8,738 ounces, a 3% improvement on the second quarter
in 2023 and the highest quarterly total for 2023.
-- Mined tonnage was 44,744 tonnes, the highest quarterly total for the year
to date, with average grades of 6.69 g/t gold.
-- Palito mined grades for the quarter were the highest this year at 6.81
g/t gold.
-- Coringa mine development has continued to contribute significantly with
mined grades of 5.99 g/t gold. The development ore transported to Palito
plant contributed over 1,700 ounces of gold production for the quarter.
-- Significant increase in Canadian National Instrument 43-101 compliant
resources for Palito (30 June 2023) confirms production longevity.
-- Measured and Indicated ("M&I") resource of 377,800 ounces of
contained gold, an increase of 50% compared with December 2021
-- Inferred resource of 153,900 ounces (682,400 tonnes at an average
in-situ grade of 7.01 g/t).
-- 93% increase in average reported grade of the M&I resources at Palito
Complex from 5.23 g/t to 10.08g/t.
-- 45% increase in average reported grade of the Inferred resource
4.83 g/t to 7.01g/t.
-- The Vale Exploration Alliance continues to progress well with over 11,400
metres of drilling, which included 20 holes now drilled at the Matilda
Copper target. Other regional targets, Calico, Ganso, Forquilla and
Cinderella have also had initial drill testing, with results still
awaited.
-- Cash held on 30 September was US$15.3 million (US$14.7 million net of
cash held under the Vale Exploration Alliance) compared to US$13.3
million as at 30 June 2023.
-- Net cash attributable to the Group has increased by US$2.4 million in the
third quarter.
Mike Hodgson, CEO of Serabi, commented:
"An excellent third quarter of 8,738 ounces gold production, our
best quarter of the year which builds on the previous two quarters
and results in a total for the year of more than 25,000 ounces,
keeping the company on course to meet its guidance for this year of
between 33,500
to 35,000 ounces. Not only was it a good quarter for production, but our development rates also remained high, so critical for an underground operation, with approximately 3,000 metres of horizontal development reported.
"Coringa development continues to be very significant, now
having contributed over 6,100 ounces of gold production this year.
The Coringa orebody continues to exceed expectations with
payability of the development remaining very high. Simplistically
put, we encounter very limited low-grade or waste zones as we
advance, and this means the amount of development we need to do per
ounce of gold is lower than forecast. .
"The results of the updated geological resource announced on 6
October 2023 were excellent. The new geological resource at Palito
also means that Serabi has achieved that milestone of breaking
through a total mineral resource inventory of 1Moz of gold.
"This is also the first time a total mineral resource inventory
at Palito has exceeded 500,000 ounces, and the grades in each
category have improved significantly. These latest figures
illustrate what a long life asset Palito can be. With a maiden
global mineral resource in 2004 of 440,000 ounces mineral resource,
and more than 400,000 ounces mined since that time, to still have a
total mineral resource inventory of over 500,000 ounces, clearly
demonstrates the geological potential of the deposit.
"We remain sharply focussed on building to the future which we
believe looks very bright, particuarly the opportunity to unlock
Coringa's potential to deliver meaningful production and cash flow
growth. This is coupled with our highly exciting exploration
activities in the region. We look forward to providing further
updates."
OPERATIONAL RESULTS
Total production for the third quarter of 2023 was 8,738 ounces.
Coringa contributed 1,713 ounces to this total.
Total ore mined from the Palito Complex during the quarter was
35,219 tonnes at 6.81 g/t compared to 31,652 tonnes at 6.68 g/t of
gold for the second quarter of 2023. Palito grades of 6.81 g/t gold
are the highest for the year to date. Most of the ore is being
generated from the Ipe and Mogno veins, but development of the G3
North block has also now commenced. This looks very encouraging and
is expected to be an increased source of production ounces in
2024-2025.
Development mining operations at Coringa generated a total of
9,525 tonnes at 5.99 g/t in the quarter. The Coringa ore is being
derived from the development of the Serra orebody, part of the
Coringa complex, from the 290 metre level and the recently
intersected 260 metre level.
43,092 tonnes of ROM ore were processed through the Palito plant
during the quarter, with an average grade of 6.72 g/t of gold,
compared with 41,116 tonnes at 6.84 g/t in the second quarter of
2023. This included 8,577 tonnes of Coringa ore at a feed grade of
6.37 g/t gold.
A total of 2,923 metres of horizontal development has been
completed across both sites. At Palito, 2,325 metres of horizontal
development was recorded, of which 1,256 metres was ore
development. The balance is the ramp, crosscuts and stope
preparation development. Horizontal development at Coringa totalled
598 metres, of which 268 metres was in ore.
