Serabi Share News (SRB)

(Sharecast News) - Brazil-focussed miner and developer Serabi Gold updated the market on its Coringa project on Wednesday, located in the Tapajos region of Para state in Brazil.

The AIM-traded firm announced the imminent completion and submission of the indigenous impact study (ECI) to Fundação Nacional dos Povos Indígenas (FUNAI), the governing body of protected sites.

It said that submission remained a key outstanding component for the award of the installation licence by the state environment authority, SEMAS.

Serabi said it was planning to install a crusher and ore-sorter at Coringa, which would serve as an interim step ahead of a full processing plant that would be constructed at a later date.

The ore at Coringa was described as "highly amenable" to ore-sorting, with the classification plant set to significantly reduce the amount of initial capital expenditure required to achieve consolidated group production of around 60,000 ounces per annum - without the requirement for plant expansion at Palito, and with gold production and tailings consolidated at a single site.

"I am pleased to advise the imminent completion of the indigenous impact study that we initially commissioned at the beginning of 2022," said chief executive officer Michael Hodgson.

"Whilst progress has been slower than we were originally led to believe, the final report is expected to be available to be presented to the authorities for their review in the next few weeks.

"This report should allow the authorities to move forward with the final analysis culminating in approval of our application for an installation licence, which in turn allows us to install a full process plant at Coringa in due course."

Hodgson noted that as the firm previously advised, it produced 1,103 ounces from Coringa between July and December 2022, by trucking high-grade ore from Coringa to its Palito operation for processing, adding that it was continuing that during 2023.

"Ore sorting test work on the Coringa ore has produced excellent results with between 45% and 50% reduction in the mass needing to be processed.

"Whilst we remain in the early stages of the development of Coringa it is therefore our intention to install a crushing and ore-sorting plant at Coringa as a first stage of a plant installation, and continue to truck the upgraded ore to Palito for processing."

Serabi saw that as "an attractive option for shareholders", Michael Hodgson explained, as it would minimise the initial capital requirements for the ongoing development, and allow a future installation of a full processing plant to be supported by the cash flow from a larger production operation.

"Our internal assessment, based on the ore-sorting results obtained to date, is that gold production from a combined Palito Complex and Coringa operation could reach approximately 60,000 ounces per annum without the need for significant expansion of the existing plant at Palito."

At 1515 GMT, shares in Serabi Gold were up 1.67% at 30.5p.

Reporting by Josh White for Sharecast.com.