Q2 2024 Production Results and Operational
Highlights
Serabi Gold plc (“Serabi” or the
“Company”) (AIM: SRB, TSX: SBI), is pleased to announce
the Company’s second quarter production results and operating
highlights for FY2024. (All financial amounts are expressed in U.S.
dollars unless otherwise indicated).
QUARTER HIGHLIGHTS
- Q2-2024 gold
production of 9,003 ounces; a 6% improvement on Q2-2023.
- Coringa
contributed 4,752 ounces of gold production at plant grades of 6.25
g/t gold.
- Palito plant
processed a record quarterly total of over 55,000 tonnes of
ore.
- Cash held on 30
June was $12.0 million vs cash held on 31 December 2023 of $11.6
million.
- Net cash balance
at the end of Q2-2024 (after interest bearing loans and lease
liabilities) of $6.6m (31 December 2023: net cash $5.0
million)
- Construction of
the classification plant (crusher and ore sorter) is well underway
at Coringa, with the crusher expected to be operational in August
while the ore sorter remains on track to being operational by the
start of Q4.
- NCL Ingeniería y
Construcción SpA of Santiago de Chile (“NCL”) continue to progress
the updated Preliminary Economic Study (PEA) at Coringa, which will
incorporate a revised geological resource, and economic study
outlining the planned use of the classification plant and process
at the Palito Complex.
- The Company is
reiterating FY2024 consolidated gold production guidance of 38,000
– 40,000 ounces.
An interview with Mike Hodgson, CEO by Crux
Investor can be accessed using the following link :
https://youtu.be/pVvRVh6Eu94
Mike Hodgson, CEO of Serabi,
commented:
“The mid-year position looks very positive after a second
consecutive quarter exceeding 9,000 ounces which is both very
satisfactory and maintains us in line with guidance. The process
plant continued to perform admirably with a quarterly record of
over 55,000 milled tonnes. Mine output exceeded 59,000 tonnes,
which was also the highest ROM total in 3 years.
Taking Coringa first, the operation continued to contribute
significantly with 4,752 ounces reported. With mining now on levels
320m, 290m and 260m, development continues on levels 260m, 225m and
195m. The main ramp will reach level 165m in July so Serabi will
have four development levels ahead of production. The significant
development we have completed to date places Coringa in a very
healthy position for future production expansion.
This development ahead of production is made all the easier by
the high (approximately 90%) payability of the Serra orebody.
Simply put, this means the conversion of inferred resources into
reserves is a remarkable 90%.
The classification plant being assembled at Coringa is
progressing as planned and we expect it operational by Q4. The
Company’s plans to pre-concentrate mined ore at the Coringa mine
site and truck a preconcentrated product to the Palito plant, 200km
to the north, will be formally documented in the forthcoming
Preliminary Economic Assessment (“PEA”) which is underway by NCL.
The NI 43-101 compliant Technical Report will incorporate the
revised geological resource and economic study including projected
operating costs considering the planned use of the classification
plant and processing at the Palito Complex.
At Palito, the mine has seen excellent mined tonnages but grades
have been below forecast. As noted in our Q1 Operational Update
(news release dated 17 April 2024), one particular area in the
Chico da Santa sector required a move to a more mechanised bulk
method on safety grounds resulting in higher tonnages at lower
grades due to unavoidable dilution. I am pleased to say we are
working our way through the problems and seeing a return to
selective mining with each successive month. The process plant
performance has been exceptional with over 55,000 tonnes milled
during the quarter equivalent to 600 tonnes per day, and we have
now had a consistent six months of throughput at these new record
levels. We are tracking well towards
guidance, and with the classification plant progressing according
to plan at Coringa I am optimistic for the second half of 2024. We
look forward to the forthcoming PEA for Coringa during Q3 and
seeing the ore sorter operational in Q4.”
