For immediate release26 January 2018
Serabi Gold plc("Serabi" or the
"Company")
Serabi Announces Filing of Technical
Report for its Palito Mining Complex
Serabi Gold (AIM:SRB, TSX:SBI), the Brazilian
focused gold mining and development company, announces the filing
of the technical report for its Palito Mining Complex (the
"Study"), prepared in accordance with National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI 43-101") and in
particular updated estimates of Mineral Reserves and Mineral
Resources for each of the Palito and Sao Chico orebodies. A
summary of the updated estimates of Mineral Reserves and Mineral
Resources was previously announced in the Company's news release
dated December 11, 2017.
The Study was prepared by SRK Consulting (US)
Inc. in accordance with NI 43-101 and has been filed on SEDAR
(www.sedar.com) and is available on the Company's website
www.serabigold.com.
Highlights
- A combined estimated Proven and Probable mineral reserve for
the Palito and Sao Chico ore-bodies of 182,000 ounces of contained
gold (703,000 tonnes at an average diluted grade of 8.05 g/t)
supporting in excess of four years of production.
- Mineral reserves for the Palito ore-body are estimated at
157,000 ounces of contained gold (613,000 tonnes at an average
diluted gold grade of 7.99 g/t).
- Mineral reserves for the Sao Chico ore-body are estimated at
24,000 ounces of contained gold (90,000 tonnes at an average
diluted gold grade of 8.43 g/t).
- Measured and Indicated mineral resources for the Palito
ore-body increased by 31 per cent., compared with the previous
resource estimation of June 2012, to 271,000 ounces of contained
gold with a further Inferred mineral resource of 177,000 ounces of
contained gold.
- Measured and Indicated mineral resources for Sao Chico ore-body
increased by 44 per cent., compared with the October 2012 resource
estimation, to 36,000 ounces of contained gold with an additional
Inferred mineral resource of 54,000 ounces of contained
gold.
- The mineral resource and reserve estimates exclude previously
announced gold discoveries made by Serabi including the Currutela,
Copper Hill, Piaui and Palito South areas, where there is currently
insufficient geological data to estimate a mineral resource for
these discoveries.
- An infill drill programme is currently underway that will
provide additional geological date on each of these project
areas.
(Note: All reserve and resource figures stated above are
both gross and net attributable to Serabi.)
Mike Hodgson, CEO of Serabi, commented:
"I am very pleased with the results of this Study. It is a
great comfort to me that the Study has confirmed that the Company
has, what I consider to be, significant mineral resources and
mineral reserves defined at both Palito and Sao Chico, and, in my
experience, it is a very healthy position for an underground, vein
mining operation to have over four years of mineral reserves
defined. This is a reflection of the investment that the
Company has made in ensuring that exploration and development is
completed well in advance of production, thereby generating the
levels of geological data required to define new mineral resources
and mineral reserves.
"With the recently announced acquisition of the Coringa gold
project that was completed on 21 December 2017, the Company now
has, in aggregate, declared Measured and Indicated Mineral
Resources of over 500,000 ounces and aggregate Inferred Mineral
Resources of over 410,000 ounces. "
Mineral Resource EstimatesThe current Mineral Resource
estimates for the Palito Mine (Table 1) and Sao Chico Mine (Table
2) are based on data as at June 30, 2017.
