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 orebody late in 2012 and the gold process plant was started up at the end of 2013. The Company declared commercial production of the Palito orebody effective from 1 July 2014. The Company has also declared commercial gold production at its satellite Sao Chico orebody effective as of 1 January 2016. Combined gold production from the Palito Mining Complex is approximately 40,000 ounces 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 Mining Complex.
In December 2017, the Company also acquired the Coringa gold project, an advanced development project, which the Company is in the process of permitting prior to undertaking mine development and construction of a gold process plant which was acquired by the previous owners.
The Palito Mining Complex and the Coringa Project 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. It 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.
The Palito orebody is a high grade, narrow vein underground mining operation that uses the shrinkage stoping method to extract gold and copper bearing ore. The São Chico orebody is mined as a 140 t/d high grade, narrow vein longhole stoping operation.
Serabi operates a 500 t/d plant to process ore from both the Palito and São Chico mines. Palito ore is processed through a flowsheet that includes crushing, grinding, copper flotation and carbon-in-pulp (CIP) cyanidation of gold and silver values from the copper flotation tailing. The São Chico ore is processed in a separate grinding circuit that includes gravity concentration and intensive cyanide leaching of the gravity concentrate.
The Palito Mining Complex is formed by 48,846 hectares of tenements, including 1,150 hectares of mining concession. In addition, there are 6,369 hectares in mineral exploration license application and 1,416 hectares in mining concession application resulting in a total area for this property of 56,631 hectares.
The Coringa Project is located in the southeastern part of the Tapajós gold district. Artisanal mining produced an estimated 10 tonnes of gold (322,600 oz) from alluvial and primary sources. Deep saprolite or oxidized parts of shear zones were mined using high-pressure water hoses or hand-cobbing to depths of 15 m. Other than the artisanal workings, no other production has occurred on the Coringa Project.
The Company believes that the Jardim do Ouro Project area, surrounding the Palito and Sao Chico Gold Mines, has significant potential for resource growth. Additional gold discoveries have been made by the Company in close proximity to the existing Palito orebody which do not form part of the current Mineral Resource estimate, whilst in close proximity to the Sao Chico orebody the Company has very encouraging exploration results and there are a significant number of historical areas of artisanal mining activity. The company also considers that the recently acquired Coringa Project has significant opportunity for resource growth and will look to increase the existing Mineral Resource through drilling other known gold discoveries that lie within the existing tenement holding.
The Jardim do Ouro Project 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 4.9% 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.
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.