Serabi Gold plc Unveils Updated PEA for Coringa Project
Serabi Gold plc (“Serabi” or the “Company”) (LSE:SRB, TSX:SBI), the Brazilian focused gold mining and development company, announces an updated Preliminary Economic Assessment (the “Updated PEA”) for its 100%-owned Coringa Gold Project. This project is located in Para State, Brazil, and the assessment outlines the financial viability and operational outlook of the site.
The management team at Serabi deemed it essential to refresh the PEA as they aim towards enhanced operational efficiency and maximum return on investment. The development of Coringa commenced in June 2021, followed by the commencement of gold production in July 2022. Over the course of operations, approximately 18,458 ounces of gold have been successfully produced.
Significant advancements in geological understanding and ore-sorting technologies have galvanized the company's new strategy. Instead of investing in a standalone processing plant for Coringa, Serabi intends to utilize the existing facility at the Palito Complex. This innovative plan considerably reduces capital expenditures, diminishes operational risks, and maintains the integrity of the mine development plan.
Key Highlights from the Updated PEA
Annual production estimates reveal an exciting trajectory for Coringa. By 2025, the expected yield is set at 28,000 ounces, with predictions of rising to 36,000 ounces annually from 2026 through 2031. This remarkable growth rate aligns with an anticipated operational lifespan leading through 2034.
Cost Structure and Economic Indicators
The life of mine (LOM) all-in sustaining cost (AISC) is projected to be an impressive $1,241 per ounce, incorporating royalties and refining costs at a base gold price.
Mineral Resource Inventory
Currently, the Updated PEA is based on a revised mineral resource estimate detailing:
- Measured & Indicated Resources: 795kt at an average grade of 7.03 g/t gold (equating to approximately 179,000 ounces).
- Inferred Resources: 1,454kt at an average grade of 5.81 g/t gold (approximately 271,000 ounces).
This mine plan utilizes about 145,000 ounces from Measured & Indicated resources and 241,000 ounces from Inferred resources, indicating the strategic use of 81% of the total Measured & Indicated resource along with 89% of the inferred resource estimations.
Future Plans for Growth and Operations
Serabi Gold aims to sustain a robust production profile, indicating an average LOM gold grade from the mine at roughly 5.38 g/t, with opportunities to enhance these figures to 8.50 g/t through advanced ore sorting techniques. Cumulatively, this could yield a total gold production of 363,000 ounces from the project.
The ground-breaking base case scenario anticipates a post-tax net present value (NPV) of $145 million and an annual free cash flow nearing $19 million.
Mining Methodology
Utilizing shrinkage stoping as a mining method, the project identifies a cut-off grade of 3.16 g/t gold. Dilution within the mining framework ensures a minimum mining width of 1 meter for resource widths and grades included in the Updated PEA.
Technical Review and Support
The updated assessments were competently managed by NCL Ingeniería y Construcción SpA, an independent engineering firm based in Santiago, Chile, harnessing the expertise required to prepare a comprehensive update on the economic perspectives of the Coringa Gold Project.
As the business landscape evolves, Serabi Gold is progressing with its ambitions to grow within the gold mining sector while striving for operational excellence and a robust production base. Following the success identified in this PEA, the focus now shifts towards enhancing long-term growth, including the possibility of brownfield exploration activities set for 2025 and beyond.
Frequently Asked Questions
What is the Coringa Gold Project?
The Coringa Gold Project is a gold mining site owned by Serabi Gold plc located in Brazil, emphasizing on enhanced production and economic returns.
What does the Updated PEA reveal?
The Updated PEA indicates a promising annual production increase, anticipated to reach 36,000 ounces per year from 2026 to 2031 and outlines improved economic forecasts.
What are the expected sustainability costs?
The expected all-in sustaining cost (AISC) is projected at $1,241 per ounce, showcasing the project's financial viability.
Who prepared the Updated PEA?
The PEA was prepared by NCL Ingeniería y Construcción SpA, ensuring an independent and thorough assessment of the project's economic potential.
How does the Updated PEA compare to previous assessments?
Compared to earlier assessments, the Updated PEA indicates a significant increase in NPV from $31 million to $145 million, reflecting progressed methodologies and operational strategies.
