TIDMSRB
For immediate release
13 October 2021
Serabi Gold plc
("Serabi" or the "Company")
Excellent Third Quarter production and Coringa progress on
track
Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold
mining and development company, is pleased to provide the results
and a review of its 2021 third quarter operational, development and
exploration activities.
A PDF version of this announcement, including all images, can be
accessed using the following link https://bit.l
https://www.globenewswire.com/Tracker?data=w1_pVo4bbe4CxV0ueomw7r-ur43PGDMRlIdJ7Q4NoDWLkMkT3U_Zn4RxiEsvU8GC
y/3aw6zoF
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OPERATIONAL HIGHLIGHTS
Palito Operations
-- Third quarter gold production of 9,082 ounces, a 34 per cent improvement
compared to the same period of 2020 (Q3 2020: 6,790 ounces). Gold
production for the year to date ("ytd") is 26,510 ounces, in line with
guidance (2020 ytd: 24,314 ounces).
-- Total ore mined during the quarter of 42,240 tonnes at 7.18 grammes per
tonne ("g/t") of gold (Q3 2020; 44,097 tonnes at 4.84 g/t), the highest
quarterly mined grade since the first quarter of 2019 and a 28 per cent
improvement in grade compared to the average for 2020.
-- 41,995 tonnes of run of mine ("ROM") ore were processed through the plant
from the combined Palito and São Chico orebodies, with an average
grade of 7.20 g/t of gold (Q3 2020: 46,135 tonnes at 4.75 g/t), a 28 per
cent improvement on the average plant grade for 2020.
-- 2,842 metres of horizontal development completed during the quarter,
bringing the year-to-date total to 9,376 metres.
Coringa Project
-- Initial mine development commenced at Coringa setting Serabi on its path
to achieve mid-term objective of becoming a 100,000 ounce per annum gold
producer.
-- The development of the mine portal began in late July, with the objective
to reach the Serra ore zone during the fourth quarter, one of three main
zones at Coringa. Blasting into hard rock is now well underway.
-- 400 metres of ore development is planned to further support the
geological resource which to date is based on drillholes and surface
artisanal mining
-- Exposure of the orebody through development could identify potential
mining and processing improvements for the project and future operation:
-- The project economics are currently based on selective mining. The
Company currently utilises a more mechanised long-hole open
stoping at the São Chico deposit and is having good success
with this mining method on the more regular veins at Palito. There
is strong potential that this mining method could be effectively
deployed at Coringa.
-- The use of ore sorting technology at Palito has been very
successful. The Coringa drill core suggests the presence of
the same strong contrast between ore and waste rock. The
Company plans to take development ore from Coringa to
Palito and run tests to assess the applicability of this
technology.
-- The development of Coringa with its favourable economics is a significant
milestone for Serabi. The Company's 2019 Preliminary Economic Assessment
(previously published October 2019) highlighted:
-- low initial capital of US$25m,
-- average annual production of 38koz for the first 5 full years of
production of the 9 year mine life at an average grade of 8.34g/t
Au,
-- All-In Sustaining Cost (AISC) of US$852/oz.
EXPLORATION HIGHLIGHTS
Exploration highlights in the quarter (as previously announced
on 13 August 2021) included:
São Chico
-- Surface drilling on the Julia Vein (Zone 3) intersected significant
shallow mineralisation including 4.30m @ 8.52g/t Au (including 0.80m @
31.08g/t), 2.55m @ 14.29g/t Au (including 0.50m @ 66.70g/t Au) and 0.8m @
11.85g/t Au to 100 metres below surface.
-- Drilling on the Julia Vein (Zone 4) intersected 0.6m @ 3.46g/t Au
indicating shallow mineralisation continues from Zone 3 into Zone 4, a
western extension of the shallow mineralisation across a dacite dyke
intrusion.
-- Julia Vein underground drilling intersected 3.3m @ 12.02g/t Au indicating
a potential deeper mineralised shoot developing below 200 metres vertical
depth on Julia Zone 3.
