LONDON (ShareCast) - (Sharecast News) - Brazil-focussed miner and developer Serabi Gold reported fourth quarter production of 7,678 ounces in an update on Monday - a 6% improvement year-on-year.
The AIM-traded firm said total gold production for 2021 was 33,848 ounces, in line with its guidance and an improvement of 7% over 2020.

Total ore mined during the quarter came in at 44,599 tonnes at 5.81 grams of gold per tonne, resulting in an annual total of 170,261 tonnes mined at a grade of 6.59 grams per tonne, making for a 17% improvement in mined grade compared to 2020.

A total of 43,663 tonnes of run-of-mine ore was processed through the plant from the combined Palito and São Chico orebodies in the quarter, with an average grade of 5.9 grams per tonne, resulting in an annual processed tonnage of 170,799 tonnes at a grade of 6.61 grams per tonne, which was also a year-on-year improvement of 17%.

Serabi completed 3,318 metres of horizontal development during the quarter, bringing the year-to-date total to 12,694 metres.

"A solid fourth quarter has resulted in the company meeting guidance and ending the year with approximately 34,000 ounces of gold production, a 7% improvement on 2020 production," said chief executive officer Mike Hodgson.

"The return of higher mined grades have really been the highlight of the year, up by 17%, a dramatic improvement, with much of this down to the established lodes, 'Ipe' and 'Mogno' located within the Chico da Santa (CDS) sector, that have been the cornerstone of the Palito Complex production during 2021.

"It is therefore exciting to see the exploration success during the second half of 2021 showing extensions of these very veins in the CDS sector that have contributed to this production grade improvement, well beyond the current mine limits, both along strike and at depth, a positive indication for future grades and payability."

Hodgson said that Sao Chico, the company also saw the evolution of the Gabi Vein, noting that during the year the company re-evaluated the zone which is to the south of the Main Vein.

"Initial results are very exciting and clearly illustrate the lateral potential that exists at Sao Chico.

"With multiple payable drill hole intercepts into the vein covering a strike length of over 1,000 metres and depth of 400 metres, it demonstrates potential to add significant additional mineral resources from this new ore zone, which also appears amenable to selective mining.

"With the Gabi Vein just 70 metres south of current mine development, access is simple and during the early part of 2022 confirmatory infill drilling will be conducted."

As well as "pleasing" gold production, Mike Hodgson said the quarter saw the mine development at the Coringa gold project continuing as planned.

"I am delighted to report we are scheduled to intersect the first of three veins at approximately 320mRL elevation before the end of the year.

"The ground conditions are excellent, and after installing some initial rock support around the portal, the Coringa rock conditions look every bit as good as we see at Palito."

Serabi said it would report on the first intersections into the Serra Zone in the coming weeks.

"Serabi will continue to push forward with its exploration campaign as we seek to drive resource growth and continue our track record of reserve replacement, together with our objective of increasing production towards our goal of becoming a 100,000 ounce per annum gold producer."

At 1146 GMT, shares in Serabi Gold were down 3.45% at 56p.

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