The Coringa project is located in the Tapajós Gold Province in Para State, Brazil approximately 200 km from Serabi’s Palito mine, an operation that has been producing gold since 2014. Like Palito, Coringa contains high grade gold in quartz veins with base metal sulphides. The veins are hosted by granite, rhyolites and volcanic breccias.
The project Feasibility Study anticipates a 460 tpd underground operation using shrinkage stoping mining methods. Ore will be processed through the Andorinhas plant (acquired from Troy Resources Limited in 2016) using gravity concentration followed by CIL cyanidation of gravity tails. The estimated gold and silver recovery during the life of the mine is 95% for gold and 61% for silver. Gold production is expected to average 32 kozs per year over an initial 5 year mine life. Serabi intends to obtain the final permits for the Coringa operation in early 2018 and then bring the mine into production.
The May 2017 resource was based on drill results from three veins at Coringa called Serra, Meio and Galena. The Indicated Mineral Resource consists of 726 kt at an average grade of 8.4 g/t gold and 17.0 g/t silver, containing 195 kozs of gold and 396 kozs of silver (2.0 g/t cut-off ). Exploration will focus on past gold discoveries that are not included in the current mineral resource estimate.
Sprott has agreed to extend the repayment terms of a $3.0 million loan, which was taken out in January 2018 and originally had a maturity date of September 30, 2018. This extension is allowing Serabi to incur the costs associated with the underground development at Coringa, which has occurred earlier than expected..
Serabi received a trial mining license for the Coringa project and plans to start initial underground access in October to collect bulk samples and expose the orebody. The license does not allow for any processing or gold production.