Serabi Gold plans to expand capacity at Palito Complex

2nd Mar 2026 12:15

(Sharecast News) - Serabi Gold outlined plans to expand processing capacity at its Palito Complex and revise mining methods at Coringa on Monday, while maintaining 2026 production guidance and progressing permitting and exploration activities in Brazil.

The AIM-traded company said it would install a fourth ball mill at the Palito Complex, increasing annual processing throughput to 330,000 tonnes per annum.

It said the mill, one of two originally intended for Coringa, would be funded from existing cash resources, with installation costs described as nominal and the unit expected to be operational by the fourth quarter of 2026.

The expansion was intended to address plant capacity constraints and enable processing of lower-grade stockpiles amid record gold prices.

Serabi reiterated consolidated production guidance of 53,000 to 57,000 ounces of gold for 2026.

At Coringa, following 12 months of successful ore sorting, the company said it was transitioning from selective open stoping to longhole open stoping, reflecting favourable vein geometry and the effectiveness of ore pre-concentration.

Management said the change should increase mine output, reduce costs and improve safety.

Coringa currently operates under a three-year GUIA licence expiring on 29 January 2027, with discussions ongoing with the Agência Nacional de Mineração regarding future licensing.

For the full mining licence, the company would need change-of-land-use approval from INCRA and approval of the Estudo de Componente Indígena from FUNAI, both of which it said were progressing as planned.

Serabi said it had also completed its 2025 brownfield exploration programme, drilling 38,400 metres across 154 diamond drill holes at Palito and Coringa, with 65 holes returning grades above three grams per tonne.

Notable intercepts included 0.25 metres at 395.00 grams of gold per tonne and 1.19 metres at 17.54 grams per tonne.

A further 1,436 metres of drilling remained to be assayed.

The objective was to increase group mineral inventory to more than 1.5 million ounces, with an updated mineral resource estimate expected in the first quarter of 2026.

A $9m exploration programme for 2026, including 30,000 metres of drilling, had commenced.

"With gold prices at record highs and viable stockpiles on hand, plant capacity constraints have become more pressing than ever," said chief executive Mike Hodgson, adding that the fourth mill would increase plant capacity to 330ktpa.

He said the company would also reassess the potential restart of the São Chico mine, which was suspended in 2023 for economic reasons, noting that "today São Chico ore, even without ore sorting, is viable."

On Coringa permitting, Hodgson said the change-of-land-use authorisation was in its final stages and that approval of the indigenous study was progressing following positive consultations, with the company hopeful of receiving the necessary approvals in the first half of 2026.

At 1208 GMT, shares in Serabi Gold were up 2.55% at 349.7p.

Reporting by Josh White for Sharecast.com.