Meridian Confirms Cabaçal’s Mine Corridor’s Significant Exploration Potential Extensions to Gold‐Silver discovery and VMS system at C2A‐East
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Meridian Confirms Cabaçal’s Mine Corridor’s Significant Exploration Potential
Extensions to Gold‐Silver discovery and VMS system at C2A‐East
LONDON, United Kingdom, June 2 8, 2022 / CNW / Meridian Mining U K S ( TSX: MNO ),
(Frankfurt/Tradegate: 2MM) (OTCQB: MRRDF), (“Meridian” or the “Company”) is pleased to announce an
extensive exploration update within the 11km long Cabaçal Mine Corridor. Results from recently
completed IP surveys have extended the prospectivity of the C4‐ A gold‐silver discovery 1 along strike to
the southeast linking up with further gold‐in‐soil anomalies. T he Company is also announcing that recent
geophysical surveys from the VMS copper target at C2‐A East 2, have defined strong basement EM and IP
anomalies, creating a new priority target for future drilling.
The strong geophysical results to date, coupled with ongoing drilling success at Cabaçal, highlight the
outstanding potential of the essentially untested 22km strike l ength of open soil anomalies within the
Cabaçal Project (Figure 1). These combined results are strength ening the Cabaçal project as one of the
most exciting, emerging metallogenic belts in South America.
Three surface drill rigs and four drill crews are currently confirming, infilling, and expanding the extensive
near‐surface copper‐gold mineralization of the Cabaçal Mine. Re ferenced images are presented at the
end of this release as well as on the Company’s website. Further results are pending.
HIGHLIGHTS REPORTED TODAY:
CD‐139 Discovery: New IP anomalies extend prospectivity of C4‐A Gold‐Silver Extensions;
o Next phase of work to focus on untested northwest trend back towards Cabaçal Mine;
o Strong basement responses detected southeast of discovery hole CD‐139 confirm further
upside;
C2‐A East Copper Prospect: New Priority target ‐ Geophysics confirms basement potential
o Priority target 3km southeast of Cabaçal Mine;
o Extensive geophysical anomalies define basement geophysical signature;
o Copper anomaly with peak readings of 0.1% Cu associated with 1.2km alteration system from
Worldview 3 satellite survey;
Ongoing geochemical ‐ geophysical data compilation and exploration emphasizes Cabaçal’s belt‐
scale potential of emerging targets;
o Extensive soil anomalies cover only 22km of the 50km long Cabaçal project; with unsurveyed
gaps to be progressively infilled; and
Infill gravity program commencing at Espigão to delineate future IOCG drill targets.
o encouraged by strong anomalies: regional survey phase completed .
Dr Adrian McArthur, CEO and President comments: “Three drill rigs are advancing the drilling at the
Cabaçal Mine and its extensions in preparation for the first resource statement at the end of Q3. The
1 Meridian Mining Press Release of June 21, 2022.
2 Meridian Mining Press Release of December 6, 2021 (previously referred to as Area 4).
Company continues to delineate additional upside potential to our new C4A gold‐silver discovery and with
today’s C2A‐East discovery, a priority target. Our next phase of drilling starting in Q4 will focus on
extending and infilling at the Cabaçal Mine but also more delin eation drilling within t he largely untested
Mine Corridor. Our team has shown great ability and initiative in discovering new anomalies beyond those
outlined by BP Mineral’s origi nal 1980’s campaign. As we contin ue to build our portfolio of copper‐gold
prospects at Cabaçal, our investors have exposure to probably t he most exciting, emerging metallogenic
belt in South America and more importantly it is located in Bra zil, where new copper and gold mines are
frequently being, permitted, built and entering sustainable production.”
Figure 1: View NW along the trend of the . Cabaçal Belt, with copper in soil geochemistry draped on relief
model.
GEOPHYSICS BUILDS TARGETS ALONG THE C4‐A / C2‐A DISCOVERY CORRIDOR SOUTHEAST OF THE CABAÇAL MINE
Results from pole‐dipole geophysical programs confirm basement targets flanking and along strike from
the CD‐139 discovery hole. Anomalies are also emerging in satel lite positions associated with additional
base and precious metal targets located further southeast in the C2‐A corridor from ongoing programs.
