London-listed Serabi Gold’s shares experienced a boost following the release of its updated mineral-resource estimate for its Palito mine in Brazil. The company reported a significant increase in geological resources, particularly at its Palito deposit and Sao Chico satellite deposit.
According to the revised estimate, the measured and indicated resources at the Palito complex now amount to 377,800 ounces of contained gold. This represents a 50% increase compared to the previous estimates from December 2021. Additionally, the average reported grade has risen by an impressive 93% to 10.08 grams per ton.
The company also reported a further inferred resource of 153,900 contained ounces, with an average reported grade increase of 45% to 7.01 grams per ton.
Serabi Gold’s Chief Executive, Mike Hodgson, expressed optimism about the future potential of the Palito resource. He highlighted that the veins within the Palito resource cover an approximate one kilometer strike length, with an additional three kilometers remaining to be tested. This indicates the possibility of even more future upside.
While Hodgson anticipates an uplift in the previous mineral-reserve estimate of 58,000 ounces, it is necessary to consider mining dilution before confirming the final figure.
Serabi Gold’s shares rose by 8.6% to 28.5 pence following this positive update, reaching a high of 29 pence during the trading session.