Meridian maps multiple new EM plates extending out from Santa Helena Mine Untested targets for further Cu‐Zn‐Au‐Ag massive sulphide and feeder zones defined
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Meridian maps multiple new EM plates extending out from Santa Helena Mine
Untested targets for further Cu‐Zn‐Au‐Ag massive sulphide and feeder zones
defined
LONDON, United Kingdom, January 24, 2023 / Accesswire / Meridia n Mining UK. S ( TSX: MNO),
(Frankfurt/Tradegate: 2MM) (OTCQB: MRRDF) (“Meridian” or the “Company” ) is pleased to provide an
update on its successful geophysical exploration programs within the Cabaçal mine corridor. Recently
completed surface electromagneti c (“EM”) surveys have outlined multiple EM plates down dip from the
high‐grade Cu‐Zn‐Au‐Ag massive sulphides of the Santa Helena deposit (“Santa Helena”). An Induced
Polarization (“IP”) survey has also been completed over the Santa Helena deposit and combined with the
EM plates has generated a new geophysical model extending the m ine’s untested and unmined upside,
generating multiple near‐surface targets to follow up on. These near mine prospects have created further
potential for the extension of open‐pitable Cu‐Zn‐Au‐Ag mineral ization at Santa Helena. Follow up
resource confirmation and delineation programs are being planne d.
HIGHLIGHTS REPORTED TODAY
Santa Helena EM survey defines multiple potential extensions to Cu‐Zn‐Au‐Ag rich massive
sulphides and associated feeder zone;
Combined EM and IP survey results defined new untested upside with Santa Helena’s mineralised
envelope extending out from historical mine;
Geophysical responses are open along strike and at shallow open‐pitable depths;
New geophysical trend follows strike and extends outwards from Santa Helena’s gold overprint;
Future geophysical programs to extend from Santa Helena along t rend to the Álamo prospect;
and
Meridian is restarting the Cabaçal drill programs after Christmas and New Year break.
Dr. Adrian McArthur, CEO and President comments: “These initial results from the geophysical program
have been extremely valuable in expanding the upside of further open‐pitable mineralization at Santa
Helena. Like the Cabaçal deposit, Santa Helena’s history and geology is a partially mined (Cu‐Zn dominant)
VMS mineralization being overprinted by a later stage gold even t. The 15,700 m of historical but
selectively assayed drilling was focused on the narrow trend of high‐grade Cu‐Zn‐Au‐Ag massive
sulphides. The extension of the VMS targets by these geophysica l results outside of the historical drilling
strengthens the open‐pit potential of the deposit, which is fur ther enhanced by the potential to extend
down dip the high‐grade gold overprint of Santa Helena.”
SANTA HELENA GEOPHYSICAL RESULTS
Prior to the New Year’s recess, the Company undertook its first campaign of geophysics over the Santa
Helena deposit (“Figure 1”), which represents a potential satel lite open‐pit development target for the
C a b a ç a l p r o j e c t . T h e o b j e c t i v e o f t h e s u r v e y w a s t o t e s t t h e o pen high‐grade Cu‐Zn‐Au‐Ag massive
sulphide mineralization for near‐mine extensions. Significant w idths of mineralization have been
historically reported from surface and underground drilling1, including:
BPM surface drill hole JUCHD031: 27.6m @ 1.6% Cu, 1.5g/t Au, 4.4% Zn & 36.3g/t Ag from 24.9m;
and
PML underground drill hole FSS24: 17.5m @ 0.7% Cu, 1.0g/t Au, 7. 2 % Z n & 2 5 . 5 g / t A g f r o m
21.5m;
Figure 1: Location of Santa Helena, to the NW of the recently renewed Álamo licence. Geophysical
fingerprinting of the Santa Helena deposit will provide a useful template for corridors to be covered hosting
WorldView 3 Satellite targets, soil anomalies, and VTEM anomalies to the southeast. Gridded conductivity
image in the background with darker blue areas marking conductive trends.
