Serabi shares rise on updated mineral resource

(Sharecast News) - Serabi Gold said on Tuesday that updated mineral resource and reserve estimates had increased its consolidated measured and indicated resources to 730,800 ounces of contained gold, following the first year of the second phase of its brownfield exploration programme in Brazil.

The AIM-traded gold miner said consolidated measured and indicated resources across the Palito Complex and Coringa Mine rose 29% to 2.49m tonnes at 9.1 grams per tonne of gold, containing 730,800 ounces.

That compared with 567,400 ounces from 2.05m tonnes at 8.6 grams per tonne in the previous estimates for Palito in March 2025 and Coringa in April 2024.

Consolidated inferred resources increased 50% to 653,300 ounces, comprising 2.51m tonnes at 8.1 grams per tonne of gold, from 434,700 ounces at 6.3 grams per tonne previously.

At the Palito Complex, which includes the Palito and S�o Chico mines, proven and probable reserves rose to 228,400 ounces, comprising 1.15m tonnes at 6.2 grams per tonne of gold.

That compared with 147,000 ounces from 646,000 tonnes at 7.1 grams per tonne in April 2025.

The updated reserve figure included 141,100 ounces in the proven category and 87,300 ounces in the probable category.

Chief executive Mike Hodgson said the estimates incorporated results from Serabi's 2025 brownfield exploration programme, part of the company's second phase of growth.

"In only our first year of phase two, we managed to increase our consolidated M&I to 731koz gold and consolidated inferred resource to 653koz gold, up from consolidated M&I resource of 567koz gold and consolidated inferred resource of 435koz gold, which is approximately half-way to our growth target," Hodgson said.

Serabi said the Palito Mine held measured and indicated resources of 388,600 ounces, comprising 1.27m tonnes at 9.5 grams per tonne of gold, and inferred resources of 156,600 ounces from 743,800 tonnes at 6.5 grams per tonne.

S�o Chico's measured and indicated resources remained unchanged at 38,400 ounces, with inferred resources of 1,700 ounces.

The combined Palito Complex resource was 427,000 ounces in the measured and indicated category, comprising 1.43m tonnes at 9.3 grams per tonne, with inferred resources of 158,300 ounces from 752,000 tonnes at 6.6 grams per tonne.

Coringa accounted for most of the consolidated resource growth.

The mine's measured and indicated resources were estimated at 303,800 ounces, comprising 1.06m tonnes at 8.9 grams per tonne of gold, while inferred resources stood at 495,000 ounces from 1.75m tonnes at 8.8 grams per tonne.

"These resource and reserve updates demonstrate two findings, firstly our continued ability to once again replenish the Palito geological resource, as well as to grow the reserve meaningfully in the process," Hodgson said.

"Secondly, we see the majority of our resource growth at Coringa.

"This is not surprising, Coringa is a new mine, with greater geological continuity which in turn offers much upside potential."

He added that the company expected further resource growth at Coringa during its 2026 brownfield exploration programme.

"The healthy increase in our resource estimates confirms the prospectivity of our properties, which is now being unlocked through exploration expenditure backed by our strong balance sheet and cash generation in comparison to our capital constrained history of operation.

"We remain optimistic on what lies ahead in our 2026 brownfield exploration programme and hope to, at the very least, match the success of our first year of phase two drilling."

Serabi said the 2026 brownfield exploration programme had started after the rainy season subsided in Brazil, with an update planned in the second quarter.

At 1244 BST, shares in Serabi Gold were up 3.65% at 326.5p.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate