(Alliance News) - Serabi Gold PLC on Monday said it has filed the technical report to support the preliminary economic assessment for its Coringa gold project in Brazil, where construction could begin as early as the third quarter of 2020.
The Brazil-focused miner said the preliminary economic assessment supports "development of a high grade, underground mining operation" at Coringa.
The company is currently assessing its financing options for Coringa and "working to complete the permitting and licencing processes necessary for development" with construction possibly starting in the third quarter of 2020.
Under this timetable, first gold production would likely take place between nine and 12 months after construction begins.
The preliminary economic assessment, which uses a three year trailing average gold price of USD1,275 per ounce, gives an average life of mine all-in sustaining cost of USD852 per ounce, including refinancing costs and royalties. The total life of mine is forecast to be around nine years.
The average gold grade is expected to be 8.34 grammes of gold per tonne of ore, for total gold production of 288,000 ounces. Once in full operation, the project is expected to average annual production of 38,000 ounces per year.
Before sustained positive cashflow is reached, the initial cash requirement is thought to be USD24.7 million with sustaining capital expense to total USD9.2 million funded from project cashflow.
The indicated mineral resource inventory for Coringa is 125,000 ounce of gold, with inferred resources of 178,000 ounces and an indicated resource of 195,000 ounces and 346,000 inferred ounces of gold.
Shares in Serabi were down 2.0% at 80.40 pence in London on Tuesday.
By Anna Farley; annafarley@alliancenews.com
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