|
SUMMARY PRODUCTION STATISTICS FOR 2024 AND
2023 |
|
|
Qtr 1 |
Qtr 2 |
YTD |
Qtr 1 |
Qtr 2 |
Qtr 3 |
Qtr 4 |
Full Year |
2024 |
2024 |
2024 |
2023 |
2023 |
2023 |
2023 |
2023 |
Group |
|
|
|
|
|
|
|
|
|
Gold
production (1)(2) |
Ounces |
9,007 |
9,003 |
18,010 |
8,005 |
8,518 |
8,738 |
7,891 |
33,153 |
Mined
ore |
Tonnes |
56,296 |
59,563 |
115,860 |
41,546 |
41,022 |
44,744 |
49,541 |
176,853 |
|
Gold grade (g/t) |
5.31 |
5.06 |
5.18 |
6.49 |
6.94 |
6.64 |
5.22 |
6.28 |
Milled
ore |
Tonnes |
54,521 |
55,192 |
109,713 |
39,004 |
41,116 |
43,092 |
48,988 |
172,200 |
|
Gold grade (g/t) |
5.38 |
5.31 |
5.34 |
6.75 |
6.84 |
6.72 |
5.31 |
6.35 |
Palito Complex |
|
|
|
|
|
|
|
|
|
Gold
production (1)(2) |
Ounces |
5,135 |
4,251 |
9,386 |
5,776 |
6,332 |
7,025 |
5,197 |
24,330 |
Mined
ore |
Tonnes |
36,471 |
30,488 |
66,959 |
31,705 |
31,901 |
35,219 |
35,497 |
134,073 |
|
Gold grade (g/t) |
4.72 |
4.52 |
4.63 |
6.14 |
6.68 |
6.81 |
4.78 |
6.08 |
Milled
ore |
Tonnes |
35,861 |
30,750 |
66,611 |
31,273 |
31,901 |
34,515 |
35,625 |
133,314 |
|
Gold grade (g/t) |
4.73 |
4.56 |
4.65 |
6.14 |
6.63 |
6.81 |
4.88 |
6.09 |
Horizontal development |
Metres |
2,154 |
2,252 |
4,406 |
2,010 |
2,469 |
2,325 |
2,327 |
9,132 |
Coringa |
|
|
|
|
|
|
|
|
|
Gold
production (1)(2) |
Ounces |
3,871 |
4,752 |
8,623 |
2,229 |
2,186 |
1,713 |
2,694 |
8,822 |
Mined
ore |
Tonnes |
19,825 |
29,076 |
48,901 |
9,841 |
9,370 |
9,525 |
14,044 |
42,780 |
|
Gold grade (g/t) |
6.39 |
5.62 |
5.93 |
7.63 |
7.83 |
5.99 |
6.33 |
6.88 |
Milled
ore |
Tonnes |
18,660 |
24,441 |
43,101 |
7,731 |
9,215 |
8,577 |
13,363 |
38,886 |
|
Gold grade (g/t) |
6.61 |
6.25 |
6.41 |
9.22 |
7.59 |
6.37 |
6.45 |
7.25 |
Horizontal development |
Metres |
933 |
1,229 |
2,162 |
452 |
508 |
598 |
807 |
2,356 |
(1) The
table may not sum due to rounding.
(2) Production
numbers are subject to change pending final assay analysis from
refineries.
OPERATIONAL RESULTS
Total production for the second quarter was
9,003 ounces, 4,251 ounces from Palito Complex and 4,752 ounces
from Coringa.
Total ore mined from the Palito Complex during
the quarter was 30,488 tonnes at 4.52 g/t compared to 36,471 tonnes
at 4.72 g/t of gold for the first quarter of 2024. 29,076 tonnes at
5.62 g/t were mined from Coringa compared with 19,825 tonnes at
6.39 g/t for the first quarter of 2024. Five levels are now being
worked at Coringa from level 340m to level 195m. The main ramp is
expected to reach the next development level, 165m by the end of
July.
The Palito Complex process plant treated 55,192
tonnes of ROM ore during the quarter, with an average grade of 5.31
g/t of gold, compared with 54,521 tonnes at 5.38 g/t in the first
quarter of 2024. This included 24,441 tonnes of Coringa ore at a
feed grade of 6.25 g/t.
A total of 3,481 metres of horizontal
development has been completed across the Palito Complex and
Coringa. 2,252 metres of horizontal development were recorded at
Palito Complex, of which 1,647 metres were ore development. The
balance is the ramp, crosscuts and stope preparation development.
