Serabi is a gold mining and exploration company focused on the evaluation and development of gold projects in Brazil. The Company commenced development of the Palito Gold Mine late in 2012 and the gold process plant was started up at the end of 2013. The Company declared commercial production at the Palito Gold Mine effective from 1 July 2014. Gold production from Palito is expected to be in the region of 24,000 ounces to 26,000 of gold per annum. The Company has also declared commercial gold production at its satellite Sao Chico Mine effective as of 1 January 2016. Future gold production from Sao Chico is expected to be in the region of 10,000 to 12,000 ounces of gold per annum.
Through its subsidiary entities Serabi Mineraçao SA and Gold Aura do Brasil Mineraçao Ltda, the Company holds all necessary mining and environmental licences for the Palito and Sao Chico Mines.
In July 2013 Serabi also completed the acquisition of Kenai Resources Ltd and in so doing acquired the Sao Chico gold project which lies within 30 kilometres of the Palito Mine. Sao Chico is operated as a satellite gold mine and the ore is transported by road for treatment using the Palito gold plant.
The principal area of future exploration and development interest is the Jardim do Ouro Project which includes both the Palito and Sao Chico Gold Mines and comprises exploration licences over a contiguous 43,800 hectares around and in close proximity to the Palito and Sao Chico Gold Mines.
The Jardim do Ouro lies on the NW-SE trending Tocantinzinho Trend, which is the major controlling structural feature in the Tapajos region. Lying along this same trend, some 30 km to the south east of the Palito Mine, is the Sao Jorge gold deposit owned by Brazilian Gold Corporation and 70 km to the northwest lies the Tocatinzinho gold project owned by Eldorado Gold Corporation (measured and indicated mineral resources of 2.1 million ounces and inferred mineral resources of 0.4 million ounces), who also hold 5.2% of the issued share capital of the Company.
The Company has other exploration areas within the same general vicinity as the Jardim do Ouro Project, being the Pison Project and the Sucuba Project.
These projects are located in an area known as the Tapajos region of the State of Para in Brazil.
The Tapajos region, which encompasses an area of about 100,000 km2 (350 km by 300 km) in south west Para State, Brazil, is located approximately 1,300 km southwest from the state capital Belem.
The Tapajos region is reported to be the world’s third largest alluvial gold field and the Company believes that the region is a major, under-explored mineral province.
Artisanal miners (“garimpeiros”) are understood to have extracted up to 30 million ounces of gold mostly from alluvial and surface weathered bedrock deposits since the 1970’s.
With the exception of the Palito and Sao Chico Mines, there have been no other hard rock mining operations established in the region and consequently all historical production has been from alluvial operations and exploitation of the near surface oxide resources by local garimpeiros.