Serabi Gold updates on ops at Palito and Sao Chico

Serabi Gold has provided an operational update for Q3 of 2016 on its wholly owned Palito and Sao Chico gold operations in the Tapajos region of Para State, Northern Brazil.


- Record quarterly gold production of 10,233 ounces for the third quarter of 2016 (Q2 2016 - 9,896 ounces).

- Increase in the full year production guidance to approximately 39,000 ounces of gold representing a 5 per cent improvement compared with its previous guidance of 37,000 ounces for the year.

- Mine production totalled 43,133 tonnes, a 28 per cent increase over the preceding quarter; 31,916 tonnes at a grade of 9.52 grammes per tonne (g/t) of gold from Palito; 11,217 tonnes at 9.88 g/t of gold from Sao Chico.

- 42,464 tonnes of ore processed through the plant for the combined mining operations.

- 2,649 metres of horizontal mine development completed in the quarter with 1,607 metres completed at Palito and 1,042 metres at Sao Chico.

- With the third ball mill operational from the end of the second quarter, along with a second flotation line and enhancements in the carbon in pulp ("CIP"), work has commenced on the installation of a new carbon regeneration kiln which should be completed in the early part of the fourth quarter. The kiln will regenerate 'fouled' carbon and enhance gold recoveries.

- These plant enhancements have increased plant capacity from 380-400 tonnes per day (tpd) to over 500 tpd. This additional capacity of approximately 100 tpd is being used to consume the surface stockpile as much as practicably possible.

- Sao Chico has now been deepened to the 86m level, some 150 vertical metres below surface. The ramp is continuing at a slower rate to the 71m level.

- During the third quarter, underground exploration drilling continued at both sites. At Sao Chico the first 17 holes of a 6,000 metre programme were completed. The programme is testing the continuity of the central ore-zone below the current deepest workings at 86m down to level -20m.

- At the end of the third quarter, the combined surface stockpiles at Palito and Sao Chico totalled 11,000 tonnes at an average grade of 3.3 g/t of gold.