Name of the Project
Coringa gold project.

Location
The project is located in 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 Coringa 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 when the ramp-up is complete. This will add to Serabi’s existing 40 000-ounce-a-year production from its Palito operations.

The project will use a process plant, which is located on site, awaiting assembly. 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 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
Serabi plans to assess financing options and to complete the permitting and licensing process necessary for the project’s development.

Key Contracts and Suppliers
Global Resource Engineering (PEA).

On Budget and on Time?
Too early to state.

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