Corporate

Company Profile

Incorporated in the UK, Serabi Mining plc is a gold mining company focused on the Tapajos geological region of northern Brazil.  The Tapajos is a major, under-explored mineral province from which artisanal miners (“garimpeiros”) are thought to have extracted up to 30 million ounces of gold from mostly alluvial and surface weathered bedrock deposits since the 1970’s.  

The founders of Serabi commenced operating in Brazil in 1999, with the objective to acquire, evaluate and mine hard rock gold deposits previously unknown or technically too difficult for the garimpeiros to exploit.

Having evaluated several opportunities, the company acquired the Palito Gold Mine in 2001.  Preliminary underground mining and gold production commenced in late 2003 with commercial production achieved in October 2006.  Serabi has established the only 'hard rock' mine in the region to date at its Palito Gold Mine.  Existing production at Palito will provide cash flow and a sound base for future development.  With recent upgrades to the mill increasing capacity to 550 tpd, Serabi is targeting an annualised production rate of between 60,000 and 70,000 ounces gold equivalent during 2008.  Expansions to the exploration budget over the next 18-24 months will allow the company to evaluate the wider potential of Palito and to establish the level of mineable reserves to scope the potential for the next production expansion.  This should assist the company in achieving the following long-term objectives:-

·         become a mid-tier gold producer with annual production in excess of

 200,000 ounces

·         achieve cash operating costs in the lower quartile of the world's

producers, and

·         ensure longer term growth of quality resources necessary to support the

above two objectives

Serabi has an extensive exploration portfolio of 273.000 hectares of highly prospective ground.  Within this portfolio, Serabi identified several advanced targets with good near term potential in the Jardim do Ouro ("Garden of Gold") District, immediately surrounding the Palito Gold Mine.  Detailed geochemistry work has been undertaken over the area and drill programs are underway at a number of projects.  Serabi also gained access to an extensive exploration database and 50km of diamond drill core, previously undertaken by Rio Tinto plc throughout the Tapajos.  The company owns and operates four exploration drill rigs together with extensive geological and assay facilities with which to rapidly access and evaluate projects in-house.