Meridian Reports Commencement of Drilling at Santa Helena with Fourth Rig Further exploration update on multiple high-priority hydrothermal centres within the Cabaçal VMS belt
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Meridian Reports Commencement of Drilling at Santa Helena with Fourth Rig
Further exploration update on multiple high-priority hydrothermal centres within
the Cabaçal VMS belt
LONDON, United Kingdom, August 8, 2023 / Accesswire / Meridian Mining UK S (TSX: MNO) ( OTCQX:
MRRDF) (Frankfurt/Tradegate: 2MM) (“Meridian” or the “Company”) is pleased to advise of the arrival
of the fourth rig and the expansion of the Company's exploration programs into new targets. Drilling has
now commenced at Santa Helena, targeting confirmation and expansion of the historic high -grade VMS
resources and the previously untested high-grade gold overprint.
Meridian has also received an environmental licence ( “LOPM”) to enable additional exploration of
multiple high -priority hydrothermal centres across the Cabaçal VMS belt , including an initial 2km of
Alamo, in addition to the Chiquito and Cigarra targets (previously “C2-A”, & “C6” respectively. See Figure
1).
The geological team has been further strengthened with the appointment of a Chief Geologist, Mr Erich
Marques, adding extra resources to the geological management team in realizing the Cabacal Project's
exploration and development potential.
HIGHLIGHTS REPORTED TODAY
• Drilling has commenced in the Santa Helena Zone;
o Vertical drill program to confirm historical high-grade results and VMS host geology;
o Angled drill program to test high-grade gold over-print;
o Drill program to test near mine exploration upside defined by geophysics;
o New bore-hole probe arriving to optimize targeting for Cu-Zn-Au-Ag mineralization.
• Meridian receives additional permits and access agreements for expanded exploration across
the VMS belt;
o Environmental licence covers ten additional farms on three exploration licences;
o Opens up further exploration programs at the initial 2km of Alamo target, in addition to the
Cigarra, & Chiquito targets;
o Geological and geophysical programs to be expanded to define drill targets; and
• Meridian strengthens geological management team with appointment of Chief Geologist, Erich
Marques.
Dr. Adrian McArthur, CEO, comments: “The Company is very pleased to have now added the fourth rig to
its 2023 drilling program, which enables testing of new areas and targets while maintaining the high rate
of drilling at Cabacal . W ork is commencing at Santa Helena where we will conduct verification and
extensional drilling, testing the shallow high -grade resource potential and immediate extensional
geophysical targets. With the expansion of these programs targeting multiple hydrothermal centres in the
belt, the Company is pleased to welcome Mr Erich Marques as Chief Geologist, allowing the team to focus
on both the execution of ongoing resource development program s at Cabaçal and the expansion of the
belt's potential. "
Figure 1: Multiple hydrothermal centres within the Cabaçal VMS belt
SANTA HELENA DRILL PROGRAM
Drilling has now commenced at Santa Helena (Figure 2), a Cu -Zn-Au-Ag deposit located ~ 9km to the
southeast of the Cabaçal Mine area, forming one of a series of exploration targets along the Mine Corridor.
The various targets are considered to represent hydrothermal centres in a clustered VMS field. The
Company has been progressively working to expand access to new sites as licences are granted. Work
programs to assist 3 -D targeting through regional geochemical and geophysical programs will be
expanded.
The Santa Helena drill program has a twofold objective: 1) to complete a series of holes as part of a
verification program, to validate the historical data in line with 43 -101 s tandards; 2) to initiate scout
drilling to test satellite geophysical targets, to test resource extension potential.
The compiled Santa Helena database indicates that many historical holes were not completely sampled
(at surface or at depth). Extensions of near -surface mineralization to the east were also not int egrated
into the last historical resource estimation1, and dominantly vertical drilling may not have coupled well
with steeper structural sets related to the high-grade gold overprint event.
The Company's digitization of additional BP drill records in the area suggests that mineralization may
occupy more than the one stratigraphic level previously modelled. Modelling of grade shells in Leapfrog
software highlights a lower mineralization horizon that has been poorly drilled.