Table 1
- Mineral Resource Statement, Palito Mine, Para State, Brazil, as
of June 30, 2017 |
Classification |
Vein Width |
Quantity |
Grade |
Contained Metal |
|
|
Gold |
Copper |
Gold |
Copper |
m |
000't |
g/t |
% |
000'oz |
t |
Underground |
|
|
|
|
|
|
Measured |
0.52 |
274 |
15.21 |
0.77 |
134 |
2,110 |
Indicated |
0.57 |
371 |
10.91 |
0.57 |
130 |
2,115 |
Surface
Stockpiles |
|
|
|
|
|
|
Measured |
- |
12 |
3.15 |
- |
1 |
- |
Tailings |
|
|
|
|
|
|
Measured |
- |
60 |
2.70 |
- |
5 |
- |
Combined |
|
|
|
|
|
|
Measured |
- |
346 |
12.62 |
0.61 |
140 |
2,110 |
Indicated |
- |
371 |
10.91 |
0.57 |
130 |
2,115 |
Measured and Indicated |
- |
717 |
11.74 |
0.59 |
271 |
4,225 |
Underground |
|
|
|
|
|
|
Inferred |
0.77 |
784 |
7.02 |
0.20 |
177 |
1,568 |
Notes to Table 1:
- Mineral Resources have been rounded. Mineral Resources are not
Mineral Reserves and have not demonstrated economic viability.
Mineral Resources are reported inclusive of Mineral Reserves. All
figures are rounded to reflect the relative accuracy of the
estimates. Underground Mineral Resources are reported within
classification domains inclusive of in-situ dilution at a cut-off
grade of 3.10 g/t gold assuming an underground extraction scenario,
a gold price of US$1,500/oz, a 3.5:1 Brazilian Real to U.S. Dollar
exchange rate, and metallurgical recovery of 91%. Polygonal
techniques were used for mineral resource estimates. Surface
stockpiles and tailings are reported at a cut-off grade of 1.65 g/t
gold assuming a gold price of US$1,500/oz, a 3.5:1 Brazilian Real
to U.S. Dollar exchange rate, and metallurgical recovery of
78%.
- Serabi is the operator and owns 100% of the Palito Mine such
that gross and net attributable mineral resources are the same. The
mineral resource estimate was prepared by the Company in accordance
with the standard of CIM and Canadian National Instrument 43-101,
with an effective date of 30 June 2017, and audited and approved by
Mr Glen Cole of SRK Consulting (Canada) Inc., who is a Qualified
Person under the Canadian National Instrument 43-101.
Table 2
- Mineral Resource Statement, Sao Chico Mine, Para State, Brazil,
as of June 30, 2017 |
Classification |
Thickness |
Quantity |
Grade |
Contained Metal |
|
|
Gold |
Gold |
M |
000't |
g/t |
000'oz |
Measured |
1.82 |
60 |
13.34 |
26 |
Indicated |
1.79 |
22 |
14.70 |
10 |
Measured and
Indicated |
1.81 |
82 |
13.70 |
36 |
Inferred |
1.80 |
123 |
13.77 |
54 |
Notes to Table 2:
- Mineral Resources have been rounded. Mineral Resources are not
Mineral Reserves and have not demonstrated economic viability.
Mineral Resources are reported inclusive of Mineral Reserves. All
figures are rounded to reflect the relative accuracy of the
estimates. Underground Mineral Resources are reported within
classification domains inclusive of in-situ dilution at a cut-off
grade of 2.85 g/t gold assuming an underground extraction scenario,
a gold price of US$1,500/oz, a 3.5:1 Brazilian Real to U.S. Dollar
exchange rate, and metallurgical recovery of 95%. Polygonal
techniques were used for mineral resource estimates.
- Serabi is the operator and owns 100% of the Sao Chico Mine such
that gross and net attributable mineral resources are the same. The
mineral resource estimate was prepared by the Company in accordance
with the standard of CIM and Canadian National Instrument 43-101,
with an effective date of 30 June 2017, and audited and approved by
Mr Glen Cole of SRK Consulting (Canada) Inc., who is a Qualified
Person under the Canadian National Instrument 43-101.
Mineral Reserve EstimatesThe current Mineral Reserve
estimates for the Palito Mine (Table 3) and Sao Chico Mine (Table
4) are based on data as at June 30, 2017.
