Serabi Mining plc ("Serabi" or "the Company")
Quarterly Investor Update
Serabi advises that it has today issued its investor newsletter for the third quarter of 2007 ending 30 September 2007.
The full version of the quarterly update is attached to this release and is also available from Serabi's offices: Cleary Court, 21-23 St Swithins Lane, London EC4N 8AD or from the Company's website:
www.serabimining.com
The company has highlighted in its newsletter the following matters:
- Continuing exploration success at Jardim do Ouro projects points to near-term production potential
- Significant expansion of exploration programme underway following discovery of new mineralisation and breakthrough identification of key exploration tool
- Quarterly production was 8,176 ounces gold equivalent with mine output and plant processing levels maintained at prior quarter rates
- Introduction of new mining equipment set to lift development gold grades by up to 50%
- Upgrade of CIP recovery circuit will improve overall gold recoveries by 2%
- Appointment of new CEO at Serabi plc and Managing Director in Brazil strengthens management team ahead of growth plans
|
Palito - Operating Results (1) |
|
|
|
2007 |
2006 |
|
|
|
Q1 |
Q2 |
Q3 |
YTD |
YTD |
|
Total Mined
(per day) |
t |
55,251
(614) |
61,567
(677) |
56,903
(619) |
173,721
(506) |
109,232
(400) |
|
Mined Ore
(per day) |
t |
42,217
(469) |
50,058
(550) |
45,754
(497) |
138,029
(506) |
98,017
(359) |
|
Milled
(per day) |
t |
42,705
(475) |
45,245
(497) |
45,054
(490) |
133,004
(487) |
84,859
(311) |
|
Head Grade |
g/t |
6.5 |
6.0 |
5.4 |
5.9 |
9.4 |
|
Recovery |
% |
89.6 |
91.1 |
90.0 |
90.2 |
91.5 |
|
Gold |
oz |
8,044 |
7,888 |
7,021 |
22,953 |
23,518 |
|
Copper |
t |
125.6 |
127.0 |
96.2 |
348.8 |
344.4 |
|
Gold Equivalent (2) |
oz |
9,301 |
9,417 |
8,176 |
26,894 |
27,510 |
Much of the effort over the last quarter has been focused on the completion of planning and implementation of exploration and development programmes, which formed the basis for a share placement completed in July that raised �12.5 million.
Evaluations of Ruari's Ridge, Palito West and Chico da Santa have continued to produce good results. The development of an exploration adit at Ruari's Ridge is underway with good mineralisation 200 metres north west of the airstrip and Palito West is emerging as a more significant feature than previously thought. The more recent interpretations at the Chico da Santa prospect has confirmed the presence of widespread, high-grade mineralisation within sufficient proximity to enable access from the existing Palito Main Zone operation. Further evaluation of these prospects will be undertaken during the fourth quarter.
The highlight of exploration activity has been the successful use of ground electromagnetic (EM) surveys undertaken at the Jardim do Ouro. The technique has successfully delineated sulphide mineralisation which at Palito is required for the occurrence of the copper-gold deposits..
Confidence in this technique as an exploration tool is such that the Company has contracted a helicopter-borne EM survey to be flown over 6,000 hectares of the Jardim do Ouro district. It is expected that the survey will improve delineation of known deposits and identify a number of other targets, which will then be followed up as part of a 25,000 metre drill programme.
Within the mining operations, grade dilution associated with the high level of development activity has continued and is likely to impact production until the end of the year. However, the introduction of mini scoop-trams scheduled to be delivered at the end of the year is expected to alleviate this issue. An improvement in the grade of development ore of some 2g/t is expected, which at current production levels could add some 10,000 ounces to annual production.
The process plant continued to perform well and an upgrade to the CIP gold recovery circuit is planned, which is expected to improve gold recoveries by some 2% equivalent to 1,000 ounces per year at current production levels.
Enquiries:
Serabi Mining plc
Graham Roberts Tel: 020 7220 9550
Chairman Mobile: 07768 902 475
Clive Line Tel: 020 7220 9550
Finance Director Mobile: 07710 151 692
Numis Securities Limited
John Harrison Tel: 020 7260 1000
James Black Tel: 020 7260 1000
Parkgreen Communications
Simon Robinson Tel: 020 7851 7480