Serabi Gold PLC on Friday said its updated mineral resource estimate for the Palito complex has indicated a ‘significant increase’ in gold.

The Brazilian-focused gold mining and development company said there is a measured and indicated resource of 377,800 ounces of contained gold, increasing 50% from its December 2021 estimate.

It said the resource is 1.2 million tonnes at an average grade of 10.08 grammes of gold per tonne. It noted that the average reported grade of the measured and indicated resources, 10.08 grammes, increased from 5.23 grammes previously.

It said there is a further inferred resource of 153,900 ounces, or 682,400 tons at an average grade of 7.01 grammes per tonne. The average reported grade for the inferred resource was up 45% to 7.01 grammes, from 4.8 grammes.

Chief Executive Mike Hodgson said: ‘This significant increase in geological resources for the Palito deposit since the last published estimation as of December 2021, is the result of an aggressive underground drilling programme over the last 18 months which has clearly been very successful. I am pleased to report that we now have a total mineral resource inventory across Coringa and the Palito Complex in excess of one million ounces.

‘We have continually maintained that Palito is a long-life asset which can be difficult to demonstrate within a narrow vein underground deposit. When mining started in 2005, the maiden resource was approximately 400,000 ounces. With over 15 years of production during which more than 400,000 ounces has been mined, and to now have a new total mineral inventory in excess of 500,000 ounces is not only extremely encouraging but it clearly demonstrates the geological potential and a successful resource replacement strategy.’

Hodgson added that there is ‘no reason to believe this will not continue’.

Serabi shares rose 5.1% to 27.60 pence each on Friday morning in London.

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