Table 3
- Mineral Reserves Statement, Palito Mine, Para State,
Brazil, as of June 30, 2017 |
Classification |
Quantity |
Grade |
Contained Metal |
|
Gold |
Copper |
Gold |
Copper |
000't |
g/t |
% |
000'oz |
T |
Underground |
|
|
|
|
|
Proven |
265 |
9.77 |
0.46 |
83 |
1,219 |
Probable |
276 |
7.64 |
0.39 |
68 |
1,076 |
Surface
Stockpiles |
|
|
|
|
|
Proven |
12 |
3.15 |
- |
1 |
- |
Tailings |
|
|
|
|
|
Proven |
60 |
2.70 |
- |
5 |
- |
Combined |
|
|
|
|
|
Proven |
337 |
8.28 |
0.36 |
90 |
1,219 |
Probable |
276 |
7.64 |
0.39 |
68 |
1,076 |
Proven
and Probable |
613 |
7.99 |
0.37 |
157 |
2,295 |
Notes to Table 3:
- Mineral Reserves have been rounded to reflect the relative
accuracy of the estimates. Proven Underground Mineral Reserves are
reported within the Measured classification domain, and Probable
Underground Mineral Reserves are reported within the Indicated
classification domain. Proven and Probable Underground
Mineral Reserves are inclusive of external mining dilution and
mining loss and are reported at a cut-off grade of 3.70 g/t gold
assuming an underground extraction scenario, a gold price of
US$1,250/oz, a 3.5:1 Brazilian Real to U.S. Dollar exchange rate,
and metallurgical recovery of 91%. Proven Mineral Reserves
surface stockpiles and tailings are reported at a cut-off grade of
1.95 g/t gold assuming a gold price of US$1,250/oz, a 3.5:1
Brazilian Real to U.S. Dollar exchange rate, and metallurgical
recovery of 78%.
- Serabi is the operator and owns 100% of the Palito Mine such
that gross and net attributable mineral reserves are the same. The
mineral reserve estimate was prepared by the Company in accordance
with the standard of CIM and Canadian National Instrument 43-101,
with an effective date of 30 June 2017, and audited and approved by
Mr Timothy Olson of SRK Consulting (US) Inc., who is a Qualified
Person under the Canadian National Instrument 43-101.
Table 4
- Mineral Reserves Statement, Sao Chico Mine, Para State, Brazil,
as of June 30, 2017 |
Classification |
Quantity |
Grade |
Contained Metal |
|
Gold |
Gold |
000't |
g/t |
000'oz |
Underground |
|
|
|
Proven |
65 |
8.15 |
17 |
Probable |
25 |
9.15 |
7 |
Proven
and Probable |
90 |
8.43 |
24 |
Notes to Table 4:
- Mineral Reserves have been rounded to reflect the relative
accuracy of the estimates. Proven Underground Mineral Reserves are
reported within the Measured classification domain, and Probable
Underground Mineral Reserves are reported within the Indicated
classification domain. Proven and Probable Underground
Mineral Reserves are inclusive of external mining dilution and
mining loss and are reported at a cut-off grade of 3.45 g/t gold
assuming an underground extraction scenario, a gold price of
US$1,250/oz, a 3.5:1 Brazilian Real to U.S. Dollar exchange rate,
and metallurgical recovery of 95%
- Serabi is the operator and owns 100% of the Sao Chico Mine such
that gross and net attributable mineral reserves are the
same. The mineral reserve estimate was prepared by the
Company in accordance with the standard of CIM and Canadian
National Instrument 43-101, with an effective date of 30 June 2017,
and audited and approved by Mr Timothy Olson of SRK Consulting (US)
Inc., who is a Qualified Person under the Canadian National
Instrument 43-101.
Mineral Reserves, Mineral Resources and Preliminary
Economic Assessment for the Coringa project
The Company acquired the Coringa project on 21 December 2017
from Anfield Gold Corp which was a reporting issuer as at that date
and had filed a Feasibility Study prepared by MTB Project
Management Professional Inc of Colorado USA, entitled "Coringa Gold
Project Brazil, Feasibility Study NI 43-101 Technical Report" (the
Feasibility Study") and dated September 6, 2017.
