Serabi Gold logo

SRB - Serabi Gold News Story

90.5p -1.0  -1.1%

Last Trade - 21/02/20

Sector
Basic Materials
Size
Small Cap
Market Cap £53.3m
Enterprise Value £48.3m
Revenue £41.6m
Position in Universe 1151st / 1838

Serabi Announces Filing of Technical Report for its Palito Mining Complex

Fri 26th January, 2018 7:00am
Serabi Announces Filing of Technical Report for its Palito Mining Complex

For immediate release
26 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 Estimates
The 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:

  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%.
  2. 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:

  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 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.
  2. 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 Estimates
The 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:

  1. 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%.
  2. 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:

  1. 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%
  2. 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 Limited
Nominated Adviser and Financial Adviser
Roland Cornish Tel: +44 (0)20 7628 3396
Michael Cornish Tel: +44 (0)20 7628 3396
Peel Hunt LLP
UK 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 TERMS
The 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.




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Serabi Gold plc via Globenewswire

© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.