24th Jun 2014 12:21
LONDON (Alliance News) - Serabi Gold PLC said Tuesday that it expects production at its Palito Mine in Brazil in the second-half of the year to be significantly enhanced in a statement ahead of its annual general meeting.
The company said operations at Palito have continued to progress well. Following its initial three month commissioning phase, process rates close to its long term objectives have been recorded, said Serabi, and the company expects to meet its commercial production targets at the end of its current quarter.
The company acquired a second ball mill earlier in the quarter which it expects to be operational for the start of July. The mill will allow it to set up a second process line for ore from the Sao Chico mine, and in the short term will allow it to run-down the ore stockpile it has established.
This stock-pile was around 18,500 tones at the end of May.
It also expects to begin commissioning its Carbon in Pulp plant early in July and produce its first gold from the plant in early September. This will boost its overall gold recovery from current levels of 75% to 91% to 92%, it said.
Serabi began work at Sao Chico in March on an initial cut back to gain access to the bedrock to establish a mine portal; however, heavy rains have hampered progress. The company said that June has been mostly dry and it has started making good progress again.
It had hoped it would be able to start some development mining in the final quarter of the year, this delay means it does not expects to begin mining development ore until the first quarter of 2015.
Shares in Serabi Gold were trading up 0.3% at 5.39 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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