Meridian Mining Reports 2016 Production and Provides Operational Update
Meridian Mining Reports 2016 Production and Provides Operational Update
AMSTERDAM, The Netherlands, Jan. 24, 2017 /CNW/ Meridian Mining S.E. (TSX V: MNO) ("Meridian" or the "Company"),
today announced production data from its Brasil Manganês Corporation Mineração S.A. ("BMC") highgrade manganese project
and provided an update on its Bom Futuro tin joint venture option. Both projects are located in the state of Rondônia, in
northwestern Brazil.
"In 2016 we substantially increased both production and sales of our high grade manganese ore, particularly in the second half
of the year when commodity pricing continued to rapidly improve," said Anthony Julien, President and CEO of Meridian. "With a
growing roster of both domestic and international customers, our focus for 2017 remains on growing and leveraging early stage
production to partially offset spending on a range of exploration and development initiatives."
Growing Manganese Production
Meridian produced 13,326 tonnes of manganese oxide mineral product in the fourth quarter of 2016 versus 6,536 tonnes in the
fourth quarter of 2015, a 104% increase in production over the prior year period. Production for 2016 totalled 34,622 tonnes
compared with 17,037 tonnes in 2015, a 103% increase over the prior year. The installation of the dry screens to separate
waste products in the field prior to trucking to the plant for processing was a key driver of the increased production.
Construction of the Jaburi pilot plant and installation of all processing equipment is proceeding on time and on budget. The pilot
plant will introduce more efficient jigging and improved water utilisation, along with the ability to crush and process harder
breccia ore types. The pilot plant is expected to be commissioned early in the second quarter of 2017. The pilot plant will treat
primary vein material and verify metallurgy for more advanced studies. The pilot plant is anticipated to generate significant data
for a preliminary economic assessment and feasibility study on the project.
By comparison with 2015 when BMC sold a total of 1,906 tonnes of mineral product, during the fourth quarter of 2016, BMC
sold 19,592 tonnes of manganese mineral product, reaching a total of 39,820 tonnes shipped for the 12month period ending
December 31, 2016. In addition, during the fourth quarter of 2016 Meridian negotiated commitments for an additional 22,500
tonnes, of which 5,000 are expected to ship in January. The sales team continues to target speciality applications in the
battery, fertilizer, welding and steel industries, which recognize a premium for the high quality of Meridian's product. During the
fourth quarter the Company concluded sales agreements for 17,199 tonnes with international steel alloy producers primarily in
China and Korea.
CIF Tianjin benchmark pricing for 44% manganese was US$1.86 per dmtu as of January 4, 2016 and it was US$9.17 per dmtu
as of December 24, 2016 (source: www.metalbulletin.com).
Bom Futuro Joint Venture Option
In December 2016 Meridian announced it had entered into an option agreement with a group of local cooperatives whereby it
could earn an interest in selected assets around the Bom Futuro tin mine located in the state of Rondônia. Under the terms of
the Agreement, Meridian has the right to explore a 492.57ha Tailings Reprocessable Area (the "Tailings Area"), a 2,000ha
Central Area, which includes the existing Bom Futuro mine, and an 18,000ha NonExplored Area. The Company has until March
15, 2017 to complete a preliminary technical audit of the various areas, to determine if it wishes to exercise its option under the
Agreement. Meridian has commenced its technical reviews, in addition to assessing the capital expenditures (such as the
construction of a 69 kV power transmission line, required to meet its obligations under the Agreement).
To date the Company has completed 106 auger holes into the Tailings Area to scope the depth of the tailings pile and provide
provisional grade data. A Banka rig has been purchased for a more detailed sampling program and is undergoing refurbishment.
Samples will be analyzed in an onsite laboratory and through an independent certified laboratory (ALS Canada). The program
will continue over the full audit period and will be accompanied by metallurgical studies to test tin recoveries through a variety
of gravitybased recovery techniques.
Layne Do Brasil Sondagens Ltda has been contracted for a 500m diamond drilling program, for an initial review of the bedrock
mineralization. A handportable rig subleased from Energold will be used to test sites in steeper terrain. The Bom Futuro
primary cassiterite mineralization is hosted within veins and pegmatite ring structures around the Bom Futuro Hill.
A Brazilian geophysical services company (AFC Geofisica) has been contracted to test the effectiveness of groundbased
surveys in fingerprinting the character of mineralized positions, commencing with 2km2 survey over palaeochannels and the
structurally controlled primary mineralization. Planned survey techniques will include ground magnetics, induced polarization,
gravity and groundpenetrating radar. Following review of results from the initial survey requirements for trial surveys in the Non
Explored Area will be evaluated.
"With our model based on identifying assets with early production potential, we are initially focused on assessing the Tailings
Area to see if it can generate revenue and cash flow that will support a broader exploration program in the surrounding area,"
said Anthony Julien. "Commodity pricing for tin has improved steadily in the last year as stocks have dwindled in the face of
relatively stable demand, lower production from key producing regions, and high new mine costs. With this option, we feel that
we are well positioned to rapidly capitalize on improving market conditions."
QUALIFIED PERSON
The technical information about the Company's production 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 National Instrument 43101.
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 43101.
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 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 twopronged strategy with the objective of growing pilot production while
advancing a parallel multicommodity regional exploration program. Meridian is currently producing high grade manganese at its
project located at Espigão de Oeste.
Further information can be found at www.meridianmining.co and http://bmcorporation.com.br/.
FORWARDLOOKING STATEMENTS
Some statements in this news release contain forwardlooking information or forwardlooking 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 include, 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 onetime 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 will 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 forwardlooking statements whether as a result
of new information, future events or otherwise except as otherwise required by applicable securities legislation.
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 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.
%SEDAR: 00040264E
For further information: Nick Hurst, 4165861942, [email protected]
CO: Meridian Mining S.E.
CNW 08:00e 24JAN17