Quarterly Update

21 Oct 2005 07:00

Serabi Mining plc21 October 2005 QUARTERLY INVESTOR UPDATE------------------------- Serabi Mining plc advises that it has today despatched to shareholders itsquarterly investor newsletter. The Company has highlighted in its newsletter the following matters: • Production ramp up continues at Palito • Focus on short term planning and new operating efficiencies set to benefit1H 2006 • 2005 drill results highlight long term potential at Palito and the Jardimdo Ouro district • Acquisition of advanced Pombo Gold Project in southern Tapajos acceleratesregional project development PALITO OPERATING RESULTS 2005 (1)--------------------------------- Quarter ended Quarter ended Year-to-date June 30 (2) September 30 September 30-----------------------------------------------------------------------------Mined (per day) tonnes 13,689 12,381 36,034 (150) (135) (132)-----------------------------------------------------------------------------Milled (per day) tonnes 14,006 14,315 36,543 (154) (156) (134)-----------------------------------------------------------------------------Head grade g/t 8.63 12.06 10.13-----------------------------------------------------------------------------Recovery % 88.2 90.2 88.3-----------------------------------------------------------------------------Gold produced ounces 3,427 5,005 10,509-----------------------------------------------------------------------------(1) Provisional (2) Revised PALITO------The operation has performed well during the quarter, with production continuingto improve. Against this background, management has recently embarked upon two important initiatives:• Introducing plans to overcome the short-term mining bottleneck discussed in the June Investor Update, to ensure mine production matches the planned processing plant upgrades currently underway • A re-assessment of the Palito resource at year-end, in combination with thedevelopment of a more detailed long term mine plan A programme is in place to enable process capacity to achieve 250tpd by year-endand further upgrades are planned to take capacity to 300-350 tpd soonthereafter. The full text of the quarterly update is available from Serabi's offices or fromthe website www.serabimining.com. Enquiries: Serabi Mining plcGraham Roberts Tel: 020 7618 7752Chairman Mobile: 07768 902 475 Clive Line Tel: 020 7618 7754Finance Director Mobile: 07710 151 692 Chris Sattler Tel: 020 7618 7774Manager, Finance and Corporate Development email: contact@serabimining.com This information is provided by RNS The company news service from the London Stock Exchange