LONDON (Alliance News) - Serabi Gold PLC Tuesday said work is progressing well at the Sao Chico gold project in northern Brazil, saying it expects to provide an updated geological resource estimate for the site by the end of the first quarter of 2015.
Serabi said the mine portal at the site, part of the Palito mining project in the Tapajos region of Brazil, is being established and its scheduled to be completed before the end of September. It said it has secured the approvals necessary to begin blasting at the site in the past month.
Underground development and a surface drill programme are due to take place at the site in the fourth quarter of 2014, and Serabi expects to provide another geological resource update for the site in the first quarter of 2015.
"Whilst we have endured an exceptionally heavy and prolonged rainy season during the first 5 months of this year, I am pleased to say that Sao Chico is now progressing very well and we are doing all we can to recover the consequential two month delay. The ground has dried out well and the cutback, the excavation from which the mine portal underground originates, is close to completion," said Serabi Chief Executive Mike Hodgson.
The update is in line with Serabi's guidance in its half-year results posted earlier this month, when it said it expects a strong second half following commercial production being declared at the Palito gold mine project.
Serabi shares were down 3.0% to 6.065 pence in early trade Tuesday.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Serabi (SRB)