Horizontal development at Coringa totalled 1,229 metres, of which
679 metres were in ore.
The Coringa orebody continues to perform very
well, with the uppermost levels 320m, 290m and 260m in production
and development. Of the lower levels 225m is fully developed with
level 195m in active development. The main ramp will intersect
level 165m next month. As a result, Coringa now has close to two
full levels developed ahead of stoping, and with a third about to
commence next month this is a very strong position.
The Palito Complex processed the highest volume since 2021,
however grades were below budget. This was due to the lower than
planned mined grades coming from the bulk mining of the Chico da
Santa (CDS) sector. The switch to mechanised bulk mining from more
selective mining had to be made on safety grounds. Bulk mining is
where non-entry long hole open stoping is used as opposed to the
very proven selective open stoping method. The difference is the
workers do not enter the mining area. The CDS zone was considered
too wide to use selective open stoping, and on safety grounds bulk
mining has been adopted the past 4 months. Even with extensive
cable bolting to support the sidewalls, excessive dilution is a
consequence, resulting in greater volume and lower, though still
viable grades.
Palito grades have improved in May and June, and we anticipate
Palito grades to return to the 6-7g/t Au range seen in the first 9
months of 2023.
CORINGA LICENCING
As reported last quarter, in January 2024, the
Company received the renewal of the GUIA trial mining license, for
a period of three years and it is under the GUIA license that
Coringa is operating. With respect to progress on the Installation
License (LI), the Company along with its environmental consultancy,
Araca, have now completed the Plano Basico Ambiental (PBA), and
this study has been incorporated into the Indigenous Impact Report
(ECI) and was submitted to FUNAI (the federal agency for indigenous
communities) during the quarter for approval.
FINANCE UPDATE
Cash balances at the end of June 2024 were $12.0
million, in comparison to the cash balances at the end of March
2024 of $11.1 million. On 7 January 2024, the Group completed a
$5.0 million unsecured loan arrangement with Itau Bank in Brazil.
The loan is repayable as a bullet payment on 6 January 2025 and
carries an interest coupon of 8.47 per cent. The proceeds raised
from the loan are being used for working capital and secure
adequate liquidity to repay a similar arrangement which was repaid
on 22 February 2024. The Company had a net cash balance
at the end of Q2-2024 (after interest bearing loans and lease
liabilities) of $6.6m (31 December 2023: net cash $5.0 million)
FY2024 PRODUCTION GUIDANCE
The Company continues to estimate FY2024
consolidated gold production of 38,000 – 40,000 ounces.
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations (EU)
No. 596/2014 as it forms part of UK Domestic Law by virtue of the
European Union (Withdrawal) Act 2018.
The person who arranged for the release of this
announcement on behalf of the Company was Clive Line, Director.
Enquiries
SERABI GOLD plcMichael
Hodgson t
+44 (0)20 7246 6830Chief
Executive m
+44 (0)7799 473621
Clive
Line t
+44 (0)20 7246 6830Finance
Director m
+44 (0)7710 151692
Andrew Khov
m
+1 647 885 4874Vice President, Investor Relations & Business
Development e
contact@serabigold.com
www.serabigold.com
BEAUMONT CORNISH LimitedNominated
Adviser & Financial AdviserRoland Cornish / Michael
Cornish t
+44 (0)20 7628 3396
PEEL HUNT LLPJoint UK
BrokerRoss
Allister t
+44 (0)20 7418 9000
TAMESIS PARTNERS LLPJoint UK
BrokerCharlie Bendon/ Richard
Greenfield t
+44 (0)20 3882 2868
CAMARCOFinancial PR -
EuropeGordon Poole / Emily
Hall t
+44 (0)20 3757 4980
HARBOR ACCESS Financial PR – North
AmericaJonathan Patterson / Lisa
Micali t
+1 475 477 9404
Copies of this announcement are available from
the Company's website at www.serabigold.com.
