It produced 9,563 ounces of gold during the quarter, up 17% year-on-year.

The gold was recovered from 36,071 tonnes of mine output, down 13%, at an average grade of 8.12g/t of gold, up from 7.8g/t a year ago.

From both the Palito and São Chico orebodies, Serabi processed a total 38,155t of run of mine ore processed, 12% higher on the year, at an average grade of 7.71g/t of gold, up from 6.29g/t a year ago.

It also processed 4,861t of historical tailings processed through the leaching circuit at a grade of 4.38g/t of gold. 

Serabi CEO Mike Hodgson said the quarter had been one of consistent mined grades, tonnage and plant processing throughput and the company was on track to meet its full-year production guidance of up to 40,000oz.

He added that Palito development and production continued to focus on the four main sectors of Senna, Pipocas, G3 and Mogno.

The company continued to deepen the São Chico orebody, with the main ramp is close to reaching the next planned level at -15mRL, approximately 280 vertical metres below surface.

Step out surface drilling was underway on both the Palito and Sao Chico orebodies, with Serabi expecting to release initial drilling results in the September quarter.

At Coringa, Serabi continued to engage with the state environmental agency to progress the environmental impact assessment.

In the March quarter, the company completed a £6.4 million (US$8.4 million) brokered share placement, which, combined with the previous US$15 million investment made by Greenstone Resources, continued to strengthen the company's balance sheet and allow it to accelerate its organic growth plans and outstanding capital programmes, as well as progress Coringa, Hodgson said.

The market did not react well to the production results, with Serabi's shares diving 9.09% Monday morning to 50p.