Mine development underway at Coringa

For immediate release

20


September


2021

Serabi Gold plc



(“Serabi” or the “Company”)

Min


e


development


underway at Coringa

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to announce the start-up of mining development at the Company’s wholly owned gold project at Coringa. Coringa is located 200km south of Serabi’s current gold operation at Palito and represents a strategically important asset for Serabi that will upon reaching full production double the Group gold production.

Highlights

• The development of the mine portal began in late July, to reach the Serra zone, one of three main zones at Coringa. Blasting into hard rock is now well underway
• The Company anticipates intersecting the Serra orebody in mid-October
• The development of Coringa is a significant milestone for Serabi with favourable economics. 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
• 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 to 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 Sao Chico deposit and is having good success with this mining method on the more regular veins at Palito. There is therefore 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 Company has prepared a short video showing the progress achieved to date and can be viewed using the following link –
  
  https://bit.ly/2XrvZQW
  

Mike Hodgson, CEO


of Serabi


, commented:

“This is a


very important


milestone for the


C


ompany


in achieving our mid-term objective of becoming a


100,000 ounce


gold producer.


We acquired Coringa


in December 2017


, and since that time we have built on the Bankable Feasibility Study undertaken by Equinox in 2017, with a


n enlarged mineral resource supporting a new


Preliminary Economic


Assessment


in 2019, as well as receiving the Preliminary License in October 2020. With pe


r


mits in place to commence the mining operation


,


I am


delighted to see mine


development


underway, and look forward to intersecting the first ore zone early next quarter


and w


e anticipate


that the improved understanding arising from


t


his underground


ore


development


will deliver


further


economic benefits to the project.

“


All studies to date have considered the tried and tested selective mining approach that we have largely


used


at Palito to date.


However,


over the past


six


months we have trialled very controlled long hole open stoping


in certain areas of the Palito mine


,


combined with


cable bolting


,


and


the results have been


excellent. If we can


extend


this


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 could be a real possibility. The fact we have our own sorter at


Palito


means we can undertake our own test work and find th


e optimal settings and processing criteria


. Ore sorting


has significant benefits as it


means rejecting waste before the plant,


resulting in


a


high


er


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


.

“


I


look forward to


providing a further


update


after we have inter


sected


the first vein in the Serra orebody.


”

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:

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



www.serabigold.com



for more information and follow us on twitter @Serabi_Gold

GLOSSARY OF TERMS

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.

ENDS