TIDMSRB
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
http://www.serabigold.com
(END) Dow Jones Newswires
January 26, 2018 02:00 ET (07:00 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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