-- Remodelling and interpretation of historic data has identified a parallel
structure approximately 70 metres to the south of the Main Vein,
containing several small, but very high-grade shoots. Named "Gabi",
recent underground drilling to confirm this vein target returned results
including 0.55m @ 18.24g/t Au.
-- Drill testing of an induced polarisation geophysical anomaly 100 metres
north of the Main Vein and adjacent to the decline ramp intersected 1.95m
@ 3.63g/t Au including 0.70m @ 8.88g/t Au on the Lagoa Intermediate
target.
São Domingos
-- A surface sampling programme over the Atacadão prospect totalling 69
rock chip samples with an average grade of 8.33g/t Au over an area of
1.5km x 1.5km and a maximum result of 204.77g/t Au, reflects the
prospectivity of the area.
-- Drilling commenced in July on the Atacadão trend following up on the
detailed mapping and rock chip sampling of this prospective trend. A
north-south drill traverse, designed to cover the structural intersection
has returned early positive results on multiple narrow vein sets grading
up to 6.19g/t Au.
FINANCIAL AND CORPORATE HIGHLIGHTS
-- Cash balances at the end of September 2021 were US$15.3 million. The
reduction in cash holdings since 30 June reflects the planned increased
level of expenditure on Coringa during the quarter, and reduced gold
sales realised during the period of 8,113 ounces compared with 9,022
ounces in the preceding quarter.
-- Net cash generation of US$0.8 million for the first nine months of 2021
after accounting for all operational and capital expenditures of the
Palito Complex, all corporate out-goings together with all exploration
and Coringa pre-development payments.
2021 PRODUCTION GUIDANCE
The Company maintains its previously stated guidance that
production for 2021 from the current Palito Complex operations will
be between 33,000 and 36,000 ounces.
An interview by BRR Media with Mike Hodgson can be accessed
using the following link -
https://www.brrmedia.co.uk/broadcasts-embed/6165b0fe4e29f55a941933dc/q3-operational-update/?popup=true
Key Operational Information
SUMMARY PRODUCTION STATISTICS FOR 2021 AND 2020
------ ----------------------------------------------------------------
Qtr 1 Qtr 2 Qtr 3 YTD Qtr 1 Qtr 2 Qtr 3 Qtr 4 Full Yr
------------ -------
2021 2021 2021 2021 2020 2020 2020 2020 2020
------------ ------- ------ ------ ------ ------- ------ ------ ------ ------ -------
Gold
production
(1) (2) Ounces 8,087 9,341 9,082 26,510 9,020 8,504 6,790 6,898 31,212
Mined ore --
Total Tonnes 40,371 43,051 42,240 125,663 42,036 43,519 44,097 46,275 175,928
Gold grade (g/t) 6.27 7.12 7.18 6.89 6.54 5.85 4.84 5.24 5.59
Milled ore Tonnes 41,462 43,679 41,995 127,137 40,465 44,235 46,135 43,440 174,276
Gold grade (g/t) 6.27 7.09 7.20 6.86 6.66 5.91 4.75 5.27 5.62
Horizontal
development
-- Total Metres 3,573 2,961 2,842 9,376 2,878 3,004 3,037 3,353 12,272
------------ ------- ------ ------ ------ ------- ------ ------ ------ ------ -------
(1) The table may not sum due to rounding.
(2) Production numbers are subject to change pending final assay analysis from refineries.
Mike Hodgson, CEO, commented:
"The Company has followed up the excellent second quarter gold
production with another solid 9,000 ounces of gold production for
the third quarter meaning Serabi is on course to meet its 2021
production guidance. Higher mined gold grades drove the
much-improved gold production compared with 2020, with third
quarter mined grades averaging 7.18 g/t Au, representing a very
healthy increase on the average of 5.59 g/t Au for the 2020
calendar year.
"As well as very pleasing gold production, the quarter saw the
much anticipated start of mining operations at our Coringa Gold
Project, a real milestone for the Company as we set forth to
achieve our mid-term objective of becoming a 100,000 ounce gold
producer. With permits in place to commence the mining operation, I
am delighted to see mine development underway, and look forward to
intersecting the first ore zone during this current quarter. We
anticipate that the improved understanding arising from this
underground ore development will deliver further economic benefits
to the project.
