Au, 1.0% Cu, 30.2 g/t Ag & 2.5% Zn) at Santa Helena Discovery of gold-rich VMS system creates potential game changing upside for Santa Helena
8th Floor, 4 More London Riverside | London SE1 2AU | United Kingdom
Meridian Drills Significant High-Grade VMS Gold Mineralization: 75.6m @ 4.6g/t AuEq (3.0g/t
Au, 1.0% Cu, 30.2 g/t Ag & 2.5% Zn) at Santa Helena
Discovery of gold-rich VMS system creates potential game changing upside for Santa Helena
LONDON, United Kingdom, Nov ember 20, 2024 / Accesswire / Meridian Mining UK . S ( TSX: MNO ),
(Frankfurt/Tradegate: 2MM) (OTCQX: MRRDF) (“Meridian” or the “Company”) is pleased to announce the
most significant high-grade gold-rich VMS drill intersection to date from the Santa Helena Au-Cu-Ag & Zn
VMS deposit (“Santa Helena”). CD-605 returned a lateral extension of 75.6m @ 4.6g/t AuEq / 3.1% CuEq
(3.0g/t Au, 1.0% Cu, 30.2 g/t Ag & 2.5% Zn ) from 32.4m , (“Figure 1 ”) where the deposit has moved
towards hosting a high-grade gold rich VMS domain. CD-605 is open with potentially significant upside for
further along strike and down dip extensions. Drilling is ongoing and further assays are pending.
HIGHLIGHTS REPORTED TODAY
• Meridian’s CD-605 drills 75.6m @ 4.6g/t AuEq / 3.1% CuEq at Santa Helena;
• Santa Helena assays significant gold dominant VMS mineralization with CD-605’s 75.6m @ 3.0g/t
Au, 1.0% Cu, 30.2 g/t Ag & 2.5% Zn from 32.4m, linking the historical resource areas;
• Santa Helena’s high-grade gold VMS mineralization remains open along strike and down dip;
o Drilling continues to test for further extensions of this high-grade gold mineralization;
o Highest grade of silver, assaying 507g/t Ag, encountered to date in the Cabaçal VMS Belt;
• CD-605 Au-Cu-Ag & Zn intercept now links Santa Helena as a continuous ~1.4km high-grade system;
• Santa Helena resource program returns more shallow high-grade Au-Cu-Ag & Zn mineralization;
o CD-601: 13.1m @ 6.6g/t AuEq / 4.4% CuEq from 94.5m;
o CD-591: 5.0m @ 8.9g/t AuEq / 5.9% CuEq from 23.4m;
o CD-583: 8.8m @ 2.6g/t AuEq / 1.7% CuEq from 15.5m; and
o CD-573: 9.7m @ 3.2g/t AuEq / 2.1% CuEq from 55.0m.
*See technical note for true thickness estimate and separate AuEq and CuEq equations.
Mr. Gilbert Clark, CEO, comments: “ CD-605 is a potential game changer for Santa Helena’s prospectivity
and for the wider VMS belt. We have now identified that the western resource extensions to Santa Helena
host a high-grade gold rich VMS domain, that the high-grade gold mineralization is consistent over the
entire interval, and that it remains open. CD-605 and our other neighbouring results show that we are
intercepting high-grade gold and other base metals in an area with sparse historical drilling that was only
partially sampled. Santa Helena now hosts a continuous layer of high-grade Cu-Au-Ag & Zn mineralization,
extending over 1.4km, with a VMS horizon of up to ~28m in true thickness at open pitable depths , that
remains open. For the greater Cabaçal VMS belt we now know that the exploration potential for both
high-grade gold and base metal VMS deposits is further enhanced.”
SANTA HELENA DRILL RESULTS
The Santa Helena drilling program has continued to deliver a strong flow of gold-copper-silver and zinc
results. Important results in particular have been returned from drilling in the open western sector of the
deposit, where the host mine horizon has a poor surface expression due to colluvial cover . Historical
modelling (“Figure 2”) had previously inserted a break in the interpretation of the VMS mineral envelope
in this location. However, the Company observed that its recent geophysical surveys delineated a strong
anomaly extending uninterrupted to the west from Santa Helena.
Figure 1: Santa Helena drill results reported today and previous highlights.
CD-605 has intersected the core of a high-grade gold VMS system and returned a down-hole intersection
of 75.6m @ 4.6g/t AuEq / 3. 1% CuEq from 32.4m and contains particularly strong levels of gold
mineralization. The Santa Helena drill -hole database, prior to this intersection, contained only sixteen
samples above a 10 g/t gold limit. CD-605 has returned seven individual VMS samples above 10g/t gold
to a peak of 14. 2g/t Au (the third highest value in the Santa Helena database ). CD-605 has also assayed
strong to high-grade silver mineralization including the highest recorded assay to date of 507g/t Ag.
