Serabi Gold plc (AIM: SRB, TSX: SBI), the Brazilian-focused gold mining and development company, is pleased to provide the results and a review of the 2021 second quarter operational, development and exploration activities in the Tapajos region of Para State, Northern Brazil.

OPERATIONAL HIGHLIGHTS

Second quarter gold production of 9,274 ounces, the best quarterly performance since 2019.

Total ore mined during the quarter of 43,051 tonnes at 7.12 grammes per tonne ('g/t') of gold, a 27 per cent improvement in grade compared to the 2020 average.

39,976 tonnes of run of mine ('ROM') ore were processed through the plant from the combined Palito and Sao Chico orebodies, with an average grade of 7.32 g/t of gold, a 17 per cent and 39 per cent improvement on Q1 2021 and Q4 2020 respectively.

2,961 metres of horizontal development completed during the quarter, bringing the year-to-date total to 6,534 metres.

Preparation for the Coringa underground development is underway with operating fleet brought in and key hires made. Initial development of the portal is planned to commence later in July.

Holes 21-SD-013, 014 and 015 were all subsequently drilled 250 metres further north, and continued to intersect a broad 40 metre wide alteration zone containing multiple vein lode structures along strike. These holes, which are all below the Raimundo artisanal pit, 250 metres to the north-east of the Toucano artisanal pit, also intersected additional parallel structures to north and south of the alteration halo.

Exploration drilling on the Mogno and Ipe veins at the Palito orebody confirmed depth extensions by over 100 metres below the lowest mined level at -50mRL. Furthermore, step out drilling indicates payable intersections up to 600 metres along strike in both directions. Significant down plunge intersections (previously announced) on the Mogno and Ipe veins included:

2021 PRODUCTION GUIDANCE

The Company maintains its previously stated guidance that production for 2021 from the current Palito Complex operations will be between 33,000 and 36,000 ounces with forecast production in 2022 then increasing to approximately 45,000 ounces.

Mike Hodgson, CEO, commented: 'After an encouraging first quarter in 2021, we have built on that with an excellent second quarter producing over 9,200 ounces. This is largely the result of a healthy improvement in mined grades. As I have mentioned before, the restrictions the pandemic put on us in 2020 meant fewer people at site and a simplified operation with fewer mine faces being worked. This resulted in less optionality to maintain higher grades meaning we had to mine some lower grade ore blocks. The gradual return to normality has allowed us to increase the available mine faces and with that, the option to 'cherry pick' the better grades to feed the plant with the best ore resulting in mine and plant grades currently 27 per cent and 30 per cent above last year's average grades. At the mid-year we remain ahead of our internal production forecast and remain on track to meet 2021 guidance.

'In the Palito orebody, the Ipe and Mogno veins continue to perform well in both development and stoping. These veins are recently accessed and are being exploited on levels +20mRL and -19mRL, which is a depth of less than 200 vertical metres and therefore involves a relatively short haulage distance to surface. We are also developing both these veins on levels -40mRL and below and they will provide a strong contribution to Palito production for the remainder of this year and for 2022. We are also trialling a more mechanised long hole stoping method on the Mogno vein on level -40mRL. Such a method can achieve simpler, quicker production at lower cost. It is not applicable everywhere at Palito, but in places it can be deployed and if the trial goes well we will pursue this elsewhere.

'At the Sao Chico orebody, the deepest level being advanced on the main vein is level -63mRL, approximately 300 metres below surface, whilst the main ramp will continue to be developed to the -78mRL. In the western part of the orebody we are developing and producing from the Julia vein, with production coming from levels 116mRL and above with level 100mRL being in development. The Julia western ramp continues to be developed down to level 0mRL, and this will open up multiple development levels over the coming months.

'Quarterly plant and processing performance has been excellent, averaging over 440 tonnes per day of hard rock ore throughput. The much-improved mined grades mean that the quarterly plant grade of 7.32 g/t, represents the best quarterly level since the first quarter of 2019.

'As we reported last quarter, 2021 has seen a welcome return of our exploration activities, and with three rigs drilling for much of the quarter and with a fourth rig having just arrived, exploration results are beginning to flow. We are currently drilling the Palito orebody, the Sao Chico orebody and the Sao Domingos prospect.

Contact:

Nick Hennis

Tel: +44(0) 20 3757 4980

Forward Looking Statements

Certain statements in this announcement are, or may be deemed to be, forward looking statements. Forward looking statements are identified by their use of terms and phrases such as ''believe'', ''could'', 'should' ''envisage'', ''estimate'', ''intend'', ''may'', ''plan'', ''will'' or the negative of those, variations, or comparable expressions, including references to assumptions. These forward-looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. Such forward looking statements reect the Directors' current beliefs and assumptions and are based on information currently available to the Directors. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward-looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements.

(C) 2021 Electronic News Publishing, source ENP Newswire