28th Jul 2015 10:43
LONDON (Alliance News) - Serabi Gold PLC Tuesday said it achieved its best ever production results from its two Brazilian mines in the second quarter of 2015 and reiterated its full-year guidance.
The gold miner operating in Brazil said it produced 8,237 ounces in the second quarter of 2015, comprised of 7,141 ounces from the Palito mine and 783 ounces from the Sao Chico mine, with the balance being made up from processing some of its stockpile from 2014. That compares to the 3,242 ounces of gold produced a year earlier.
It brought gold production for the first half of the year to 15,626 ounces of gold, which is also considerably higher than the 5,542 ounces produced a year ago.
Surface stockpiles at the end of June stood at 11,392 tonnes of ore at an average grade of 3.5 grammes of gold per tonne between the two mines.
"With a total stockpile of over 45,000 tonnes of flotation tails recovered from 2014 plant production, the company will continue processing of this material when possible," said the company, which warned this may not always be possible as the capacity at the plant is stretched due to the performance at the mines.
Serabi still expects to produce around 35,000 ounces of gold in the whole of 2015 at an all-in sustaining cash cost of around USD950 per ounce, compared to the spot gold price which was trading at around USD1,092 per ounce on Tuesday morning.
"As we enter the third quarter of 2015, it is very satisfying to report that the second quarter has continued the trend of excellent production results. Overall production was approximately 8,200 ounces of gold, the best production quarter to date from the combined Palito and Sao Chico operations," said Chief Executive Mike Hodgson.
"For three consecutive quarters we have been able to demonstrate steady growth in gold production since our declaration of commercial production one year ago. Palito is very much in regime, and the next six months will see increasing levels of gold production from Sao Chico," he added.
Serabi shares were up 1.9% to 3.95 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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