Serabi Gold reports expanded reserve estimates at Palito

21st Nov 2023 11:49

(Sharecast News) - Brazil-focussed miner and developer Serabi Gold released updated mineral reserve estimates for its Palito Complex on Tuesday, including the Palito deposit and Sao Chico satellite deposit.

The AIM-traded firm said a new technical report, compliant with CIM and Canadian National Instrument 43-101 standards and effective as of 31 July, was also published.

It said the update's highlights included proven and probable reserves totalling 206,400 ounces, equivalent to 824,800 tonnes, with an average grade of 7.78 grams of gold per tonne.

That represented a threefold increase compared to the previous total of 67,344 ounces reported at the end of December 2021.

Notably, the average grade had improved by 11% compared to the December 2021 estimation.

The mineral reserves at Palito now supported over six years of operations at current production levels, without accounting for the potential conversion of additional mineral resources.

That extension in reserve life was more than three times the previous estimate.

Serabi said the mineral reserves were part of the mineral resources disclosed on 6 October, which included a measured and indicated resource of 377,800 ounces of contained gold, equivalent to 1,166,300 tonnes with an average in-situ grade of 10.08 grams of gold per tonne, marking a 50% increase compared to December 2021.

Additionally, there was a further inferred resource of 153,900 ounces, equivalent to 682,400 tonnes, with an average in-situ grade of 7.01 grams per tonne.

"This new mineral reserve of 206,400 ounces represents three times the previous estimation of December 2021," said chief executive officer Mike Hodgson.

"This is an outstanding outcome achieved through a lot of hard work at site, and a significant reward for an aggressive 18-month underground drilling campaign, which has clearly been very successful.

"Palito, like many small vein mines, faces challenges demonstrating longevity."

Hodgson said Serabi had nonetheless established a track record of resource replenishment and a strong history of converting resources to reserves.

"Palito is a generational deposit, its production having started in 2005 albeit often exhibiting only a two to three-year reserve life.

"This latest reserve and resource estimate confirms that it remains a long-life asset capable of supporting current production levels for many years."

At 1101 GMT, shares in Serabi Gold were up 7.83% at 33.97p.

Reporting by Josh White for Sharecast.com.