"Finally, the quarter has seen steady mine site exploration
progress at São Chico as well as further greenfield exploration at
São Domingos. At São Chico, exploration drilling focused on the
strike extension of the Julia Vein to the west of the mine. Results
announced to date have been encouraging. Julia West is near surface
and easy to develop, requiring minimal capital development to
access. Drilling from both surface and underground will continue
well into the next quarter."
RESULTS
Production
Total production for the third quarter of 2021 was 9,082 ounces
of gold, generated from the processing of 41,995 tonnes of ore with
an overall average grade of 7.20 g/t of gold. whilst mined tonnage
for the quarter totalled 42,240 tonnes with a grade of 7.18 g/t of
gold. Gold production for this quarter represents an improvement of
28 per cent over 2020 milled grades.
On 30 September 2021, there were coarse ore stocks of
approximately 3,350 tonnes of ore with an average grade of 2.32 g/t
of gold. This stockpile continues to be consumed slowly and used as
a 'top-up' to ROM ore to keep the plant full.
A total of 2,842 metres of horizontal development has been
completed during the quarter, of which 1,134 metres was ore
development. The balance is the ramp, cross cuts and stope
preparation development.
The consequences of the restrictions imposed by the 2020
pandemic resulted in a severe reduction in mining faces, which led
to a fall in mined grades. It was predicted at the end of 2020 that
with a return to normal operations, grades would improve so we are
delighted to see this happening and mined grades this quarter have
been the highest since early 2019. The mined grades coming from the
Palito orebody are particularly encouraging. The Mogno and Ipe
veins continue to perform extremely well, with both veins being
mined on level +20mRL, within 200 vertical metres of the surface,
requiring only a relatively short haulage distance out of the mine.
Development of both these veins is continuing on levels -40mRL and
-60mRL, with drilling now as deep as -100mRL, with excellent
results continuing to be recorded. Both of these veins will provide
a significant contribution to Palito production in 2022.
At the São Chico orebody, the deepest level, which has just
intersected the Main Vein and is being advanced, is on the -78mRL.
In the western part of the orebody, the Julia Vein continues to be
developed, with production coming from levels 116mRL and now
100mRL. The Julia western ramp continues to be developed down to
level 0mRL, and upwards from level -48mRL which has been accessed
from the Main Vein. The Julia Vein between level 0mRL and 100mRL
will therefore contribute much of the São Chico ore in 2022.
Whilst 2021 has seen a positive recovery in grades and
consequently gold production, the operations are not immune from
some of the longer term impacts of the pandemic. The mine sites are
located in the sparsely populated north of Brazil, which has been a
significant advantage in keeping the camps free of CV-19. However,
the densely populated south of Brazil, where the vast majority of
manufacturing takes place, saw significant, albeit temporary,
factory closures. Whilst not affecting day to day gold production,
many consumable and replacement items remain on back order and
whilst not major items, they are nevertheless essential for the
longer term. The availability of these items, such as pumps,
ventilation equipment and drilling spares is imposing a constraint
on development rates, and as a result mine development by the end
of the third quarter was 30 per cent behind budget. The supply
chain and back-log of orders is improving, so management remain
hopeful this situation will be resolved allowing production to grow
from its current level.
Coringa
Mining development at the Company's wholly owned gold project at
Coringa, located 200km south of Serabi's Palito operation,
commenced during the quarter. The first ramp access is now well
established and is descending to intersect the first ore of the
Serra Vein, expected during the fourth quarter.
All studies to date have considered the tried and tested
selective mining approach that has largely been used at Palito to
date. However, over the past six months very controlled long hole
open stoping, combined with cable bolting, has been trialled in
certain areas of the Palito mine with excellent results. If this
can be extended to Coringa, it could have major benefits, reducing
costs and bringing production efficiencies.
