Meridian Mining's PFS Drill Program Returns Multiple Wide, Shallow Mineralized Intercepts at Cabaçal
Including in-pit high-grade zones of 5.1m @ 4.0 g/t AuEq & 9.5m @ 2.9g/t AuEqLONDON, February 21, 2024 - Meridian Mining UK. S (TSX:MNO), (Frankfurt/Tradegate:2MM) (OTCQB:MRRDF) ("Meridian" or the "Company") is pleased to announce that the ongoing Pre-Feasibility Study ("PFS") drill program continues to produce robust results at its Cabaçal Au-Cu-Ag deposit ("the Project"). Multiple wide zones with internal high-grade cores, such as CD-400's 25.8m @ 1.4 g/t AuEq including 9.5m @ 2.9 g/t AuEq & CD-399's 15.3m @ 1.7 g/t AuEq including 5.1m @ 4.0 g/t AuEq1 ("Figure 1"). The ongoing PFS drill program continues with the aim to convert in-pit resources to higher classifications and increase confidence in the flagship Cabaçal project.
The Company is also reporting the results of the geotechnical studies that have potential to increase the Cabaçal's pit wall angles that would deliver a meaningful reduction in the strip ratio.
The northwestern limit of Cabaçal deposit remains open with a new cupriferous gossan outcrop defined ("Figure 1"). Further results from Cabaçal and Santa Helena are pending.
Highlights Reported Today
- Strong results of gold-copper-silver mineralization including CD-400's 25.8m @ 1.4 g/t AuEq including 9.5m @ 2.9 g/t AuEq reported by Meridian Mining;
- Meridian drills zones of gold and copper at Cabaçal grading up to 9.5m @ 2.9 g/t AuEq;
- CD-399: 15.3m @ 1.7 g/t AuEq from 125.5m; including
- 5.1m @ 4.0 g/t AuEq from 126.1m;
- CD-400: 25.8m @ 1.4 g/t AuEq from 48.0m; including
- 9.5m @ 2.9 g/t AuEq from 62.5m;
- CD-404: 20.4m @ 1.1 g/t AuEq from 101.2m;
- 3.8m @ 3.6 g/t AuEq from 113.5m;
- CD-399: 15.3m @ 1.7 g/t AuEq from 125.5m; including
- Cabaçal's current geotechnical studies suggest optionality to steepen pit walls to 54°;
- High likelihood that Cabaçal's in-pit strip ratio may decrease below PEA's 2.1:1; and
- Northwestern limit of Cabaçal deposit remains open with new cupriferous gossan outcrop.
Mr. Gilbert Clark, CEO, comments: "These broad zones of open pitable mineralization, are the economic foundations of the industry leading Cabaçal economics, demonstrated in our 2023 PEA. Cabaçal's forward momentum continues with our geotechnical studies indicating good potential for steepening the pit walls, (which may lower the strip ratio, and deliver a reciprocal economic benefit in the up-coming PFS). Finding a gossan outcropping at Cabaçal's northwestern limit indicates that even after 2km of resource delineation success, near-mine extensions remain to be tested. When I look at the greater picture, I see tremendous potential for Cabaçal to emerge as another world-class Latin American VMS camp.
1 See below Technical Notes for AuEq commodity prices, recoveries and equations
Cabaçal Project Development And Resource Definition Program
The Cabaçal resource development program continues, with three rigs currently deployed. Results recently received included infill holes drilled from the Cabaçal Northwest Extension ('CNWE'), and historical Cabaçal mine area. These results form part of the PFS process that is a crucial phase in the development and growth of the project.
