07:23 AM EDT, 09/09/2024 (MT Newswires) -- Serabi Gold ( SRBIF ) on Monday provided an update on its operations in Brazil.

The company said construction of the classification plant at the Coringa project remains on schedule and on budget. The crushing plant is expected to be operational by the end of September, with the ore sorter scheduled for commissioning in October.

Serabi said a preliminary economic assessment on Coringa is expected to be released in the third quarter.

The company also outlined "encouraging first results" from a 3,500-meter exploration surface drill program targeting the southerly step-out and step-down extension beyond the mine workings of the G3 vein at the Palito property. Highlights include 1.45 meters at 43.72 grams per tonne (g/t) gold and 1.00 meters at 9.16 g/t gold.

Serabi said it remains on track to achieve its 2024 production guidance of 38,000 to 40,000 ounces.

"After a very satisfactory first half of the year, we are enjoying another strong quarter as reflected by our growing cash position, and projected activity for September should ensure another successful quarter," CEO Mike Hodgson said. "We are making good progress with the installation of the classification plant at Coringa which will positively contribute to the fourth quarter of this year."

"At Palito, we commenced brownfield exploration in June, focussing on deep step-down and step-out drilling of the G3 vein south of the mine workings," Hodgson added. "Drilling will continue until October, nevertheless this news has been sufficiently encouraging for us to continue with the Palito main ramp at level -50m, which will advance towards this exciting new area defined from this drilling."

The company said its had US$16 million at the end of August, compared with US$11.6 million at the end of December.

Serabi's share price fell 6.6% last Friday to $1.28 on the TSX.