Coringa has all the indications that it will be like Palito and
ore sorting is also a possibility. Test work can be undertaken
using the Company's ore sorter at Palito to find the optimal
settings and processing criteria. Ore sorting has significant
benefits as it means rejecting waste before the plant, resulting in
a higher grade, lower volume feed to the plant, and, as Coringa
will have filtration and dry stacking of tailings instead of a
tailings dam, reduced levels of tailings.
Figure 1 -- The Coringa Portal at Serra
To access a photo of the Coringa Portal at Serra please use the
following link
https://www.globenewswire.com/Tracker?data=ZNjWTIl0m22F-GUBybEQn8lTxDhRSvwAPiFkPbuBxHaDTkTDi015gYMjCoT4HyKqoLwQDYTiI-mh35fesDSL-cBV0ok7SygtYzVz2nzPWdg=
https://bit.ly/3lz0EWr
Figure 2 -- The Serra Ramp Established
To access a photo of the Serra Ramp please use the following
link
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https://bit.ly/3AzkrsZ
Exploration
Recent drilling has also led us to review some historic São
Chico drilling results and core with encouraging results, notably
the identification of the Gabi Vein. Located 70 metres south of the
Main Vein it was intersected with early São Chico drillholes that
were targeting the Main Vein. As is often the case, the Gabi
structure, being narrower and not the primary target, was
overlooked at the time. Re-interpretation and a good deal of
re-logging and sampling is building a very interesting and
encouraging prospect that justifies further development.
At São Domingos, after the initial success at the Tucano
prospect, exploration focus moved to the adjacent Atacadao anomaly,
where a surface sampling followed by a surface drilling commenced.
The initial results of the surface sampling from the Atacadão trend
have been encouraging. With excellent results at Tucano and
encouragement at Atacadao, further terrestrial exploration has been
suspended for a short while, whilst an airborne Geophysics survey
is flown over the São Domingos/São Chico west area. The survey will
bring clarity and help better focus the future ground exploration
effort. The survey should be complete before the end of the
year.
Julia Vein
The Julia Vein, discovered in the 2016 extension drilling
campaign, is a mineralised vein structure located close and
parallel to the Main Vein. The Julia Vein develops west of a NE-SW
cross cutting structure, which effectively terminates economically
mineable grades within the Main Vein. The Julia Vein is interpreted
to be the focus of gold mineralising fluids west of the
cross-cutting structure and although the Main Vein structure
extends in its parallel position, the gold grades within the
continuation of the mineralised structure are not significant.
Julia is cut by a series of cross-cutting, NE-SW trending dacite
dykes and therefore broken into a series of dyke-bound blocks
referred to as Zones 1, 2, 3 and 4. Mine development and stoping
has occurred on the shallow portions of Zone 1 and 2, and the
deeper portion of Zone 1. Recent surface drilling into the shallow
portion of Zone 3 and 4 has returned some significant drilled
intercepts at mineable widths. Drilling on the Julia Vein (Zone 3)
intersected significant shallow mineralisation including 21-SC-210
with 4.30m @ 8.52g/t Au from 66.70m (including 0.80m @ 31.08g/t),
21-SC-211 with 2.55m @ 14.29g/t Au from 84.45m (including 0.50m @
66.70g/t Au) and 21-SC-212 with 0.8m @ 11.85g/t Au from 68.35m
(including 0.35m @ 22.46g/t Au).
These recent drilling intercepts demonstrate that Zone 3
contains mineable grades down to 100 metres vertical depth and
along a 100 metre strike of the Julia Vein.
Surface drilling in 2020 into Zone 3 did not return any
significant intercepts between 100 metres and 200 metres vertical
depth. However, recent underground drilling has demonstrated that
mineable mineralisation exists below 200 metres vertical depth with
drill holes 21-SCUD-523 reporting 3.3m @ 12.02g/t Au, 21-SCUD-517
with 0.92m @ 1.07g/t Au, 21-SCUD-542 with 0.61m @ 1.45g/t Au and
21-SCUD-546 reporting 0.83m @ 1.73g/t Au.
