REG-Increases Total Mineral Inventory: Provides Results of Updated Mineral Resource and Reserves
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Increases Total Mineral Inventory: Provides Results of Updated Mineral
Resource and Reserves
Serabi Gold plc (“Serabi” or the “Company”) (AIM:SRB, TSX:SBI,
OTCQX:SRBIF), the Brazilian focused gold mining and development company, is
pleased to announce updated Mineral Reserve estimates and Mineral Resource
estimates for its Palito Mine, prepared in accordance with the standard of CIM
and Canadian National Instrument 43-101, with an effective date of 1 April,
2025 as outlined below (all financial amounts are expressed in U.S. dollars
unless otherwise indicated).
HIGHLIGHTS
* Proven and Probable (“2P”) Reserves totalling 162,600 ounces (706,000
tonnes at 7.2 g/t Au) compared to 206,400 ounces (824,800 tonnes @ 7.8 g/t Au)
in July 2023.
* Reserve life is equivalent to over six years of operations at current
production levels, without considering conversion of additional mineral
resources.
* Measured and Indicated (“M&I”) Resources of 388,400 ounces of contained
gold (1,252,900 tonnes @ 9.6 g/t Au), a 3% increase compared to 377,800
(1,166,300 tonnes @ 10.1 g/t) in December 2023.
* Inferred Resources of 163,900 ounces (690,200 tonnes @ 7.4 g/t Au), a 7%
increase compared to 153,900 ounces (682,400 tonnes @ 7.0 g/t Au in July
2023).
* NCL Ingeniería y Construcción SpA of Santiago de Chile (“NCL”) is
preparing this Mineral Resource and Mineral Reserve estimation together with a
new 43-101 Technical Report which is expected to be issued within 45 days of
the date of this release.
Mike Hodgson CEO commented:
“This updated Mineral Resource demonstrates Serabi’s ability to replenish
resources on a consistent basis. We have regularly maintained our ability to
replace production with new resources and in this instance, the combined
Measured, Indicated and the Inferred resource categories have increased by 4%
since 2023. The Company has a strong track record of maintaining a ~500koz
ounces total mineral inventory at the Palito Complex and this latest estimate
is no different as we increase to 552koz. Within this mineral resource
inventory, we have reported a 2P Mineral Reserve of ~163koz, equating to over
six years of reserve life at current extraction rates, excluding any future
resource to reserve conversion. For a narrow vein mine, this is a great
position to be in. With São Chico on care and maintenance since 2022, the
2023 estimated resources and reserves have simply been restated here, albeit
these resources and reserves were calculated at a more conservative gold price
and exchange rate.
In early 2025 we embarked on a $9m brownfield surface exploration drill
programme spread across the Palito Complex and Coringa, approximately 50% of
this budget will be used at Palito to test extensions of known orebodies. As
this drill programme did not commence until March, this updated resource
estimate does not include results from the exploration programme. We therefore
look forward to an update in early 2026, when we do expect to incorporate
results from our ‘aggressive’ brownfield programme. In the meantime, this
increase, which excludes the surface drill programme, is especially
pleasing.”
The Mineral Reserve estimate was prepared by Mr Carlos Guzman of NCL
Ingeniería y Construcción SpA, who is a Qualified Person under the Canadian
National Instrument 43-101.
The Mineral Resource estimate was prepared by Mr Nicolas Fuster of NCL
Ingeniería y Construcción SpA, who is a Qualified Person under the Canadian
National Instrument 43-101.
Mineral Reserve Estimates
The updated Mineral Reserve estimates for the Palito Mine and the São Chico
Mine are based on data as at 1(st) April 2025.
