LONDON (ShareCast) - (ShareCast News) - Serabi Gold, the Brazilian focused gold mining and development company, announced strong production of gold from its mine in the Tapajos region of Para State, Northern Brazil.
Some 8,148 ounces of gold were produced in the second quarter production, and mine production totalled 42,075 tonnes at 7.80 grammes per tonne of gold, announced the company.

Serabi reported encouraging grades at the Palito sector and at the Sao Chico sector with continued expansion of working areas and development in the former from eight veins out of the 25 included in the geological resource.

Surface ore stocks, said the company, were approximately 12,000 tonnes with an average grade of 3.15 g/t of gold by the end of the second quarter from 13,000 tonnes in March.

Mike Hodgson Serabi's CEO said they were pleased with results in the second quarter: "Following an excellent first quarter, when the Company produced almost 10,000 ounces of gold, we have enjoyed a satisfactory second quarter with further production of over 8,000 ounces. With the mid-year total standing at over 18,000 ounces, we can be very satisfied with the production results for the year to date."

"Mine production from both the Palito and Sao Chico sectors progressed well, although grades were a little lower than scheduled for April and May, resulting in the second quarter gold production being lower than that of the first quarter. The lower grades which were behind this, were largely a result of an operational issue in the Sao Chico sector, where planned higher grade stope production had to be replaced by lower grade development ore. Production improved significantly in June and the operational issue has now been fully resolved"

"We therefore remain confident that full year production guidance will be achieved. At the Palito sector, production remained steady".

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