Recent surface drilling into Julia Zone 4 returned an intercept
of 0.6m @ 3.46g/t Au from 136.55m in drill hole 21-SC-192. This
intercept indicates shallow mineralisation continues from Zone 3
into Zone 4. As such a follow-up programme of a further six shallow
surface drill holes is planned to confirm this western strike
extension of the Julia Vein.
Figure 3 - Plan view of the São Chico veins
To access a detailed image of the Plan view of the São Chico
veins please use the following link -
https://www.globenewswire.com/Tracker?data=ZNjWTIl0m22F-GUBybEQn2sWEET4IcItJi-GSHDBT_xwB_WaxzY6Th3VAaG7UuFZWcA4L4MFa5UvKJSFwB-WVk_SJ4wEvZanRo4pjBJfE8Y=
https://bit.ly/2XlokDY
Figure 4 - Long Section of the Julia Vein, showing zones 1-4
To access a detailed image of the Long Section of the Julia Vein
please use the following link -
https://www.globenewswire.com/Tracker?data=ZNjWTIl0m22F-GUBybEQn9nxiWTjZwx81ZwgUjC6BKENWHyTeaEccLLrsMvAKtM1uC4PVsgQuUmeR48QTXCdzhKcosJxI7mpa1GWg5Dx_LM=
https://bit.ly/3iFm7LS
Gabi Vein
The Gabi Vein lies 70 metres south of the Main Vein and current
mine infrastructure. This vein was intersected in the initial 2011
drilling campaign where deeper drilling targeting the Main Vein cut
the Gabi Vein in the shallow portion of the drill holes.
Intersected by six shallow diamond drill holes, a single
significant intercept of 1.31m @ 10.00g/t Au from 11-SC-021 was
reported.
Similarly in the subsequent 2013 drilling campaign the vein was
intersected by eight drill holes whilst targeting the deeper
portion of the Main Vein, with the significant intercept of 0.70m @
103.64g/t Au in 13-SC-049. The Gabi structure was again pierced in
the subsequent 2015 campaign, however, on this occasion, without
reporting significant mineralisation.
In 2018, underground drilling intersected the vein whilst
targeting the Cross Roads induced polarisation geophysical anomaly.
Two holes were completed returning 1.39m @ 3.96g/t Au (18-SCUD-207)
and 0.36m @ 3.71g/t Au (18-SCUD-206) from the Gabi structure. The
structure was also pierced by surface drilling undertaking strike
extension exploration of the Main Vein.
In 2019 and 2020 surface drilling campaigns conducted on the
Highway Zone of the Main Vein intersected the structure shallowly
to the east. A significant intercept of 0.38m @ 25.36g/t Au was
returned from drill hole 19-SC-139.
In 2021, following an exercise of data re-modelling and
structural interpretation, the Gabi structure was recognised as
being a significantly strike extensive structure (more than 700
metres) containing two possible mineralised shoots. Underground
drilling, targeting the eastern shoot, has recently been completed.
Seven holes were undertaken with significant intercepts including
0.55m @ 18.24g/t Au (21-SCUD-544) and 0.61m @ 1.45g/t Au
(21-SCUD-542). Two holes still have assay results pending.
The eastern mineralised shoot on the Gabi Vein appears to
represent a narrow sub vertical zone of mineralisation extending
over 200 metres vertically and approximately 100 metres along
strike.
The western mineralised shoot is indicated by drill holes
11-SC-021 and 13-SC-049 but is yet to be targeted.
Figure 5 - Long section of Gabi Vein
To access a detailed image of the Long Section of the Gabi Vein
please use the following link -
https://www.globenewswire.com/Tracker?data=ZNjWTIl0m22F-GUBybEQn-kP1_lXUBDnbzuTt9ZWWspD0zzj51HlLAAgDRW18c3yUs2CLnStcGBjWINjXnnxrUEA2XzmeYMuEqC14Bt4ZG8=
https://bit.ly/3iCDBbE
Lagoa Intermediate
Lagoa Intermediate is a chargeable induced polarization anomaly
defined in 2018 and located approximately 100 metres north of the
Main Vein and adjacent to the decline ramp.