SUMMARY PRODUCTION STATISTICS FOR 2023 AND 2022
-------------------------------------------------------------------------------------------------
Qtr 1 Qtr 2 Qtr 3 YTD Qtr 1 Qtr 2 Qtr 3 Qtr 4 Full Year
------------ -------
2023 2023 2023 2023 2022 2022 2022 2022 2022
------------ ------- ------ ------ ------ ------- ------ ------ ------ ------ ---------
Group
Gold
production
(1)(2) Ounces 8,005 8,518 8,738 25,262 7,062 8,418 8,542 7,798 31,819
Mined ore Tonnes 41,546 41,022 44,744 127,312 40,606 44,008 46,863 42,264 173,741
Gold grade (g/t) 6.49 6.94 6.64 6.69 5.95 6.26 6.22 6.01 6.14
Milled ore Tonnes 39,004 41,116 43,092 123,213 41,357 43,488 44,867 42,692 172,404
Gold grade (g/t) 6.75 6.84 6.72 6.77 5.72 6.43 6.34 6.05 6.14
-------------------- ------ ------ ------ ------- ------ ------ ------ ------ ---------
Palito
Complex
Gold
production
(1)(2) Ounces 5,776 6,332 7,025 19,134 7,062 8,418 7,972 7,355 30,807
Mined ore Tonnes 31,705 31,652 35,219 96,562 40,606 44,008 43,180 38,293 163,506
Gold grade (g/t) 6.14 6.68 6.81 6.62 5.84 6.26 6.28 6.20 6.15
Milled ore Tonnes 31,273 31,620 34,515 95,557 41,357 43,488 42,257 39,573 165,502
Gold grade (g/t) 6.14 6.67 6.81 6.61 5.72 6.43 6.30 6.17 6.14
Horizontal
development Metres 2,011 2,469 2,325 6,805 2,938 3,353 2,458 2,245 10,994
Coringa
Gold
production
(1)(2) Ounces 2229 2186 1713 6,128 570 443 1,013
Mined ore Tonnes 9841 9,370 9,525 28,736 3,683 3,971 7,654
Gold grade (g/t) 7.63 7.83 5.99 7.15 5.46 4.15 4.78
Milled ore Tonnes 7731 9215 8577 25,523 2,610 3,119 5,729
Gold grade (g/t) 9.22 7.59 6.37 7.67 7.00 4.58 5.68
Horizontal
development Metres 453 508 598 1,559 212 302 632 645 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 LICENCING
In July 2023, the Company signed an agreement with the
indigenous communities around Coringa. This has resulted in a
six-month suspension of a prior court decision which restricted the
ability of government agencies to issue new permits at Coringa
before an indigenous study report ("ECI") was completed and fully
accepted. This July agreement confirmed the willingness of all
stakeholders to see the project progress. The ECI will be followed
by a Plano Basico Ambiental (PBA) which will define the community
programmes that the Company will undertake over the life of the
project. The intention is that the ECI and PBA completion can be
achieved in this six month suspension period. Completion of the ECI
itself, will allow the court process to be extinguished and clear
the way for the Installation License ("LI") to be granted.
EXPLORATION UPDATE
The Vale Exploration Alliance continues to progress well with
multiple exploration activities ongoing across a number of key
target areas of the Palito tenement package, including over 11,400
metres of surface drilling now completed. Results of the first 7
holes so far received of the initial 20 holes drilled at the
Matilda copper target, have been very encouraging. Holes 4 and 6
are the highlight holes, with hole 4 recording an intersection of
0.49% Cu over 60 metres. Assay results from the remaining holes are
eagerly awaited. During the quarter a terrestrial Induced
Polarisation ("IP") geophysics programme over the Matilda target
was commenced, which encompasses the drilled area to date and
beyond.
Three contractor diamond drill rigs are in operation, having
completed a total of 11,400 metres out of 14,000 metres planned. 20
holes out of this total have been drilled at Coringa from 2 rigs,
testing the Matilda copper porphyry target.
As reported in September 2023, results for the first seven holes
have been received, with the highlight holes being:
-- 23-MT-004 reporting 59.45m @ 0.49% Cu and 0.13 ppm Au from 29.85m
(including 6.93m @ 0.95% Cu and 0.28 ppm Au from 78m)
-- 23-MT-006 (full results) -- 13.81m @ 0.47% Cu and 0.10 ppm Au from
200.95m
40km of IP is ongoing at Matilda. The IP lines are covering the
initial drilling and beyond, with the lines initially at 400 metre
spacing. The objective is to calibrate IP anomalies with drill
results, in order to better target the next phase of drilling.
Samples from the remaining holes have been sent to an
independent laboratory for multi-element assays.
Drilling has also been undertaken on the Ganso, Calico and
Cinderella targets.
Systematic Auger drilling is being undertaken with 842 metres
out of a programme of 1,725 metres completed.
