(Alliance News) - Serabi Gold PLC said on Friday that the first orebody had been intersected at its Coringa mine in northern Brazil.
The London-based gold miner said the first of the three veins in the Serra Zone intersected by development at Coringa recorded assays of 2.94 grams of gold per tonne over 3.63 metres.
This initial area of the vein will form the ramp pillar and was not expected to deliver the same grade and widths as other parts of the vein, Serabi Gold explained. This initial intercept, therefore, is highly encouraging for the company.
A process plant is already at the Coringa site and ready for installation following completion of engineering and the award of an installation license, which Serabi Gold said is expected imminently.
In parallel to this, the company said it has been working to complete an indigenous study, which it expects to concluded early in the second quarter of 2022. An indigenous study is used to identify and resolve conflicts with people who live near a mine.
Chief Executive Mike Hodgson said: "These initial results from Coringa represent a significant milestone achieved and excellent progress continuing at the project. Coringa has over 50,000 metres of drilling already complete, but this is the first exposure of the mineralisation by underground excavation.
"The underground development will be continued on this level to expose the other veins of the Serra ore body and will be followed up by on-lode development to gain further underground exposure as well as to extract a significant bulk sample for further testing."
Shares in Serabi Gold were up 1.7% at 55.45 pence on Friday in London.
By Heather Rydings; heatherrydings@alliancenews.com
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