Coringa Development Update

For immediate release

22 June 2022

Serabi Gold plc
(“Serabi” or the “Company”)

Coringa Development Update

Serabi Gold plc (AIM:SRB, TSX:SBI), the Brazilian-focused gold mining and development company, is pleased to report further positive results from its Coringa development project in the Tapajos region of Para State, Northern Brazil.

A PDF version of this announcement, including all images, can be accessed using the following link – https://bit.ly/3xGWpwB

Highlights

• Initial ore sorting test work confirms amenability to ore sorting of Coringa ore with a greater than three times improvement in grade

• Metallurgical recovery of 96.0% achieved from processing Coringa bulk sample through the Palito processing plant

• Underground development continues to generate high grade ore at Coringa with over 200 metres of on-lode development completed. Selected channel sample results include:

  • 0.65 metres @ 99.26g/t Au (SRR-320-042 – development 320_V3S)

  • 0.42 metres @ 116.18g/t Au (SRR-320-044 – development 320_V3S)

  • 0.17 metres @ 302.36g/t Au (SRR-340-031 – development 340_V3N)

  • 0.55 metres @ 46.53g/t Au (SRR-320-050 – development 320_V3S)

  • 0.52 metres @ 55.57g/t Au (SRR-340-039 – development 340_V3S)

  • 0.22 metres @ 123.62g/t Au (SRR-320-052 – development 320_V3S)

  • 0.32 metres @ 133.92g/t Au (SRR-340-042 – development 340_V3S)

  • 0.50 metres @ 68.59g/t Au (SRR-320-056 – development 320_V3S)

Mike Hodgson CEO said

“The results from Coringa continue to be excellent and it is particularly pleasing to demonstrate that ore sorting works so well and in addition to achieve an impressive metallurgical recovery of 96%. While these processing results are in line with our expectations based on the significant metallurgical test work that has been completed, achieving gold recovery of 96% on a bulk sample through our full-scale processing facility is a major step in further de-risking Coringa. The ability to sort the Coringa ore also brings significant economic benefits, reducing the waste material passing through the plant and therefore processing cost and the volume of tailings generated.

Story continues

“Underground mine development is continuing, with over 200 metres of on-lode development now completed. This is enhancing our understanding of the ore-body and also providing a stockpile of high-grade ore that in the near term we will truck to Palito to generate additional gold production and revenue. I look forward to providing further updates in the coming weeks.”

RESULTS

Ore sorting results
Crushed and screened Coringa ore with a size fraction of between 15mm and 38mm was passed through the ore sorter and scanned using the photometric colour scanner. This initial test work applied a range of scanning parameters to assess the optimal configuration for sorting Coringa ore based on colour. The grade of the sample sent to the ore sorter was 6.24g/t Au and the average grade of the sorted product was 19.61g/t Au within approximately 30% of the mass with the balance reporting as waste with a grade of 0.51 g/t Au.

To access 4 images illustrating the colour contrast, please use the following links

Image 1 – https://bit.ly/3n70wgA

Image 2 – https://bit.ly/3OsnSJl

Image 3 – https://bit.ly/3NeoaCq

Image 4 – https://bit.ly/3OthykL

Figure 1: Photos illustrating the contrasting colour of the white and grey mineralisation and the pink granite waste rock.

Process plant recovery

In the period to 19^th June 2022, a total of 566 tonnes of Coringa ore was treated through the Palito processing plant with an average feed grade of 6.34 g/t Au. From this a total of 110.6 ounces was produced with a recovery rate of 96.0%.

Coringa Mine Development

Total on-lode development extended to over 200 metres on V1, V2 and V3 veins of the Serra orebody as illustrated in Figures 2, 3 and 4. Geological mapping and channel sampling is undertaken along this development with channel sample results from the V1, V2 and V3 veins, assayed at Serabi’s in-house laboratory, set out in the table below.

Table 1: Channel sample results from V3 vien of Serra orebody from 340m and 320m level on-lode development.

To access an image of the Geological Map of the Main Ramp of 320, please use the following link – https://bit.ly/3n8V3pM

Figure 2: Geological Map of the Main Ramp of 320 showing the position of V3 and V1 in relation to the opening of the sill drives and the geological model.

To access an image of the Geological Map of the Inner Ramp of 340, please use the following link – https://bit.ly/3y5WMSW

Figure 3: Geological Map of the Inner Ramp of 340 showing the position of V3 and V1 in relation to the opening of the sill drives and the geological model.

To access an image of the intersection of V3 and V2 please use the following link – https://bit.ly/3zQke85

Figure 4: Intersection of V3 (right) and V2 (left) in the 340_V3S showing strong contrast between the mineralized quartz sulphide vein and the pink granite country rock suggesting the deposit should be amenable to ore sorting.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

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