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Serabi Gold (LSE:SRB), a Brazil-focused gold mining and development company, provided an update on its Tapajós region projects in northern Brazil on Monday. The company reported that construction of the classification plant at its Coringa project is progressing according to schedule and within budget.
The AIM-listed firm indicated that the crushing plant at Coringa is anticipated to become operational by the end of September. Meanwhile, the ore sorter is slated for commissioning in October. This development is part of the company's broader efforts to advance its Coringa project, with an updated preliminary economic assessment (PEA) underway, conducted by NCL Ingeniería y Construcción of Santiago, Chile. Results from this assessment are expected to be released in the third quarter.
In exploration news, Serabi Gold reported promising results from its 3,500-meter surface drilling program targeting the southern extensions of the G3 vein at the Palito mine. Notable drill intersections include 1.45 meters at 43.72 grams of gold per ton from a depth of 526 meters and one meter at 9.16 grams of gold per ton from 169.7 meters. These results suggest strong potential for further resource expansion.
The company remains on track to meet its full-year production guidance of 38,000 to 40,000 ounces of gold for 2024. As of August 31, Serabi Gold’s cash balance stood at $16 million, reflecting a $4.4 million increase year-to-date after accounting for capital expenditures.
Chief Executive Officer Mike Hodgson highlighted a successful first half of the year and a promising third quarter. The installation of the classification plant at Coringa is progressing well and is expected to positively impact the fourth quarter of this year. The crusher is scheduled to be commissioned by the end of September, allowing for the processing of 50,000 tonnes of low-grade ore that has been stockpiled. The ore sorter, with a capacity of over 45 tonnes per hour, will handle both the run-of-mine ore from the Coringa mine and a substantial portion of the low-grade stock accumulated over the past two years. This setup is anticipated to contribute to a record fourth-quarter production from Coringa.
At the Palito mine, brownfield exploration began in June, focusing on deep step-down and step-out drilling of the G3 vein south of the existing mine workings. Six holes have been drilled so far, with results from four holes, including two with excellent intersections, proving encouraging. Drilling will continue until October, and the company plans to advance the Palito main ramp to level -50 meters to further explore this promising new area.
As of 1220 BST, Serabi Gold shares were up 2.69% at 73.94p.
