Meridian Mining Announces Q1 Manganese Production; Provides Update on Bom Futuro Joint Venture
Meridian Mining Announces Q1 Manganese Production; Provides Update on Bom
Futuro Joint Venture
AMSTERDAM, The Netherlands, April 10, 2017 /CNW/ - Meridian Mining S.E. (TSX V: MNO) ("Meridian"
or the "Company"), today announced first quarter 20 17 production and sales from its manganese project
in Espigão and provided an update on its Bom Futuro tin joint venture. Both projects are located in the
state of Rondônia, in northwestern Brazil.
Espigão Project Production Data
In the first quarter of 2017 production reached 5,530 tonnes of manganese oxide mineral product. This
represents a 127% increase over production of 2,438 tonnes in the first quarter of 2016. Production
dropped compared to the fourth quarter of 2016, which was expected, as the "rainy season" in Rondônia
occurs predominantly in the first calendar quarter of the year, and the Rio Madeira plant was undergoing
general maintenance. In early March, operations at the Jaburi plant were temporarily suspended so that
the installation of the new jigging equipment for the pilot plant could proceed. The expanded pilot plant
will introduce more efficient jigging and improved water utilization, along with the ability to crush and
process the primary mineralized material. The pilot plant is expected to be commissioned early in the
second quarter of 2017 and bring total production capacity at the Espigão project to 50,000tpa.
Sales in the first quarter were 12,871 tonnes of ma nganese oxide mineral product. This represents a
nearly three-fold increase over sales of 4,404 tonnes in the first quarter of 2016. Sales in the quarter were
for a range of specialty applications including fertilizer and steel production. Higher manganese spot
prices in the first quarter of 2017 made it possible to sell product to international customers in Asia.
Approximately half of the product sold in first quarter of 2017 went to international customers.
Manganese prices fluctuated fairly dramatically in late 2016 and early 2017. CIF Tianjin pricing for 4 4%
manganese was US$9.01 per dmtu as of January 7, 201 7 and was US$4.15 per dmtu as of March 31,
2017 (source: www.metalbulletin.com ).
"We continue to make progress on a range of initiatives at each of our Rondônia-based projects," said
Anthony Julien, President and CEO of Meridian. "The completion of the pilot plant will not only expand our
production capacity to 50,000tpa, but it will also give us the ability to treat and beneficiate primar y vein
material so we can verify the metallurgy and advance our understanding of the operational model at
Espigão. In parallel, we continue to advance our exploration activities at Bom Futuro looking at both the
nearer-term potential of the tailings, which we hope to multiply as we further understand the opportun ities
in and around the Bom Futuro mine and the Non-Explo red area in the 18,000 hectare tenement package
surrounding the mine."
Espigão Project Exploration Activities
Manganese exploration programs continued at Espigão do Oeste with an emphasis on ground
geophysics. The Company engaged AFC Geofisica to co nduct an induced polarisation program ("IP"),
prioritized on structural corridors close to the Jaburi and Rio Madeira plants. One hundred and twenty-five
line kilometres of gradient array and 19 line kilom etres of dipole-dipole surveys have been completed to
date. The program has identified a number of chargeability anomalies for follow-up evaluation, with final
data processing to be completed following the conclusion of the contracted program in April. Meridian has
purchased its own IP equipment from Instrumentation GDD Inc., and will be continuing IP survey
coverage with an in-house crew across project area.
