(Sharecast News) - Serabi Gold said in an update on Monday that in the fourth quarter of 2023, it achieved gold production of 7,891 ounces, and for the entire year, it recorded gold production of 33,153 ounces, marking a 4.2% year-on-year improvement.
The AIM-traded firm said a significant contribution to fourth quarter production came from Coringa, which contributed 2,694 ounces of gold production at mined grades of 6.33 grams of gold per tonne.
It also reported a substantial increase in its cash reserves, with $11.6m held on 31 December, representing a 60% increase over the end of 2022.
Serabi highlighted early exploration success at Matilda under its exploration alliance with Vale, which yielded an exploration target with an initial conceptual resource potential ranging between 21 million tonnes at 0.40% copper and 81 million tonnes at 0.28% copper.
It noted that the potential volume and grade were conceptual, as there had been insufficient exploration to define a mineral resource, with the realisation of a mineral resource estimate remaining uncertain.
Furthermore, the company released an updated mineral reserve estimate for the Palito Complex in November, estimating 206,400 ounces of proven and probable reserves.
That represented a significant threefold increase compared to the previous mineral reserve estimate of 67,344 ounces.
Serabi said it had taken steps to enhance its operational capabilities by purchasing an ore sorter for Coringa from Comex.
The equipment is currently in transit to the site and is expected to be operational by the fourth quarter of 2024, which would potentially improve production efficiency.
In a strategic move, Serabi Gold appointed Andrew Khov as its new vice president of investor relations and business development.
Khov would be based in Toronto, and would play a crucial role in the company's investor relations and business development efforts.
"A satisfactory fourth quarter means gold production for the year has been 33,153 ounces which is a 4.2% improvement to 2022," said chief executive officer Mike Hodgson.
"The process plant continued to perform admirably with a quarterly record of 48,988 milled tonnes, despite unplanned downtime.
"During the quarter, following successful negotiations with the workforce and union, underground hours per shift were increased, the benefits of which are reflected in our quarterly development rates which exceeded 3,000 metres for the first time in 2023. "
Hodgson said the company was looking forward to 2024 with optimism.
"An excellent geological resource update at Palito, Coringa mine development improving quarter by quarter, and with permitting of Coringa expected to reach a positive conclusion, we expect meaningful production growth and continued strong operational cash flow in the next 24 months.
"Alongside the opportunities afforded by our exciting exploration activities, there should be continued positive news for shareholders over the coming months."
At 1511 GMT, shares in Serabi Gold were down 10.47% at 38.5p.
Reporting by Josh White for Sharecast.com.
Serabi (SRB)