The Company has continued its geophysical programs along the C4 ‐ A – C 2 ‐ A c o r r i d o r , h a v i n g n o w
completed 13‐line kilometres of Pole‐Dipole / Dipole‐Dipole and 16‐line kilometres of Gradient Array
Induced Polarization (‘IP’) surveys (Figure 2). The objective o f the surveys has been to better prioritize
targets based on geophysical responses, given significant concentrations of sulphides seen associated
with the new discovery position in the southern sector of the C4‐A target.
IP traverses over the original discovery area outlined basement chargeability anomalies with a threshold
of up to 9.8mV/V. The chargeability response broadens and strengthens to the south, to peaks in the
range of 11.3‐15.9mV/V. This area has a flanking Worldview 3 sa tellite anomaly, marked by a silica‐clay‐
jarosite‐hematite signature. C2‐ A’s soil response becomes progr essively stronger in its base metal
signature associated with the IP and Worldview3 anomalies (peak : Cu @ 500 ppm, Zn @ 418 ppm Zn;
sample CAC4A‐S‐1640, and gold @ 402ppb Au).
The C2‐A East Prospect was found as a result of Meridian’s soil programs, in an area where there was no
historical BP soil anomaly. It falls within a larger alteration response detected in Meridian’s 2021
WorldView3 satellite survey, measuring 1200 x 650m. The alterat ion domain is centred around an area
with >200ppm Cu in soil values, with a peak value of 1004 ppm (0.1%) Cu. Pole‐Dipole surveys have
confirmed a peak basement chargeability response of 16.7mV/V, with local Fixed‐Loop EM anomalies with
conductivity‐thickness 815 Siemens. The geochemical and geophysical response is reminiscent of the
signature over the alteration pipes of the Cabaçal Mine containing concentrations of disseminated to
stringer and locally breccia to massive sulphide mineralization . Local float of quartz veins carrying
sulphides (chalcopyrite and galena) have been observed, suggesting the influence of a late hydrothermal
overprinting event in the area.
Survey programs are ongoing. Whilst Cabaçal advances, the Company is also working to position itself for
assessment of Santa Helena as a satellite open pit development target. A similar program of checks and
reviews to that implemented at the Cabaçal Mine’s, will be undertaken in preparation for a NI43‐101
resource update. Field checks have located a significant number of historical collars to validate field
positions and complete audit of BP Minerals and Prometálica will be undertaken.
Figure 2: Map and example profiles of chargeability inversions (Top to Bottom: Line 6, Line 2NW, Line 5)
ESPIGÃO IOCG TARGET PROGRAM – UPDATE ON GRAVITY SURVEY
The Company has also continued its IOCG targeting program at Espigão in Rondônia. The regional survey
phase has now been completed (Figure 3), and work has commenced on a 200 x 200m gravity survey grid
over the southern anomalies where the highest threshold gravity responses have been encountered.
Additional work will also be undertaken on a number of anomalies internal to the project area where the
wide‐spaced survey grid indicated elevated responses above backed associated from structural corridors,
including positions within the Lavra, Ademir Curral, Vitalino,
The Company continues to be encouraged by the strength of the anomalies encountered in this first phase
of the reconnaissance program and looks forward to the results of the second phase of the survey, and
expects to be in a position to review potential drill targets by the end of 2022 / early 2023.
Figure 3: Updated first vertical derivative gravity image over the Espigão Project, with magnetic gradient
modelling (“worms”) superimposed.
ABOUT CABAÇAL
In November 2020, Meridian signed a Purchase Agreement 3 to acquire 100% ownership certain
tenements covering the historical Cabaçal and Santa Helena line s and the along strike tenements from
two, private, Brazilian companies (“Vendors”). Subsequently, Me ridian expanded its land tenure to
t o d a y ’ s 5 5 k m o f s t r i k e l e n g t h . C a b a ç a l h a d t w o h i s t o r i c a l , s h a llow, high‐grade selectively mined
underground mines that cumulatively produced ~34 million pounds of copper, ~170,108 ounces of gold,
~1,033,532 ounces of silver and ~103 million pounds of zinc via conventional flotation and gravity
metallurgical processes. Cabaçal is located in the state of Mato Grosso, Brazil.