See
www.serabigold.com for more information
and follow us on twitter @Serabi_Gold
GLOSSARY OF TERMS
The following is a glossary of technical
terms:
“actinolite” |
amphibole silicate mineral commonly found in metamorphic rocks,
including those surrounding cooled intrusive igneous rocks |
“Ag” |
means silver. |
“alkalic porphyry” |
A class of copper-porphyry mineral deposits characterised by
disseminated mineralisation within and immediately adjacent to
silica-saturated to silica-undersaturated alkalic intrusive centres
and being copper/gold/molybdenum-rich. |
“albite” |
is a plagioclase feldspar mineral |
“aplite” |
An intrusive igneous rock in which the mineral composition is the
same as granite, but in which the grains are much finer |
“argillic alteration” |
is hydrothermal alteration of wall rock which introduces clay
minerals including kaolinite, smectite and illite |
“AISC” |
means All-In Sustaining Cost – a non IFRS performance measurement
established by the World Gold Council |
“ANM” |
means the Agencia Nacional de Mineral. |
“Au” |
means gold. |
“assay” |
in economic geology, means to analyse the proportions of metal in a
rock or overburden sample; to test an ore or mineral for
composition, purity, weight or other properties of commercial
interest. |
“biotite” |
A phyllosilicate mineral composed of a silicate of iron,
magnesium, potassium, and aluminum found in crystalline rocks and
as an alteration mineral. |
“breccia” |
a rock composed of large angular broken fragments of minerals or
rocks cemented together by a fine-grained matrix |
“brecciation” |
Describes the process where large angular broken fragments of
minerals or rocks become cemented together by a fine-grained
matrix. |
“CIM” |
means the Canadian Institute of Mining, Metallurgy and
Petroleum. |
“CIP” or “Carbon in Pulp” |
means a process used in gold extraction by addition of
cyanide. |
“chalcopyrite” |
is a sulphide of copper and iron. |
“copper porphyry” |
copper ore body formed from hydrothermal fluids. These fluids will
be predated by or associated with are vertical dykes of porphry
intrusive rocks |
“Cu” |
means copper. |
“cut-off grade” |
the lowest grade of mineralised material that qualifies as ore in a
given deposit; rock of the lowest assay included in an ore
estimate. |
“dacite porphyry intrusive” |
a silica-rich igneous rock with larger phenocrysts (crystals)
within a fine-grained matrix |
“deposit” |
is a mineralised body which has been physically delineated by
sufficient drilling, trenching, and/or underground work, and found
to contain a sufficient average grade of metal or metals to warrant
further exploration and/or development expenditures; such a deposit
does not qualify as a commercially mineable orebody or as
containing ore reserves, until final legal, technical, and economic
factors have been resolved. |
“electromagnetics” |
is a geophysical technique tool measuring the magnetic field
generated by subjecting the sub-surface to electrical
currents. |
“epidote” |
is a calcium aluminium iron sorosilicate mineral |
“garimpo” |
is a local artisanal mining operation |
“garimpeiro” |
is a local artisanal miner. |
“geochemical” |
refers to geological information using measurements derived from
chemical analysis. |
“geophysical” |
refers to geological information using measurements derived from
the use of magnetic and electrical readings. |
“geophysical techniques” |
include the exploration of an area by exploiting differences in
physical properties of different rock types. Geophysical methods
include seismic, magnetic, gravity, induced polarisation and other
techniques; geophysical surveys can be undertaken from the ground
or from the air. |
“gold equivalent” |
refers to quantities of materials other than gold stated in units
of gold by reference to relative product values at prevailing
market prices. |
“gossan” |
is an iron-bearing weathered product that overlies a sulphide
deposit. |
“grade” |
is the concentration of mineral within the host rock typically
quoted as grams per tonne (g/t), parts per million (ppm) or parts
per billion (ppb). |
“g/t” |
means grams per tonne. |
“granodiorite” |
is an igneous intrusive rock like granite. |
“hectare” or a “ha” |
is a unit of measurement equal to 10,000 square metres. |
“hematite” |
is a common iron oxide compound |
“igneous” |
is a rock that has solidified from molten material or magma. |
“indicated mineral resource” |
is that part of a mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics can be
estimated with a level of confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable
exploration and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for
geological and grade continuity to be reasonably assumed. |
“inferred mineral resource” |
is that part of a mineral resource for which quantity and grade or
