Meridian Mining Announces Strong Drilling Results and New Exploration Targets from First Geophysics Program at Bom Futuro JV
Meridian Mining Announces Strong Drilling Results and New Exploration Targets
from First Geophysics Program at Bom Futuro JV
AMSTERDAM, The Netherlands, April 18, 2017 /CNW/ - Meridian Mining S.E. (TSX V: MNO) ("Meridian"
or the "Company"), today provided an update on exploration results from its Bom Futuro tin joint venture
in the state of Rondônia in northwestern Brazil.
HIGHLIGHTS
• Exploration programs return strong primary tin res ults from the Bom Futuro Hill;
• High-grade intersection encountered in most drill holes, with broader low-grade halos;
• Highlights include 2m @ 3.7% Sn and 5.9m @ 1.26% Sn;
• Peak grades of 7.4% Sn encountered in the Bom Futuro pegmatites;
• Final data processing advancing on geophysics prog ram for primary and palaeochannel targets.
"Results from our early programs have reinforced our belief that modern exploration techniques will
uncover a range of exciting new opportunities in the Bom Futuro District," said Anthony Julien, President
and CEO of Meridian. "We are continuing to engage with our Joint Venture Partners Coopersanta over
development options in the Central Area based on the strength of these results, and will be expanding our
geophysical targeting programs more broadly through the licence area as a near-term priority."
"The drilling results are particularly encouraging. For illustrative purposes, the comparable value in gold
equivalent terms of a 1% tin grade is 5g/t Au (at year to date average LME prices for the first quarter of
US$20,006 per ton for tin and US$1,238/oz for gold). Intersection grades of 3.7% Sn and 1.26% Sn
equating to gold-equivalent grades of 18.6g/t and 6.3g/t highlight the exploration opportunities at depth at
Bom Futuro. The Company is extending the scope of its metallurgical testwork program to include a
review of the primary mineralization in conjunction with its tailing studies."
PROJECT BACKGROUND
Mineralization was discovered at the Bom Futuro Project in 1987 and mining operations have since
generated 192,000t of tin, representing ~3% of glob al production. The Company's joint venture partner,
Coopersanta, currently operates tailings retreatment plants, and palaeochannel / bedrock mines. Meridi an
ratified a joint venture agreement with Coopersanta in March following a three-month due diligence
period. The Company is evaluating tailings reprocessing scenarios in allocated areas, and is exploring for
primary / palaeochannel targets in the 2,000ha "Central Area", and a 18,000ha "Unexplored Area" (refer
to press releases of December 19, 2016 and March 16 , 2017).
MERIDIAN BEDROCK DRILLING PROGRAM
Eight holes tested the Bom Futuro Hill, an area of ~1 km 2 where concentric ring structures dip moderately
outwards around a central breccia pipe. These veins structures sit in a "roof pendant" setting, within a
body of gneissic host rocks believed to overlie an untested source intrusion at depth (Figure 1). Thre e
holes also tested the Palanqueta Granite, an intrusive body located to the immediate northeast.
Based on descriptions of the historical workings and the level of endowment, the Company believes that
increased drilling may result in better delineation of thickened high-grade zones amenable to
underground mining, and identification of clustered vein arrays amenable to lower-grade open pit mining.
Meridian drill hole locations are illustrated in more detail in Figure 2, with results summarized in the
annexed Intersection Table. Significant outcomes of the drilling and mapping program include:
• Coarse cassiterite mineralization persists at dept h. Geologically "blind" vein and pegmatite bodies
are present – mineralized bodies which have no dire ct surface expression (refer to sections of
Figures 1, 3, 4). The ultimate depth limit to the vein system remains to be defined. The historical
drilling has been ineffective in testing the depth extensions (with half of prior holes drilled to inclined
depths of 60-100m, with a maximum depth of 220.7m) The outer limit of the mineralized ring
systems also remains to be defined, with the structures concealed by younger cover around the foot
of the Bom Futuro Hill.
• Meridian's drilling program has returned the best results from the Bom Futuro Hill to date:
• Hole DDH_BF_0009A, targeting the southern end of t he Cascavel Pit, returned:
• 5.9m @ 1.26% Sn from 68.5m, including 1.03m @ 3.36% Sn from 68.5m; and
• 2m @ 3.70% Sn from 88.8m, including 0.55m @ 7.4% Sn from 88.8m (Figure 3).
• Other notable results included Hole DDH_BF_0008 (e ast of current mining area):
• 0.49m @ 7.21% Sn from 15.2m;
• 0.3m @ 1.97% from 22.8m; and
• 0.57m @ 4.03% from 74.7m
• Strong concentrations of tin mineralization were r eported from the pegmatites of the Cascavel Pit
during its operations; this area presents a strong target for further evaluation down-dip from the
historical workings.
• Multiple high-grade intersections were encountered in many other holes. Considered in conjunction
with lower grade mineralization, results can be com posited into wider intervals including:
• Hole DDH_BF_0001: 100.3m @ 0.14% Sn from surface;
• Hole DDH_BF_0008: 70.75m @ 0.16% from 15.2m; and
• Hole DDH_BF_0009A: 88.04m @ 0.24% Sn from 53.3m.