Sub-sections of the CD-605 75.6m interval include:
• 7.2m @ 7.2g/t Au, 1.0% Cu, 20.9g/t Ag & 1.0% Zn from 34.4m;
• 8.3m @ 6.1g/t Au, 1.3% Cu, 4.2g/t Ag & 0.8% Zn from 46.1m;
• 2.7m @ 8.9g/t Au, 1.2% Cu, 18.0g/t Ag & 1.1% Zn from 61.8m;
• 9.4m @ 4.1g/t Au, 3.2% Cu, 107.3g/t Ag & 2.1% Zn from 78.2m; and
• 8.3m @ 1.4g/t Au, 0.7% Cu, 63.2g/t Ag & 9.9% Zn from 97.1m.
Lead assays are not included in the gold equivalent formula until a metallurgical program is completed.
CD-605 builds on the recently announced results drilled into this area. CD -539 first returned 40.4m @
1.8g/t AuEq / 1.2% CuEq from 16.9m in this western position1. This result extended the limits of
mineralization up to 55m west -northwest of Meridian’s CD-411, which returned 22.5m @ 1.9g/t AuEq
from 11.0m2. CD-600 has returned 45.8m @ 1.6g/t AuEq / 1.1% CuEq from 15.0m, drilling laterally to the
CD-539 position. The CD-605 result now extends the mineralization a distance of 106m to the west of CD-
411, but with a change to a gold rich sector of the VMS system, and halfway across the gap in the previous
1 Meridian Mining News Release of September 23, 2024.
2 Meridian Mining News Release of January 10, 2024.
VMS envelope model (“Figure 2”). CD-605 terminated at 168.7m, close to some footwall mineralization
(4.5m @ 1.1% Zn, 0.1g/t Au & 2.2g/t Ag from 162.0 m). CD-605 indicates a strengthening of the gold
mineralization in the main VMS layer to the west of CD-539 and CD-600. Results from one additional hole
are pending and further holes are being planned.
CD-605’s gold mineralization’s true wi dth is still under interpretation with further fan drilling ongoing.
With the three current fan holes, the intercept is confirmed as an extension of the known Santa Helena
Au-Cu-Ag & Zn mine horizon and is considered to be up to 15-17m thick. The Santa Helena VMS package
to the east can vary in width up to a maximum of 28m.
Figure 2: Longitudinal view looking north (top) and plan view (bottom), showing the extent of the newly
intersected mineralization in relation to the 2008 end-of mine interpreted extents of the VMS layer.
In conjunction with elevated gold and silver values, the three fan holes show elevated bismuth values to
a peak of 326ppm. At the Cabaçal deposit, the Cu-Au-Ag VMS system has experienced a later stage gold
overprint event with elevated bismuth. This geochemistry is seen in camps such as La Ronde – Penna,
which like Cabaçal, has a subvolcanic tonalite intrusive body contributing to the metal associations. The
azimuth of CD-605, whilst at a lower angle to the VMS trend, is at a higher angle to a NE-trending gradient
in the chargeability response. The significance of this gradient remains to be determined, but potentially
marks a converging structural trend. Some further oblique drilling will be conducted in this region , and
more broadly through the deposit , to determine if there is any directional bias to the gold population
associated with cross-structures.
An interesting aspect of the La Ronde – Penna camp is that the VMS lenses are stacked at different
stratigraphic intervals. With the Cabaçal Belt being characterised by gentle dips, there is a significant
footprint of unexplored stratigraphy between the sub -volcanic intrusive system and the known VMS
mineralization of the Santa Helena and Cabaçal deposits. With potential for gold mineralization associated
with the syn-volcanic event and subsequent introduction/remobilization in the subsequent deformational
history, a range of conceivable targets exist . These may have different geophysical signatures compared
to the base metal endowed VMS deposits of the Cabaçal mine and Santa Helena.
SANTA HELENA INFILL DRILL PROGRAM
As part of the ongoing resource program at Santa Helena, a dditional results of interest over the central
part of the historical mine area are reported (“Table 1”). These include:
CD-573: returned 9.7m @ 3.2g/t AuEq / 2.1% CuEq from 55.0m and 3.8m @ 4.0g/t AuEq / 2.7% CuEq
from 68.0m. This aligns with the main VMS mine horizon. A deeper horizon of 2.6m @ 4.2g/t AuEq / 2.8%
CuEq from 82.6m may represent a stacked lens of a second horizon, or potentially part of a footwall feeder
zone.
CD-601: drilled in the mine area to test the void model, this hole confirmed continuous high -grade
mineralization of 13.1m @ 6.6g/t AuEq / 4.4% CuEq from 94.5m.
