Serabi Gold PLC - gold miner in Brazil - Begins mining development at its wholly owned gold project at Coringa in north-central Brazil. Says hard rock blasting is now underway. Expects to intersect the Serra zone by mid-October. Mine portal development began in July to access the Serra zone, one of three major areas in the mine. Serabi says it expects Coringa to incur low initial capital of USD25 million and all in sustaining costs of USD852 per ounce. Guides average annual production of 38,000 ounces in the first five years of full production, with an average grade of 8.34 grams of gold per tonne. "Coringa is located 200 kilometres south of Serabi's current gold operation at Palito and represents a strategically important asset for Serabi that will upon reaching full production double the group gold production," the company says.
Chief Executive Mike Hodgson adds: "This is a very important milestone for the company in achieving our mid-term objective of becoming a 100,000 ounce gold producer...I am delighted to see mine development underway, and look forward to intersecting the first ore zone early next quarter and we anticipate that the improved understanding arising from this underground ore development will deliver further economic benefits to the project."
Current stock price: 65.33 pence, up 1.3% on Monday
Year-to-date change: down 32%
By Scarlett Butler; scarlettbutler@alliancenews.com
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