• Further review is required to assess the bulk inte rsections, as not all holes are extended to
consistent depths through the same sequence of veining (Figure 4), and the vein systems are open
at depth.
• A multi-element review remains in progress, with a dditional results and sampling pending. A variety
of metals and minerals of economic interest have be en recorded in the Bom Futuro system,
including lithium mica, sulfides (sphalerite, chalcopyrite, galena, stannite), wolframite, columbite-
tantalite (typically as inclusions in the cassiterite), ilmenite and rutile. Historical multi-element drilling
data also indicates some silver is also present in the system, with peak bedrock grades of 1m @ 77
g/t Ag from 202m and grades of 1-3 oz/t Ag encountered in the overburden.
• Evidence of alteration was observed over the centr al breccia pipe during mapping. One short drill
hole was positioned to test this position, encountering a broad interval of low levels of mineralization:
• Hole DDH_BF_0011: 41.06m @ 757 ppm Sn from surface , including: 0.5m @ 1.19% from 9.1m
• The recognition of anomalous tin gives rise to unt ested target styles for breccia-hosted
mineralization, with deposits known to occur in suc h settings in other tin mining districts, with lodes
sometimes concealed from the surface (e.g. Ardlethan Tin Field, Australia; Uchkoshkon Tin Deposit,
Kyrgyzstan, Sadisdorf, Tin Deposit Germany).
• Locally intervals of saprolite-hosted mineralizati on have been encountered, indicating that not all
mineralized saprolite has been stripped by previous operations in the area:
• DDH_BF_0010: 22m @ 400ppm Sn from surface (over Pa lanqueta Granite); and
• DDH_BF_0002: 12.92m @ 522ppm Sn from surface (sout hern flank of Bom Futuro Hill).
Such zones may have been too low grade for garimpei ro-style workings, but may offer potential synergies
with a more sophisticated tailings retreatment plant. Opportunities to optimize low-grade remnant
resources will be discussed with the joint venture partner Coopersanta.
MERIDIAN GEOPHYSICAL EXPLORATION PROGRAM
Meridian engaged the Brazilian contract ground survey group AFC Geofisica to complete orientation
gravity, ground magnetic, and chargeability / resistivity surveys. The data has been undergoing
processing by AFC and Meridian's geophysical consultancy Core Geophysics. The survey covered the
northern half of the Bom Futuro Hill and extended n orthwards, covering a 2km2 area. Core Geophysics
also supervised ~80 line kilometres of trial Ground Penetrating Radar surveys using cutting edge
UltraGPR technology. Data is undergoing final processing by Groundradar Inc and Core Geophysics.
Primary and palaeochannel targets are emerging from this review. The Company will provide an update
on the geophysical evaluation in due course.
NEXT STEPS
• Further detailed geological interpretation will be undertaken in the Central Area, in conjunction wit h
multi-element analysis of core, channel samples, an d historical pulps (where available). A further
round of drill target definition will follow the completion of ground geophysics over the southern
sector of the Bom Futuro Hill environment.
• Reconnaissance field evaluation is now extending i nto the "Non-Explored" area, although mappable
exposure is more limited due to the younger sedimentary cover. Quotations are being sought from
aerial survey contractors for aerial magnetic / conductivity / radiometric surveys, with the intention to
complete surveys in the second half of the year during the dry season after permits are obtained.
The aerial surveys will be designed to fast-track the definition of the channel trends and resolve
shallow bedrock structure and primary mineralization targets.
INTERSECTION TABLE
Hole_Id Target Location Dip /
Azimuth
Final
Depth Results
DDH_BF_0001 Bom Futuro Hill
North Flank
439482E
8918981N -60/203 136.5
100.3m @ 0.14% Sn from surface, including:
- 0.5m @ 1.52% Sn from 14m
- 0.46m @ 1.26% Sn from 26.4m
- 0.5m @ 1.63% Sn from 30m
- 0.5m @ 1.16% Sn from 34.2m
- 0.33m @ 1.26% Sn from 36.4m
- 0.3m @ 3.1% Sn from 37.5m
- 0.49m @ 1.56% Sn from 91.7m
- 1.12m @ 1.22% Sn from 96.1m
- 0.56m @ 1.04% Sn from 97.7m
DDH_BF_0002 Bom Futuro Hill
SE Flank
438976E
8917967N -60/020 191.0
12.92m @ 522ppm Sn from surface (saprolite)
0.27m @ 2.69% Sn from 22.1m
0.32m @ 6.95% Sn from 51.4m
0.5m @ 1.44% Sn from 119m
DDH_BF_0003 Bom Futuro Hill
North Flank
439252E
8918857N -65/160 84.0
29.76m @ 0.18% Sn from 20.3m, including:
- 0.26m @ 5.14% Sn from 20.3m
- 0.6m @ 2.75% Sn from 49.5m
DDH_BF_0004 Bom Futuro Hill
North Flank
439589E
8919052N -50/210 234.1
49.2m @ 0.17% Sn from 69.5m, including:
- 0.53m @ 1.84% Sn from 69.5m
- 0.35m @ 1.97% Sn from 77.4m
- 0.55m @ 1.04% Sn from 111.8m
- 1.72m @ 1.07% Sn from 115.7m
0.5m @ 1.16% Sn from 137.8m
DDH_BF_0005 Bom Futuro Hill
West Flank; Xuxa Pit
438761E
8918655N -50/097 180.0 Trace Mineralization
DDH_BF_0006 Palanqueta Hill 440105E
8919692N -50/227 44.7 Greisen with trace mineralization.