Drill results from the CNWE were returned from the 25m infill program. Results include:
- CD-395: 10.9m @ 1.3 g/t AuEq (0.1 g/t Au, 0.8% Cu & 1.4 g/t Ag) from 43.7m;
Including:
- 4.1m @ 2.8 g/t AuEq (0.2 g/t Au, 1.8% Cu & 2.9 g/t Ag) from 50.0m;
- CD-396: 15.6m @ 0.8 g/t AuEq (0.2 g/t Au, 0.4% Cu & 0.8 g/t Ag) from 44.4m;
Including:
- 8.7m @ 2.0 g/t AuEq (0.9 g/t Au, 0.8% Cu & 2.6 g/t Ag) from 95.0m;
- 10.1m @ 1.3 g/t AuEq (0.3 g/t Au, 0.7% Cu & 1.1 g/t Ag) from 118.3m;
- CD-399: 15.3m @ 1.7 g/t AuEq (0.3 g/t Au, 1.0% Cu & 1.6 g/t Ag) from 125.5m;
Including:
- 5.1m @ 4.0 g/t AuEq (0.6 g/t Au, 2.4% Cu & 3.2 g/t Ag) from 126.1m;
- CD-404: 20.4m @ 1.1 g/t AuEq (0.4 g/t Au, 0.5% Cu & 0.8 g/t Ag); including 101.2m;
Including:
- 3.8m @ 3.6 g/t AuEq (1.3 g/t Au, 1.7% Cu & 2.2 g/t Ag) from 113.5m; and
- CD-413: 8.4m @ 1.5 g/t AuEq (0.2 g/t Au, 0.9% Cu & 1.8 g/t Ag) from 73.7m.
The results form part of broader zones of mineralization (Table 1) and continue to improve modelling of grade continuity. Results show robust levels of copper mineralization at the lower contact which will improve modelling of grade continuity.
Copper-stained gossaniferous exposure was observed at the limits of the CNWE, within a band of magnetite banded iron formation. The recognition of this stratigraphic unit is of great interest, as a potential favourable host unit to the gold overprint event. Some of Brazil's best gold deposits are hosted by banded iron units (Rio das Velhas greenstone belt, "Quadrilátero Ferrífero").
Angled holes in the mine area returned:
- CD-393 (SCZ): 17.8m @ 1.0 g/t AuEq (0.4 g/t Au, 0.5% Cu & 1.0 g/t Ag) from 70.3m;
Including:
- 3.3m @ 4.2 g/t AuEq (1.5 g/t Au, 1.9% Cu & 3.5 g/t Ag) from 70.7m;
- CD-400 (CCZ): 25.8m @ 1.4g/t AuEq (0.9g/t Au, 0.4% Cu, 2.2 g/t Ag) from 48.0m;
Including:
- 9.5m @ 2.9 g/t AuEq (1.7 g/t Au, 0.9% Cu, 5.5 g/t Ag) from 62.5m;
- CD-414 (SCZ): 4.1m @ 3.3 g/t AuEq (1.7 g/t Au, 1.1% Cu & 4.7 g/t Ag) from 42.1m; and
- 21.9m @ 0.9 g/t AuEq (0.4 g/t Au, 0.4% Cu & 1.9 g/t Ag) from 53.1m; and
- CD-427 (SCZ): 22.6m @ 1.4 g/t AuEq (0.4 g/t Au, 0.7% Cu & 3.4 g/t Ag) from 59.5m;
Including:
- 8.8m @ 2.8 g/t AuEq (0.6 g/t Au, 1.5% Cu & 7.5 g/t Ag) from 64.4m.
The drilling in the mine area provides for further validation of the mine workings and the extensive open pitable mineralization left in the higher-grade pillars. In the mine area, as part of the PFS validation program, the Company is also making additional efforts to locate a number of missing historical holes, particularly those reported and mapped in the Southern Copper Zone. These holes are not in Meridian's modern drill hole data base but host multiple assays of high-grade >5.5g/t Au (including visible gold), and high-grade copper >3.5% Cu. A final program may be undertaken to target these copper-gold zones as they represent potential zones where an under-call of the resource Cabaçal may exist.
The forward program will particularly focus infilling areas of where resources remain inferred to unclassified. The Company has successfully executed a number of holes at low angles following adaptations to the small footprint rig, where topographic access has been more restricted.
Cabaçal Pit Geotechnical Study
As part of the data generation requirements for its pre-feasibility study of the Cabaçal project, Meridian has commissioned the independent geotechnical consultancy, Fundação Luiz Englert, to undertake a geotechnical study of the Cabaçal pit in order to deliver enhanced confidence to the assumptions that were used in the Cabaçal preliminary economic study completed in March 2023.
Six dedicated geotechnical holes were drilled as part of the 2023 project development campaign, and fifty-nine specific resource development holes have been geotechnically logged ("Figure 2") using a template recommended by the Company's Brazilian consultancy, with logging ongoing in parallel with the resource development program.
