Highlights Reported Today
• Meridian returns strong Au-Cu-Ag mineralization at Cabaçal grading 13.4m @ 4.6g/t AuEq*;
o CD-492: 35.4m @ 2.2g/t AuEq (1.5% CuEq*) from 51.8m; Including
§ 13.4m @ 4.6g/t AuEq (3.1% CuEq) from 73.8m; including
• 1.1m @ 18.6g/t AuEq (12.5% CuEq) from 85.4m);
o CD-493 : 6.9m @ 2.0g/t AuEq (1.3% CuEq) from 106.5m;
§ Included a 51cm zone of hosting visible gold grading 17.0g/t AuEq from 109.7m;
o CD-498 : 8.2m @ 1.7g/t AuEq (1.1% CuEq) from 45.9m;
• Cabaçal’s PFS geotechnical drilling required for mine and mill infrastructure engineering largely completed;
• Drilling continues at Santa Helena, with a new bore hole geophysics program commenced; and
• Commencement of mine-corridor Cu-Au-Ag & Zn exploration drill program testing multiple targets.
*See technical note for true thickness estimate and separate AuEq and CuEq equations.
Mr. Gilbert Clark, CEO, comments: “Our drilling continues to deliver strong intervals of robust grades at shallow depths as seen by CD-492’s 13.4m @ 4.6 g/t AuEq. As we advance towards the mining decision at Cabaçal, these wider zones – up to 35.4m at 2.2g/t AuEq – will become the core of our long-term mining scenarios. The advancement of Cabaçal’s PFS is going well with the geotechnical and hydrological programs across the intended mine site now largely completed, and the engineering and trade off studies are progressing well.”
“In expanding the belt-scale potential, we have started to deploy our specialized Geonics bore hole electromagnetic (“EM”) tool at Santa Helena to open up new “blind” exploration prospects. We are also excited to expand our mine-corridor exploration program, having commenced drilling to begin to test our
multiple targets that will continue throughout 2024 and 2025. We look forward to results from the ongoing programs targeting copper and gold mineralization along the Cabaçal VMS belt.”
Cabaçal Update
Drilling at Cabaçal has continued, with recent results having been received from the mine environment and the Cabaçal northwest extension (“CNWE”) (Figure 1), including results from twin holes filling in gaps in the database where historical data has been lost or only partially preserved. These twin holes target positions with a range of grades through the Eastern, Central, and Southern Copper zones (“ECZ”, “CCZ”, “SCZ”).
CD-492 provides a good example of drilling to test mineralization where indications of grade were available from graphic bar charts, not previously used in resource estimation. Upper ranges in the scaled bar chart data are capped at 3.5% Cu and 5.5g/t Au. Highlights from this hole included an upper zone of 14.5m @ 0.6g/t AuEq from 19.0m and 35.4m @ 2.2g/t AuEq from 51.8m. The grade predicted by comparison from the graphic data in JUSPD-187, the historical hole being twinned, was 16.0m @ 0.4g/t AuEq from 17.0m and 35.6m @ 1.0g/t AuEq from 48.8m. This new data has been provided to the Company’s resource consultant for evaluation, who is advancing with updates to geological surfaces and assessment of new and historical results. This includes results from prior twin infill holes CD-470, which returned 16.0m @ 12.5g/t AuEq from 53.3m, including 6.4m @ 30.6g/t AuEq[1], and CD-483, which returned 10.1m @ 2.1g/t AuEq from 9.4m[2].
Sound results have been received from other recent holes, even when mining voids have been intersected.
In the CNWE, CD-504 returned 1.2m @ 9.8g/t AuEq from 59.5m on the southern margin of the CNWE along with some disseminated intersections, possibly marking a projection of a higher-grade Cu-Au structure, open to the west. CD-493 returned 6.9m @ 2.0g/t AuEq from 106.5m.
• CD-513 (SCZ; terminated in void in upper mineralized horizon):
o 5.3m @ 1.3g/t AuEq / 0.9% CuEq (0.2g/t Au, 0.8% Cu & 2.6g/t Ag) from 59.0m.
