| |
property for sale in limassol ayia napa cyprus
News and Information Article
LONDON, April 18 /-FirstCall/ -- Serabi Mining plc (AIM: SRB)
("Serabi" or the "Company") announces that the Companys Annual Report and
Accounts for 2005 have been mailed to shareholders and are available to
download from the Companys website http://www.serabimining.com. The Companys
Annual General Meeting will be held on 1 June, 2006. Highlights from the
fiscal year 2005 as well as the Chairmans Statement from the Annual Report
appear below.
HIGHLIGHTS OF FISCAL YEAR 2005
- 74% increase in resources to 825,900 ounces gold equivalent
- Improved resource quality as Indicated Resources comprise 90% of
total resource
- Continuing mine development and operating improvements with an
initial 17,261 ounces of gold equivalent production achieved
- Process plant upgrade completed, leading to average gold recoveries
of between 90% and 95% by year end
- Plans initiated to achieve higher mining and process rates in 2006
- Successful completion of the Companys initial public offering on
Londons AIM market
CHAIRMANS STATEMENT
2005 was a year of significant accomplishment for Serabi as the Company
made tangible progress towards its goal of becoming a mid-tier gold
producer. Serabis admission to Londons AIM market on 10 May, 2005 was the
culmination of more than five years of private development by the Companys
founders, institutional and private investors and employees. The benefits
of becoming a public company combined with growing cash flow from the
Palito mine now provide a strong foundation for continued success.
Operationally, 2005 was characterised as a year of continuous
improvement at the Palito mine and preparation for the start of regional
project evaluation. As an operation still under development, production at
Palito showed significant improvements over the year, resulting in output
of 17,261 ounces of gold equivalent. Building on last years success and
with preparations for the coming year, I expect the full potential of
Serabi will become more evident during 2006, with the following goals:
- further expansion of the mineral resource at Palito
- increase Palito annual mine production to 45,000 ounces gold
equivalent with a targeted year end cash cost of US$200 per ounce
- establish resources on other Jardim do Ouro projects
- review expansion potential and complete long-term Palito mine plan
- step up exploration across the Tapajos project portfolio
- establish resource and initiate preliminary planning for a new
Tapajos project
2005 was also a solid year for gold and copper prices, our main
products. Since the start of 2005, the price of gold rose from US$436 per
ounce to US$513 per ounce at the year end, an increase of 18%. Similarly,
the price of copper increased from US$1.42 per pound to US$2.08 per pound
over the same period, an increase of 46%. Copper is a significant
by-product at Palito and currently represents approximately 12% of total
revenue. The full impact of these prices was partly offset by a
surprisingly strong Brazilian real, which appreciated by 14% over the same
time period. Nevertheless, we anticipate enhanced benefits to revenue
during 2006 with metal prices remaining strong and limited potential for
further currency strengthening.
PALITO GOLD MINE
At our 100% owned Palito Gold Mine, a significant amount of funds were
invested in projects designed to expand the rate of production, improve
efficiencies and increase the overall resource. By the end of 2005, these
investments were beginning to bear fruit, with daily underground mining
production regularly achieving above 250 tonnes, compared with less than
100 tonnes at the beginning of the year; more recently this has risen to
approximately 400 tonnes per day. In addition, total resources at the
Palito Main Zone increased by 74% to 825,900 ounces of gold equivalent.
This substantial increase in the resource base will now be assessed to
determine the implications for long-term mine planning in order to realise
the full potential of the Palito Gold Mine. Following an assessment of
various alternatives during the second half of 2005, the Board of Directors
decided to introduce mechanised mining techniques into the operation,
specifically longhole stoping with decline access. The first phase of the
decline has been completed down to the 192 mRL and is expected to be
developed further in line with production scheduling and cash flow
generation. The introduction of longhole stoping is a major change that
will result in a safer and more efficient operation at Palito and secure
our future. As a result of these initiatives we now anticipate Palito
moving to commercial production in the third quarter of 2006.
EXPLORATION
Since 1999, the Company has established a dominant land position over
attractive targets throughout the Tapajos region of Brazil of more than
100,000 hectares. Proceeds from the Companys IPO were used to purchase
drill rigs, train drilling crews and begin testing projects throughout the
Jardim do Ouro District and the broader Tapajos region. Results from this
work programme are expected to become an important feature of the Companys
development potential during 2006.
Evaluation of soil geochemistry results, geophysics and geology by the
Companys exploration team resulted in the initiation of drilling at two
targets within the Jardim do Ouro District late in 2005, namely Palito West
and Bills Pipe. Initial results are encouraging and Serabi plans to
continue work at these and other projects within the Jardim do Ouro
portfolio during 2006. Work will be focused on developing resources at
various satellite orebodies with a view to incorporating these into the
Palito mine plan where possible.
Step-out drilling from the Palito Main Zone during 2005 has already
resulted in the important new discovery of a series of high-grade gold
veins, collectively termed the Compressor Lode. The significance of this
discovery is two-fold. Firstly, it illustrates the potential for additional
satellite orebodies parallel to the Palito Main Zone, within close
proximity to the existing operation. Secondly, the Compressor Lode
demonstrates the positive impact of being able to quickly bring such
mineralisation into production. In the span of only five months, Serabi has
discovered, evaluated, planned and begun mining at the Compressor Lode. The
potential to incorporate other similar orebodies into the mine plan is
considered to be good, with positive benefits on the overall project
economics of Palito.
The Company was also active in the broader Tapajos region. In October
2005 Serabi purchased an option to acquire 100% of the Pombo gold project
in the southern area of the Tapajos. Drilling has recently commenced and we
expect to report results in due course. Drilling is also planned at other
Tapajos projects during 2006.
STRATEGY GOING FORWARD
It has been six years since Serabi was established in Brazil. Over this
period, the Company has built the only operating mine in the Tapajos, built
an exciting portfolio of exploration projects, built an experienced team
and a positive reputation, which has resulted in important strategic and
operating advantages for the Company. As a result, we believe we have the
ability to leverage our existing assets and develop new projects quickly.
Furthermore, there is immense geological potential in the Tapajos region,
from which we are now well positioned to build shareholder value. Our
criteria for evaluating projects are:
1. Mineable resource potential of at least 500,000 ounces gold
equivalent
2. Annual production potential of between 50,000 to 100,000 ounces gold
equivalent
3. Projected life of mine total cash costs of less than US$250 per
ounce
Serabi will continue to pursue its development programme guided by this
set of evaluation criteria, with a goal of becoming a significant
multi-mine, low-cost gold producer.
ACKNOWLEDGEMENTS
The accomplishments in 2005 could not have been realised without the
efforts and determination of Serabis employees toward the goal of becoming
a successful mid-tier gold producer. I thank those that have contributed to
our success to date and welcome those that have recently joined.
I would also like to welcome Richard Robinson and Roger Davey to the
Board of Directors of the Company. Their counsel and experience will be an
invaluable asset to Serabi as the Company pursues its growth strategy going
forward. A final acknowledgement goes to our shareholders for their
continued support of Serabi. We all look forward to an exciting and
rewarding future as Serabi continues to grow in 2006 and beyond.
Graham Roberts
Chairman
Website: http://www.serabimining.com
| |
|
|
 |
property for sale in limassol ayia napa cyprus |
|
|
|
|
|
|
|
|
|
Locations
