Business
Commercial Production
Commercial Production.
About this update from Serabi Gold Plc
[{"type":"text","content":"\n Serabi Mining plc\n04 October 2006\n\nSERABI MINING plc ('Serabi' or 'the Company')\nANNOUNCES COMMERCIAL PRODUCTION AT PALITO\n\n\nSerabi (AIM:SRB), the gold mining and exploration Company focused on the Tapajos\ngeological region on northern Brazil, announces that its Palito Mine has\nachieved operating targets laid down prior to the Company's listing with its\nadvisors and auditors and, with effect from 1 October 2006, the mine has moved\nfrom a development phase of operations into commercial production.\n\n\nHaving completed an extensive investment programme over the past two years as a\nprivate and now public Company in the underground mine, the process plant,\nequipment and mine site infrastructure, the Board considers that the operation\nhas now reached a point of sustainable and commercially viable production. Up\nuntil now capital and production costs and revenues generated, have been\ncapitalized as development costs of the mine. As a consequence of this change\nfrom development phase to commercial production, all future revenues and\noperating costs at Palito will be recorded through the company's profit and loss\naccount, following standard industry practices.\n\n\nReflecting these operating improvements, in recent months the mine has achieved\ncash operating costs, as previously defined by The Gold Institute, of US$300 per\nounce, down from US$480 per ounce at the start of 2006. With continuing\ninvestment plans and productivity improvements to be completed before the end of\nthe year, the Company is targeting to achieve a cash operating cost between\nUS$200 and US$225 per ounce at the beginning of 2007.\n\n\n\nCommenting on the announcement, Graham Roberts, the Chairman of Serabi said:\n\n\n 'This represents an important and pivotal moment for the Palito operation and\n Serabi. Whilst in production since the time of the Company's listing, we have\n been operating in very much a development phase until a number of key \n investments had been completed, in particular: the decline which gives us long\n term access to deeper ore, commissioning of underground mining equipment to\n facilitate the transition to long-hole stoping, and also within the processing\n plant, where we are increasing capacity and reliability.\n\n We have now implemented what we consider to be the optimal mining and process\n routes at Palito t...