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(Sharecast News) - Brazil-focussed miner and developer Serabi Gold reported first-quarter gold production of 8,005 ounces on Wednesday - a 13% improvement from the same period last year.
The AIM-traded firm said plant feed grades were the highest since the third quarter of 2021, owing in part to the higher grade ore from Coringa.
It said the Coringa mine development was progressing well, adding that the high-grade portion of the ore is being transported to Palito, contributing more than 2,200 ounces towards the first quarter total.
Serabi reported cash holdings of $13.2m as at 31 March.
"The company has started the year with over 8,000 ounces of gold produced during the first quarter - a very satisfying result - and the strong end to the period has carried over onto the start of the second quarter," said chief executive officer Mike Hodgson.
"The quarter saw steady mine output from Palito, and the reported average quarterly plant feed grade of 6.49 grams per tonne is the highest since the third quarter of 2021.
"This was a result of better Palito run-of-mine grades, but also some excellent plant feed from the Coringa mine development, which averaged over nine grams per tonne for the quarter."
Hodgson said the mine development at the Coringa project was continuing as planned, adding that while the mine was still only a pilot operation, the development grades amid orebody exploration and evaluation had been "spectacular".
"Investors will recall the Coringa mine is operating under a trial mining licence, which allows the mine to be developed and mined.
"Ore is brought to the surface and stockpiled, with the higher grade portion being trucked to Palito for processing.
"The plant feed grades have been excellent, and the modest volume of development ore that has come to the Palito Plant has contributed over 2,200 ounces of gold, replacing reduced production from Sao Chico."
Mike Hodgson said it was currently an "exciting time" for Serabi, adding that the "solid start" to 2023 provided a good platform for the year ahead.
"Coringa permitting continues to progress with the imminent completion of the indigenous study.
"We very much hope the indigenous study will be positively received by the various government agencies and will result in the award of the installation licence in the coming months."
At 1325 BST, shares in Serabi Gold were down 14.12% at 29.2p.
Reporting by Josh White for Sharecast.com.