quality can be estimated on the basis of geological evidence and
limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited
information and sampling gathered through appropriate techniques
from locations such as outcrops, trenches, pits, workings and drill
holes. |
“IP” |
refers to induced polarisation, a geophysical technique whereby an
electric current is induced into the sub-surface and the
conductivity of the sub-surface is recorded. |
“intrusive” |
is a body of rock that invades older rocks. |
“lithocap” |
Lithocaps are subsurface, broadly stratabound alteration domains
that are laterally and vertically extensive. They form when acidic
magmatic-hydrothermal fluids react with wallrocks during ascent
towards the paleosurface. |
“measured mineral resource” |
is that part of a mineral resource for which quantity, grade or
quality, densities, shape, and physical characteristics are so well
established that they can be estimated with confidence sufficient
to allow the appropriate application of technical and economic
parameters, to support production planning and evaluation of the
economic viability of the deposit. The estimate is based on
detailed and reliable exploration, sampling and testing information
gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes that are spaced
closely enough to confirm both geological and grade
continuity. |
“mineralisation” |
the concentration of metals and their chemical compounds within a
body of rock. |
“mineralised” |
refers to rock which contains minerals e.g. iron, copper,
gold. |
“mineral reserve” |
is the economically mineable part of a measured or indicated
mineral resource demonstrated by at least a preliminary feasibility
study. This study must include adequate information on mining,
processing, metallurgical, economic and other relevant factors that
demonstrate, at the time of reporting, that economic extraction can
be justified. A mineral reserve includes diluting materials and
allowances for losses that may occur when the material is
mined. |
“mineral resource” |
is a concentration or occurrence of diamonds, natural solid
inorganic material or natural fossilised organic material including
base and precious metals, coal, and industrial minerals in or on
the Earth’s crust in such form and quantity and of such a grade or
quality that it has reasonable prospects for economic extraction.
The location, quantity, grade, geological characteristics and
continuity of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge. |
“Mo-Bi-As-Te-W-Sn” |
Molybdenum-Bismuth-Arsenic-Tellurium-Tungsten-Tin |
“magnetite” |
Magnetic mineral composed of iron oxide found in intrusive rocks
and as an alteration mineral. |
“monzodiorite” |
Is an intrusive rock formed by slow cooling of underground
magma. |
“monzogranite” |
a biotite rich granite, often part of the later-stage emplacement
of a larger granite body. |
“mt” |
means million tonnes. |
“NI 43-101” |
means Canadian Securities Administrators’ National Instrument
43-101 – Standards of Disclosure for Mineral Projects. |
“ore” |
means a metal or mineral or a combination of these of sufficient
value as to quality and quantity to enable it to be mined at a
profit. |
“oxides” |
are near surface bed-rock which has been weathered and oxidised by
long-term exposure to the effects of water and air. |
“paragenesis” |
Is a term used to describe the sequence on relative phases of
origination of igneous and metamorphic rocks and the deposition of
ore minerals and rock alteration. |
“phyllic alteration” |
is a hydrothermal alteration zone in a permeable rock that has been
affected by circulation of hydrothermal fluids |
“porphry” |
any of various granites or igneous rocks with coarse grained
crystals |
“ppm” |
means parts per million. |
“proterozoic” |
means the geological eon (period) 2.5 billion years ago to 541
million years ago |
“pyrite” |
an iron sulphide mineral |
“quartz-alunite ± kaolinite” |
Alunite is a hydroxylated aluminium potassium sulfate mineral. It
presence is typical in areas of advanced argillic alteration and
usually accompanied by the presence of quartz (a crystalline silica
mineral) and sometimes kaolinite.(a clay mineral). |
“saprolite” |
is a weathered or decomposed clay-rich rock. |
“scapolites” |
are a group of rock-forming silicate minerals composed of
aluminium, calcium, and sodium silicate with chlorine, carbonate
and sulfate |
“sulphide” |
refers to minerals consisting of a chemical combination of sulphur
with a metal. |
“tailings” |
are the residual waste material that it is produced by the
processing of mineralised rock. |
“tpd” |
means tonnes per day. |
“vein” |
is a generic term to describe an occurrence of mineralised rock
within an area of non-mineralised rock. |
“VTEM” |
refers to versa time domain electromagnetic, a particular variant
of time-domain electromagnetic geophysical survey to prospect for
