Serabi Gold plc Record Quarterly Gold Production For The Fourth Quarter Of 2018 And Significant Potential Highlighted By Expl...

 
TIDMSRB 
 
 
   For immediate release 
 
   17 January 2019 
 
   Serabi Gold plc 
 
   ("Serabi" or the "Company") 
 
   Record quarterly gold production for the fourth quarter of 2018 and 
significant potential highlighted by exploration activity. 
 
   Serabi Gold plc (AIM: SRB, TSX: SBI), the Brazilian focused gold mining 
and development company, is pleased to provide the results and a review 
of its fourth quarter operational and exploration activities in the 
Tapajos region of Para State, Northern Brazil. 
 
   A PDF version of this new release can be accessed using the following 
link - 
https://www.globenewswire.com/Tracker?data=zp9_kywvAZm3Rdw4WY7UO1HxQotvOnXJ35bv2bwUaFikCrWyAiTpnLVXlXPRSmCXMpM3CnNEyW0cNOA6dquNpQCQvTVAtD6VwB570_H1rSA= 
https://bit.ly/2Fw96Ss 
 
   OPERATIONAL and EXPLORATION HIGHLIGHTS 
 
 
   -- Fourth quarter gold production of 10,256 ounces of gold represents record 
      quarterly production for Serabi. 
 
   -- Annual gold production totalling 37,108 ounces is an improvement on 2017 
      production. 
 
   -- Highest level of mined tonnage for 2018 achieved in fourth quarter with a 
      total of 44,257 tonnes at 7.45 grams per tonne ("g/t") of gold. 
 
   -- 45,548 tonnes of run of mine ("ROM") ore processed through the plant from 
      the combined Palito and Sao Chico orebodies, with an average grade of 
      7.39 g/t of gold, represents the highest quarterly throughput for the 
      year. 
 
 
   -- 2,460 metres of horizontal development completed during the quarter, 
      giving a total of 10,371m for the year. 
 
 
   -- A series of discrete "apparent conductivity" anomalies have been 
      delineated by the analysis of the airborne magnetic and electromagnetic 
      ("VTEM") survey flown during the third quarter of 2018.  These anomalies 
      are indicative of probable sulphide bodies which the Company hopes will 
      be gold bearing. 
 
   -- Identification of the "Cinderella" anomaly, a chargeability and 
      conductive high extending over seven kilometres, which is coincident with 
      a strong magnetic anomaly defined by the airborne VTEM survey -- 
      Cinderella is the most significant of a number of anomalies around Sao 
      Chico identified by an Induced Polarisation (IP) terrestrial geophysics 
      programme completed at Sao Chico in the fourth quarter. 
 
   -- Environmental Impact Assessment ("EIA") for the Coringa project approved 
      by State Environmental Agency ("SEMAS") and public hearings now being 
      planned. 
 
   -- Management expects an increase in gold production in 2019, with 
      production forecast to be in the range of 40,000-44,000 ounces. 
 
 
   Key Operational Information 
 
 
 
 
                                   SUMMARY PRODUCTION STATISTICS FOR 2018 AND 2017 
                                                        Full 
                       Qtr 1   Qtr 2   Qtr 3   Qtr 4    Year    Qtr 1   Qtr 2   Qtr 3   Qtr 4    Total 
------------  ------- 
                        2018    2018    2018    2018    2018     2017    2017    2017    2017    2017 
------------  -------  ------  ------  ------  ------  -------  ------  ------  ------  ------  ------- 
Horizontal 
 development 
 -- Total     Metres    2,353   2,744   2,814   2,460   10,371   2,251   1,855   2,996   2,762    9,864 
 
Mined ore -- 
 Total        Tonnes   39,669  36,071  42,725  44,257  162,722  36,918  41,684  41,263  49,011  168,876 
 Gold grade (g/t)        7.49    8.12    6.23    7.45     7.29   10.12    7.80    9.80    8.25     8.92 
 
Milled ore    Tonnes   43,145  38,155  41,405  45,548  168,253  41,722  43,294  44,205  43,345  172,565 
 Gold grade (g/t)        7.04    7.71    6.11    7.39     7.06    7.62    6.29    7.28    7.27     7.11 
Gold 
 production 
 (1) (2)      Ounces    9,188   9,563   8,101  10,256   37,108   9,861   8,148   9,657   9,337   37,004 
 
 
   1. Gold production figures are subject to amendment pending final agreed 
      assays of the gold content of the copper/gold concentrate and gold 
      doré that is delivered to the refineries. 
 
