Serabi Gold PLC (LON:SRB) have given an operational update to shareholders today which has led to shares receiving a boost.
Shares in Serabi Gold trade at 83p (+3.75%). 3/3/20 14:18BST.
The gold miner told the market today that it had begun a 9,600 metre step out drill programme in the fourth quarter of 2019.
This operation was to test the east and west continuity of the orebody at the gold project.
Serabi have remained confident that the results from this drilling program can produce results at the Sao Chico orebody.
On the west side, drilling has been undertaken 300 metres beyond the current western limit of the mine, and the intersections are indicative of being able to extend this mine limit
Notably, the CEO Mike Hodgson added: “To the east we have also intersected high grade mineralization with the most easterly hole returning an intersection of 11.7 g/t Au over 1.2 metres. This result is located 220 metres to the east of the current eastern limit of the mine and therefore the orebody remains open to the east and justifies additional step out drilling to test this eastern extension.”
The firm noted that they have completed forty percent of the planned drilling program – and that this will continue until mid 2020.
Hodgson concluded: “The results from this drilling campaign are very encouraging. When the Sao Chico orebody first went into production drilling had been limited to testing of the orebody directly below the original artisanal workings. Subsequent terrestrial geophysics programmes undertaken in 2017 and 2018, highlighted the potential to extend the orebody to the east and west.
“Perhaps the most encouraging result is, however, what is now the deepest intersection at Sao Chico, where hole 19-SCUD-333 has reported a gold grade of 25.37g/t over a width of 4.08 metres. This hole is approximately 200 metres below the current lowest development level in the mine and therefore nearly 500 metres from surface. An intersection of this quality provides us with strong encouragement of continuity of the Sao Chico orebody at depth and therefore potential further resource growth and extended life of the operation.
We have now completed approximately 40 per cent of the planned drilling programme which will continue until mid-2020 following which the Company intends to undertake a new mineral resource estimate during the second half of the year. Results from the remainder of the drilling campaign will be issued as they become available over the coming months.”
Serabi Gold see positive few weeks
In January, the firm told the market that it had seen a productive fourth quarter.
Production in Q4 was up to 10,223 ounces, which topped off annual production at 40,101 ounces, which represented a 7% improvement year-on-year, from 37,108 ounces during 2018.
The company added that during the quarter, it mined a total of 44,092 tonnes of gold at 6.69 g/t of gold, as well as completing 2,908 metres of horizontal development.
Operationally, it stated that it had undertaken electrical and mechanical testing of an ore sorter, which was in the ‘final stages’ of installation between the Group’s crushing and milling sections.
Serabi’s year-end cash holdings stood at US $14.3 million, it anticipates full-year production in the region of 45,000 and 46,000 ounces.
