Mine development underway at Coringa

For immediate release

20 September 2021

Serabi Gold plc
(“Serabi” or the “Company”)

Mine 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 Company 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 an enlarged mineral resource supporting a new Preliminary Economic Assessment in 2019, as well as receiving the Preliminary License in October 2020. 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 early next quarter and we anticipate that the improved understanding arising from this 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 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.

“I look forward to providing a further update after we have intersected 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