- Brazil-focused Serabi Gold said a preliminary economic assessment indicated that its Coringa project in Para state would cost $24.7m to develop.

Sustaining capital expenditure would then amount to $9.2m. The $24.7m estimated project budget included a 20% cost contingency.

Serabi said the assessment also indicated an average life-of-mine cost of $852 per ounce, including royalties and refining costs.

Typical annual production once the project was in full operation would average 38,000 ounces. The total life of mine would be nine years.

Serabi said that, subject to permitting approvals and project financing, it expected mine development start-up at the end of the second quarter of 2020, with initial processing of run-of-mine feed coming about nine months later.

Chief executive Mike Hodgson said the numbers were 'very encouraging'.

'We have, for the purpose of this study, prioritised minimising the initial capital requirements of the project, but this does result in slower rates of production initially and a longer ramp up period,' Hodgson said.

'Over the coming months we will be looking to optimise the mine plan to achieve full production rates quicker without any significant change in the overall capital requirement.'

'We have already approached a variety of financing groups who have indicated interest in providing debt or other similar financing options to advance the project and they are awaiting the results of the preliminary economic assessment to start to assess the level of finance that could be made available.'

'We will be vigorously pursuing these options over the coming months.'

'At the same time we are continuing the make progress with the project licencing requirements which are necessary to allow development to commence in earnest and will be required as a condition of financing.'

At 8:55am: [LON:SRB] Serabi Mining PLC share price was -1p at 81p

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