LONDON (Alliance News) - Serabi Gold PLC on Monday said gold production from the Palito and Sao Chico projects in northern Brazil ticked higher in the first quarter of 2016.
Serabi said it produced 9,896 ounces of gold in the second quarter from Palito and Sao Chico, up from 9,771 ounces in the first quarter of the year.
In the quarter, total mine production reached 33,606 tonnes. Of this, 25,198 tonnes were produced from Palito at a grade of 10.48 grams per tonne of gold, while 8,408 tonnes were produced at 6.81 grams per tonne from Sao Chico.
Serabi said underground exploration drilling has now started at Sao Chico and the first hole delivered an intersection of 46.2 grams per tonne of gold over a 2.32 metre section.
The company said it remains confident it will hit its gold production target of 37,000 ounces for 2016.
"This has been another strong quarter of production, with a further improvement over what had been a very good first quarter," said Mike Hodgson, Serabi's chief executive.
Shares in Serabi were down 4.0% to 6.00 pence Monday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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