Serabi Gold plc Serabi Announces Filing Of Technical Report For Its Palito Mining Complex

 
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: [phone] 
Chief Executive                           Mobile: [phone] 
 
Clive Line                                Tel: [phone] 
Finance Director                          Mobile: [phone] 
 
Email: [e-mail] 
Website: 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] 
Chris Burrows                             Tel: [phone] 
 
Blytheweigh 
 Public Relations 
Tim Blythe                                Tel: [phone] 
Camilla Horsfall                          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: 
 
   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)

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