Serabi Gold unveils updated PEA for Brazil's Coringa project

UK miner Serabi Gold released results of an updated preliminary economic assessment for its Coringa project in northern Brazil’s Pará state.

"The total sustaining capital requirement for the development of the project in 2025, including further mine development, is estimated at approximately US$14mn," Serabi said in a statement.

"This and all future sustaining and development capital projected in the updated PEA will be funded from the company’s operational cash flow." 

The updated PEA indicates that Coringa will produce on average 36,000oz/y gold from 2026 to 2031.

Life of mine sustaining capital expenditure for the project is estimated at US$87mn.

"With Coringa located in proximity to our existing Palito complex and based on existing operational cost data at Coringa, we have provided NCL [Ingeniería y Construcción] with actual cost information of the past few years," it added.

The project is advancing amid a positive environment for gold assets.

"We are in a very complicated international geopolitical moment, which is likely to last throughout 2025, which favors the price of gold," Afonso Sartorio, EY's mining and metals sector lead for South America, told BNamericas.

In terms of revenues in the Brazilian mining sector, gold is currently only behind iron ore.

In the first half of this year, the gold segment posted revenues of 9.8bn reais (US$1.8bn), down from 11.2bn reais a year ago, according to the most recent figures provided by Brazilian mining association Ibram.

Gold projects are likely to receive total investment of US$1.5bn in 2024-28 period, according to Ibram.