Name of the Project
Coringa gold project.

Location
Pará state, Brazil.

Project Owner/s
Serabi Gold.

Project Description
A preliminary economic assessment (PEA) has fully supported Serabi’s plans for a high-grade, underground mining operation at Coringa.

The project comprises the Coringa gold deposit and currently comprises three discrete orebodies, which are included in the mine plan.

Average gold grade is estimated 8.34 g/t gold producing 288 000 oz.

The PEA supports an initial nine- to ten-year mine life, with typical production of about 38 000 oz/y in the first five full years of production. This will add to Serabi’s existing 40 000-ounce-a-year production from its Palito operations.

The project will use a process plant, yet to be assembled, on site. The plant has been previously operated in Brazil on a continuous basis producing gold bullion. The plant has a total milling capacity of about 580 tonnes t/d using two ball mills.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Using a gold price of $1 275/oz, the project has a base case pretax net present value (NPV), at a 10% discount rate, of $37.2-million and an after-tax an internal rate of return (IRR) of 31%, with payback expected within 2.25 years of first gold production.

Using a gold price of $1 450/oz, the NPV, at a 10% discount rate, improves to $56-million and the IRR to 46%.

Capital Expenditure
Initial capital expenditure is estimated at $24.7-million.

Planned Start/End Date
Construction is expected to start at the end of the second quarter of 2020, with first gold expected about nine months later.

Latest Developments
Mining development is under way at the Coringa gold project.

The development of the mine portal began in late July to reach the Serra zone, one of three main zones at the project. Blasting into hard rock is under way.

Serabi expects to intersect the Serra orebody in mid-October.

The development of Coringa was a significant milestone for the company, as it aimed to achieve its mid-term objective of becoming a 100 000 oz/y gold producer.

“Coringa has all the indications that it will be like Palito, and ore sorting could be a real possibility. The fact we have our own sorter at Palito means we can undertake our own testwork and find the optimal settings and processing criteria.

“Ore sorting has significant benefits, as it means rejecting waste before the plant, resulting in a higher-grade, lower-volume feed to the plant and, as Coringa will have filtration and dry stacking of tailings instead of a tailings dam, reduced levels of tailings,” CEO Mike Hodgson has said.

Key Contracts, Suppliers and Consultants
Global Resource Engineering (PEA).

Contact Details for Project Information
Serabi Gold, tel +44 )20 7246 6830 or email contact@serabimining.com.