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Serabi Gold plc : Updated Mineral Resource and Mineral Reserve Statement

Mon 11th December, 2017 7:00am
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For immediate release
11 December 2017

Serabi Gold plc
("Serabi" or the "Company")

Updated Mineral Resource and Mineral Reserve Statement

Serabi Gold (AIM:SRB, TSX:SBI), the Brazilian focused gold mining and
development company, is pleased to announce updated Mineral Resource and
Mineral Reserve estimates for its Tapajos mining and processing operations
("Tapajos Operations"), prepared in accordance with the standard of CIM and
Canadian National Instrument 43-101 with an effective date of 30 June 2017, as
outlined below.  The Tapajos Operations currently comprise the mining and
processing of the Palito and Sao Chico ore-bodies.
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:

"From the time that production re-commenced at the Palito Mine in late 2013
until the end of June 2017, we estimate that approximately 118,000 contained
gold ounces have been mined from the Palito ore-body (385,700 tonnes at an
average mined gold grade of 9.52 g/t).  That we are now able to declare a
Measured and Indicated mineral resource with an estimated 271,000 contained
gold ounces as of 30 June 2017 is encouraging and demonstrates that our
efforts to delineate new mineral resources with in-fill and step-out drilling
programmes has been successful at Palito.  This represents an increase of 31
per cent in the Measured and Indicated mineral resources compared with the
last estimation of June 2012, which was undertaken prior to the
re-commencement of production.

"We are also encouraged by the fact that we have been able to convert a
significant amount (58 per cent of the contained gold) of our Measured and
Indicated mineral resources into Proven and Probable mineral reserves, which
total 157,000 contained gold ounces as of 30 June 2017 (613,000 tonnes at an
average diluted gold grade of 7.99 g/t).

"Similarly, at the Sao Chico Mine we have mined approximately 28,000 contained
gold ounces since commercial production was declared in January 2016 (89,500
tonnes at an average mined gold grade of 9.74 g/t).  Again as a result of
successful in-fill and step-out drilling programmes, we are pleased to report
that as of 30 June 2017, the Measured and Indicated resources at Sao Chico
have grown to 36,000 contained gold ounces (82,000 tonnes at an average in
situ gold grade of 13.70 g/t) representing a 44 per cent improvement compared
with the previous resource estimation.  A significant portion of these
Measured and Indicated resources (67 per cent of the contained gold) have also
been converted into mineral reserves, and we are also pleased to report Proven
and Probable mineral reserves totalling 24,000 contained gold ounces (90,000
tonnes at an average diluted gold grade of 8.34 g/t).

 "It is a great comfort to have significant mineral resources and mineral
reserves defined at both Palito and Sao Chico, and 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.

 "This should provide comfort to stakeholders in the ability of the Company
to maintain its current levels of production. We remain focussed on ensuring
costs are closely controlled and on realising the potential for further
improvements in operational efficiencies over the coming quarters."

The following mineral resource and mineral reserve tables have been provided
by Mr Glen Cole of SRK Consulting (Canada) Inc. and Mr Timothy Olson of SRK
Consulting (US) Inc. who are both Qualified Persons under the Canadian
National Instrument 43-101.

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                                                                      
 I nferred                  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        
 I nferred                  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.
             

 Qualified Persons and Quality Control

The scientific and technical information contained in this news release
pertaining to the Tapajos Operations 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,
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 is currently being prepared by SRK Consulting (US) Inc. in
accordance with NI 43-101 and will be filed on SEDAR (www.sedar.com) and on
the Company's website within 45 days of this news release.

Historical Estimates

Historical resources estimates for the Palito ore-body are documented in the
technical report entitled Preliminary Economic Assessment for the Jardim Do
Ouro Project, Para State, Brazil dated June 28, 2012 which is filed on the
Company's website at www.serabigold.com and SEDAR at www.sedar.com.

Historical resources estimates for the Sao Chico ore-body are documented in
the technical report entitled Mineral Resource Estimate on the Sao Chico Gold
Project, Brazil dated October 15, 2012 which is filed on the Company's website
at www.serabigold.com.

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.

This announcement is inside information for the purposes of Article 7 of
Regulation 596/2014.

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
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