Serabi Gold plc (AIM:SRB) (TSX:SBI) the Brazilian-focused gold mining and development company, is pleased to provide its first development update on its 100% owned Coringa Project in the Tapajos region of Para State, Northern Brazil.

A PDF version of this announcement, including all images, can be accessed using the following link – https://bit.ly/3G6JEgU

Highlights

• The first of the three veins in the Serra Zone intersected by underground development at the Company’s Coringa Gold Project. The sampled vein recorded assays of 2.94 g/t over 3.63 metres including 12.44g/t over 0.86 metres, using results from Serabi’s in-house laboratory.
• This initial area of the vein, will form the ramp pillar and was not expected to deliver the same grade and widths as other parts of the vein. This initial intercept is therefore highly encouraging..
• As anticipated the vein is sub-vertical, which is highly beneficial for mining.
• The detailed engineering design of the Coringa process plant is advancing well with Brazilian engineering consultants, Icone Technology & Engineering, expecting to compete their work in Q2.
• The process plant is already at the Coringa site and ready for installation following completion of the detailed engineering and award of the Installation License which is expected imminently.
• The application for the LI has been submitted and is being reviewed by the State Environmental Agency (SEMAS). In parallel, the Company has been working with Brandt Environmental to complete an Indigenous Study, which the Company expects to have concluded early Q2, coincidental with the award of the Installation License.

Mike Hodgson CEO said

“These initial results from Coringa represent a significant milestone achieved and excellent progress continuing at the project. Coringa has over 50,000 metres of drilling already complete, but this is the first exposure of the mineralisation by underground excavation. The underground development will be continued on this level to expose the other veins of the Serra ore body and will be followed up by on-lode development to gain further underground exposure as well as to extract a significant bulk sample for further testing. We feel the underground exposure will allow us to optimise the mining methodology currently being considered and the bulk sample will be used to undertake ore sorting testwork, using our facility 200km to the North at Palito. Coringa does appear to be amenable to ore-sorting and this would bring the prospect of reducing process costs and diminishing tailings required for filtration, a huge plus for the project.

“With a drilled resource of approximately 500,000 ounces, we will now develop through some of these ore zones. As this development continues, we will continue sampling and assessing the geometry of the orebodies as well as completing various studies. I am therefore looking forward to providing regular updates on this exciting Project during 2022.”

RESULTS

The Company commenced the main ramp into the Serra zone, July 2021. The ramp is a four metre high and four metre wide gallery, which has intersected the first of three veins which comprise the Serra Zone. The ramp has traversed the lode, perpendicular to strike. This development lies on the 320 metre level, approximately 50 vertical metres below the portal entrance. The ramp will continue to advance on the 320m level to the second and third lodes in the Serra Zone. As each lode is intersected, smaller three metre high and three metre wide ‘on-lode’ development will advance, following the veins along strike, allowing regular sampling and consequently significantly enhancing the understanding of the ore-body.

A smaller ramp has commenced off the main Serra ramp, rising up to level 340 metres, where once the veins are again intersected, a similar development design on each of the three lodes 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.

Coringa permitting progress continues as planned. With the application for the installation license having been submitted in September 2021, the Company anticipates approval in late Q1/early Q2 2022, with construction planned to commence early Q3.

The Company has, over the past few months, been working with Icone Technology & Engineering to complete the detailed engineering design of the Coringa process plant. Icone are an established engineering firm within the Brazilian mining industry. Located in Minas Gerais state they have provided services to multiple projects across Brazil, including Serabi’s redevelopment of the Palito process plant and the installation of Serabi’s ore sorter circuit. The detailed engineering design of the Coringa process plant is advancing well and is expected to be concluded by Q2.

Figure 1 – The Serra Ramp Established

To access a photo of the Serra Ramp please use the following link
https://bit.ly/33NJC0J

Figure 2– Intersection of Vein 3 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.

To access a photo of the Intersection of Vein 3 please use the following link
https://bit.ly/3G3zvl9

Figure 3 – Coringa Development

To access an image of the Coringa Development please use the following link
https://bit.ly/3AAY9IK

Figure 4 – Cross-Section showing Serra ramp, 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/3g3Cm3g

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.