Conservative pit wall angles of 48 degrees were assumed for the PEA in the absence of specific geotechnical data. Mining consultants GE21 have reviewed the outcomes of the geotechnical studies and assessments indicate optionality to increase the global hanging wall in the Cabaçal pit up to 54 degrees (a 12.5% steepening of the pit wall). New data will be reviewed and fed into the Cabaçal PFS. A reduction in the volume of waste rock offers scope to improve the stripping ratio for the project. Mining lower volumes of waste rock would benefit the operating costs for the project as well as result in smaller areas required for the storage of waste rock. Final assumptions will be reviewed with the advancement of the drilling program in the lead up to the pre-feasibility.
About Meridian
Meridian Mining UK S is focused on:
- The development and exploration of the advanced stage Cabaçal VMS gold?copper project;
- Regional scale exploration of the Cabaçal VMS belt; and
- Exploration in the Jaurú & Araputanga Greenstone belts (the above all located in the State of Mato Grosso, Brazil).
Cabaçal is a gold-copper-silver rich VMS deposit with the potential to be a standalone mine within the 50km VMS belt. Cabaçal's base and precious metal-rich mineralization is hosted by volcanogenic type, massive, semi-massive, stringer, and disseminated sulphides within deformed metavolcanic-sedimentary rocks. A later-stage gold overprint event has emplaced high-grade gold mineralization.
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 (see press release dated March 6, 2023).
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), including a higher-grade near-surface zone supporting a starter pit.
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 (PST)
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Further information can be found at: www.meridianmining.co
Technical Notes
Samples have been analysed at SGS laboratory in Belo Horizonte. Samples are dried, crushed with 75% passing <3 mm, split to give a mass of 250-300g, pulverized with 95% passing 150#. Gold analyses are conducted by FAA505 (fire assay of a 50g charge), and base metal analysis by methods ICP40B and ICP40B_S (four acid digest with ICP-OES finish). Visible gold intervals are sampled by metallic screen fire assay method MET150-FAASCR. 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)), 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., MAIG, 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.