Infill drilling in the up-plunge eastern sector of the deposit, 80 to 175m east of the limit of the historical
resource, returned several shallow results:
• CD-577: 10.5m @ 2.0g/t AuEq / 1.3% CuEq from 22.1m;
• CD-582: 5.7m @ 2.0g/t AuEq / 1.3% CuEq from 28.1m;
• CD-583: 8.8m @ 2.6g/t AuEq / 1.7% CuEq from 15.5m; and
• CD-591: 5.0m @ 8.9g/t AuEq / 5.9% CuEq from 23.4m.
The infill program continues, and further results are pending.
EXPLORATION UPSIDE
Results identified to the west of Santa Helena and at the Cabaçal mine are important in showing that an
absence of analytical data in historical drilling does not reflect an absence of mineralization. Options to
extend the footprint of Santa Helena’s drill ing are under evaluation. The western most lines of historical
drilling records have limited sampling or no sampling. The geophysical response wanes to the west – it
remains to be determined if this reflects a plunging and deepening system, with gradient a rray IP
techniques being shallow seeking methods, or whether the deposit shallows and unsampled weathered
mineralization is present.
An important observation is that colluvial material shed from adjacent escarpments masked the surface
geochemical response of CD -605’s rich zone of mineralization. A number of historical holes had been
drilled into this chargeability zone, but have only partial assay data, creating a gap in the interpretation of
the VMS horizon that spanned a distance of over ~ 108m (“Figure 2”), and tapered prior to th ese recent
results. Today’s results particularly emphasise that systematic sampling data is required, and that areas
with subtle or no surface geochemical responses along the escarpment corridor may still hol d significant
near surface mineralization due to the masking effects of the overburden.
ABOUT MERIDIAN
Meridian Mining is focused on:
• The
development and exploration of the advanced stage Cabaçal VMS gold-c
opper project;
• The
initial resource definition at the second high er-grade VMS asset at Santa Helena as the first
stage of the Cabaçal Hub development strategy;
• Regional scale exploration of the Cabaçal VMS belt to expand the Cabaçal Hub 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), Princi pal 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: [email protected]
Ph: +1 778 715-6410 (BST)
Stay up to date by subscribing for news alerts here: https://meridianmining.co/contact/
Follow Meridian on Twitter: https://twitter.com/MeridianMining
Further information can be found at: www.meridianmining.co
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
-G
RA22), and
base metal analysis by methods ME -ICP61 and OG62 (four acid digest wi th 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 70-90% of
intersection width, except for low-angle holes CD-600, CD -605 which are considered-d to be ~20% of true
width. Assay figures and intervals are rounded to 1 decimal place.
Gold equivalents for Santa Helena are based on metallurgical recoveries from the historical resource
calculation, updated with pricing forecasts aligned with the Cabaçal PEA. AuEq (g/t) = (Au(g/t) *
65%Recovery) + (1.492*Cu(%) * 89%Recovery) + (0.474*Zn% * 89%Recovery)) + (0.013* Ag(g/t) *
61%Recovery)). CuEq (%) = (Cu(%) * 89%Recovery) + (0.318*Zn% * 89%Recovery)) + (0.67*Au(g/t) *
65%Recovery) + (0.0087*Ag(g/t) * 61%Recovery)). Metallurgical testwork is currently in progress to
evaluate recoveries in primary lithologies and saprolite, with formulas to be updated based on revised
recoveries pricing.
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 info rmation, future events, or results or
otherwise.
Table 1: Assay results reported in this release.
