Meridian Mining UK. provided a drilling update for the Santa Helena Cu-Au-Ag & Zn deposit ("Santa Helena"). CD-612 has drilled another lateral extension, assaying 58.9m @ 3.6g/t AuEq * (2.8g/t Au, 0.7% Cu, 19.0g/t Ag & 1.7% Zn), including a higher-grade zone of 26.8m @ 4.1g/t AuEq (4.2g/t Au, 0., 0.7% Cu, 13.1g/t Ag & 0.8% Zn), in the western gold domain of the Santa Helena deposit.
Drilling is continuing with further assays pending. Meridian is also announcing the securing of new licence applications, expanding the Company's footprint in the Cabacal, Jauru and Araputanga Belts. Highlights reported:: Meridian extends the western gold mineralization at Santa Helena, drilling 58.9m @ 3.,6g/t AuEQ; Santa Helena assays further gold rich VMS mineralization with CD-612's 58.9m @ 2.8g/t Au), 0.7% Cu,19.0g/t Ag and 1.7% Zn from 29.1m, widening the western gold extension; Shallowest high-grade zone assays 26.8m @ 4.,1g/t AuEQ (4.2g/T Au, 0.7%Cu, 13.1g/T Ag & 0.8%Zn) from 29.1m; Ongoing lateral drill results to the west of Santa Helena extend the potential for future open pit development; CD-612 returns a down-hole 212.0 AuEq gram-metre interval within open pitable depths.
The Company reported three new licence applications, expanding its footprint in each of the Cabacal, Juru and Araputanga Belt. Licence map showing the new applications. The Preliminary Economic Assessment technical report (the "PEA Technical Report") dated March 30, 2023, entitled: "Cabacal 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.
