Serabi Mining Plc. said its overall production for the second quarter at the Palito Mine rose to 5,754 ounces gold equivalent compared with 4,985 ounces of gold equivalent in the first quarter.

The AIM-listed gold production and exploration company with operations in Brazil, said after a delay of about four and half months it is now realising the production levels that were forecast for 2008. Also, the second half production is expected to show marked improvement as a number of operating initiatives begin to take effect.

The company said it has seen improved operating results at the Palito mine during June and July following commissioning of new mining equipment and revised mine planning.

The new resource estimate demonstrates wider ore potential and operational flexibility at Palito.

Serabi Mining said for the first time, it declared an ore reserve at the Palito mine indicating a minimum mine life of four years. – Thomson Financial