Table 1: Palito Complex Mineral Reserve Statement as of April 1, 2025
Mineral Reserve Statement for the Palito Complex (Palito and São Chico Mines)
Palito São Chico Combined
Tonnes Grade Contained Tonnes Grade Contained Tonnes Grade Contained
(000’s) (g/t Au) (000’s oz) (000’s) (g/t Au) (000’s oz) (000’s) (g/t Au) (000’s oz)
Proven 422.4 7.7 103.8 46.1 8.2 12.2 468.5 7.7 116.0
Probable 223.6 6.0 43.1 14.1 7.7 3.5 237.7 6.1 46.6
Total Reserves 645.9 7.1 147.0 60.2 8.1 15.6 706.1 7.2 162.6
Notes to Palito Complex Mineral Reserve Estimates
1. Mineral Reserves have been rounded to reflect the relative accuracy of the
estimates. Proven Mineral Reserves are reported within the Measured
classification domain, and Probable Mineral Reserves are reported within the
Indicated classification domain.
2. Palito Mine Proven and Probable Mineral Reserves are inclusive of external
mining dilution and mining loss and are reported at a cut-off grade of 3.98
g/t gold for Palito Mine and assuming an underground shrinkage mining
scenario, a gold price of US$2,000/oz, a 5.5:1 Brazilian Real to U.S. Dollar
exchange rate, and metallurgical recoveries of 93.2%.
3. São Chico Mine Proven and Probable Mineral Reserves are inclusive of
external mining dilution and mining loss and are reported at a cut-off grade
of 4.0 g/t gold and assuming an underground shrinkage mining scenario, a gold
price of US$1,800/oz, a 5.0:1 Brazilian Real to U.S. Dollar exchange rate, and
metallurgical recoveries of 93.8%, as estimated in 2023 and re-stated in this
release .
4. Serabi is the operator and owns 100% of the Palito Mine such that gross and
net attributable mineral reserves are the same.
5. The mineral reserve estimate was prepared by NCL in accordance with the
standard of CIM and NI 43-101, with an effective date of April 1, 2025, and
audited and approved by Mr. Carlos Guzmán of NCL, who is a Qualified Person
under NI 43-101.
Mineral Resource Estimates
The updated Mineral Resource estimates for the Palito Mine and the Sao Chico
Mine are based on data as at 1(st) April 2025 and 31(st) July 2023,
respectively.
Table 2: Mineral Resource Statement, Palito Mine as of April 1, 2025
Classification Tonnes Grade Contained
(000’s) (g/t Au) (000’s)
Measured 769 10.8 267.5
Indicated 333 7.7 82.5
Measured and Indicated 1,102 9.9 350.0
Inferred 682 7.4 161.8
Notes to Palito Mine Mineral Resource Statement
1. Mineral Resources are not Mineral Reserves and have not demonstrated
economic viability.
2. Mineral Resources are reported inclusive of Mineral Reserves.
3. Figures are rounded to reflect the relative accuracy of the estimates.
4. Mineral Resources are reported within classification domains with no
dilution applied at a cut-off grade of 2.92 g/t gold assuming an underground
extraction scenario, a gold price of US$2,500/oz, metallurgical recovery of
95% and exchange rate of R$ 6.0/US$.
5. Polygonal techniques were used for Resources estimates.
6. The mineral resource estimate was prepared by NCL in accordance with the
standard of CIM and NI 43-101, with an effective date of April 1, 2025, and
audited and approved by Mr. Nicolas Fuster of NCL, who is a Qualified Person
under NI 43-101.
Table 3: Mineral Resource Statement, São Chico Mine as of July 31, 2023
Classification Tonnes Grade Contained
(000’s) (g/t Au) (000’s)
Measured 123 8.1 31.9
Indicated 29 7.1 6.5
Measured and Indicated 151 7.9 38.4
Inferred 8 6.5 1.7
Notes to Mineral Resource Statement, São Chico Mine
1. Mineral Resources are not Mineral Reserves and have not demonstrated
economic viability.
2. Mineral Resources are reported inclusive of Mineral Reserves.
3. Figures are rounded to reflect the relative accuracy of the estimates.
4. Mineral Resources are reported within classification domains with no
dilution applied at a COG of 3.32 g/t gold assuming an underground extraction
scenario, a gold price of US$1,950/oz, metallurgical recovery of 95% and
exchange rate of R$ 5.5/US$3D block model used for Resource estimates.