Initially tested in 2018 by a single drill hole 18-SC-115, three
zones of veining and alteration were intersected returning grades
up to 1.28g/t Au.
Recently drill hole 21-SC-214 scissoring the previous hole
intersected 1.95m @ 3.63g/t Au from 123.05m including 0.70m @
8.88g/t Au from 124.30m and 0.5m @ 1.15g/t Au from 126.65m.
This drilling further validates the mineral potential in the
Lagao Intermediate anomaly in juxtaposition to the mine
infrastructure. Further drilling will be undertaken to improve the
definition of this anomaly in the coming months.
Significant intercepts reported from the São Chico brownfields
exploration are summarised in the table below.
Hole Target East West RL Depth (m) Dip/Azm From To Width (m) Au
------------ ------- ------ --------- ------ ------ ---------
(UTM- SAD69) (UTM- SAD69) (deg/degUTM) (g/t)
------------ ------- ------------ ------------ ------ --------- ------------- ------ ------ --------- --------
SÃO CHICO UNDERGROUND DD DRILLING
21-SCUD-517 Julia 613432.52 9290574.42 117.85 194.75 -64.8/209.28 71.73 72.65 0.92 1.07
--------------------- ------------ ------------ ------ --------- ------------- ------ ------ --------- ------ ------ ------------ ----- ----- ---- ----
21-SCUD-523 Julia 613432.78 9290574.17 117.81 119.60 -62/190.58 60.33 63.63 3.30 12.02
21-SCUD-526 Julia 613432.85 9290574.35 117.87 134.80 -70/192.28 91.12 91.48 0.36 1.26
------------ ------- ------------ ------------ ------ --------- ------------- ------ ------ --------- --------
21-SCUD-542 Gabi 614208.87 9290241.13 87.69 44.50 -15.9/192.39 22.25 22.86 0.61 1.45
------------ ------- ------------ ------------ ------ --------- ------------- ------ ------ --------- --------
21-SCUD-544 Gabi 614208.86 9290241.15 87.22 55.40 -48.93/193.49 29.45 30.00 0.55 18.24
21-SCUD-546 Julia 613431.89 9290574.95 117.67 116.70 -70.10/231.78 86.00 86.83 0.83 1.73
SÃO CHICO SURFACE DD DRILLING
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
21-SC-192 Julia 613291.54 9290495.52 236.92 306.00 -45.10/48.70 136.55 137.15 0.60 3.46
215.40 215.80 0.40 0.60
256.50 259.30 2.80 0.75
incl. 258.70 259.30 0.60 1.51
269.40 270.00 0.60 0.98
-------------------- ------------ ------------ ------ --------- ------------- ------ ------ --------- --------
21-SC-207 Julia 613392.65 9290545.23 231.75 114.70 -44.1/25 52.20 53.35 1.15 1.63
63.65 64.10 0.45 1.43
96.00 97.00 1.00 2.81
-------------------- ------------ ------------ ------ --------- ------------- ------ ------ --------- --------
21-SC-208 Julia 613392.64 9290544.48 231.84 124.65 -60/25.6 51.30 51.65 0.35 3.20
53.00 54.00 1.00 1.96
64.70 65.10 0.40 4.49
67.90 70.20 2.30 1.02
incl. 69.80 70.20 0.40 3.29
71.50 71.90 0.40 0.78
73.45 74.00 0.55 0.90
102.70 103.15 0.45 0.55
-------------------- ------------ ------------ ------ --------- ------------- ------ ------ --------- --------
21-SC-210 Julia 613357.08 9290546.80 229.79 123.02 -45.9/35 26.50 26.80 0.30 2.46
66.70 71.00 4.30 8.52
incl. 67.35 68.15 0.80 31.08
-------------------- ------------ ------------ ------ --------- ------------- ------ ------ --------- --------
21-SC-211 Julia 613356.91 9290546.32 229.79 120.63 -57.6/33.2 23.65 24.00 0.35 0.64
45.00 46.00 1.00 0.57
84.45 87.00 2.55 14.29
inc. 85.00 85.50 0.50 66.70
-------------------- ------------ ------------ ------ --------- ------------- ------ ------ --------- --------
21-SC-212 Julia 613329.16 9290489.87 239.61 175.94 -45.2/22.5 68.35 69.15 0.80 11.85
incl. 68.35 68.70 0.35 22.46
128.10 128.55 0.45 0.85
166.00 166.30 0.30 0.60
-------------------- ------------ ------------ ------ --------- ------------- ------ ------ --------- --------
Lagoa
21-SC-214 Int. 613955.04 9290431.66 240.85 231.41 -49/21.60 123.05 125.00 1.95 3.63
incl. 124.30 125.00 0.70 8.88
126.65 127.15 0.50 1.15
-------------------- ------------ ------------ ------ --------- ------------- ------ ------ --------- --------
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.
