Serabi Gold plc Operational And Business Update

 
TIDMSRB 
 
 
   For immediate release 
 
   13 February 2019 
 
   Serabi Gold plc 
 
   ("Serabi" or the "Company") 
 
   Operational and Business Update 
 
   Serabi Gold plc (AIM: SRB, TSX: SBI), the Brazilian focused gold mining 
and development company, is pleased to provide an update from its 
operations and projects in Brazil. 
 
   Highlights 
 
 
   -- January gold production of 3,671 ounces in line with guidance. 
 
   -- Treatment of stockpiled flotation tailings underway through the recently 
      commissioned independent trommel feed system ("Scrubber"). 
 
   -- Ore Sorter testing completed and now being shipped to Brazil. 
 
   -- Cash position at end of January 2019 of US$12.8 million. 
 
   -- Geological Resource update drilling close to completion at Coringa 
 
   -- A Geological Resource update and Preliminary Economic Assessment Study 
      ("PEA") remain on schedule to be published in March and June 2019, 
      respectively. 
 
   -- Serabi will be available at booth #2533 at this year's PDAC convention in 
      Toronto, and will also be attending the BMO Global Metals & Mining 
      Conference in Hollywood, Miami. 
 
 
   CEO Mike Hodgson commented: "We are delighted to have started the year 
in much the same way as 2018 ended, with excellent production. 
Production guidance for 2019 has been set at 40,000-44,000 ounces, so 
January's total gold production of over 3,650 ounces has been a great 
way to start the year. The step up from the production levels of 2017 
and 2018 will be driven by improved efficiencies in both orebodies and 
the processing of some of the 40,000 tonnes of flotation tails (grading 
3 g/t gold) which will supplement the normal 'run-of-mine' production. 
We have now commissioned the scrubber which was started on 10 January 
and has worked superbly since.  It allows the tails (which have already 
been milled) to be fed directly to the cyanidation plant, therefore not 
consuming valuable capacity in the milling section of the plant. 
 
   "At Coringa, we are close to concluding a drill programme, the results 
from which will be included in the resource update.  As reported at the 
end of January the results to date have been excellent. We remain on 
schedule to publish an updated geological resource estimate before the 
end of the first quarter, and will follow this up with the preparation 
of a PEA, the results of which are expected to be available before the 
end of June 2019. 
 
   "In light of recent events at Brumadinho in Minas Gerais state in Brazil, 
I would like to give reassurance to our stakeholders regarding the 
tailings management facility at Palito.  Serabi's operations are all 
about quality not quantity, therefore we mine and process almost 
insignificant volumes of rock relative to industrial mineral, iron ore 
and bauxite operations such as Brumadinho.  New legislation has been 
introduced following the dam failure at Mariana, also in Minas Gerais, 
in 2015.  This legislation has, however been a rather 'one size fits 
all' approach, and as a result we do have a highly 'over-engineered' 
tailings facility and the annual audit of our tailings facilities, 
undertaken late last year by an accredited Brazilian geotechnical 
engineering expert, confirmed our tailings management facility to be in 
good order, and it remains fully licenced and certified. 
 
   "We do expect further tightening of legislation post Brumadinho, and 
this week the government, through the National Mining Agency (AMN), have 
moved to ban all upstream tailings dams.  Such a move would not affect 
the safety and legality of our tailings facility which (i) comprises 
small ponds, rather than dams and (ii) is not upstream of any nearby 
population." 
 
   A short interview by BRR Media with Mike Hodgson can be accessed using 
the following link 
 
   https://www.brrmedia.co.uk/broadcasts-embed/5c62e8dce6e1d92d38f4d9b5/event/?popup=true 
 
 
   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: [phone] 
Chief Executive                                     Mobile: [phone] 
 
Clive Line                                          Tel: [phone] 
Finance Director                                    Mobile: [phone] 
 
Email: mailto:[e-mail] 
[e-mail] 
-------------------------------------------------- 
Website: http://www.serabigold.com 
www.serabigold.com 
-------------------------------------------------- 
 
Beaumont Cornish Limited 
 Nominated Adviser and Financial Adviser 
Roland Cornish                                      Tel: [phone] 
Michael Cornish                                     Tel: [phone] 
 
Peel Hunt LLP 
 UK Broker 
Ross Allister                                       Tel: [phone] 
James Bavister                                      Tel: [phone] 
 
 
 
   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: 
 
   "Au" means gold. 
 
   "assay" in economic geology, means to analyse the proportions of metal 
in a rock or overburden sample; to test an ore or mineral for 
composition, purity, weight or other properties of commercial interest. 
 
   "development" - excavations used to establish access to the mineralised 
rock and other workings 
 
   "DNPM" is the Departamento Nacional de Produção Mineral. 
 
   "grade" is the concentration of mineral within the host rock typically 
quoted as grammes per tonne (g/t), parts per million (ppm) or parts per 
billion (ppb). 
 
   "g/t" means grams per tonne. 
 
   "granodiorite" is an igneous intrusive rock similar to granite. 
 
   "igneous" is a rock that has solidified from molten material or magma. 
 
   "Intrusive" is a body of igneous rock that invades older rocks. 
 
   "on-lode development" - Development that is undertaken in and following 
the direction of the Vein 
 
   "mRL" -- depth in metres measured relative to a fixed point -- in the 
case of Palito and Sao Chico this is sea-level.  The mine entrance at 
Palito is at 250mRL. 
 
   "saprolite" is a weathered or decomposed clay--rich rock. 
 
   "scrubber" -- a machine for cleaning ore and removing impurities such as 
clays, coatings or other deleterious materials. 
 
   "stoping blocks" -- a discrete area of mineralised rock established for 
planning and scheduling purposes that will be mined using one of the 
various stoping methods. 
 
   "vein" is a generic term to describe an occurrence of mineralised rock 
within an area of non-mineralised rock. 
 
   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 26 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 identi ed 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 re ect 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 
 
   Attachment 
 
 
   -- Operational and Business Update 
      https://ml-eu.globenewswire.com/Resource/Download/1137f72d-fc64-4848-aff5-94b4181a98ce 
 
 
 
 
 

(END) Dow Jones Newswires

February 13, 2019 02:00 ET (07:00 GMT)

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