Serabi Gold plc Robust First Quarter For 2023

 
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 [phone] 
   Chief Executive        m [phone] 
   Clive Line        t [phone] 
   Finance Director        m [phone] 

e [e-mail]

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BEAUMONT CORNISH Limited

Nominated Adviser & Financial Adviser

   Roland Cornish / Michael Cornish        t [phone] 

PEEL HUNT LLP

Joint UK Broker

   Ross Allister        t [phone] 

TAMESIS PARTNERS LLP

Joint UK Broker

   Charlie Bendon/ Richard Greenfield        t [phone] 

CAMARCO

Financial PR

   Gordon Poole / Emily Hall                t [phone] 

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)

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