Serabi Gold commissions Coringa classification plant
By Josh White
Date: Thursday 19 Dec 2024
(Sharecast News) - Brazil-focused gold mining and development company Serabi Gold announced the full commissioning of the classification plant at its Coringa Gold Operation in Brazil's Pará State on Thursday.
The AIM-traded firm said the commissioning was a significant milestone for Coringa, which is wholly-owned by Serabi Gold and located in the Tapajós region, a prolific area for gold production.
It said the progress aligned with its strategy to expand operations and production capacity.
Serabi Gold currently produces 30,000 to 40,000 ounces of gold annually from its Palito Complex, and was planning to double output in the coming years with the development of Coringa.
The company had also reported a copper-gold porphyry discovery within its extensive exploration licence area, further strengthening its growth prospects.
"With Coringa continuing to ramp up and generate positive free cash flow, we are pleased to share that our classification plant at Coringa is operational and working as expected," said chief executive officer Mike Hodgson.
"The plant will be instrumental in achieving phase one of our growth strategy, which is to raise our annual production profile to 60,000 ounces by 2026.
"This marks the culmination of 10 months of construction and commissioning and is a critical achievement for the company."
Hodgson said the company's fourth quarter was shaping up to be the best quarter of the year, as expected, partly driven by the improvement in grades at Palito, which returned to the six-to-seven grams of gold per tonne range in recent months.
"Now with the commissioning of the Coringa plant, we expect the fourth quarter to be our best operational quarter since 2020.
"We can now direct our attention to phase two, which is to grow our resources at both Palito and Coringa, and ultimately support an annual production profile of 100,000-ounces-plus."
An expected year end cash position to exceed $21m, and in conjunction with the firm's expected free cash flow generation, would allow Serabi to fund an extensive brownfield exploration programme to significantly grow the resource at Coringa and Palito for the first time in a number of years, rather than replenishing its depleted ounces, Mike Hodgson explained.
"Our exploration programme is planned for up to 30,000 metres of drilling in 2025 with a budget of approximately $8m."
At 1214 GMT, shares in Serabi Gold were down 0.69% at 122.15p.
Reporting by Josh White for Sharecast.com.
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