conductive bodies below surface. |
“vuggy” |
a geological feature characterised by irregular cavities or holes
within a rock or mineral, often formed by the dissolution or
removal of minerals leaving behind empty spaces |
Assay ResultsAssay results reported within this
release include those provided by the Company's own on-site
laboratory facilities at Palito and have not yet been independently
verified. Serabi closely monitors the performance of its own
facility against results from independent laboratory analysis for
quality control purpose. As a matter of normal practice, the
Company sends duplicate samples derived from a variety of the
Company's activities to accredited laboratory facilities for
independent verification. Since mid-2019, over 10,000 exploration
drill core samples have been assayed at both the Palito laboratory
and certified external laboratory, in most cases the ALS laboratory
in Belo Horizonte, Brazil. When comparing significant assays with
grades exceeding 1 g/t gold, comparison between Palito versus
external results record an average over-estimation by the Palito
laboratory of 6.7% over this period. Based on the results of this
work, the Company's management are satisfied that the Company's own
facility shows sufficiently good correlation with independent
laboratory facilities for exploration drill samples. The Company
would expect that in the preparation of any future independent
Reserve/Resource statement undertaken in compliance with a
recognized standard, the independent authors of such a statement
would not use Palito assay results without sufficient duplicates
from an appropriately certificated laboratory.
Forward-looking statementsCertain statements in
this announcement are, or may be deemed to be, forward looking
statements. Forward looking statements are identified by their use
of terms and phrases such as ‘‘believe’’, ‘‘could’’, “should”
‘‘envisage’’, ‘‘estimate’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘will’’
or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking
statements are not based on historical facts but rather on the
Directors’ current expectations and assumptions regarding the
Company’s future growth, results of operations, performance, future
capital and other expenditures (including the amount, nature and
sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect
the Directors’ current beliefs and assumptions and are based on
information currently available to the Directors. Several factors
could cause actual results to differ materially from the results
discussed in the forward-looking statements including risks
associated with vulnerability to general economic and business
conditions, competition, environmental and other regulatory
changes, actions by governmental authorities, the availability of
capital markets, reliance on key personnel, uninsured and
underinsured losses and other factors, many of which are beyond the
control of the Company. Although any forward-looking statements
contained in this announcement are based upon what the Directors
believe to be reasonable assumptions, the Company cannot assure
investors that actual results will be consistent with such forward
looking statements.
Qualified Persons StatementThe scientific and
technical information contained within this announcement has been
reviewed and approved by Michael Hodgson, a Director of the
Company. Mr Hodgson is an Economic Geologist by training with over
30 years' experience in the mining industry. He holds a BSc (Hons)
Geology, University of London, a MSc Mining Geology, University of
Leicester and is a Fellow of the Institute of Materials, Minerals
and Mining and a Chartered Engineer of the Engineering Council of
UK, recognizing him as both a Qualified Person for the purposes of
Canadian National Instrument 43-101 and by the AIM Guidance Note on
Mining and Oil & Gas Companies dated June 2009.
NoticeBeaumont Cornish Limited, which is
authorised and regulated in the United Kingdom by the Financial
Conduct Authority, is acting as nominated adviser to the Company in
relation to the matters referred herein. Beaumont Cornish Limited
is acting exclusively for the Company and for no one else in
relation to the matters described in this announcement and is not
advising any other person and accordingly will not be responsible
to anyone other than the Company for providing the protections
afforded to clients of Beaumont Cornish Limited, or for providing
advice in relation to the contents of this announcement or any
matter referred to in it.
Neither the Toronto Stock Exchange, nor any other securities
regulatory authority, has approved or disapproved of the contents
of this news release
Grafico Azioni Serabi Gold (TSX:SBI)
Storico
Da Nov 2024 a Dic 2024
Grafico Azioni Serabi Gold (TSX:SBI)
Storico
Da Dic 2023 a Dic 2024