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 Limited
Nominated Adviser and Financial Adviser
Roland Cornish / Michael Cornish Tel: +44 (0)20 7628 3396
Peel Hunt LLP
Joint UK Broker
Ross Allister / Alexander Allen Tel: +44 (0)20 7418 9000
Tamesis Partners LLP
Joint UK Broker
Charlie Bendon / Richard Greenfield Tel: +44 (0)20 3882 2868
Camarco
Financial PR
Gordon Poole / Nick Hennis Tel: +44(0) 20 3757 4980
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.
See
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www.serabigold.com for more information and follow us on twitter
@Serabi_Gold
GLOSSARY OF TERMS
"Ag" means silver.
------------------ ----------------------------------------------------------------
"Au" means gold.
------------------ ----------------------------------------------------------------
"assay" in economic geology, means to analyse the proportions
of metal in a rock or overburden sample; to test an
ore or mineral for composition, purity, weight or
other properties of commercial interest.
------------------ ----------------------------------------------------------------
"CIM" means the Canadian Institute of Mining, Metallurgy
and Petroleum.
------------------ ----------------------------------------------------------------
"chalcopyrite" is a sulphide of copper and iron.
------------------ ----------------------------------------------------------------
"Cu" means copper.
------------------ ----------------------------------------------------------------
"cut-off grade" the lowest grade of mineralised material that qualifies
as ore in a given deposit; rock of the lowest assay
included in an ore estimate.
------------------ ----------------------------------------------------------------
"dacite porphyry a silica-rich igneous rock with larger phenocrysts
intrusive" (crystals) within a fine-grained matrix
------------------ ----------------------------------------------------------------
"deposit" is a mineralised body which has been physically delineated
by sufficient drilling, trenching, and/or underground
work, and found to contain a sufficient average grade
of metal or metals to warrant further exploration
and/or development expenditures; such a deposit does
not qualify as a commercially mineable ore body or
as containing ore reserves, until final legal, technical,
and economic factors have been resolved.
------------------ ----------------------------------------------------------------
"electromagnetics" is a geophysical technique tool measuring the magnetic
field generated by subjecting the sub-surface to electrical
currents.
------------------ ----------------------------------------------------------------
"garimpo" is a local artisanal mining operation
------------------ ----------------------------------------------------------------
"garimpeiro" is a local artisanal miner.
------------------ ----------------------------------------------------------------
"geochemical" refers to geological information using measurements
derived from chemical analysis.
------------------ ----------------------------------------------------------------
"geophysical" refers to geological information using measurements
derived from the use of magnetic and electrical readings.
------------------ ----------------------------------------------------------------
"geophysical include the exploration of an area by exploiting differences
techniques" in physical properties of different rock types. Geophysical
methods include seismic, magnetic, gravity, induced
polarisation and other techniques; geophysical surveys
can be undertaken from the ground or from the air.
------------------ ----------------------------------------------------------------
"gossan" is an iron-bearing weathered product that overlies
a sulphide deposit.
------------------ ----------------------------------------------------------------
"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.
------------------ ----------------------------------------------------------------
"granodiorite" is an igneous intrusive rock similar to granite.
------------------ ----------------------------------------------------------------
"hectare" or a is a unit of measurement equal to 10,000 square metres.
"ha"
------------------ ----------------------------------------------------------------
"igneous" is a rock that has solidified from molten material
or magma.
