Update on Serabi Gold Projects for First Quarter 2014

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and development company, announced an update
on activities at its high grade underground gold mining operation at Palito and reported developments at the Sao Chico gold deposit for the first quarter of 2014. Highlights include the successful plant commissioning and ramped up production during Q1 at Palito, the purchase of a second ball mill and preparations for it to be operational by the end of the second quarter and gold production of 2,300 ounces for the first quarter.

As quoted in the press release:

The Palito Mine is centred upon a high grade gold mineral inventory of approximately 600,000 ounces. The total resource comprises 25 high grade, sub vertical, narrow vein ore-bodies, of which eight are in the current mine plan. These eight veins are split between the Palito Main zone and the Palito West sectors. The veins are accessed and developed by a series of lode drives on levels set 30 vertical metres apart. The highly competent ground conditions allow open stope mining to be used.

Serabi Gold CEO, Mike Hodgson, said:

Following the initial switch-on in December 2013, it has been very satisfying to watch the weekly progress through the quarter. Throughout the commissioning phase when we have been steadily ramping-up mill throughputs, we took a decision to process lower grade ore. As a result, quarterly production grades have been slightly below our longer term forecasts. However, by early March plant performance was much improved, to the point that budgeted gold production for the month was exceeded. This gives us great confidence going forward, as we target commercial production.

Click here to read the Serabi Gold plc (TSX:SBI,AIM:SRB) press release.