LONDON (ShareCast) - (Sharecast News) - Brazil-focussed Serabi Gold reported further positive results from its Coringa development project in the Tapajos region of Para State on Wednesday, with initial ore sorting test work confirming amenability to the sorting of Coringa ore, with a "greater than three times" improvement in grade.
The AIM-traded firm said a metallurgical recovery of 96% was achieved from processing Coringa bulk samples through the Palito processing plant.

Underground development was continuing to generate high grade ore at Coringa, with more than 200 metres of on-lode development completed.

Selected channel sample results included 0.65 metres at 99.26 grams of gold per tonne on SRR-320-042, 0.42 metres at 116.18 grams per tonne on SRR-320-044, 0.17 metres at 302.36 grams per tonne on SRR-340-031, and 0.55 metres at 46.53 grams per tonne on SRR-320-050.

It also highlighted 0.52 metres at 55.57 grams of gold per tonne on SRR-340-039, 0.22 metres at 123.62 grams per tonne on SRR-320-052, 0.32 metres at 133.92 grams per tonne on SRR-340-042, and 0.50 metres at 68.59 grams per tonne on SRR-320-056.

"The results from Coringa continue to be excellent and it is particularly pleasing to demonstrate that ore sorting works so well and in addition to achieve an impressive metallurgical recovery of 96%," said chief executive officer Mike Hodgson.

"While these processing results are in line with our expectations based on the significant metallurgical test work that has been completed, achieving gold recovery of 96% on a bulk sample through our full-scale processing facility is a major step in further de-risking Coringa.

"The ability to sort the Coringa ore also brings significant economic benefits, reducing the waste material passing through the plant and therefore processing cost and the volume of tailings generated."

Hodgson said underground mine development was continuing, with more than 200 metres of on-lode development now complete.

"This is enhancing our understanding of the ore-body and also providing a stockpile of high-grade ore that in the near term we will truck to Palito to generate additional gold production and revenue."

At 1129 BST, shares in Serabi Gold were up 6.33% at 42p.

Reporting by Josh White at Sharecast.com.

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