Business
Update on Strategic Review
Update on Strategic Review.
About this update from Serabi Gold Plc
[{"type":"text","content":"\n \n\n\n\nSerabi Mining plc (\"Serabi\" or \"the Company\")\nUpdate on Strategic Review\n\nSerabi Mining plc (\"Serabi\" or \"the Company\") advises shareholders\nthat the management of its wholly owned subsidiary Serabi Mineracao\nLtda (\"SMLtda\") has initiated a further reduction of the work-force.\nThis is part of the ongoing programme of placing the Palito Mine into\na state of care and maintenance as advised in the Company's press\nrelease \"Announcement of Strategic Review\" (17th September 2008).\n\nAs notified in that press release, operations have recently been\nconcentrated on mining 'blocked out' stopes and it was anticipated at\nthat time that this work would continue until the end of November. As\na result of this work-force reduction, underground mining activity\nwill now cease and all equipment will be withdrawn from the mine. The\nplant will continue operations at a reduced level for a further few\nmonths treating stockpiled sulphide ore and near surface oxide ore\nbut it is projected that these sources will probably be depleted in\nearly 2009.\n\nThe management of SMLtda is preparing all the necessary reports that\nare required to be submitted to the authorities in conjunction with\nthis programme.\n\nThe Board of Serabi has also approved the recommendation of its\nBrazilian management to reduce the level of exploration tenements\nthat the group holds to focus on high priority projects and in so\ndoing limit the future cash requirement for maintaining the\nexploration portfolio. Exploration work has been on-going at the Rio\nMarupa prospect, with scout drilling focused on potential structures\nlying below the current garimpo pits. No significant grades have so\nfar been returned from the drilling programme and it has therefore\nbeen agreed that given the Company's current position, the option\nagreement on this property be terminated. SMLtda will also relinquish\nthe tenements comprising the Castanheira prospect as well as certain\ntenements northwest of Palito, where it has undertaken little\nexploration work and considers the tenements to have limited\nnear-term value.\n\nThe Company held cash deposits in excess of $2 million at the end of\nNovember and anticipates that the ongoing production will make a\npositive contribution to the ongoing wind down costs.\n\nManagement continues to pursue longer-term opti...