• CD-504 (CNWE):
o 1.0m @ 1.3g/t AuEq / 0.9% CuEq (0.1g/t Au, 0.9% Cu & 1.9g/t Ag) from 46.9m;
o 1.6m @ 0.8g/t AuEq / 0.6% CuEq (0.1g/t Au, 0.5% Cu & 1.2g/t Ag) from 54.4m;
o 1.2m @ 9.8g/t AuEq / 6.6% CuEq (1.7g/t Au, 5.4% Cu & 18.7g/t Ag) from 59.5m;
o 12.6m @ 0.7g/t AuEq / 0.5% CuEq (0.3g/t Au, 0.3% Cu & 1.5g/t Ag) from 75.2m; and
• CD-498 (CCZ; twin of JUSPD-436; mining void between 26.7 – 31.1m):
o 11.4m @ 1.2g/t AuEq / 0.8% CuEq (0.3g/t Au, 0.7% Cu & 1.6g/t Ag) from 15.3m;
o 8.2m @ 1.7g/t AuEq / 1.1% CuEq (1.1g/t Au, 0.4% Cu & 1.7g/t Ag) from 45.9m;
• CD-493 (CNWE):
o 5.1m @ 0.6g/t AuEq / 0.4% CuEq (0.7g/t Au & 0.1g/t Ag) from 70.2m;
o 6.9m @ 2.0g/t AuEq / 1.3% CuEq (1.3g/t Au, 0.5% Cu & 1.0g/t Ag) from 106.5m;
• CD-492 (CCZ; twin of JUSPD-187):
o 14.5m @ 0.6g/t AuEq / 0.4% CuEq (0.4% Cu & 0.8g/t Ag) from 19.0m;
o 35.4m @ 2.2g/t AuEq / 1.5% CuEq (0.9g/t Au, 0.9% Cu & 2.8g/t Ag) from 51.8m;
• CD-491 (SCZ; twin of JUSPD-423; mining void between 72.1 – 76.0m):
o 7.7m @ 1.3g/t AuEq / 0.9% CuEq (0.8g/t Au, 0.4% Cu & 1.4g/t Ag) from 69.4m;
o 14.8m @ 0.8g/t AuEq / 0.6% CuEq (0.2g/t Au, 0.5% Cu & 1.5g/t Ag) from 84.5m;
• CD-488 (CNWE infill):
o 9.5m @ 1.2g/t AuEq / 0.8% CuEq (0.4g/t Au, 0.5% Cu & 2.1g/t Ag) from 65.9m;
o 4.1m @ 1.2g/t AuEq / 0.8% CuEq (0.2g/t Au, 0.7% Cu & 4.5g/t Ag) from 106.3m; and
15.5m @ 0.9g/t AuEq / 0.6% CuEq (0.2g/t Au, 0.5% Cu & 1.6g/t Ag) from 116.4m.
Mine Corridor Update
Scout drilling has commenced along the ~10km mine corridor (Figure 2), and one rig is being allocated between near-mine extensions and scout drilling of VMS satellite targets in the third and fourth quarter and into 2025. The related mine corridor geophysical program continues to advance for target definition, with an induced polarization survey having advanced in the Sucuri Cu-Au prospect to the west of Santa Helena. Following the bore hole geophysics campaign and finalization of the Sucuri IP grid, the geophysics team will advance also with work at the Cigarra VMS target and continue with the development of mine corridor drill target definition. This exploration program is part of the hub and spoke development strategy for the 50km of prospective exploration ground that the Cabaçal Cu-Au VMS belt presents. Our in-house Brazilian team continues engagement with landholders and statutory agencies to expand its footprint for regional exploration programs.
About Meridian
Meridian Mining is focused on:
- The development and exploration of the advanced stage Cabaçal VMS gold‐copper project;
- The initial resource definition at the second high-grade VMS asset at Santa Helena as first stage of Hub and Spoke development strategy;
- Regional scale exploration of the Cabaçal VMS belt to expand the Hub and Spoke strategy; and
- Exploration in the Jaurú & Araputanga Greenstone belts (the above all located in the State of Mato Grosso, Brazil).
The Preliminary Economic Assessment technical report (the “PEA Technical Report”) dated March 30, 2023, entitled: "Cabaçal Gold-Copper Project NI 43-101 Technical Report and Preliminary Economic Assessment, Mato Grosso, Brazil” outlines a base case after-tax NPV5 of USD 573 million and 58.4% IRR from a pre-production capital cost of USD 180 million, leading to capital repayment in 10.6 months (assuming metals price scenario of USD 1,650 per ounces of gold, USD 3.59 per pound of copper, and USD 21.35 per ounce of silver). Cabaçal has a low All-in-Sustaining-Cost of USD 671 per ounce gold equivalent for the first five years, driven by high metallurgical recovery, a low life-of-mine strip ratio of 2.1:1, and the low operating cost environment of Brazil.