Meridian has concluded two phases of surface geophysical survey s, using surface electromagnetic fixed
loop techniques, and induced polarization techniques. The current campaign of work detected three
shallow dipping plates interpreted to be bedrock conductors, wi th modelled extents of 500 x 300m, 250
x 300m, 350 x 300m ("Figure 2"). The EM plates have a typical c onductivity thickness for Cu‐Zn sulphides
of 4 Siemens. The leading edge of the two most eastern plates a lign with the position of the resource
1 Meridian Mining News release of February 07, 2022
envelope and extend outwards a further ~200 – 250m to the north ‐northwest into sparely drilled areas.
Nine historical BPM drill holes were drilled in this location f or which assays have not been completely
preserved. A third plate modelled to the west falls into an are a untested by drilling. Given the deformed
character of the host sequence, it is encouraging to have geoph ysical anomalies extending beyond the
main resource area, and future drill programs will test for additional Cu‐Zn‐Au‐Ag sulphide mineralization
and for the replications of the gold overprint.
Figure 2: View to the west of Santa Helena historical mine, dri lling and the EM plates and IP anomalies.
Drill holes are coloured by Cu grade (light grey unsampled). The three Maxwell EM plates dip to the north.
The higher threshold chargeability inversion shells (21‐24‐27‐3 0mV/V) are shown in the eastern sector of
the deposit and remain open.
To supplement the EM survey, the Company has completed a gradient array IP survey. The peak response
aligns well with the Cu‐Zn‐Au‐Ag sulphide resource and remains open to the east (“Figure 2”), suggesting
some sulphide presence in the shallower up‐plunge sector of the deposit beyond the historical resource
limit. The peak chargeability response follows the strike of the de p osi t i n th e e ast e r n se c tor , r e ac h i n g
ranges of 30 mV/V (millivolts per volt) – characterized as a moderate to strong response for VMS
mineralization. The southern margin of the chargeability response is fairly sharp, but the northern margin
shows a broader chargeability resp onse projecting into the area of the conductivity plates. The western
margin of the chargeability response becomes slightly divergent to the modelled mineralization envelope.
It will be important to verify if any local fold concentrations of sulphide mineralization are present. The
peak chargeability response corridor in the western corridor has not been effectively drilled. The Company
is awaiting environmental permits to extend the survey east and west of the current limits.
SANTA HELENA DEPOSIT
The Santa Helena deposit (historically also referred to as C2C, and Monte Cristo), is located 9km to the
southeast of the Cabaçal Mine area, within the 11km Mine Corridor trend. The deposit was first discovered
by BP Minerals ("BPM") in 1984. The deposit is associated with the same host geology as that of the
Cabaçal Mine. The former operator at Santa Helena, Prometálica ("PML"), commissioned the underground
mine in 2006 with a historical measured and indicated resource of 1.12 Mt @ 6.2% Zn, 1.3% Cu, 1.3g/t Au,
41.7 g/t Ag2. Production commenced in 2006, but the mine closed well ahead of planning in 2008 with the
2 The historical resource estimate for Santa Helena (also referre d to as Monte Cristo) was completed by SRK and
presented to Prometálica in a report dated 30 March 2007: NI 43‐101 Technical Report Brazilian Resources Inc.
collapse of the zinc price. Total production amounted to 439,81 3t @ 6.65% Zn, 1.62% Cu, 1.77g/t Au &
43.02g/t Ag, leaving over half of the historical underground resource unexploited.
The deposit plunges gently west‐northwest. Shallow oxide gold m ineralization is recognized in historical
trenching to the east of the resource limit 3, which was not previously considered in SRK's historical 2007
estimate for the deposit nor was it extensively tested by angled drilling. Meridian is targeting Santa Helena
as a potential satellite open pit prospect using typical open p it parameters. Both BPM and PML focused
on the underground development and on the higher‐grade massive sulphide mineralization. Numerous
historical holes have not been sam pled to conclusively demonstrate the limit of mineralization (or
a n a l y s e d f o r t h e f u l l s u i t e o f e l e m e n t s ) . I n t h e o x i d e z o n e , s im i l a r t o t h e C a b a ç a l deposit, the upper
intervals of the drill holes have also not been systematically sampled. Of the 39 PML holes, gold assays
are not available for 12 of the holes, and in an additional 9 o f the holes, the first recorded sample starts
within the mineralized halo (grades of 0.1 – 1.0g/t Au). The sa mpling approach in the original BPM holes
(for which data is available in the JUCHD series) is similar, with an average starting depth of 22.4m. Whilst
some angled holes were drilled by BPM, historical drilling was overwhelmingly vertical unsuited to testing
the late stage overprinting vertical gold structures now recognized in the belt.
