The London-headquartered company said a worker was crushed on Monday and subsequently died from his injuries.
Serabi said it was investigating the cause of the accident, had notified the relevant authorities including the police and that it was providing all necessary assistance for enquiries into this incident.
Production in the area of the incident has been suspended pending enquiry outcomes.
Serabi recently reported December-quarter production of 10,256oz gold, which took full-year production to 37,004oz, about 100oz more than in 2017.
This year's production from the the combined Palito and Sao Chico orebodies has been forecast to range between 40,000-44,000oz.
Following a 20:1 share consolidation in June last year, the stock is trading 41.6% lower in the period to date, losing another 1.5p or 3.95% in London to trade at 36.5p (US47c) Tuesday.