Serabi Gold has reported the results of a positive preliminary economic assessment (PEA) of its 100% owned Coringa gold project in Pará state, Brazil. The results support development of a high-grade, underground mining operation, producing an average of 38,000 ounces per year (oz/y) of gold over a mine life of about nine years.

Mill feed would average 8.34 grams per metric ton (g/mt) gold.

Life-of-mine all-in sustaining costs, including royalties and refining costs, are estimated at $852/oz. Initial capital requirements to develop the project are estimated at $24.7 million. Sustaining capital expenditures of $9.2 million would be funded from project cash-flow.

Serabi is assessing available financing options and working to complete the permitting and licensing processes necessary for development of the project. Subject to permitting approvals and project financing, management expects that mine development could begin at the end of the second quarter of 2020, with initial processing to begin approximately nine months later.

The Coringa mine will be owner-operated. The selective open stoping that is planned for the mine has been successfully employed at the company’s Palito operation in Brazil, where the relevant skills and track record in narrow vein mining are well established.

The process flow-sheet comprises crushing, milling, and gravity concentration circuits and a carbon-in-leach (CIL) plant. Feed passes through the gravity circuit, where a portion of gold is concentrated, leached, and recovered by electrowinning. Gold not recovered by gravity is processed through the CIL plant.

The Coringa project PFS economic analysis assumes delivery of doré bars to a refinery in Brazil for onward sale to gold traders.

A full mining camp has already been constructed at Coringa.