   2. Gold production totals for 2018 include treatment of 16,466 tonnes of 
      flotation tails at a grade of 3.71 g/t (2017 full year: 4,568 tonnes) 
 
   3. The table may not sum due to rounding. 
 
 
   Mike Hodgson, CEO, said: 
 
   "It has been superb fourth quarter all around, with excellent production 
results and very exciting exploration results which we will be following 
up on during 2019.  In terms of production, a number of records were 
achieved.  For the first time since operations began in 2014, the 
Company produced over 10,000 ounces of gold in a quarter, which also 
means that for the 2018 calendar year, with total production of 37,108 
ounces of gold, we exceeded last year's total gold production of 37,004 
ounces. 
 
   "We also achieved the highest recorded quarterly rate of mine production 
for 2018, whilst the average mined grades for the fourth quarter showing 
a 20% increase compared with the third quarter. 
 
   "The plant continued to perform extremely well, and with over 45,000 
tonnes of hard rock ore processed, the Company has also achieved its 
best quarterly throughput levels of the year.  This throughput was 
complemented by the processing of an additional 3,107 tonnes of 
historical flotation tails. 
 
   "Development and production of the Palito orebody remains focussed on 
the Pipocas, Senna, Zonta and Mogno veins, whilst lateral ore 
development of the Sao Chico orebody is now being advanced on the -3mRL 
and -19mRL levels. 
 
   "In the review of the third quarter (news release 30 October 2018), the 
Company indicated that full year production was expected to be between 
36,000 to 37,000 ounces of gold. The response from our staff in 
exceeding this guidance has been excellent and a very good way to end 
the year.  I am pleased to say that this momentum has been continued 
into the first weeks of January. 
 
   "Project work to improve production has also continued well and, during 
the fourth quarter, the Company took delivery of a 'scrubber', an item 
of equipment that will allow us to feed and process more easily the 
substantial volume of stockpiled historic flotation tailings.  This 
material will be added to the plant after milling and therefore provide 
additional feed to the cyanidation plant instead of displacing feed, 
which has been the alternative for much of 2018.  This equipment is 
currently being commissioned and will, we hope, be fully operational by 
the end of January 2019. 
 
   "Whilst the operational performance of the quarter has been noteworthy, 
the Company has enjoyed considerable exploration success as well.  We 
undertook during the second half of 2018 significant airborne and ground 
geophysics programmes.  During the fourth quarter the analysis and 
interpretation of the data generated from a much anticipated 20,000 
hectare airborne VTEM survey was completed.   The results show numerous 
pronounced magnetic anomalies, most notably a major east-west lineament 
crossing the entire tenement.  This feature is extremely interesting and 
we see a significant number of electromagnetic anomalies lying on the 
flanks of this magnetic high. 
 
   To view the image please use the following link 
 
   https://www.globenewswire.com/Tracker?data=zp9_kywvAZm3Rdw4WY7UO86ONKQJkOABU4ad7A91Bv9RVZCwqgz7AAZajPxD_0lwD0q2p2NZlYvWqtmP2fP9L75wlZ2Uin3Gc_Ntci6NFbc= 
https://bit.ly/2KfvNKa 
 
   Figure 1 : VRMI magnetic image showing coincident mid (100-175m depth -- 
orange colour) and late-time (175-250m depth --red) EM conductivity 
anomalies.  The above figure includes magnetic images generated by 
previous surveys conducted by the Company in 2008 and 2011. 
 
   "We also completed a ground geophysics programme around the Sao Chico 
deposit during the fourth quarter.  Most notably we concluded the 
terrestrial Induced Polarisation (IP) survey over the 'Cinderella' zone 
that lies to the south east of Sao Chico, further extending the strike 
length of this anomaly from four kilometres to seven kilometres.  This 
has developed into a very compelling exploration target, and our 
exploration team has worked quickly to develop, and are now finalising, 
geochemical survey programmes that will allow us to evaluate further the 
potential of this zone. 
 