A total of 5,500 soil samples are programmed in regional grids
of 400 to 800 metres x 100 metres for completion by year end. To
date 71% of the programme has been executed with samples sent for
assaying. Soils are being initially tested with a hand-held XRF
(X-ray fluorescence) and delivering some interesting results.
Following the receipt of results from the external laboratory,
further mapping activities and a drilling programme will be
considered.
FINANCE UPDATE
Cash balances at the end of September 2023 were US$15.3 million
which includes US$0.6 million of funds held for the Vale
Exploration Alliance. This compares with a cash balance of US$13.3
million as at 30 June 2023 and US$7.2 million at the end of
December 2022. Cash directly attributable to the Group was US$14.7
million at 30 September an increase of US$7.5 million during the
first nine months of the year.
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
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=mVpaQkAtlgps3QfekELqiP-Li_0PNrvmxng6hMPsq0VPdF1WRpJMV6kwZVN09CsQioKutQNaoY2tX4-gwLQdD4-6G7Fl_5kKOPtm26-XKx4=
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 each deposit; rock of the lowest assay included
in an ore estimate.
--------------------------- ------------------------------------------------------------
"dacite porphyry intrusive" a silica-rich igneous rock with larger phenocrysts
(crystals) within a fine-grained matrix
--------------------------- ------------------------------------------------------------
"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 techniques" include the exploration of an area by exploiting differences
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 like granite.
--------------------------- ------------------------------------------------------------
"hectare" or a "ha" is a unit of measurement equal to 10,000 square metres.
--------------------------- ------------------------------------------------------------
"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.
--------------------------- ------------------------------------------------------------
"Indicated Mineral Resource An Indicated Mineral Resource is that part of a Mineral
Resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with
sufficient confidence to allow the application of
Modifying Factors in sufficient detail to support
mine planning and evaluation of the economic viability
of the deposit. Geological evidence is derived from
adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological
and grade or quality continuity between points of
observation. An Indicated Mineral Resource has a lower
level of confidence than that applying to a Measured
Mineral Resource and may only be converted to a Probable
Mineral Reserve.
--------------------------- ------------------------------------------------------------
"Inferred Mineral Resource" An Inferred Mineral Resource is that part of a Mineral
Resource for which quantity and grade or quality are
estimated based on limited geological evidence and
sampling. Geological evidence is sufficient to imply
but not verify geological and grade or quality continuity.
An Inferred Mineral Resource has a lower level of
confidence than that applying to an Indicated Mineral
Resource and must not be converted to a Mineral Reserve.
It is reasonably expected that most of the Inferred
Mineral Resources could be upgraded to Indicated Mineral
Resources with continued exploration.
--------------------------- ------------------------------------------------------------
"Measured Mineral Resource" A Measured Mineral Resource is that part of a Mineral
Resource for which quantity, grade or quality, densities,
shape, and physical characteristics are estimated
with confidence sufficient to allow the application
of Modifying Factors to support detailed mine planning
and final evaluation of the economic viability of
the deposit. Geological evidence is derived from detailed
and reliable exploration, sampling and testing and
is sufficient to confirm geological and grade or quality
continuity between points of observation. A Measured
Mineral Resource has a higher level of confidence
than that applying to either an Indicated Mineral
Resource or an Inferred Mineral Resource. It may be
converted to a Proven Mineral Reserve or to a Probable
Mineral Reserve.
--------------------------- ------------------------------------------------------------
"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.
--------------------------- ------------------------------------------------------------
"Mineral Resource" A Mineral Resource is a concentration or occurrence
of solid material of economic interest in or on the
Earth's crust in such form, grade or quality and quantity
that there are reasonable prospects for eventual economic
extraction. The location, quantity, grade or quality,
continuity and other geological characteristics of
a Mineral Resource are known, estimated or interpreted
from specific geological evidence and knowledge, including
sampling.
--------------------------- ------------------------------------------------------------
"Mineral Reserve" A Mineral Reserve is the economically mineable part
of a Measured and/or Indicated Mineral Resource. It
includes diluting materials and allowances for losses,
which may occur when the material is mined or extracted
and is defined by studies at Pre-Feasibility or Feasibility
level as appropriate that include application of Modifying
Factors. Such studies demonstrate that, at the time
of reporting, extraction could reasonably be justified.
--------------------------- ------------------------------------------------------------
"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 bedrock 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.
--------------------------- ------------------------------------------------------------
"XRF" X-ray Fluorescence (XRF) is a spectrometric technique
used to perform elemental analysis non-destructively
on samples
--------------------------- ------------------------------------------------------------
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 recognized 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. Several 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
Attachment
-- Q3 2023 Ops update
https://ml-eu.globenewswire.com/Resource/Download/4226d2f5-2c05-4e1a-ba59-442dbe938e75
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October 17, 2023 02:00 ET (06:00 GMT)
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