OPERATIONAL and DEVELOPMENT HIGHLIGHTS
First quarter gold production of 8,087 ounces, respectively a 19% and 11% improvement on gold production for Q3 and Q4 of 2020 and 16% ahead of budget driven by improving grades.
Total ore mined during the quarter of 40,371 tonnes at 6.27 grams per tonne ('g/t') of gold, a 20% improvement in grade compared with the previous quarter.
41,462 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 6.27 g/t of gold.
3,573 metres of horizontal development completed during the quarter, the highest development rate since current operations commenced.
'On that note,
In the Palito orebody, the Ipe and Mogno veins are bringing some excellent returns in both development and stoping. These veins are relatively young in the history of Palito and are therefore still only being developed and mined at relatively high elevations, allowing use of the existing mine infrastructure to gain access, rather than having to develop older veins at depth. The Pipocas vein continues to contribute much of the remaining run of mine ('ROM'). At the Sao Chico orebody, the deepest level being advanced is currently at -63mRL, approximately 300 metres below surface, with the intention to continue to develop the main ramp to the -78mRL. In the western part of the orebody increased production and development of the Julia vein is ongoing. Levels 116mRL, 128mRL, 139mRL, 156mRL and 170mRL have been or are in development on the Julia vein, and as this zone is relatively distant from the main central ramp, an additional western ramp extension is being developed. This western ramp will over time be extended from the 116mRL to the 0mRL. At the end of the first quarter the ramp had reached the 100mRL.
'Quarterly plant and processing performance was good, averaging over 450 tonnes per day of hard rock ore throughput.
'There was a welcome return of exploration activities during the fourth quarter of 2020 and this activity has continued into the first quarter. There are currently three surface drill rigs in operation, one at Palito, another at Sao Chico and the third at our recently acquired Sao Domingos prospect.
'Drilling results to date over the Sao Domingos prospect located only five kilometres to the west of Sao Chico have been very encouraging. It is a prospect rich in artisanal workings, past and present and where some exceptionally high-grade ore has been mined. We have identified five key prospects, but to date, the focus has centred upon the Toucano prospect.
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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.
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