5. Polygonal techniques were used for Resources estimates.
Qualified Persons and Quality Control
The scientific and technical information contained in this news release
pertaining to the Palito Complex has been reviewed and approved by the
following Qualified Persons under National Instrument 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101"):
* Carlos Guzman,RM CMC, FAusIMM, NCL Ingeniería y Construcción SpA
* Gustavo Tapia, RM CMC, Metallurgical and Process Consultant, GT Metallurgy
* Nicolas Fuster, RM CMC, MAusIMM, NCL Ingeniería y Construcción SpA
The Qualified Persons have verified the information disclosed herein,
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.
Technical Report
A Technical Report prepared by NCL Ingeniería y Construcción SpA. In
accordance with NI 43-101 will be filed on SEDAR (www.sedar.com) within 45
days of this release as well as on the Company’s website
About Serabi Gold plc
Serabi Gold plc is a gold exploration, development and production company
focused on the prolific Tapajós region in Para State, northern Brazil. The
Company has consistently produced 30,000 to 40,000 ounces per year with the
Palito Complex and is planning to double production in the coming years with
the construction of the Coringa Gold project. Serabi Gold plc recently made a
copper-gold porphyry discovery on its extensive exploration licence. The
Company is headquartered in the United Kingdom with a secondary office in
Toronto, Ontario, Canada.
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 Andrew Khov, Vice President, Investor Relations & Business
Development.
Enquiries
SERABI GOLD plc
Michael Hodgson t +44 (0)20 7246 6830
Chief Executive m +44 (0)7799 473621
Colm Howlin
Chief Financial Officer m +353 89 6078171
Andrew Khov m +1 647 885 4874
Vice President, Investor Relations &
Business Development
e contact@serabigold.com
www.serabigold.com
BEAUMONT CORNISH Limited
Nominated Adviser & Financial Adviser
Roland Cornish / Michael Cornish t +44 (0)20 7628 3396
PEEL HUNT LLP
Joint UK Broker
Ross Allister / Georgia Langoulant t +44 (0)20 7418 9000
TAMESIS PARTNERS LLP
Joint UK Broker
Charlie Bendon/ Richard Greenfield t +44 (0)20 3882 2868
CAMARCO
Financial PR - Europe
Gordon Poole / Emily Hall t +44 (0)20 3757 4980
Assay Results
Assay results reported within this release include those 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 recognized
standard, the independent authors of such a statement would not use Palito
assay results without sufficient duplicates from an appropriately certificated
laboratory.
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.
Several 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.
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, recognizing 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.
Notice
Beaumont Cornish Limited, which is authorised and regulated in the United
Kingdom by the Financial Conduct Authority, is acting as nominated adviser to
the Company in relation to the matters referred herein. Beaumont Cornish
Limited is acting exclusively for the Company and for no one else in relation
to the matters described in this announcement and is not advising any other
person and accordingly will not be responsible to anyone other than the
Company for providing the protections afforded to clients of Beaumont Cornish
Limited, or for providing advice in relation to the contents of this
announcement or any matter referred to in it.
Neither the Toronto Stock Exchange, nor any other securities regulatory
authority, has approved or disapproved of the contents of this news release
See www.serabigold.com for more information and follow us on X @Serabi_Gold
APPENDIX
Mineral Reserves and Resources
The Company estimates and discloses mineral reserves and resources using the
definitions adopted by the Canadian Institute of Mining, Metallurgy and
Petroleum, and in accordance with NI 43-101. Further details are available at
www.cim.org. See the “Glossary of Geological and Mining Terms” for
complete definitions of mineral reserves and mineral resources.
About Mineral Resources
Mineral resources are not mineral reserves and do not have demonstrated
economic viability but do have reasonable prospect for economic extraction.