Table 1: Assays reported in this press release.| Hole-id | Dip | Azi | EOH (m) | Zone | Int (m) | AuEq (g/t) | CuEq (%) | Au (g/t) | Cu (%) | Ag (g/t) | From (m) |
| CD-427 | -49 | 062 | 97.3 | SCZ | |||||||
| 10.0 | 0.6 | 0.4 | 0.1 | 0.4 | 0.5 | 20.0 | |||||
| 5.1 | 0.4 | 0.3 | 0.2 | 0.1 | 0.2 | 48.9 | |||||
| 22.6 | 1.4 | 0.9 | 0.4 | 0.7 | 3.4 | 59.5 | |||||
| Including | 8.8 | 2.8 | 1.9 | 0.6 | 1.5 | 7.5 | 64.4 | ||||
| Including | 1.7 | 11.6 | 7.8 | 2.3 | 6.1 | 32.3 | 66.4 | ||||
| CD-419 | -58 | 039 | 110.2 | SCZ | |||||||
| 9.9 | 0.3 | 0.2 | 0.0 | 0.2 | 0.5 | 18.3 | |||||
| 3.2 | 1.5 | 1.0 | 0.1 | 1.0 | 1.7 | 44.0 | |||||
| 4.8 | 0.4 | 0.3 | 0.1 | 0.2 | 0.5 | 52.7 | |||||
| 15.1 | 0.7 | 0.5 | 0.2 | 0.4 | 1.2 | 79.1 | |||||
| CD-417 | -50 | 062 | 51.2 | CWNE | |||||||
| 4.7 | 0.4 | 0.3 | 0.1 | 0.2 | 0.4 | 24.7 | |||||
| 3.7 | 0.8 | 0.5 | 0.4 | 0.3 | 3.9 | 32.9 | |||||
| CD-415 | -50 | 061 | 49.7 | CWNE | |||||||
| 1.4 | 0.3 | 0.2 | 0.2 | 0.1 | 0.0 | 4.7 | |||||
| 0.9 | 0.8 | 0.6 | 0.3 | 0.4 | 8.1 | 30.6 | |||||
| CD-414 | -64 | 043 | 88.7 | SCZ | |||||||
| 3.6 | 0.5 | 0.3 | 0.0 | 0.4 | 0.5 | 18.3 | |||||
| 6.2 | 0.4 | 0.3 | 0.0 | 0.3 | 0.5 | 28.9 | |||||
| 4.1 | 3.3 | 2.2 | 1.7 | 1.1 | 4.7 | 42.1 | |||||
| Including | 1.3 | 7.8 | 5.3 | 4.8 | 2.1 | 10.6 | 44.9 | ||||
| 21.9 | 0.9 | 0.6 | 0.4 | 0.4 | 1.9 | 53.1 | |||||
| CD-413 | -50 | 060 | 96.4 | CWNE | |||||||
| 8.2 | 0.3 | 0.2 | 0.1 | 0.2 | 0.6 | 41.0 | |||||
| 8.4 | 1.5 | 1.0 | 0.2 | 0.9 | 1.8 | 73.7 | |||||
| Including | 1.1 | 6.6 | 4.4 | 1.1 | 3.8 | 5.1 | 74.7 | ||||
| CD-412 | -46 | 060 | 59.7 | CWNE | |||||||
| 2.0 | 0.5 | 0.4 | 0.1 | 0.3 | 5.0 | 21.0 | |||||
| CD-410 | -50 | 062 | 49.7 | CWNE | |||||||
| 1.7 | 0.5 | 0.3 | 0.1 | 0.3 | 2.6 | 21.5 | |||||
| CD-408 | -49 | 058 | 117.4 | CWNE | |||||||
| 13.1 | 0.6 | 0.4 | 0.1 | 0.4 | 0.3 | 66.6 | |||||
| Including | 1.7 | 2.3 | 1.5 | 0.5 | 1.3 | 0.5 | 75.9 | ||||
| 14.1 | 0.5 | 0.4 | 0.2 | 0.3 | 0.4 | 87.5 | |||||
| Including | 2.2 | 1.6 | 1.1 | 0.3 | 0.9 | 1.1 | 95.6 | ||||
| CD-406 | -50 | 060 | 41.5 | CWNE | NSI |
| Hole-id | Dip | Azi | EOH (m) | Zone | Int (m) | AuEq (g/t) | CuEq (%) | Au (g/t) | Cu (%) | Ag (g/t) | From (m) |
| CD-404 | -50 | 059 | 139.4 | CWNE | |||||||
| 1.3 | 1.6 | 1.1 | 1.5 | 0.1 | 0.2 | 24.4 | |||||
| 9.3 | 0.4 | 0.3 | 0.1 | 0.2 | 0.7 | 43.1 | |||||
| 30.5 | 0.6 | 0.4 | 0.1 | 0.4 | 0.5 | 57.0 | |||||
| Including | 1.6 | 3.5 | 2.4 | 0.3 | 2.2 | 3.3 | 64.7 | ||||
| 4.1 | 0.5 | 0.3 | 0.2 | 0.2 | 0.1 | 92.7 | |||||
| 20.4 | 1.1 | 0.7 | 0.4 | 0.5 | 0.8 | 101.2 | |||||