Meridian has defined an open 2,000m trend of shallow copper‐gold mineralization centred on the Cabaçal
Mine. This mineralization trends northwest‐southeast, sub‐crops along its northeast limits and dips to the
southwest at 26° and is up 90m thick; presenting excellent open ‐pit geometry and mineral endowment.
Meridian is currently focused on infilling this 2,000m zone.
Cabaçal’s base and precious metal‐rich mineralization is hosted by volcanogenic type, massive, semi‐
massive, stringer, and disseminated sulphides within units of d eformed metavolcanic‐sedimentary rocks
( “ V M S ” ) . A l a t e r s t a g e s u b ‐ v e r t i c a l g o l d o v e r p r i n t e v e n t h a s e mplaced high‐grade gold mineralization
truncating the dipping VMS layers. It was explored and developed by BP Minerals/Rio‐Tinto from 1983 to
1991 and then by the Vendors in the mid 2000’s. This historical exploration database includes over 83,000
3 Meridian news release November 9, 2020
metres of drilling, extensive regional mapping, soil surveys, metallurgy from production reports and both
surface and airborne geophysics. The majority of Cabaçal’s prospects remain to be tested.
Cabaçal has excellent infrastructure with access by all‐weather road, industrial electricity provided by the
adjacent hydroelectric power station supplying this clean energ y grid, and local communities provide a
large population to draw employees from. Cabaçal consists of 1 mining license, 1 mining lease application
and 4 exploration claims which total 28,324 hectares. A further three licences totalling 15,941 Ha are
awaiting formal transfer from the ANM following the licence auction system.
ABOUT MERIDIAN
Meridian Mining UK S is focused on the acquisition, exploration, and development activities in Brazil. The
C o m p a n y i s c u r r e n t l y f o c u s e d o n r e s o u r c e d e v e l o p m e n t o f t h e C a ba ç a l V M S c o p p e r ‐ g o l d p r o j e c t ,
exploration in the Jaurú & Araputanga Greenstone belts located in the state of Mato Grosso; exploring
the Espigão polymetallic project and the Mirante da Serra manga nese project in the State of Rondônia
Brazil.
On behalf of the Board of Directors of Meridian Mining UK S
Dr. Adrian McArthur
CEO, President and Director
Executive Chairman
Meridian Mining UK S
Email: [email protected]
Ph: +1 (778) 715‐6410 (PST)
Qualified Person
Dr Adrian McArthur, B.Sc. Hons, PhD. FAusIMM., CEO and Presiden t of Meridian as well as a Qualified
Person as defined by National Instrument 43‐101, has supervised the preparation of the technical
information in this news release.
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Technical Notes
The geophysical survey has been conducted by the Company’s in‐h ouse team utilizing its GDD GRx8‐16c
receiver and 5000W‐2400‐15A transmitter Electromagnetic surveys have been conducted using the
SMARTem Geophysical Receiver System manufactured by ElectroMagnetic Imaging Technology (EMIT).
Data sent to the Company’s independent consultant, Core Geophysics. Modelling of conductivity response
is undertaken using industry‐standard Maxwell software. Geophysical exploration targets are preliminary
in nature and not conclusive evidence of the likelihood of a mineral deposit.
Soils samples have been analysed at the accredited SGS laborato ry in Belo Horizonte. gold analyses have
been conducted by FAA505 (fire assay of a 50g charge), and base metal analysis by portable XRF calibrated
with certified references. ~10% of base metal results area chec ked verified by laboratory analysis at SGS
using methods ICP40B (four acid digest with ICP‐OES finish). Sa mples are held in the Company’s secure
facilities until dispatched and delivered by staff and commercial couriers to the laboratory. Pulps are
retained for umpire testwork, and ultimately returned to the Company for storage. The Company submits
a range of quality control samples, including blanks and gold and polymetallic standards supplied by ITAK
and OREAS, supplementing laboratory quality control procedures. Figures and intervals are rounded to 1
decimal place.
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 un certainties, as disclosed under the heading "Risk Factors" in 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 b y 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‐lookin g statement, whether as a result of new
information, future events or results or otherwise.