Ready to get the ball rolling with its sights set on increasing its production output, Serabi Gold has launched operations at its gold mine at Coringa, located just 200km away from its ongoing gold project at Palito. According to the company, its “strategically important asset” holds the potential to double its gold production, teasing the possibility of Serabi inching up the world mining rankings.
Serabi set to scale the world mining rankings targeting double current production
Serabi claims the development of its Coringa mine began earlier this year as it attempted to reach the Serra zone - one of three major areas at Coringa - and was optimistic in its ability to intercept orebody before the end of October, an ambition which, if successful, has been described by the board of Serabi as a “significant milestone” for the company.
Things seem to be looking up for a company that, in 2019, reported a preliminary economic assessment of a disappointing US$25mn with an average yearly production of only 38,000oz for five of its nine-year mine life. But its Coringa mine holds potential to uncover masses or orebody and subsequent mining and processing improvements, finally rewarding Serabi with appealing financial prospects and more-than-ideal output expectations.
“This is a very important milestone for the company in achieving our mid-term objective of becoming a 100,000oz gold producer,” says Mike Hodgson, Serabi’s Chief Executive.
“We acquired Coringa in December 2017 and since that time we have built on the bankable feasibility study undertaken by Equinox in 2017, with an enlarged mineral resource supporting a new preliminary economic assessment in 2019, as well as receiving the preliminary licence in October 2020.
“With permits in place to commence the mining operation, I am delighted to see mine development underway, and look forward to intersecting the first ore zone early next quarter and we anticipate that the improved understanding arising from this underground ore development will deliver further economic benefits to the project.”
Gold mine gears up for infrastructure revamp as Serabi adopts new mining mechanisms
Serabi is also upgrading its technology and operational infrastructure, adopting a “more mechanised” long-hole open stoping at its Sao Chico deposit. Promising success at accessing the veins at its Palito mine teases the possibility of introducing the technology to its Coringa mine, thereby streamlining output and mineralisation extraction processes.
“If we can extend this to Coringa, it could have major benefits, reducing costs and bringing production efficiencies,” continues Hodgson. “Coringa has all the indications that it will be like Palito and ore sorting could be a real possibility.”