Serabi exceeds full-year gold production estimates

17th Jan 2023 17:22

(Sharecast News) - Brazil-focussed gold miner and developer Serabi said gold production in the fourth quarter of 2022 totalled 7,798 ounces.

The AIM-traded firm said that took annual production to 31,819 ounces, exceeding the annual production guidance of 30,000 ounces.

It added that mine development at Coringa continued to progress "well", with 1,791 metres of development completed during the year, approximately 1,000 metres of which was in ore.

The main ramp had now reached the 290 metre level, which was under development.

"The company has ended the year with a very satisfactory 7,800 ounces produced for this final quarter, which sees the total gold produced for the year just short of 32,000 ounces, comfortably ahead of the revised 2022 guidance of 30,000 ounces," said chief executive officer Mike Hodgson.

"The fourth quarter has been somewhat transitional as we have been moving some mining crews and fleet from the Sao Chico orebody over to Coringa.

"To date, the Coringa deposit has been in a development phase and as we begin 2023 will we see the first production from stoping, and this will result in an increase in the level of Coringa ore being delivered to the Palito plant."

Hodgson said it was "particularly pleasing" to maintain steady mine output from Palito operations, even with reduced levels of manpower and equipment.

"It is an exciting time for the Company, and we look forward to 2023 being a year of improving production.

"Having 'flat-lined' for the past two years, 2023 should see Coringa really begin to contribute as well as improved output from Palito operations.

"The rate of the Coringa production growth remains subject to the on-going licensing process."

Over the year, Mike Hodgson said the company had drilled more than 17,000 metres of underground exploration drilling in and around the Palito mine, stepping out and down on known veins.

"As a result, it is our intention to publish an updated Independent NI 43-101 mineral reserve and mineral resource estimate during the first half of the year.

"In addition, we will be keeping stakeholders updated on progress with the planned greenfield exploration programmes following the discovery of the Matilda copper-molybdenum porphyry during 2022."

At the close on Tuesday, shares in Serabi Gold were up 10.45% at 37p.

Reporting by Josh White for Sharecast.com.