Industria
Operational & Corporate Update
Serabi Gold plc (“Serabi” or the “Company”) (AIM:SRB, TSX:SBI, OTCQX:SRBIF), the Brazilian focused gold mining and development company, is pleased to provide an operational update on its activities in the Tapajós region of Para State, Northern Brazil. (All financial amounts are expressed in U.S. dollars unless otherwise indicated).
To access a PDF copy of this news release including images please use the following link - https://bit.ly/47pnbuX
HIGHLIGHTS
Mike Hodgson, CEO of Serabi, commented:
“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. 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.
The ore sorter is rated at over 45 tonnes per hour, so it will be able to accept all the run of mine (ROM) ore coming from the Coringa mine as well as treat a substantial part of the low-grade stock accumulated at the site over the past 2 years. For this reason, we are hopeful for a record Q4 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 6 holes to date, with results for 4, 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.”
Coringa Update
Construction of the classification plant (crusher and ore sorter) at Coringa remains on schedule and on budget. The ore sorter for Coringa has now been delivered to site and the ground works required for installing the crushing plant and the related infrastructure for the ore sorter are progressing well with the intention that the plant can be operational during the fourth quarter of this year, processing some of the lower grade material that has been stockpiled at Coringa and boosting gold production in that last three-month period.
Figure 1: Primary, secondary and tertiary crushers in place at Coringa with conveyors being installed
To access an image of the crushers please use the following link - https://bit.ly/4cURpHh
Figure 2: Ore sorter at Coringa awaiting commissioning
To access an image of the ore sorter please use the following link - https://bit.ly/3ZetWO5
The updated independent PEA covering the Coringa project, being undertaken by NCL is progressing well and the company anticipates the release of the results later this month. The PEA will formally document the Company's plans to pre-concentrate mined ore at the Coringa project using the classification plant currently under construction and trucking the preconcentrated product to the Palito Complex, 200km to the north on a paved federal highway. The NI 43-101 compliant technical report will incorporate a revised geological resource and economic study including projected operating costs considering the planned use of the classification plant and processing at Palito Complex.
Palito Exploration Update
Encouraging first results from a 3,500m exploration surface drill programme targeting the southerly step-out and step-down extension beyond the mine workings of the G3 vein at Palito. Results are tabulated below:
This drill programme is targeting a previously untested part of the G3 orebody. The lowest level on G3 is -50m. The block being drilled is located a further 50m below that last level, from elevation -100m to -300m. The block also lies 100m to the south of the -50m level, and a strike length of 400m is being tested. It is therefore a significant sized target to test, but also close to mine infrastructure for access.
Corporate & Financial Update
The Company's cash balance at the end of August 2024 was $16.0 million, in comparison to the cash balance at the end of December 2023 of $11.6 million, representing an increase of $4.4 million for the year to date. The Company had a net cash balance at the end of August 2024 (after interest bearing loans and lease liabilities) of $9.9m (31 December 2023: net cash $5.0 million). As capital expenditures for the classification plant have been largely spent and underground development at Coringa has been accelerated, the Company expects the cash balance to continue to grow.
With 18,010 ounces produced in H1-2024, the Company is positioned to meet FY2024 guidance of consolidated gold production of 38,000 – 40,000 ounces.
2024 Precious Metals Summit Beaver Creek Conference, September 10-13, 2024
The Company is pleased to announce it will be attending the 2024 Precious Metals Summit (“Beaver Creek”) in Beaver Creek, Colorado being held September 10-13, 2024. Serabi Gold's CEO Mike Hodgson will be presenting on Wednesday, September 11 , at 3:45PM, Room 1.
The Precious Metals Summit Beaver Creek is the world's premier independent investment conference focused on explorers, developers and emerging producers of gold, silver and platinum group metals.
This by-invitation-only event will bring together institutional investors, sell-side representatives and corporate executives from senior precious metals companies with management teams of close to 200 carefully selected, highly prospective issuers representing the world's mining and mineral exploration sectors.
Upcoming Conference & Events
In addition to Beaver Creek, the Company is expected to be in attendance at the following conferences in 2024:
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 Andrew Khov, Vice President, Investor Relations & Business Development.
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
Andrew Khov m +1 647 885 4874
Vice President, Investor Relations &
Business Development
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 - Europe
Gordon Poole / Emily Hall t +44 (0)20 3757 4980
HARBOR ACCESS
Financial PR – North America
Jonathan Patterson / Lisa Micali t +1 475 477 9404
Copies of this announcement are available from the Company's website at www.serabigold.com .
See www.serabigold.com for more information and follow us on twitter @Serabi_Gold
GLOSSARY OF TERMS
The following is a glossary of technical terms:
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 identified 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 reflect 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.
Notice
Beaumont Cornish Limited, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting as nominated adviser to the Company in relation to the matters referred herein. Beaumont Cornish Limited is acting exclusively for the Company and for no one else in relation to the matters described in this announcement and is not advising any other person and accordingly will not be responsible to anyone other than the Company for providing the protections afforded to clients of Beaumont Cornish Limited, or for providing advice in relation to the contents of this announcement or any matter referred to in it.
Neither the Toronto Stock Exchange, nor any other securities regulatory authority, has approved or disapproved of the contents of this news release
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