A new down -hole probe has been purchased by the Company and is currently clearing customs. It is
optimized to test for Cu -Zn sulphide assemblages of lower conductivity, complimenting the Company's
existing EMIT probe. The geophysical program will screen for multiple potential sulphide mound systems
which characterise VMS fields.
Figure 2: Sonda Service low-impact portable drill rig setting up at Santa Helena.
TARGETING THE CABAÇAL BELT'S MULTIPLE HYDROTHERMAL CENTRES
The belt scale exploration and permitting program continues engagement with landholders and statutory
agencies to expand its footprint for regional exploration programs. The Brazilian management team has
established exploration access agreements with local landholders and submitted them for environmental
licencing with the s tate agency, SEMA. The Company has already established agreements with twelve
local landholders from the Cigarra target. Some of these properties will require the landholders to register
1 Meridian Mining News Release of March 29, 2022.
a land -use document ( “CAR”; Cadastro Ambiental Rural ) before the environmental agency can issue
exploration permits. SEMA has already issued a new environmental licence (Licença de operação para
pesquisa mineral; “ LOPM” n° 330101/2023) relating to properties where both formal agreements and
CARs are in place.
The newly issued LOPM also covers properties in the Company’s Álamo licence, 867407/2008, to the east
of Santa Helena. Amongst the areas approved for exploration is the immediate adjoining farm to Santa
Helena, which extends the strike extension of the Santa Helena VMS system now available for exploration
over 2km to the east. This and a number of other smaller farms will provide access to open soil anomalies
and Cabaçal Threshold VTEM anomalies 2. Meridian will execute geochemical and ground geophysical
programs to define follow-up drill targets. The community engagement program remains in progress to
expand land access agreements on the Álamo and Cigarra licences.
The new LOPM adds to the existing permit for the Chiquito target region, where the Company has already
defined an emerging area of Au -Ag mineralization 3, and where further drilling will be conducted on the
Chiquito Cu-Au target area an untested geochemical–geophysical target position.
The ANM has recently approved two licences for a second term of exploration - 866002/2016 and
866455/2016, spanning 3,746 Ha across a 7km extension of the northern extension of the Cabaçal Belt.
This area covers an historical BP Minerals Target area, referred to as Cigarra (Figure 1). Historical records
describe a geological / geochemical environment similar to that of the chloritic outcrops of the Cabaçal
deposit setting, with gold and base metal anomalies present.
The Company will continue to liaise with landholders and statutory agencies for access to other
interpreted hydrothermal centres, which include Sucuri (geochemical / geophysical target), Sáo José
(geochemical target), Santa Rita (formerly “C4B”; geochemical – geophysical target), and multiple other
targets. Access agreements are in place for some areas, but await regularisation of title documents. Access
agreements and/or written contracts are required on other areas with the management continuing with
community liaison. As these agreements, and subsequent LOPM’s, are granted the Company will seek to
commence exploration activities in these areas.
The Company's licences in the Araputanga and Jaurú Belts, along with the northern and southern
extensions of the Cabaçal Belt, remain under in application stage.
EXPANDING GEOLOGICAL TEAM
The Company is pleased to announce the appointment of Mr Erich Marques as Chief Geologist of the
Company. Erich is a geologist with 15 years of experience, and holds a Bachelor in Geology from the
Federal University of Mato Grosso, Brazil. He is a Qualified Person, being a member of the Australian
Institute of Geoscientists (MAIG). He is also registered with the Brazilian Resources and Reserves
Commission (PQR. CBRR). He has held positions with ECI Exploration & Mining, Yamana Gold, Meridian
Mining and Cerrado Gold on Gold , C opper, Tin and industrial mineral projects. Erich will assume
responsibilities as Qualified Person. He joins existing senior staff members, Frederic Vanderoost, and
Antonio José de Almeida to strengthen the Company's capacity in the execution of resource definition,
and near mine and regional exploration.
2 Meridian Mining News Release of January 10, 2023
3 Meridian Mining News Releases of June 21, 2022 and July 12, 2022
ABOUT MERIDIAN
Meridian Mining UK S is focused on:
• The development and exploration of the advanced stage Cabaçal VMS gold-copper project;
• Regional scale exploration of the Cabaçal VMS belt;
• Exploration in the Jaurú & Araputanga Greenstone belts ( the above all located in the State of
Mato Grosso, Brazil); and
• Exploring the Espigão polymetallic project in the State of Rondônia, Brazil.
