LONDON (Alliance News) - Serabi Gold PLC Monday said it has achieved mixed production rates from its Palito Mine following successful commissioning and initial switch-on in December.
The Brazil-focused gold miner said its first quarter gold production was 2,300 ounces, from 11,387 tonnes of ore mined at an average grade of 7.09 grams per tonne during the period.
The company said that throughout its commissioning phase it has been steadily ramping-up mill throughputs, but it has taken a decision to process lower grade ore and as a result, quarterly production grades have been slightly below its longer term forecasts.
Serabi Gold said the early March plant performance was much improved, to the point that budgeted gold production for the month was exceeded giving the company confidence that it can achieve its target commercial production.
The company said repairs of its Carbon in Pulp leaching circuit have started and its second ball mill has been purchased with preparations underway for it to be operational by end of second quarter.
Serabi Gold also said that with regards to its Sao Chico plant, it now has all the funding in place for its initial evaluation and development, noting that by the end of 2014, it expects to have generated an updated mineral resource which will allow it to develop a mine plan, with the aim of bringing the mine into full production in mid 2015.
The company said in February that its exploration programme at its Sao Chico gold project had intersected further high-grade gold deposits, suggesting a significant extension of the mineralisation at the site and it would undertake some initial development of the deposit, acquiring essential fleet so it can start the earthworks and ramp portal development.
Serabi Gold shares were down 3.3% to 4.35 pence Monday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Serabi (SRB)