Serabi Gold (SBI.TO, LON:SRB) has produced a total of 9,861 ounces of gold from a mine production of 37,000 tonnes of rock at an average grade of just in excess of 10 g/t gold. The average grade of the 46,700 tonnes that have been processed is approximately 7 g/t.
As Serabi was processing more rock than it had been mining, the total size of the stockpile decreased from 21,000 tonnes to 13,000 tonnes at an average grade of 4 g/t gold. The mine production levels should increase as an additional 2,250 meters of underground development has been completed in the first quarter whilst eight (of the 25) veins have now been developed. An additional 4 veins will be brought online in the current quarter which will ‘improve the optionality’.
Serabi Gold remains on track to indeed produce approximately 40,000 ounces of gold this year, at an all-in cost of approximately $950-975 per ounce of gold which means the future production cost will have to decrease from the AISC of $1045/oz in Q1. This high AISC was partly caused by the much stronger Brazilian Real, and according to the company this had an impact of US$170/oz.
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