They fall into three categories: measured, indicated, and inferred. The
reported mineral resources are stated inclusive of mineral reserves. Measured
and indicated mineral resources are sufficiently well-defined to allow
geological and grade continuity to be reasonably assumed and permit the
application of technical and economic parameters in assessing the economic
viability of the mineral resource. Inferred mineral resources are estimated on
limited information not sufficient to verify geological and grade continuity
or to allow technical and economic parameters to be applied. Inferred mineral
resources are too speculative geologically to have economic considerations
applied to them. There is no certainty that mineral resources of any category
will be upgraded to mineral reserves.
Important Information about Mineral Reserve and Resource Estimates
Whilst the Company takes all reasonable care in the preparation and
verification of the mineral reserve and resource figures, the figures are
estimates based in part on forward-looking information. Estimates are based on
management’s knowledge, mining experience, analysis of drilling results, the
quality of available data and management’s best judgment. They are, however,
imprecise by nature, may change over time, and include many variables and
assumptions including geological interpretation, commodity prices and currency
exchange rates, recovery rates, and operating and capital costs. There is no
assurance that the indicated levels of metal will be produced, and the Company
may have to re-estimate the mineral reserves based on actual production
experience. Changes in the metal price, production costs or recovery rates
could make it unprofitable to operate or develop a particular deposit for a
period of time.
A comparison of the updated Mineral Reserve Estimates as at 1 April 2025 with
the previously reported Mineral Reserve Estimates as at 31 July 2023 published
on 20 November 2023 is set out below.
Comparison of Mineral Reserves for the Palito Mine, Para, Brazil
April 2025 July 2023
Tonnes Grade Contained Tonnes Grade Contained
(000’s) (g/t Au) (000’s oz) (000’s) (g/t Au) (000’s oz)
Proven 422 7.7 103.8 568 8.1 147.5
Probable 224 6.0 43.1 197 6.8 43.2
Proven & Probable Reserves 646 7.1 147.0 765 7.8 190.7
A comparison of the updated Mineral Resource Estimates as at 1 April 2025 with
the previously reported Mineral Resource Estimates as at 31 July 2023
published on 20 November 2023 is set out below.
Comparison of Mineral Resources for the Palito Mine, Para, Brazil
April 2025 July 2023
Tonnes Grade Contained Tonnes Grade Contained
(000’s) (g/t Au) (000’s oz) (000’s) (g/t Au) (000’s oz)
Measured Resources 769 10.8 268 772 11.0 274
Indicated Resources 333 7.7 83 243 8.4 66
Measured & Indicated Resources 1,102 9.9 350 1,015 10.4 339
Inferred Resources 682 7.4 162 674 7.0 152
GLOSSARY OF TERMS
The following is a glossary of technical 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.
“ chalcopyrit e” 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 intrusive” a silica-rich igneous rock with larger phenocrysts (crystals) within a fine-grained matrixi
“ 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 techniques ” include the exploration of an area by exploiting differences 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 “ ha ” is a unit of measurement equal to 10,000 square metres.
“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 Resource An Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail
to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity
between points of observation. An Indicated Mineral Resource has a lower level of confidence than that applying to a Measured Mineral Resource and may only be converted to a Probable Mineral Reserve.
"Inferred Mineral Resource” An Inferred Mineral Resource is that part of a Mineral Resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade
or quality continuity. An Inferred Mineral Resource has a lower level of confidence than that applying to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with continued exploration.
“Measured Mineral Resource” A Measured Mineral Resource is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, and physical characteristics are estimated with confidence sufficient to allow the application of Modifying Factors to support detailed
mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points
of observation. A Measured Mineral Resource has a higher level of confidence than that applying to either an Indicated Mineral Resource or an Inferred Mineral Resource. It may be converted to a Proven Mineral Reserve or to a Probable Mineral Reserve.
“ 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” A Mineral Resource is a concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity,
grade or quality, continuity and other geological characteristics of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
“Mineral Reserve” A Mineral Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at Pre
-Feasibility or Feasibility level as appropriate that include application of Modifying Factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified.
“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 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.
“ 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.
“ XRF ” X-ray Fluorescence (XRF) is a spectrometric technique used to perform elemental analysis non-destructively on samplesRecent news on Serabi Gold
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