LONDON (Alliance News) - Sarabi Gold PLC Wednesday said commercial production started at the Palito gold mine in Brazil on 1 July and provided an update on the gold mining operations at the site.
The Brazil-focused gold miner said gold production in the second quarter ended June 30 was 3,242 ounces and said the total for 2014 so far was 5,542 ounces.
Total mine ore production in the second quarter was 15,808 tonnes, with total milled production at 18,645 tonnes. Sarabi said approximately 3,300 metres of underground horizontal development has been completed at Palito in the six months to the end of June.
The company said a carbon-in-pulp leaching circuit will be commissioned in July, and said a second ball mill has been installed and tested and will become operational this month.
"The first quarter of this year saw a steady ramp-up of mill production, with throughputs during the second quarter continuing to increase," said Serabi Gold Chief Executive Mike Hodgson.
"The second quarter of 2014 has seen great activity in the process plant at Palito," Hodgson added.
Serabi also provided an update on its Sao Chico project, saying work on preparing the site for operation has been delayed by the longer-than-expected rainy season in Brazil.
It said work is now progressing well, but due to the delays, ramp development is more likely to take place in early September, consequently delaying the start of underground mine development.
Serabi Gold shares were up 19% to 5.80 pence early Wednesday, making it the second biggest riser on AIM.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
Serabi (SRB)