INITIATION OF 2023 PROGRAMS
The Company is conducting a search of historical collars to test whether any of the historical holes remain
accessible for potential DHEM surveys. After finalizing its pro grams at Santa Helena, the Company will
continue geophysical and geochemical programs in the "C2" corridor between Cabaçal and Santa Helena,
and on the Álamo exploration licence to the southeast which has recently been renewed for a second
three‐year term and where reconnaissance mapping has defined a number of Cu‐Zn gossans4. Drilling has
now restarted at Cabaçal after the new year recess period.
ABOUT CABAÇAL
In November 2020, Meridian signed a Purchase Agreement to acquire 100% ownership of certain licences
covering the historical Cabaçal and Santa Helena mines and the along‐strike licences, from two private
Brazilian companies (“Vendors”). Subsequently, Meridian expande d its land tenure to today’s 50km of
strike length. Cabaçal had two historical, shallow, 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.
Meridian has defined an open trend of shallow copper‐gold mineralization centred on the Cabaçal Mine.
This mineralization trends North west‐Southeast, sub‐crops along its Northeast limits, dips to the
southwest at 26° and is up to 90m thick; presenting excellent open‐pit geometry and mineral endowment.
Meridian is currently focused on infill drilling along a 2,000m corridor along this trend.
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
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.
Monte Cristo Mine. State of Mato Grosso, Brazil. Report by SRK Consulting, Project Number 164802. Compiled by
Nick Michael, Clay Taylor, Alva Kuestermeyer. A qualified person has not done sufficient work to classify the historical
estimate as current mineral resources or mineral reserves. Meridian has not treated the resource and reserve stated
in this report as a current mineral resource or reserves for purposes of National Instrument 43‐101.
3 Meridian Mining News release of March 29, 2022
4 Meridian Mining News Announcement of 10 January 2023.
Cabaçal has excellent infrastructure with access by all‐weather roads, clean electricity provided by nearby
hydroelectric power stations, and local communities provide mining services and employees. Cabaçal
consists of 1 mining license, 1 mining lease application, and 7 exploration claims which total 44,265
hectares. The September 2022 Cabaçal mineral resource estimate consists of Indicated resources of
52.9Mt @ 0.6g/t Au, 0.3% Cu and 1.4g/t Ag and Inferred resources of 9.0Mt @ 0.7g/t Au, 0.2% Cu & 1.1g/t
Ag (0.3 g/t AuEq cut‐off grade), with strong optionality for ta rgeting higher grade mineralization using a
0.5 AuEq cut‐off for the future development studies.
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 baçal VMS gold‐copper project, the
regional scale exploration of the Cabaçal VMS belt, the exploration in the Jaurú & Araputanga Greenstone
belts all located in the state of Mato Grosso and exploring the Espigão polymetallic 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
Meridian Mining UK S
Email: [email protected]
Ph: +1 (778) 715‐6410 (PST)
Technical Note
Geophysical targets are preliminary in nature and not conclusiv e evidence of the likelihood of a mineral
deposit. The gravity program is being executed by Meridian’s tr ained in‐house team using a new gravity
meter (CG‐6 Autograv™) purchased from Scintrex. Electromagnetic surveys have been conducted using the
SMARTem Geophysical Receiver System manufactured by ElectroMagnetic Imaging Technology (EMIT).
Induced polarization surveys have been conducted by the Company’s in‐house team utilizing its GDD GRx8‐
16c receiver and 5000W‐2400‐15A transmitter. Results are sent daily for processing and quality control to
the Company’s consultancy, Core Geophysics. Modelling of conductivity response is undertaken using
industry‐standard Maxwell software. In BP sampling, gold was analysed historically be fire assay and base
metals by three acid digest and ICP finish. Silver was analysed by samples were analysed by aqua regia
digest with an atomic absorption finish.
Qualified Person
Dr. Adrian McArthur, B.Sc. Hons, Ph.D. FAusIMM., CEO and Presid ent 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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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.