Serabi Gold Turns to the G3 Vein to Lift Palito Grades From 4.01 g/t

• Palito's mined grade fell from 5.88 grams per tonne (g/t) gold in the first quarter of 2026 to 4.01 g/t in the third quarter.
• Palito mined 26,465 tonnes (t) of ore in the third quarter, comparable to a year earlier, at grades below budget.
• Coringa's milled grade for the year to date was 7.74 g/t, against 4.90 g/t at Palito.
• Serabi Gold expects Palito's grades to improve in the fourth quarter of 2026 as output from the G3 vein increases.
• An updated mineral resource estimate (MRE) for Palito is expected in the first quarter of 2027. 

Serabi Gold (AIM: SRB | TSX: SBI | OTCQX: SRBIF) produced 11,008 ounces (oz) of gold in the third quarter of 2026, 9% below the same quarter of 2025. The decline was driven by lower-than-expected grades from the Palito Complex. Coringa supplied 23,089 oz of the 34,057 oz produced in the first 9 months of the year, and Palito contributed 10,968 oz. Production for 2026 is now expected to be at a level similar to 2025's 44,169 oz, down from previous guidance of over 53,000 oz, due to permitting delays at Coringa that affected the planned ramp-up.

Palito Grades Through 2026

Palito's mined grade fell through 2026, from 5.88 grams per tonne (g/t) gold in the first quarter to 4.55 g/t in the second and 4.01 g/t in the third. The third-quarter figure compares with 6.29 g/t a year earlier and was below budget. Mined tonnage was 26,465 tonnes (t), comparable to 26,352 t in the third quarter of 2025. Palito produced 4,592 oz, 3,469 oz, and 2,907 oz of gold across the 3 quarters.

Coringa's mined grade ranged from 7.46 g/t to 8.06 g/t across the same 3 quarters. Its third-quarter mined grade of 7.63 g/t was slightly below the 8.23 g/t of a year earlier, and its milled grade for the year to date reached 7.74 g/t, against 4.90 g/t at Palito. Management called Palito's grades disappointing over that period.

Both mines feed the Palito process plant, and Chief Executive Officer of Serabi Gold, Michael Hodgson, traces the shared plant back to a paved road:

"Before that, when it was a dirt road, they were not joined at all. They were separate mines needing separate plants and absolutely everything, so it completely changed our world having that road paved."  

A total of 95,720 t of Coringa ore had been transported to Palito in the 9 months to September 30, 2026. In the third quarter, the plant treated 57,115 t at 6.28 g/t, milling Palito ore at 4.12 g/t and Coringa ore at 7.81 g/t.

Palito Ore Sources & Development  

In the third quarter, Palito produced from 4 zones: Barrichello, G3, Ipe, and Piquet. Development continued on the Barrichello, Senna, and G3 veins, at levels from 126 meters (m) down to the -210 m level on G3. Palito completed 2,562 m of horizontal development in the third quarter and 6,407 m for the year to date.

Hodgson recounts how Serabi Gold built the crews its underground mines need: 

"Underground mining, it's harder to source people locally for underground mining. It's a different skill set, and we've had to train an awful lot of our people from scratch."

Palito's plant capacity has risen from 650 tonnes per day (tpd) to over 900 tpd, with the fourth ball mill at Palito in final commissioning after installation on time and on budget. Annual processing throughput rises to 330,000 t in 2027. Without that expansion, about 60,000 oz a year is the most the 650 tpd plant can support, and the added capacity is there to support increased production once the outstanding Coringa approvals are secured.

The G3 Vein in the Fourth Quarter  

Palito's grades are expected to improve in the fourth quarter of 2026 as Serabi Gold increases output from the G3 vein, where higher-volume, higher-grade blocks are still to be mined.

Drilling in 2026 has also targeted the vein. In the first half, Palito's 2026 program covered 11,522 m across 37 holes, focused on near-mine ounces at Senna, G3, Barrichello, Piauí, and Massa. One G3 hole returned 1.01 m at 7.41 g/t from 431.09 m, including 0.36 m at 13.11 g/t, and 1.39 m at 6.13 g/t from 483.61 m, including 0.25 m at 23.55 g/t. As of September 21, 2026, those 2 intervals were internal assays from Serabi Gold's Palito laboratory, with results from the external ALS laboratory not yet received. A second G3 hole returned 0.36 m at 4.75 g/t, an ALS result. 

The reinterpretation of the G1-G3 corridor at Palito identified new structural drill targets, with a diamond drilling program designed for the second half of 2026 to test them. Under the revised geological framework, several mineralized structures previously considered isolated may form a larger, more continuous system. 

Palito Resources Since 2005 

Palito began production in 2005 with resources of 405,000 oz. By 2026, it had produced a cumulative 464,000 oz, and its resources stood at 585,000 oz. In the mineral resource estimate (MRE) as at January 2026, measured and indicated resources total 427,000 oz at 9.3 g/t, and inferred resources total 158,000 oz at 6.6 g/t. Palito's proven and probable reserve is 228,000 oz at 6.2 g/t. The ore bodies remain open laterally, on strike, and to depth, within an 8-kilometer northwest-southeast trend.

Serabi Gold had long been producing in the region when it bought Coringa, and Hodgson credits part of the local support it won to its long run as a local producer:

"We weren't a here today, gone tomorrow sort of junior. We'd been in there in the trenches for a long, long time." 

The company has consistently produced 30,000 to 40,000 oz a year from the Palito Complex.

What to Watch

Management will update production guidance with the third-quarter financial results, expected in late November 2026. Fourth-quarter output from G3 will show whether Palito's grades move up from the 4.01 g/t mined in the third quarter. Updated MREs for Palito and Coringa are expected in the first quarter of 2027, incorporating every validated result from the 2026 drilling at both mines. 

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