Serabi Regulatory News (SRB)

19 Jan 2006 07:00

Serabi Mining plc19 January 2006 QUARTERLY INVESTOR UPDATE------------------------- Serabi Mining plc advises that it has today despatched to shareholders its quarterly investor newsletter for the Fourth Quarter of 2005. The Company has highlighted in its newsletter the following matters: • Continuing operating improvements throughout the year underlies 2005 production of 17,261 oz gold equivalent • Following new productivity initiatives, Q4 underground mining production was up 54% (89% including open cut material) and Q4 process plant throughput was up 50% over Q3 results • Major benefits expected to result from the introduction of decline access and long-hole trackless mining at Palito • Introduction of grid electricity and completion of capital projects about to benefit the Palito mine and emphasize Serabi's position as the only established operator in the Tapajos gold province Palito - Operating Results 2005 (1) Year-ended Q1 Q2 Q3 Q4 Dec 2005Mining Rate:Underground (per day) t 7,753 13,689 12,381 19,059 54,993 (87) (150) (135) (207) (151) Open Cut (2) (per day) t 4,394 4,394 (48) (48)Total Mined (per day) t 7,753 13,689 12,381 23,453 59,387 (87) (150) (135) (255) (163) Milling Rate:Milled (per day) t 8,222 14,006 14,315 21,415 57,958 (92) (154) (156) (233) (159)Head Grade g/t 9.3 8.6 12.1 7.7 9.2Recovery % 84.2 88.2 90.2 91.8 89.4 Production:Gold oz 2,077 3,427 5,005 4,837 15,345Copper t 22.4 38.2 81.0 74.7 216.2Gold equivalent oz 2,262 3,747 5,724 5,528 17,261 1) Provisional2) November and December only; includes Compressor Lode oxide material andsurface material from Palito North PALITO------Production levels improved throughout 2005 resulting in total gold equivalent production of 17,261 ounces for the year. Significantly, the initial impact of plans to overcome the mining bottleneck outlined in the September InvestorUpdate are already evident in the December quarterly results. Underground mining rates reached an average of 207 tpd for the quarter and 232 tpd during November and December. The first de-bottlenecking phase of a three stage process plant improvement plan was completed during Q4. Average mill throughput for the quarter rose to 233 tpd, however this reflected a transitional period and the plant regularly achieved between 250 and 300 tpd during the last half of the quarter. The second phase of the improvement plan is now underway, which will include the addition of a third ball mill. The completion of this second phase should reduce mill downtime and result in sustainable capacity of 300 to 350 tpd. The full text of the quarterly update is available from Serabi's offices or fromthe company's website www.serabimining.com. Enquiries: Serabi Mining plc Graham Roberts Tel: 020 7220 9550Chairman Mobile: 07768 902 475 Clive Line Tel: 020 7220 9550Finance Director Mobile: 07710 151 692 Chris Sattler Tel: 020 7220 9550Manager, Finance and Corporate Development This information is provided by RNS The company news service from the London Stock Exchange