Interpreted flank of breccia pipe.
Geophysical follow-up. DDH_BF_0007 Palanqueta Hill 440103E
8919678N -50/313 43.2
DDH_BF_0008 Bom Futuro Hill
"Body 3", East Flank
439889E
8918461N -60/270 108.6
70.75m @ 0.16% from 15.2m, including:
- 0.49m @ 7.21% from 15.2m
- 0.3m @ 1.97% from 22.8m
- 0.57m @ 4.03% from 74.7m
DDH_BF_0009A
Bom Futuro Hill
Southern extension
of the Cascavel Pit
439789E
8918715N -50/305 166.7
88.04m @ 0.24% Sn from 53.3m, including:
- 0.53m @ 1.84% Sn from 69.5m
- 5.9m @ 1.26% Sn from 68.5m
- 2m @ 3.7% Sn from 88.8m
- 0.19m @ 1.89% from 141.1m
DDH_BF_0010 Palanqueta Granite 439923E
8919053N -50/220 54.3 22m @ 400ppm Sn from surface (saprolite)
DDH_BF_0011 Central Breccia Pipe 439187E
8918535N -50/130 45.2 41.06m @ 757 ppm Sn from surface, including:
- 0.5m @ 1.19% from 9.1m
Intersections are quoted as down-hole lengths. The drilling intersects the vein packages at high angles
and true widths are estimated at >90-95% of the int ersection width.
QUALIFIED PERSON
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 BMC 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 de 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 BMC man ganese 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.
NOTES
The diamond drilling program is being conducted by Layne Do Brasil Sondagens Ltda and a hand-
portable drill rig subleased from Energold Perfurações Ltda.
Collar positions initially are recorded by hand-held GPS, followed by later survey with differential GPS.
The reported grid system for the collar coordinates is WGS UTM Zone 20S. Down hole-deviation is
measured by a Reflex Gyro survey tool.
Recovery is recorded against individual core runs whilst drilling, and any areas of core loss that can be
specifically identified are recorded. Holes undergo geological and basic geotechnical logging, and are
photographed prior to sampling. Recovery is generally good to excellent. Some core loss may be incurre d
where the mineralized intervals are softer and friable. Overall core recoveries from the wider primary
bedrock intersections range from 97-100%; the reported high-grade intersections (>1% Sn) have 100%
core recoveries. The saprolite intersection of DDH_BF_0010 had some core loss with overall recover y of
75%.
Samples are collected as half-HQ core where the core is competent. When occasionally broken, half the
sample is hand-picked. Sampling is conducted to geological boundaries. Until dispatch, samples are
stored in the Coopersanta's supervised compound or the Company's exploration office. Individual bags
are fitted with a tamper-proof bar-coded seal. The samples are couriered to the preparation laboratory
using a commercial contractor (Eucatur). The remaining half-core is retained in under-cover storage in the
Coopersanta's supervised compound.
The preparation was conducted at the ALS facility in Goiânia (Goiás State; Avenida Anhangüera, Qd 25
Lt 11, no. 15.060 Setor Santos Dumont Goiania - Goiás - CEP: 74.463-350). Samples are dried then
crushed to better than 70% of the sample passing 2 mm, then split using a riffle splitter. A sample split of
up to 250 g is pulverized to better than 85% of the sample passing 75 microns. Pulps were sent on to t he
analytical laboratory in Canada. After analysis they are later returned to the Company.
Tin analysis is conducted by a variety of XRF methods XRF10 and XRF15b, depending on the expected
grade and rock composition. A limited amount of multi-element evaluation has been undertaken by these
XRF techniques and by method XRF30. Reporting of multi-element results will follow upon completion of
a comprehensive review.
Analytical results are monitored through the use of Company-submitted certified reference materials, a nd
internal ALS quality control procedures. Results are well-within acceptable ranges. Meridian conducts
periodic round-robin testwork on selections of pulps.
The reference to gold equivalent (AuEq) grades is provided as a reference point for investors unfamili ar
with tin. The calculation does not incorporate other metal credits. Quoted gold equivalent grades are
based on the averaged monthly year to date pricing data published by the London Metal Exchange and
the World Gold Council for the first quarter: Gold: US$1,237.75; Tin (Cash Buyer) US$20,006.32.
https://www.lme.com/metals/reports/averages/
https://www.gold.org/research/download-the-gold-price-since-1978
AuEq (g/t) = 31.1034768 x [tin grade (%) x tin price (per metric ton)] / [gold price (per troy ounce)].
100% recovery is assumed for illustrative purposes. The Company will incorporate testwork on drill cor e
into its ongoing metallurgical testwork programs at the project to review recoveries.
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 18-APR-17