Cabaçal is a gold -copper-silver rich VMS deposit with the potential to be a standalone mine within the
50km VMS belt. Cabaçal’s base and precious metal -rich mineralization is hosted by volcanogenic type,
massive, semi-massive, stringer, and disseminated sulphides within deformed metavolcanic-sedimentary
rocks. A later-stage sub-vertical gold overprint event has emplaced high-grade gold mineralization cross-
cutting the dipping VMS layers.
The Cabaçal Mineral Resource estimate consists of Indicated resources of 52.9 million tonnes at 0.6g/t
gold, 0.3% copper and 1.4g/t silver and Inferred resources of 10.3 million tonnes at 0.7g/t gold, 0.2%
copper & 1.1g/t silver (at a 0.3 g/t gold equivalent cut -off grade), including a higher -grade near-surface
zone supporting a starter pit. Gold equivalents are calculated as: AuEq(g/t) = (Au(g/t) * %Recovery) +
(1.492*(Cu% * %Recovery)) + (0.013*(Ag(g/t) * %Recovery)), where Au_recovery_ppm = 5.4368 ln
(Au_Grade_ppm) + 88.856; Cu_recovery_pct = 2.0006 ln (Cu_Grade_pct) + 94.686; Ag_recovery_ppm =
13.342 ln (Ag_Grade_ppm) + 71.037. Recoveries are based on metallurgical testwork on core submitted
to SGS Lakefield in 2022.
The Preliminary Economic Assessment technical report (the “PEA Technical Report”) dated March 30,
2023, entitled: "Cabaçal Gold -Copper Project NI 43 -101 Technical Report and Preliminary Economic
Assessment, Mato Grosso, Brazil” outlines a base case after-tax NPV5 of USD 573 million and 58.4% IRR
from a pre -production capital cost of USD 180 million, leading to capital repayment in 10.6 months
(assuming metals price scenario of USD 1,650 per ounces of gold, USD 3.59 per pound of copper, and USD
21.35 per ounce of silver). Cabaçal has a low All-in-Sustaining-Cost of USD 671 per ounce gold equivalent
for the first five years, driven by high metallurgical recovery, a low life -of-mine strip ratio of 2.1:1, and
the low operating cost environment of Brazil (see press release dated March 6, 2023).
Readers are encouraged to read the PEA Technical Report in its entirety. The PEA Technical Report may
be found on the Company's website at www.meridianminig.co and under the Company's profile on
SEDAR at www.sedar.com.
The qualified persons for the PEA Technical Report are: Robert Raponi (P. Eng), Principal Metallurgist with
Ausenco Engineering), Scott Elfen (P. E.), Global Lead Geotechnical and Ci vil Services with Ausenco
Engineering), Simon Tear (PGeo, EurGeol), Principal Geological Consultant of H&SC, Marcelo Batelochi,
(MAusIMM, CP Geo), Geological Consultant of MB Geologia Ltda, Joseph Keane (Mineral Processing
Engineer; P.E), of SGS, and Guilherme Gomides Ferreira (Mine Engineer MAIG) of GE21 Consultoria
Mineral.
On behalf of the Board of Directors of Meridian Mining UK S
Dr. Adrian McArthur
CEO and Director
Meridian Mining UK S
Email: [email protected]
Ph: +1 (778) 715-6410 (PST)
Qualified Person
Mr Erich Marques, B.Sc., MAIG, Chief Geologist of Meridian Mining and a Qualified Person as defined by
National Instrument 43-101, has reviewed and verified the technical information in this news release.
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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 address future events and conditions and
so involve inherent risks and uncertainties, as disclosed under the heading "Risk Factors" in under t he
heading "Risk Factors" in Meridian's most recent Annual Information Form filed on www.sedar.com.
While these factors and assumptions are considered reasonable by Meridian, in light of management’s
experience and perception of current conditions and expe cted 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 -looking statement, whether as a result of new
information, future events, or results or otherwise.