Bom Futuro Joint Venture Exploration Update
The Bom Futuro due diligence program concluded duri ng the quarter, culminating in the notification of the
Cooperativa de Garimpeiros de Santa Cruz Ltda. ("Co opersanta") and Cooperativa Metalúrgica de
Rondônia Ltda. ("Coopermetal") (together the "Coope ratives"), that Meridian Brasil will proceed with the
transactions contemplated in the investment agreeme nt (the "Investment Agreement") previously
announced on December 19, 2016. Meridian has contin ued its auger drilling program, with 420 holes
completed to date. The auger drilling will be phased out upon completion of a 100m x 100m drill pattern
over the assigned tailings and will be replaced by a percussion drilling program for ongoing resource
definition. The program will be supplemented by a second percussion drill rig, to be dispatched from t he
manufacturer, Sondeq, in mid-April. Exploration on the Bom Futuro licences will continue in parallel w ith
resource definition programs, with an immediate focus on reconnaissance mapping and surface
geochemistry. Quotations are being evaluated from a erial geophysical survey contractors to fly the
licence area to assist in definition of under-cover targets. The company also completed an 11-hole /
1,288m diamond drilling program in the Central Area, confirming that pegmatites and quartz veins
containing coarse cassiterite persist at depth in outward-dipping ring structures around the Bom Futur o
Hill. Complete analytical data is pending for the diamond drilling program.
QUALIFIED PERSON
The technical information about the Company's produ ction and sales activities has been prepared under
the supervision of and verified by Carlos Braga (B. Sc., MBA, member of the Chilean Mining Commission),
the Chief Operating Officer of Meridian Mining, who is a "qualified person" within the meaning of Nati onal
Instrument 43-101.
The technical information about the Company's exploration activity has been has been prepared under
the supervision of and verified by Dr. Adrian McArthur (B.Sc. Hons, PhD. FAusIMM), the Chief Geologist
of Meridian Mining, who is a "qualified person" within the meaning of National Instrument 43-101.
On behalf of the Board of Directors of
Meridian Mining S.E.
"Anthony Julien"
Anthony Julien
President, CEO and Director
ABOUT MERIDIAN
Meridian Mining S.E. is focused on the acquisition, exploration, development and mining activities in
Brazil. The Company is currently focused on exploring and developing the Espigão manganese project,
the Bom Futuro tin JV area, and adjacent areas in the state of Rondônia. The Company employs a two-
pronged strategy with the objective of growing pilot production while advancing a parallel multi-commo dity
regional exploration program. Meridian is currently producing high grade manganese at its project loca ted
at Espigão do Oeste.
Further information can be found at www.meridianmining.co .
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 include, among others, statements with
respect to the Company's plans for exploration and development of its properties and potential
mineralization. These statements address future events and conditions and, as such, involve known and
unknown risks, uncertainties and other factors, which may cause the actual results, performance or
achievements to be materially different from any future results, performance or achievements expressed
or implied by the statements. Such risk factors inc lude, among others, failure to obtain regulatory
approvals, failure to complete anticipated transactions, the timing and success of future exploration and
development activities, exploration and development risks, title matters, inability to obtain any required
third party consents, operating hazards, metal prices, political and economic factors, competitive factors,
general economic conditions, relationships with strategic partners, governmental regulation and
supervision, seasonality, technological change, industry practices and one-time events. In making the
forward-looking statements, the Company has applied several material assumptions including, but not
limited to, the assumptions that: (1) the proposed exploration and development of mineral projects wil l
proceed as planned; (2) market fundamentals will result in sustained metals and minerals prices and (3)
any additional financing needed will be available on reasonable terms. The Company expressly disclaims
any intention or obligation to update or revise any forward-looking statements whether as a result of new
information, future events or otherwise except as otherwise required by applicable securities legislat ion.
The Company cautions that it has not completed any feasibility studies on any of its mineral properties,
and no mineral reserve estimate has been established. In particular, because the Company's production
decision relating to BMC's manganese project is not based upon a feasibility study of mineral reserves ,
the economic and technical viability of the Espigão manganese project has not been established.
The TSX Venture Exchange has in no way passed upon the merits of the proposed Arrangement and has
neither approved nor disapproved the contents of this news release. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Meridian Mining S.E.
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For further information: Nick Hurst, 416-586-1942, [email protected]
CO: Meridian Mining S.E.
CNW 07:00e 10-APR-17