   "We have continued the development and advancement of the Coringa 
project during the quarter with surface drilling resources being 
switched to Coringa during the quarter.  We are completing a modest 
drill programme around the project with a view to publishing a new 
mineral resource update before the end of the first quarter of 2019. 
 
   "In parallel, we have also made excellent progress with the permitting 
of this project.  Following the award of the trial mining licence for 
the project during the second quarter of 2018, we have now received 
approval from SEMAS for the "EIA submitted late in 2017.  We are now 
working with SEMAS to arrange the necessary public hearings, the next 
key step in obtaining the Preliminary Licence ("Licencia Previa"). We 
hope these hearings will be completed in the next two to three months, 
and a positive outcome coupled with a new resource estimate and 
subsequent economic study on the project, will put us in a good position 
to commence plant construction during 2019. 
 
   "With an excellent final quarter for 2018, both orebodies in good order 
and the increased processing of surface stockpile material commencing 
imminently, we anticipate continued production success and a good start 
to 2019.  We will conclude the new resource drilling at Coringa by the 
end of January 2019, with the new resource estimation planned for 
publication by the end of the first quarter and hopefully coinciding 
with further positive progress on licencing and permitting.  I therefore 
anticipate 2019 being an excellent year for the Company and I look 
forward to providing further updates in the coming months". 
 
   Production Results 
 
   Total production for the fourth quarter of 2018 was 10,256 ounces of 

gold, generated from the processing of 45,548 tonnes of ore at overall 
average grades of 7.39 g/t of gold. This processed ore was sourced from 
hard rock mined ore from the Palito and Sao Chico orebodies, 
supplemented by the processing of 3,107 tonnes of surface stockpiled 
flotation tailings grading approximately 3.75 g/t gold.  Mined tonnage 
for the quarter totalled 44,257 tonnes with a grade of 7.45 g/t of gold. 
 
 
   On 31 December 2018, there were coarse ore stocks of approximately 7,661 
tonnes of ore with an average grade of 4.1 g/t of gold, and 
approximately 30,000 tonnes of flotation tails with an average grade of 
3.00 g/t of gold. These stockpiles are being consumed, albeit not as 
quickly as forecast, and for now the operation remains plant 
constrained. 
 
   A total of 2,460 metres of horizontal development has been completed 
during the quarter, of which approximately 1,321 metres was ore 
development.  The balance is the ramp, cross cuts and stope preparation 
development. 
 
   2019 Production Guidance 
 
   Management does not anticipate a major shift in mine performance and 
therefore hard rock gold production for 2019.  However, with production 
efficiencies from new initiatives such as the scrubber to improve 
throughput of stockpiled flotation tails and the planned commissioning 
of the ore-sorter in the second half of 2019, management expects to see 
an increase in gold production in 2019, with production forecast to be 
in the range of 40,000-44,000 ounces. 
 
   This announcement is inside information for the purposes of Article 7 of 
Regulation 596/2014. 
 
   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                                     Tel: [phone] 
Chief Executive                                     Mobile: [phone] 
 
Clive Line                                          Tel: [phone] 
Finance Director                                    Mobile: [phone] 
 
Email: mailto:[e-mail] 
[e-mail] 
-------------------------------------------------- 
Website: http://www.serabigold.com 
www.serabigold.com 
-------------------------------------------------- 
 
Beaumont Cornish Limited 
 Nominated Adviser and Financial Adviser 
Roland Cornish                                      Tel: [phone] 
Michael Cornish                                     Tel: [phone] 
 
Peel Hunt LLP 
 UK Broker 
Ross Allister                                       Tel: [phone] 
James Bavister                                      Tel: [phone] 
 
 
 
   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 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. 
 
   "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 grammes 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. 
 
   "scrubber" -- a machine for cleaning ore and removing impurities such as 
clays, coatings or other deleterious materials. 
 
   "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 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 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 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. 
 
   ENDS 
 
   Attachment 
 
 
   -- Serabi Q4 2018 Operational and Exploration Review 
      https://ml-eu.globenewswire.com/Resource/Download/2542bc0d-8c2d-4e79-8be6-44ccda6bc0c3 
 
 
 
 
 

(END) Dow Jones Newswires

January 17, 2019 02:00 ET (07:00 GMT)

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