Further high-grade intersections recorded from underground development of the Serra orebody at the Coringa Mine

Serabi Gold plc (AIM:SRB) (TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to provide a development update on its wholly owned Coringa project in the Tapajos region of Para State, Northern Brazil.

A PDF version of this announcement, including images, can be accessed using the following link https://bit.ly/3I5nxbM

Highlights

• Underground development has progressed further 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 320m level (see news release 22 January 2022) recording 12.44g/t gold over 0.86 metres.
• The second and third veins (V2 and V1) have now also been intersected on the 320m level. The V1 vein recorded an assay of 7.84g/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 340m level, recording 14.61 g/t gold over 0.40 metres.
• All three veins that comprise the Serra Zone are sub-vertical, highly beneficial for mining.
• The detailed engineering design of the Coringa process plant continues to advance well under our 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 License 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%⁽¹⁾ at US$1,450 per ounce 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 320m 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 320m 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 340m level with a grade of over 14 g/t gold.

“The results from each of these initial intersections exceeded our expectations. Surface drilling has always suggested the V1 vein to be the major and most significant zone and this is supported by these initial results. The immediate plan is to develop on the 320m 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, 200km 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.”

DEVELOPMENT PROGRESS TO DATE

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. The Serra Zone is approximately 30 metres wide, with approximately 15 metres separating each vein. This first development lies on the 320 metre level, approximately 50 vertical metres below the portal entrance. The ramp will now stop with all three veins exposed, and ‘on-lode’ development will now begin, following the veins along strike with smaller section, three metre high and three metre wide galleries. This on-lode development will allow for regular sampling and also significantly enhance the understanding of the ore-body.

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. Once again, this upper level development will cut across the entire Serra zone, and capture the three veins, whereafter, a similar development design to that being undertaken on 320m level is planned. Over the next months the Company plans to undertake sufficient ramp and ore development at Serra Zone to assist with optimizing the mine methodology and securing a bulk sample.

Channel sample results, from Serabi’s in-house laboratory include:

• 12.44 g/t gold over 0.86 metres on vein V3 on the 320m level (previously reported on January 22, 2022)
• 7.84 g/t gold over 1.25 metres on vein V1 on the 320m level
• 14.61 g/t gold over 0.40 metres on vein V3 on the 340m level

The V2 vein structure was intersected but is narrow. This remains consistent with Serabi’s models based on drill hole data which show the V2 vein becoming more significant further to the north into the main part of the Serra Zone.

With respect to detailed engineering for the process plant assembly, Icone Technology & Engineering are reaching the final stages of the design. Icone, and importantly, the same team within Icone, were contracted as Serabi’s chosen engineering firm for the successful redevelopment of the Palito process plant back in 2013-2014.

Figure 1– Intersection of Vein 1 in the Serra ramp showing strong contrast between the mineralized quartz sulphide vein and the pink granite country rock suggesting the deposit should be amenable to ore sorting.
Channel sampling returned 7.84g/t gold over 1.25 metres.

To access a photo of the Intersection of Vein 1 please use the following link
https://bit.ly/3w0Ih1U

Figure 2 – Cross-Section showing Serra main and inner ramps, three Serra veins and historic drill hole traces

To access an image of the Cross Section of the Serra ramp please use the following link

https://bit.ly/364m1cA

Footnote
(1)   Extracted from the Coringa Preliminary Economic Assessment published in October 2019 and using a US$1,450 gold price.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged for the release of this announcement on behalf of the Company was Clive Line, Director.