| Including | 3.8 | 3.6 | 2.4 | 1.3 | 1.7 | 2.2 | 113.5 | ||||
| CD-400 | -59 | 042 | 106.9 | CCZ | |||||||
| 4.4 | 0.3 | 0.2 | 0.0 | 0.2 | 1.0 | 7.4 | |||||
| 14.4 | 0.6 | 0.4 | 0.1 | 0.4 | 0.9 | 23.2 | |||||
| 25.8 | 1.4 | 0.9 | 0.9 | 0.4 | 2.2 | 48.0 | |||||
| Including | 9.5 | 2.9 | 1.9 | 1.7 | 0.9 | 5.5 | 62.5 | ||||
| 6.3 | 0.9 | 0.6 | 0.2 | 0.4 | 2.7 | 87.4 | |||||
| CD-399 | -50 | 059 | 153.6 | CWNE | |||||||
| 22.3 | 0.3 | 0.2 | 0.1 | 0.2 | 0.3 | 29.7 | |||||
| 15.3 | 1.7 | 1.1 | 0.3 | 1.0 | 1.6 | 125.5 | |||||
| Including | 5.1 | 4.0 | 2.7 | 0.6 | 2.4 | 3.2 | 126.1 | ||||
| CD-398 | -49 | 062 | 61.4 | CWNE | |||||||
| 12.3 | 0.4 | 0.3 | 0.1 | 0.2 | 4.4 | 26.7 | |||||
| CD-397 | -60 | 043 | 136.4 | SCZ | |||||||
| 5.9 | 0.4 | 0.3 | 0.0 | 0.3 | 1.1 | 33.4 | |||||
| 33.7 | 0.6 | 0.4 | 0.3 | 0.2 | 0.6 | 74.1 | |||||
| Including | 1.9 | 2.1 | 1.4 | 1.9 | 0.2 | 0.5 | 86.1 | ||||
| 11.5 | 0.4 | 0.2 | 0.1 | 0.2 | 0.6 | 113.5 | |||||
| CD-396 | -50 | 060 | 136.8 | CWNE | |||||||
| 2.7 | 0.5 | 0.3 | 0.1 | 0.3 | 0.3 | 19.3 | |||||
| 7.6 | 0.7 | 0.5 | 0.2 | 0.4 | 0.9 | 32.4 | |||||
| 15.6 | 0.8 | 0.5 | 0.2 | 0.4 | 0.8 | 44.4 | |||||
| Including | 3.0 | 1.8 | 1.2 | 0.2 | 1.1 | 1.9 | 52.6 | ||||
| 10.5 | 0.3 | 0.2 | 0.2 | 0.2 | 0.3 | 68.6 | |||||
| 3.2 | 1.1 | 0.7 | 0.5 | 0.5 | 1.7 | 86.6 | |||||
| 8.7 | 2.0 | 1.4 | 0.9 | 0.8 | 2.6 | 95.0 | |||||
| Including | 1.6 | 7.1 | 4.8 | 3.1 | 2.8 | 8.6 | 98.1 | ||||
| 10.1 | 1.3 | 0.9 | 0.3 | 0.7 | 1.1 | 118.3 | |||||
| Including | 1.7 | 4.1 | 2.8 | 0.8 | 2.3 | 3.1 | 121.4 |
| Hole-id | Dip | Azi | EOH (m) | Zone | Int (m) | AuEq (g/t) | CuEq (%) | Au (g/t) | Cu (%) | Ag (g/t) | From (m) |
| CD-395 | -50 | 061 | 131.7 | CWNE | |||||||
| 2.6 | 1.2 | 0.8 | 0.5 | 0.6 | 1.5 | 36.2 | |||||
| 10.9 | 1.3 | 0.9 | 0.1 | 0.8 | 1.4 | 43.7 | |||||
| Including | 4.1 | 2.8 | 1.9 | 0.2 | 1.8 | 2.9 | 50.0 | ||||
| 26.8 | 0.4 | 0.3 | 0.0 | 0.3 | 0.3 | 59.0 | |||||
| 9.8 | 0.7 | 0.5 | 0.4 | 0.2 | 0.5 | 92.8 | |||||
| 4.8 | 1.4 | 0.9 | 0.3 | 0.8 | 1.5 | 111.0 | |||||
| CD-393 | -63 | 044 | 112.2 | SCZ | |||||||
| 9.4 | 0.1 | 0.1 | 0.0 | 0.1 | 0.4 | 13.6 | |||||
| 0.6 | 8.5 | 5.7 | 8.5 | 0.0 | 0.0 | 60.8 | |||||
| 17.8 | 1.0 | 0.7 | 0.4 | 0.5 | 1.0 | 70.3 | |||||
| Including | 3.3 | 4.2 | 2.8 | 1.5 | 1.9 | 3.5 | 70.7 | ||||
| 3.3 | 0.4 | 0.2 | 0.2 | 0.2 | 1.4 | 95.8 | |||||
| CD-379 | -49 | 062 | 70.2 | CWNE | |||||||
| 17.8 | 0.7 | 0.5 | 0.5 | 0.2 | 0.6 | 34.0 | |||||
| Including | 1.8 | 5.4 | 3.6 | 3.6 | 1.3 | 3.8 | 50.0 |