Business
Quarterly Investor Update
Quarterly Investor Update.
About this update from Serabi Gold Plc
[{"type":"text","content":"\n Serabi Mining plc\n23 October 2006\n\nSERABI MINING QUARTERLY INVESTOR UPDATE\n\n\n\nSerabi Mining plc ('Serabi' or 'the Company') advises that it has today\ndespatched to shareholders its investor newsletter for the Third Quarter to\nSeptember 30, 2006.\n\n\n\nThe company has highlighted in its newsletter the following matters. The full\ntext version of the quarterly update is available from Serabi's offices or from\nthe Company's website www.serabimining.com.\n\n\n\n• Palito Gold Mine achieves commercial production\n\n• Quarterly production of 9,768 oz gold equivalent\n\n• Cash operating costs of US$300 per ounce achieved\n\n• Mining production continues to show improvements, with long-hole mine\n production expected to commence very soon\n\n• Production improvements anticipated for the fourth quarter with\n commissioning of additional milling capacity now underway\n\n• Benefiting from mine and process improvements, provisional target for\n 2007 production at Palito of approximately 50,000 oz gold equivalent, at an\n operating cash cost of between US$200 to US$225 per ounce\n\n• Early drilling results and new geochemistry at Jardim do Ouro\n highlights further potential close to Palito operation\n\n • Regional exploration indicates a new poly-metallic project along strike\n from Palito\n\n\n\n\n Palito - Operating Results (1)\n 2006 2005\n Q1 Q2 Q3 YTD YTD\nTotal Mined 32,820 34,055 42,357 109,232 36,034\n(per day) (365) (374) (460) (400) (132)\n\nMined Ore t 31,555 31,864 34,598 98,017 36,034\n(per day) (351) (350) (376) (359) (132)\n\nMilled t 25,514 29,851 29,492 84,859 36,543\n(per day) (283) (328) (321) (311) (134)\n\nHead Grade g/t 9.3 9.7 9.2 9.4 10.1\n\nRecovery % 91.9 91.3 91.4 91.5 88.3\n\nGold oz 7,017 8,527 7,974 23,518 10,509\n\nCopper t 98.0 107.1 139.2 344.4 141.5\n\nGold oz 7,927 9,815 9,768 27,510 11,733\n\nEquivalent (2)\n\n\n\nPALITO MINE\n\n\nMining\n\n\n\nMining rates continued to improve noticeably during the quarter, with total\ndaily mining rates routinely exceeding 500 tonnes during September, reflecting\nthe impact of the introduction of trackless mining on the deeper levels. Phase-2\nextension of the decline has now started in order to access deeper ore,\naccounting for the increase in waste tonnage over the period.\n\n\n\nMeanwhile, following an extended period of pre-production d...