Meridian Mining UK S (TSX: MNO) (OTCQX: MRRDF) (Frankfurt/Tradegate: 2MM) ('Meridian' or the 'Company') is pleased to report its strategy to further advance multiple prospects within the Cabacal VMS Belt as part of a 'Hub and Spoke' strategy to maximise value for shareholders.
The Cabacal Project's ('Cabacal') current engineering and drill programs will be upgraded to complete a Pre-Feasibility Study ('PFS') on an expanded production case, to delineate higher certainty of the core asset value. Due to the continued success of drilling at the Santa Helena mine ('Santa Helena'), the Company has decided to advance the historical mine towards a resource estimate to maximise its optionality within the broader VMS belt. Santa Helena has the potential to be the first step towards the Hub and Spoke strategy envisaged for the development of the wider Cabacal Belt's growth potential. The Company further announcesthat it has discovered a rich layer of Au-Cu-Ag and Zn VMS mineralization projecting below the main VMS mine horizon at Santa Helena, grading 11.0m @ 5.2g/t AuEq (CD-360) and 6.8m @ 3.3g/t AuEq (CD-416). Further extensions of the VMS mine horizon have been intersected in CD-420, and CD-431, up to 510m to the east of the historical resource envelope. Further assay results from Cabacal and Santa Helena are pending
HIGHLIGHTS REPORTED TODAY Cabacal's work programs upgraded to produce a Pre-Feasibility Study in 2024 leading to higher project certainty; Santa Helena's robust growth in resource potential to be advanced towards first resource in 2024; Santa Helena's drilling intercepts new Au-Cu-Ag and Zn rich VMS lens located below mine sequence; o CD-360: 11.0m @ 5.2g/t AuEq (0.9g/t Au, 2.2% Cu, 22.1g/t Ag & 3.5% Zn) from 30.0m; o CD-416: 16.6m @ 2.1g/t AuEq (0.7g/t Au, 0.6% Cu, 14.7g/t Ag & 1.7% Zn) from 41.4m; Including 6.8m @ 3.3g/t AuEq (1.3g/t Au, 1.1% Cu, 23.3g/t Ag & 1.9% Zn) from 41.4m; Santa Helena's prospective VMS mine sequence extended by 0.51km to the east with multiple hits; Cabacal Mine area continues to return robust results of Au-Cu & Ag mineralization; o CD-365: 50.5m @ 1.0g/t AuEq (0.7g/t Au, 0.3% Cu & 1.1g/t Ag) from 19.8m and Cabacal Purchase Agreement amended to reflect changes in Project timeline deliverables
Mr. Gilbert Clark, CEO, comments: '2024 has started with an expansion of our strategy of developing satellite deposits 'Spokes' in the Cabacal belt to feed a central processing 'Hub' at Cabacal. By upgrading Cabacal's current PEA1 to a PFS standard and removing all Inferred Resources from future financial and mining modelling, we will achieve a higher certainty on its hard asset value, with only a modest increase in the data and studies required. In 2024, Santa Helena's programs will be firmly advancing towards its inaugural resource, with a strong focus on maximising the potential for open-pitable resources, and exposing it to the optionality of the hub and spoke strategy proposed for the Cabacal VMS belt. Today's results from Santa Helena have outperformed our expectations with robust assays from infill drilling, with a half a kilometre extension of the mine horizon eastwards beyond its historical resource limits, and with the identification of a strong layer of Au-Cu-Ag and Zn mineralization that projects below the mine horizon. This new horizon presents a tremendous opportunity, as historical drilling has generally not been projected deep enough to effectively test this horizon. All combined, it illustrates both the nearmine and along strike upside that remains. The Cabacal mine area continues to deliver robust zones of copper-gold & silver mineralization from shallow depths. We continue to see examples of gold only mineralization,separate to the copper-gold VMS envelope, which reinforces the importance of evaluating the potential of the greater Cabacal belt for large gold-only deposits related to the later-stage gold event. As Meridian sets out its well supported development plans for 2024 and beyond, the focus is to create greater hard asset value as a near term developer and operator of one of the most prospective coppergold VMS belts in South America.'
CABACAL PRE-FEASIBILITY STUDY AND NEAR-TERM INCORPORATION OF THE SANTA HELENA DEPOSIT
The Company has reviewed the growing database of the Cabacal deposit and the greater Cabacal VMS belt and has decided to expand the general project data programs to produce a PFS for the Cabacal mine. The PFS mine schedule and financial model will be focused on an initial throughput of 2.5Mt p.a. then expanded to reach a maximum throughput of 4.5Mt using project cash flow in year four. The larger throughput has been proposed and applied for via the Preliminary License application2 . This positions the Cabacal mine as a central processing hub for the long-term development of the Cabacal VMS belt. Meridian has already engaged with Brazilian and International engineering groups on the PFS that will be completed to a cost estimate classification of AACE 4. They will be reporting their estimations for the completion of the PFS schedule shortly. To accommodate the collation of the general project data for the PFS, the Company has agreed with the Cabacal vendors to modify the Cabacal Purchase Agreement's3 schedule so that the subsequent Feasibility Study is completed by September 30, 2025 with no additional financial consideration required. Given Santa Helena's strong historical drill results, their ongoing confirmation, and the recent successes in expanding the resource potential, the Company has been given a strong boost for creating potentially the next open pitable resource, that will leverage off the optionality of the proposed Cabacal belt's development strategy. The Company has reviewed Santa Helena's historical technical and operational reports and held discussions with the previous mill operating personnel. From this, the planned metallurgical studies for the Santa Helena mineralization have historical operational knowledge and technical data inputs, to guide the testwork from the outset.
ABOUT MERIDIAN
Meridian Mining UK S is focused on: The development and exploration of the advanced stage Cabacal VMS gold-copper project; Regional scale exploration of the Cabacal VMS belt and Exploration in the Jauru & Araputanga Greenstone belts (the above all located in the State of Mato Grosso, Brazil). Cabacal is a gold-copper-silver rich VMS deposit with the potential to be a standalone mine within the 50km VMS belt. Cabacal'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: '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). Cabacal 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 Cabacal 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. The
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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.sedar.com. 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
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