The Cabaçal Mineral Resource estimate consists of Indicated resources of 52.9 million tonnes at 0.6g/t gold, 0.3% copper and 1.4g/t silver and Inferred resources of 10.3 million tonnes at 0.7g/t gold, 0.2% copper & 1.1g/t silver (at a 0.3 g/t gold equivalent cut-off grade). Santa Helena mine area generated an initial Exploration Target with a tonnage range of 3.2 –7.2 Mt grading between 3.0 – 3.2g/t AuEq*, which gives a potential high-grade metal inventory range of between 306,000 to 763,000 AuEq ounces, located within 10km of the proposed Cabaçal mill site.
Readers are encouraged to read the PEA Technical Report in its entirety. The PEA Technical Report may be found on the Company’s website at www.meridianmining.co and under the Company’s profile on SEDAR+ at www.sedarplus.ca.
The qualified persons for the PEA Technical Report are: Robert Raponi (P. Eng), Principal Metallurgist with Ausenco Engineering), Scott Elfen (P. E.), Global Lead Geotechnical and Civil Services with Ausenco Engineering), Simon Tear (PGeo, EurGeol), Principal Geological Consultant of H&SC, Marcelo Batelochi, (MAusIMM, CP Geo), Geological Consultant of MB Geologia Ltda, Joseph Keane (Mineral Processing Engineer; P.E), of SGS, and Guilherme Gomides Ferreira (Mine Engineer MAIG) of GE21 Consultoria Mineral.
On behalf of the Board of Directors of Meridian Mining UK S
Mr. Gilbert Clark – CEO and Director
Meridian Mining UK S
Email: info@meridianmining.co
Ph: +1 778 715-6410 (BST)
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Further information can be found at: www.meridianmining.co
In Europe:
Swiss Resource Capital AG
Jochen Staiger & Marc Ollinger
info@resource-capital.ch
www.resource-capital.ch
Technical Notes
Samples have been analysed at ALS laboratory in Lima, Peru. Samples are dried, crushed with 70% passing 85% passing 200µm. Routine gold analyses have been conducted by Au‐AA24 (fire assay of a 50g charge with AAS finish). High‐grade samples (>10g/t Au) are repeated with a gravimetric finish (Au‐GRA22), and base metal analysis by methods ME-ICP61 and OG62 (four acid digest with ICP-AES finish). Visible gold intervals are sampled by metallic screen fire assay method Au‐SCR21. Samples are held in the Company’s secure facilities until dispatched and delivered by staff and commercial couriers to the laboratory. Pulps and coarse rejects are retained and returned to the Company for storage. The Company submits a range of quality control samples, including blanks and gold and polymetallic standards supplied by Rocklabs, ITAK and OREAS, supplementing laboratory quality control procedures. Approximately 5% of archived samples are sent for umpire laboratory analysis, including any lots exhibiting QAQC outliers after discussion with the laboratory. In BP Minerals sampling, gold was analysed historically by fire assay and base metals by three acid digest and ICP finish at the Nomos laboratory in Rio de Janeiro. Silver was analysed by aqua regia digest with an atomic absorption finish. True width is considered to be 80-90% of intersection width. Assay figures and intervals are rounded to 1 decimal place. Gold equivalents for Cabaçal are calculated as: AuEq(g/t) = (Au(g/t) * %Recovery) + (1.492*(Cu% * %Recovery)) + (0.013*(Ag(g/t) * %Recovery)), and Copper equivalents are calculated as: CuEq(%) = (Cu(%) * %Recovery) + (0.670*(Aug/t * %Recovery)) + (0.0087*(Ag(g/t) * %Recovery)) where:
- Au_recovery_ppm = 5.4368ln(Au_Grade_ppm)+88.856
- Cu_recovery_pct = 2.0006ln(Cu_Grade_pct)+94.686
- Ag_recovery_ppm = 13.342ln(Ag_Grade_ppm)+71.037
Recoveries based on 2022 metallurgical testwork on core submitted to SGS Lakefield
Qualified Person
Mr. Erich Marques, B.Sc., FAIG, Chief Geologist of Meridian Mining and a Qualified Person as defined by National Instrument 43-101, has reviewed, and verified the technical information in this news release.
FORWARD-LOOKING STATEMENTS
Some statements in this news release contain forward-looking information or forward-looking statements for the purposes of applicable securities laws. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in Meridian’s most recent Annual Information Form filed on www.sedarplus.ca. While these factors and assumptions are considered reasonable by Meridian, in light of management’s experience and perception of current conditions and expected developments, Meridian can give no assurance that such expectations will prove to be correct. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, Meridian disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events, or results or otherwise.
[1] See Cabaçal Gold-Copper Project NI 43-101 PEA March 30, 2023 https://meridianmining.co/cabacal/
[2] Meridian Mining News release of May 07, 2024.
[3] Meridian Mining News release of June 11, 2024.
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