Serabi Gold Continues Robust Production and Development in Brazil

About Serabi Gold

Serabi Gold is a Brazil-focused gold mining and exploration company listed on the London Stock Exchange (AIM:SRB) and Toronto Stock Exchange (TSX:SBI). The company has been operating high-grade gold mines in the Tapajos region of northern Brazil for over 15 years, producing over 400,000 ounces from its flagship Palito complex. Serabi has built a strong track record of exploration success in the region and is advancing its second mine, Coringa, towards production. The experienced management team is focused on organic production growth underpinned by a pipeline of exploration projects.

Highlights from Q3 2023

Serabi Gold recently announced robust production results for the third quarter of 2023, delivering its highest quarterly output so far this year. Gold production from the Palito and Coringa mines totalled 8,738 ounces, up 3% from Q2 2023. The 44,744 tonnes of ore mined also represented the highest quarterly total in 2023, with average grades of 6.69 g/t gold.

The Palito mine continues to perform well, generating mined grades of 6.81 g/t gold in Q3 2023, the highest level this year. Development ore from the emerging Coringa mine contributed over 1,700 ounces to production. Coringa development is progressing faster than expected, requiring less waste development per ounce of gold.

Exploration Alliance Making Excellent Progress

Serabi’s exploration joint venture with Vale continues to advance rapidly across the highly prospective Tapajos tenements. Over 11,400 meters of drilling has now been completed, including 20 holes at the copper-gold Matilda porphyry target. Early drilling results have been encouraging, with copper intercepts up to 0.49% over 60 meters. An induced polarization geophysical survey is underway over the Matilda target area to aid future drill targeting.

Regional exploration is also accelerating, with initial drilling at the Ganso, Calico and Cinderella targets. Extensive soil sampling and geological mapping aims to generate further drill targets across multiple prospects. The exploration alliance with Vale validates the excellent potential of Serabi’s regional ground holdings.

Strong Cash Position to Fund Growth

Serabi ended Q3 2023 with a robust cash balance of $15.3 million, including $0.6 million held for the Vale exploration alliance. The company’s net cash position increased by $2.4 million during the third quarter. This provides a solid platform to advance Coringa towards production and fund ongoing exploration activities.

Permitting Progress at Coringa Mine

In July 2023, Serabi signed an agreement with local indigenous communities regarding the Coringa project, resulting in a six month suspension of a court decision affecting permitting. This demonstrates the willingness of stakeholders to advance Coringa, which will deliver significant economic benefits to the region. Completion of an indigenous study report in the suspension period will extinguish the court process and pave the way for the Installation License granting.

Updated Resource Confirms Long Life for Palito

The updated NI 43-101 resource for the Palito complex announced in October 2023 was an exceptional result. Total measured and indicated resources increased 50% to 377,800 ounces of gold. Reported grades also improved markedly, rising 93% for measured and indicated resources. This underscores the significant geological upside remaining at Palito after 15 years of production.

Other News

Serabi Gold recently announced the purchase of an ore sorter for its Coringa gold project in Brazil. The sorter will increase production capacity once the mine is operational, allowing high grade ore from both the Palito and Coringa mines to be processed at the Palito plant.

The company also secured an impressive 73% of votes to win the Community Relations award at the recent Brazilian Gold Symposium. This recognizes Serabi's excellent community engagement efforts through health, education and infrastructure support programs benefitting neighboring communities.

Conclusion

With over 400,000 ounces mined from Palito to date, the expanded mineral inventory reaffirms a long production life from Serabi’s cornerstone asset. Meanwhile Coringa is on the cusp of swelling production and cash flow, underpinned by excellent project economics. Ongoing drilling across Serabi’s regional land package has generated exciting early results, providing a pipeline of exploration opportunities.

Backed by a strong balance sheet and cash flows from existing operations, Serabi Gold is in a robust position to unlock the full value of its Brazilian assets. The company offers investors excellent leverage to the upside potential from production growth, resource expansion and exploration success. Serabi remains an attractive gold investment opportunity.