Meridian Mining UK S announced the positive results of the Preliminary Feasibility Study ("PFS") led by Ausenco do Brasil Engenharia Ltda and Ausenco Engineering Canada ULC (together "Ausenco"), supported by GE 21 Mineral Consultants Ltd. ("GE 21") for the advanced Cabacal gold-copper-silver deposit in Brazil ("Cabacal" or the "Project"). The company is starting the Feasibility Study soon, working on the first resource estimate for Santa Helena, and exploring new opportunities. Estimated are based on the Technical Report titled, "Independent Technical Report, Mineral Resource Estimate for the Cabacal Gold-Copper Project, State of Mato Grosso, Brazil".
Three test work programs have been completed since 2022. They are summarized as follows: In 2022, a new drilling campaign and test work program was completed, where Meridian drilled ten metallurgical holes. Seven of these holes were used for sample selection to confirm historical performance with a new round of test work at SGS Lakefield, Canada.
Based on the SGS test work results, Ausenco designed a new process plant to process 2.5 Mtpa of run-of-mine (RoM) feed from the Cabacal open pit in the first three years then, with an expansion in year three of the plant operation, processing 4.5 Mtpa of RoM from the fourth year onward. All rainwater that comes in contact with mining operations is planned to be collected and either used on site or treated to required standards then released. Mine services and labour are readily available, primarily from nearby towns.
The PFS therefore assumes that the new Cabacal mine is effectively a greenfield project. Meridian commenced baseline environmental and social impact data collection of the Cabacal project in January 2022 and completed the studies in November 2023. The studies were summarized by SETE in the Environmental Impact Study (EIA) and Environmental Impact Report (RIMA), which concluded with the following opinion--based on the project information, the knowledge acquired from the environmental analysis prepared, the environmental impacts assessed and the availability of prevention, mitigation, control, compensation and environmental monitoring mechanisms for the proposed project, which will be further detailed in the PCA (Environmental Control Plan), during the Installation License phase, the environmental licensing of the Cabacal project is considered feasible, as proposed by the company.
Ongoing environmental monitoring of the Cabacal project site is underway in order to continue to build up environment data for the baseline models. The EIA/RIMA reports were filed with the Mato Grosso State Environmental Secretariat - SEMA (the agency responsible for the environmental licensing process) on December 2, 2023. In completing the PFS, a number of opportunities were identified that would potentially enhance the Cabacal project, subject to completing the necessary assessment.
Opportunities to further optimize pit will angles will be reviewed further following any new data gathered in the 2025 drill program. Future mining activities above and around existing voids areas were analyzed using advanced geotechnical analysis based on 3D modelling and finite element simulations. As a preventive approach, rigorous inspections and, when required, strategic filling of these areas will be implemented to ensure operational safety and controlled mining advancement.
A complete study of geotechnical investigations, based on a survey grid indicated by Ausenco, was performed by the SETE - Servicos Tecnicos de Engenharia Ltda, engaged by Meridian in April 2024. Mr. Erich Marques, B.Sc., FAIG, Chief Geologist of Meridian Mining and a Qualified Person as defined by National Instrument 43-101, has reviewed the PFS Study on behalf of the Company and has approved the technical disclosure contained in this news release.
