Serabi Gold on track with Tapajos projects

9th Sep 2024 12:51

(Sharecast News) - Brazil-focussed gold miner and developer Serabi Gold updated the market on its ongoing projects in the Tapajós region of northern Brazil on Monday, reporting that construction of the classification plant at its Coringa project was progressing on schedule and within budget.

The AIM-traded firm said the crushing plant was expected to be operational by the end of September, with the ore sorter slated for commissioning in October.

It said it was also moving forward with its updated preliminary economic assessment (PEA) for the Coringa project, which was being conducted by NCL Ingeniería y Construcción, based in Santiago, Chile.

The results of the assessment were anticipated to be released in the third quarter, as planned.

In exploration activities, Serabi reported promising early results from its 3,500-metre surface drilling programme targeting the southern extensions of the G3 vein at the Palito mine.

Significant drill intersections included 1.45 metres at 43.72 grams of gold per ton from a depth of 526 metres, and one metre at 9.16 grams of gold per tonne from 169.7 metres, indicating strong potential for further resource expansion.

The company said it was on track to meet its full-year production guidance of 38,000 to 40,000 ounces of gold for 2024.

As of 31 August, Serabi had a cash balance of $16m, reflecting an increase of $4.4m for the year-to-date, after accounting for capital expenditures.

"After a very satisfactory first half of the year, we are enjoying another strong quarter as reflected by our growing cash position, and projected activity for September should ensure another successful quarter," said chief executive officer Mike Hodgson.

"We are making good progress with the installation of the classification plant at Coringa which will positively contribute to the fourth quarter of this year.

"We plan to have the crusher commissioned by the end of September which will allow us to commence crushing 50,000 tonnes of low-grade ore that has been stockpiled to be passed through the ore sorter, which remains on track for commissioning by the manufacturer, Comex, in October."

Hodgson said the ore sorter was rated at over 45 tonnes per hour, so would be able to accept all the run-of-mine ore coming from the Coringa mine as well as treat a substantial part of the low-grade stock accumulated at the site over the last two years.

For that reason, he said the company was hopeful for a record fourth-quarter production from Coringa.

"At Palito, we commenced brownfield exploration in June, focussing on deep step-down and step-out drilling of the G3 vein south of the mine workings.

"We have drilled six holes to date, with results for four, two of which - PDD0622 and PDD0625 - have recorded excellent intersections.

"Drilling will continue until October, nevertheless this news has been sufficiently encouraging for us to continue with the Palito main ramp at level -50m, which will advance towards this exciting new area defined from this drilling."

At 1220 BST, shares in Serabi Gold were up 2.69% at 73.94p.

Reporting by Josh White for Sharecast.com.