------------------ ----------------------------------------------------------------
"IP" refers to induced polarisation, a geophysical technique
whereby an electric current is induced into the sub-surface
and the conductivity of the sub-surface is recorded.
------------------ ----------------------------------------------------------------
"intrusive" is a body of rock that invades older rocks.
------------------ ----------------------------------------------------------------
"Indicated Mineral is that part of a Mineral Resource for which quantity,
Resource 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 is that part of a Mineral Resource for which quantity
Resource" 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.
------------------ ----------------------------------------------------------------
"Inferred Mineral " is that part of a Mineral Resource for which quantity
Resource" 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.
------------------ ----------------------------------------------------------------
"mineralisation" the concentration of metals and their chemical compounds
within a body of rock.
------------------ ----------------------------------------------------------------
"mineralised" refers to rock which contains minerals e.g. iron,
copper, gold.
------------------ ----------------------------------------------------------------
"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 mine
------------------ ----------------------------------------------------------------
"Mo-Bi-As-Te-W-Sn" Molybdenum-Bismuth-Arsenic-Tellurium-Tungsten-Tin
------------------ ----------------------------------------------------------------
"monzogranite" a biotite rich granite, often part of the later-stage
emplacement of a larger granite body.
------------------ ----------------------------------------------------------------
"mt" means million tonnes.
------------------ ----------------------------------------------------------------
"ore" means a metal or mineral or a combination of these
of sufficient value as to quality and quantity to
enable it to be mined at a profit.
------------------ ----------------------------------------------------------------
"oxides" are near surface bed-rock which has been weathered
and oxidised by long term exposure to the effects
of water and air.
------------------ ----------------------------------------------------------------
"ppm" means parts per million.
------------------ ----------------------------------------------------------------
"Probable Mineral is the economically mineable part of an Indicated
Reserve" 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 is the economically mineable part of a Measured Mineral
Reserve" Resource. A Proven Mineral Reserve implies a high
degree of confidence in the Modifying Factors
------------------ ----------------------------------------------------------------
"saprolite" is a weathered or decomposed clay-rich rock.
------------------ ----------------------------------------------------------------
"sulphide" refers to minerals consisting of a chemical combination
of sulphur with a metal.
------------------ ----------------------------------------------------------------
"vein" is a generic term to describe an occurrence of mineralised
rock within an area of non-mineralised rock.
------------------ ----------------------------------------------------------------
"VTEM" refers to versa time domain electromagnetic, a particular
variant of time-domain electromagnetic geophysical
survey to prospect for conductive bodies below surface.
------------------ ----------------------------------------------------------------
Assay Results
Assay results reported within this release include some that are
provided by the Company's own on-site laboratory facilities at
Palito and have not yet been independently verified. Serabi closely
monitors the performance of its own facility against results from
independent laboratory analysis for quality control purpose. As a
matter of normal practice, the Company sends duplicate samples
derived from a variety of the Company's activities to accredited
laboratory facilities for independent verification. Since mid-2019,
over 10,000 exploration drill core samples have been assayed at
both the Palito laboratory and certified external laboratory, in
most cases the ALS laboratory in Belo Horizonte, Brazil. When
comparing significant assays with grades exceeding 1 g/t gold,
comparison between Palito versus external results record an average
over-estimation by the Palito laboratory of 6.7% over this period.
Based on the results of this work, the Company's management are
satisfied that the Company's own facility shows sufficiently good
correlation with independent laboratory facilities for exploration
drill samples. The Company would expect that in the preparation of
any future independent Reserve/Resource statement undertaken in
compliance with a recognised standard, the independent authors of
such a statement would not use Palito assay results without
sufficient duplicates from an appropriately certificated
laboratory.
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 26 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
identi ed 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 re ect 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.
ENDS
Attachment
-- Q3 Operational Update
https://ml-eu.globenewswire.com/Resource/Download/20a9e594-c285-4e74-bdcc-d7278cceadd9
(END) Dow Jones Newswires
October 13, 2021 02:00 ET (06:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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