The Feasibility Study has been reviewed by Michael J Hodgson,
the Chief Executive of Serabi. Mr Hodgson is an Economic Geologist
by training with over 30 years' experience in the mining industry.
He holds a BSc (Hons) Geology, University of London, a MSc Mining
Geology, University of Leicester and is a Fellow of the Institute
of Materials, Minerals and Mining and a Chartered Engineer of the
Engineering Council of UK, recognising him as both a Qualified
Person for the purposes of Canadian National Instrument 43-101 and
by the AIM Guidance Note on Mining and Oil & Gas Companies
dated June 2009.
All information regarding the Mineral Reserves, Mineral
Resources and potential economics of the Coringa project and
contained in this announcement are extracted from the Feasibility
Study. The Company is not aware of any new material
scientific or technical information that would make the disclosure
of the mineral resources, mineral reserves or results of the
preliminary economic assessment inaccurate or misleading.
Qualified Persons and Quality Control
The scientific and technical information contained in this news
release pertaining to the Palito Mining Complex only has been
reviewed and approved by the following qualified persons under
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"):
- Glen Cole, MSc Geology, P.Geo., Principal Consultant (Geology),
SRK Consulting (Canada) Inc.
- Timothy Olson, Bsc Mining, FAusIMM, Principal Consultant
(Mining), SRK Consulting (US) Inc.
The mineral resource estimates for the Palito and Sao Chico
mines were prepared by Serabi Gold plc and audited and approved by
Glen Cole of SRK Consulting (Canada) Inc.
The mineral reserve estimates for the Palito and Sao Chico mines
were prepared by Serabi Gold plc and audited and approved by
Timothy Olson of SRK Consulting (U.S.) Inc.
The qualified persons have verified the information disclosed
herein pertaining only to the Palito Mining Complex, including the
sampling, preparation, security and analytical procedures
underlying the information or opinions contained in this
announcement in accordance with standards appropriate to their
qualifications and have not reviewed or verified the information
pertaining to the Coringa project.
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
The person who arranged for the release of this announcement on
behalf of the Company was Clive Line, Director
Enquiries:
Serabi Gold plc |
|
Michael Hodgson |
Tel:
+44 (0)20 7246 6830 |
Chief
Executive |
Mobile: +44 (0)7799 473621 |
|
|
Clive
Line |
Tel:
+44 (0)20 7246 6830 |
Finance Director |
Mobile: +44 (0)7710 151692 |
|
|
Email: contact@serabigold.com |
|
Website: www.serabigold.com |
|
|
|
Beaumont Cornish LimitedNominated Adviser and Financial
Adviser |
|
Roland Cornish |
Tel:
+44 (0)20 7628 3396 |
Michael Cornish |
Tel:
+44 (0)20 7628 3396 |
|
|
Peel
Hunt LLPUK Broker |
|
Ross
Allister |
Tel:
+44 (0)20 7418 9000 |
Chris
Burrows |
Tel:
+44 (0)20 7418 9000 |
|
|
Blytheweigh Public Relations |
|
Tim
Blythe |
Tel:
+44 (0)20 7138 3204 |
Camilla Horsfall |
Tel:
+44 (0)20 7138 3224 |
Copies of this announcement are available from
the Company's website at www.serabigold.com.
Neither the Toronto Stock Exchange, nor any
other securities regulatory authority, has approved or disapproved
of the contents of this announcement.
GLOSSARY OF TERMSThe following is a
glossary of technical terms:
Note: Mineral resources and reserves were
estimated in conformity with the widely accepted CIM Estimation of
Mineral Resource and Mineral Reserves Best Practices Guidelines
(the "Guidelines") and are reported in accordance with the Canadian
Securities Administrators' National Instrument 43-101" and the
definitions applicable to individual categories of reserves and
resources are set out in the Guidelines. The Glossary below
includes only a summary of these definitions and readers can access
the full definitions at
http://web.cim.org/standards/menupage.cfm?sections=177&menu=178
"Au" means gold.