Hole-id Dip Azi EOH
(m) Zone Int
(m)
AuEq
(g/t)
CuEq
(%)
Au
(g/t)
Cu
(%)
Ag
(g/t)
Zn
(%)
Pb
(%)
From
(m)
CD-605 -22 306 168.7 SHM Subparallel Hole
75.6 4.6 3.1 3.0 1.0 30.2 2.5 1.6 32.4
Including 7.2 6.6 4.4 7.2 1.0 20.9 1.0 3.4 34.4
Including 8.3 6.0 4.0 6.1 1.3 4.2 0.8 3.6 46.1
Including 2.7 8.0 5.3 8.9 1.2 18.0 1.1 0.4 61.8
Including 9.4 8.7 5.8 4.1 3.2 107.3 2.1 1.1 78.2
Including 8.3 6.5 4.3 1.4 0.7 63.2 9.9 1.3 97.1
4.5 0.5 0.4 0.1 0.0 2.2 1.1 0.1 162.0
CD-601 -55 257 118.9 SHM
13.1 6.6 4.4 1.7 1.7 48.5 6.8 0.7 94.5
Including 7.0 11.8 7.9 3.1 3.1 85.7 11.7 1.1 94.5
3.7 0.3 0.2 0.0 0.0 1.5 0.6 0.2 109.8
CD-600 -36 310 100.5 SHM Subparallel Hole
45.8 1.6 1.1 0.6 0.6 11.0 0.8 0.3 15.0
Including 6.3 3.7 2.5 3.8 0.6 21.0 0.5 1.4 16.0
Including 2.6 6.4 4.3 7.3 0.9 16.7 0.8 1.6 18.6
CD-597 -45 033 51.3 SHM
1.2 0.7 0.5 0.0 0.0 86.2 0.1 0.0 7.6
1.4 0.5 0.4 0.3 0.0 21.5 0.4 0.2 45.6
CD-594 -46 301 51.1 SHM
6.6 0.7 0.4 0.0 0.2 5.4 0.9 0.7 2.4
2.6 0.5 0.4 0.0 0.0 10.0 1.0 0.5 12.0
2.7 0.5 0.4 0.5 0.0 9.3 0.3 0.1 31.3
CD-591 -46 240 64.7 SHM
2.0 0.3 0.2 0.0 0.1 1.1 0.6 0.0 9.0
3.6 0.4 0.3 0.0 0.1 2.0 0.7 0.0 17.4
5.0 8.9 5.9 2.6 2.4 116.6 7.3 1.2 23.4
1.0 0.6 0.4 0.1 0.0 20.6 0.9 0.4 47.2
CD-588 -60 187 55.7 SHM
3.3 0.3 0.2 0.0 0.1 2.5 0.5 0.0 19.8
1.8 4.8 3.2 1.4 1.7 46.0 3.0 0.3 25.4
Including 1.4 5.7 3.8 1.7 2.1 57.3 3.3 0.4 25.8
4.4 2.2 1.5 0.2 0.7 19.8 2.2 0.2 32.7
Including 1.7 5.1 3.4 0.5 1.8 44.4 4.7 0.2 32.7
5.4 0.6 0.4 0.3 0.0 7.6 0.7 0.3 40.4
CD-584 -45 031 46.4 SHM
5.3 0.6 0.4 0.0 0.1 11.5 0.9 0.1 6.7
6.8 0.7 0.5 0.2 0.0 9.1 1.0 0.3 16.3
4.6 0.6 0.4 0.2 0.0 15.4 0.8 0.2 38.0
CD-583 -37 134 65.5 SHM
8.8 2.6 1.7 1.0 1.0 17.3 1.1 1.0 15.5
Including 5.8 3.2 2.2 1.4 1.2 23.5 1.2 1.3 17.4
2.1 0.8 0.5 0.1 0.2 4.4 1.1 0.0 26.9
3.8 1.2 0.8 1.2 0.0 14.2 0.6 0.3 34.1
1.6 0.4 0.2 0.2 0.0 10.6 0.3 0.2 41.0
4.4 0.5 0.3 0.3 0.0 3.2 0.5 0.2 50.2
Hole-id Dip Azi EOH
(m) Zone Int
(m)
AuEq
(g/t)
CuEq
(%)
Au
(g/t)
Cu
(%)
Ag
(g/t)
Zn
(%)
Pb
(%)
From
(m)
CD-582 -34 077 61.4 SHM
7.1 0.4 0.3 0.0 0.1 2.6 0.5 0.0 7.3
4.1 0.4 0.3 0.1 0.1 3.6 0.5 0.0 19.8
5.7 2.0 1.3 0.2 0.3 22.8 3.1 0.5 28.1
10.1 0.5 0.3 0.2 0.0 6.2 0.8 0.2 37.1
0.9 0.9 0.6 0.1 0.1 40.9 0.9 0.6 49.3
CD-577 -42 033 51.1 SHM
10.5 2.0 1.3 0.3 0.1 15.6 3.5 0.5 22.1
Including 4.3 3.5 2.3 0.4 0.3 31.8 6.1 1.0 22.1
10.7 0.3 0.2 0.1 0.0 5.6 0.4 0.2 36.3
CD-573 -76 187 94.9 SHM
9.7 3.2 2.1 0.4 0.9 34.8 3.5 0.6 55.0
Including 1.7 5.2 3.5 0.3 1.9 56.3 4.9 0.6 55.0
Including 3.2 4.5 3.0 0.7 1.3 56.2 4.4 0.9 58.9
3.8 4.0 2.7 0.4 0.5 51.3 6.5 1.3 68.0
Including 2.5 5.8 3.9 0.6 0.6 71.5 9.7 2.0 68.0
2.6 4.2 2.8 0.7 0.4 41.7 7.0 1.2 82.6
CD-570 -80 035 45.4 SHM
4.4 0.3 0.2 0.0 0.1 2.5 0.3 0.0 3.1
2.3 2.9 1.9 0.3 0.5 24.3 4.4 0.4 12.8
3.2 0.6 0.4 0.4 0.0 8.5 0.5 0.2 21.7
3.6 0.8 0.5 0.1 0.1 7.9 1.5 0.5 32.6