Name of the Project
Coringa gold project.

Location
Pará state, Brazil.

Project Owner/s
Serabi Gold.

Project Description
Coringa comprises high-grade gold in quartz veins with base metal sulphides, and currently comprises three discrete orebodies, which are included in the mine plan.

A preliminary economic assessment filed in September 2019 anticipates a 465 t/d underground operation using open-stoping mining methods.

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 production of 40 000 oz/y from its Palito operations.

Ore will be processed through the Andorinhas plant using gravity concentration, followed by carbon-in-leach cyanidation of gravity tails. The estimated gold and silver recovery during the life of the mine is 95% for gold and 61% for silver.

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
Not stated.

Latest Developments
Serabi Resources has signed an agreement with the representatives of indigenous communities, confirming their support for the Coringa gold mine development.

The agreement also sets out the steps to be followed to complete the consultation process with Kabu Institute and the Mantino Indigenous Association, which together represent all the communities of the Baú Indigenous Territory.

“I recognise that the past 18 months have generated some uncertainty regarding Coringa’s and Serabi’s ability to develop the project and realise its full potential. I hope that others share my view that this agreement significantly reduces this uncertainty and provides a strong platform for the company to move forward with confidence,” Serabi CEO Mike Hodgson said in a statement on July 31.

The parties have agreed not to take actions to suspend the development of the Coringa project in recognition of the long-term direct and indirect local economic benefits. They have also agreed that the licences and titles granted to date for the project are valid.

Over the next 180 days, Serabi and the communities will work to complete all remaining aspects of the consultation process.

“While we still have to complete the Indigenous studies and the formal consultation process, there is a willingness from all parties for this to be done as quickly as possible,” 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.