"CIM" means Canadian Institute of Mining,
Metallurgy and Petroleum.
"development" - excavations used to establish
access to the mineralised rock and other workings.
"grade" is the concentration of mineral within
the host rock typically quoted as grams per tonne (g/t), parts per
million (ppm) or parts per billion (ppb).
"g/t" means grams per tonne.
"Indicated Mineral Resource" is that part of a
Mineral Resource for which quantity, grade or quality, densities,
shape and physical characteristics can be estimated with a level of
confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate
is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are
spaced closely enough for geological and grade continuity to be
reasonably assumed.
"Inferred Mineral Resource" is that part of a
Mineral Resource for which quantity and grade or quality can be
estimated on the basis of geological evidence and limited sampling
and reasonably assumed, but not verified, geological and grade
continuity. The estimate is based on limited information and
sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes.
"Measured Mineral Resource" is that part of a
Mineral Resource for which quantity, grade or quality, densities,
shape, and physical characteristics are so well established that
they can be estimated with confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support production planning and evaluation of the economic
viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely
enough to confirm both geological and grade continuity.
"Mineral Resource" is a concentration or
occurrence of diamonds, natural solid inorganic material, or
natural solid fossilized organic material including base and
precious metals, coal, and industrial minerals in or on the Earth's
crust in such form and quantity and of such a grade or quality that
it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a
Mineral Resource are known, estimated or interpreted from specific
geological evidence and knowledge.
"Mineral Reserve" is the economically mineable
part of a Measured or Indicated Mineral Resource demonstrated by at
least a Preliminary Feasibility Study. This Study must include
adequate information on mining, processing, metallurgical, economic
and other relevant factors that demonstrate, at the time of
reporting, that economic extraction can be justified. A Mineral
Reserve includes diluting materials and allowances for losses that
may occur when the material is mined.
"Probable Mineral Reserve" is the economically
mineable part of an Indicated and, in some circumstances, a
Measured Mineral Resource demonstrated by at least a Preliminary
Feasibility Study. This Study must include adequate information on
mining, processing, metallurgical, economic, and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction can be justified.
"Proven Mineral Reserve" is the economically
mineable part of a Measured Mineral Resource. A Proven Mineral
Reserve implies a high degree of confidence in the Modifying
Factors.
"t" means tonnes
"Vein" is a generic term to describe an
occurrence of mineralised rock within an area of non-mineralised
rock.
AIM Qualified Persons' Statement
The scientific and technical information
contained within this announcement has been reviewed and approved
by Michael Hodgson, a Director of the Company. Mr Hodgson is an
Economic Geologist by training with over 30 years' experience in
the mining industry. He holds a BSc (Hons) Geology, University of
London, a MSc Mining Geology, University of Leicester and is a
Fellow of the Institute of Materials, Minerals and Mining and a
Chartered Engineer of the Engineering Council of UK, recognising
him as both a Qualified Person for the purposes of Canadian
National Instrument 43-101 and by the AIM Guidance Note on Mining
and Oil & Gas Companies dated June 2009.
Forward Looking Statements
Certain statements in this announcement are, or
may be deemed to be, forward looking statements. Forward looking
statements are identified by their use of terms and phrases such as
''believe'', ''could'', "should" ''envisage'', ''estimate'',
''intend'', ''may'', ''plan'', ''will'' or the negative of those,
variations or comparable expressions, including references to
assumptions. These forward looking statements are not based on
historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of
operations, performance, future capital and other expenditures
(including the amount, nature and sources of funding thereof),
competitive advantages, business prospects and opportunities. Such
forward looking statements reflect the Directors' current beliefs
and assumptions and are based on information currently available to
the Directors. A number of factors could cause actual results to
differ materially from the results discussed in the forward looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements.
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