Serabi Gold drills 7.84 g/t gold over 1.25 metres at Coringa mine, Brazil

Serabi Gold PLC [SBI-TSX; SRBIF-OTC; SRB-LSE AIM] provided a development update on its 100%-owned Coringa project in the Tapajos region of Para state, northern Brazil.

Underground development has progressed farther into the Serra zone, with all three veins (V1, V2 and V3) now intersected on at least one level. The V3 vein of the Serra zone was intersected on the 320-metre level, recording 12.44 g/t gold over 0.86 metres.

The second and third veins (V2 and V1) have now also been intersected on the 320-metre level. The V1 vein recorded an assay of 7.84 g/t gold over 1.25 metres. The V2 structure was intersected and, as was expected, is narrow in this southern portion of the Serra zone, becoming better developed in the main part of the Serra zone.

The V3 vein has also now been intersected on the 340-metre level, recording 14.61 g/t gold over 0.40 metres. All three veins that comprise the Serra zone are subvertical, highly beneficial for mining.

Detailed engineering design of the Coringa process plant continues to advance well under Serabi’s Brazilian engineering consultants, Icone Technology & Engineering. The design is expected to be complete during Q2.

The company has been working with Brandt Environmental to complete an indigenous study (ECI), which the company expects to have concluded during Q2. The company is anticipating the detailed engineering, the award of the installation licence and the ECI can all be successfully concluded before the end of Q2.

Mike Hodgson, CEO, said: “Coringa is an advanced development-stage project and Serabi’s next producing mine that will double group production and convert the company into a multi-asset producer. We remain on track for initial gold production in 2023 and anticipate the mine driving strong margins with the project PEA reporting a healthy IRR of 46% at US$1,450/oz which would be significantly improved at current prices.

“We are currently developing the Serra zone, which is well drilled and hosts three subparallel veins. The company previously reported that ramp development on the 320 m level established an initial intersection of 12.44 g/t gold over 0.86 metres for the first Serra vein (V3). Since that time, the continuation of the ramp on the 320-metre level has now intersected the second (V2) and third (V1) veins, with the V1 vein returning a grade of 7.84 g/t gold over 1.25 metres. With the development of an inner ramp, the V3 vein has also been intersected on the 340-metrre level with a grade of over 14 g/t gold.

“The results from each of these initial intersections exceeded our expectations. The immediate plan is to develop on the 320-metre level along some of the strike length of each vein to generate a significant bulk sample which we will run through the ore sorter at our Palito operation, 200 km north of Coringa, to test its amenability to ore sorting. The Coringa veins appear very similar to the Palito veins and therefore we believe the Serra zone and indeed all other zones at Coringa lend themselves well to ore sorting, where we can screen out dilutive waste before the run of mine ore, particularly from development, enters the plant. This will reduce process costs and also the level of mine tailings required for filtration and dry stacking, generating significant benefit for the project.”

The company commenced the main ramp into the Serra zone in July, 2021. The ramp is a four-metre-high and four-metre-wide gallery. The ramp has now traversed all three lodes that comprise the Serra zone, perpendicular to strike. A smaller ramp has been driven off the main Serra ramp, rising up to level 340 metres, where the first of the three veins has been intersected.

Channel sample results from Serabi’s in-house laboratory include 12.44 g/t gold over 0.86 metres on vein V3 on the 320-metre level, 7.84 g/t gold over 1.25 metres on vein V1 on the 320-metre level and 14.61 g/t gold over 0.40 metres on vein V3 on the 340-metre level.

With respect to detailed engineering for the process plant assembly, Icone Technology & Engineering are reaching the final stages of the design.