Meridian Reports Shallow High‐Grade Drill Results and 1km Step Out From Cabaçal
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Meridian Reports Shallow High‐Grade Drill Results and 1km Step Out From
Cabaçal
CD‐264 returns 12.6m @ 15.5g/t AuEq from 43.3m in Northwest Extension
LONDON, United Kingdom, July 11, 2023 / Accesswire / Meridian M i n in g UK S ( TSX: MNO) ( OTC QX:
MRRDF) (Frankfurt/Tradegate: 2MM) (“Meridian” or the “Company”) is pleased to provide an update
on its programs at Cabaçal, where CD‐264 has returned further strong results from the Cabaçal Northwest
Extension ("CNWE"). CD‐264 has intersected a high‐grade zone of 12.6m @ 15.5g/t AuEq (15.3g/t Au,
0.2% Cu & 0.6g/t Ag) from 43.3m, representing a northern extens ion of similar high‐grade results (CD‐
049, CD‐0721). This and additional results in the mine area show the potential to better define the
projection of higher grade trends across the deposit. In parallel with the resource development program,
the Company is advancing with exploration of near‐mine extensio ns, with a copper gossan identified at
surface, located 350m southeast of CD‐240's copper feeder zone. Drilling has also confirmed the
mineralized position of the VMS horizon in a 1km step‐out to the southeast of the Cabaçal mine.
HIGHLIGHTS REPORTED TODAY
Cabaçal Northwest Extension returns more high‐grade gold intersections;
o CD‐264 returns 12.6m @ 15.5g/t AuEq (15.3g/t Au, 0.2% Cu & 0.6g/t Ag) from 43.3m;
o New results consolidate domain of high‐grade mineralization extending over 175m;
1km step‐out along the Cabaçal trend intersects a base metal horizon correlative with the
Cabaçal system;
o CD‐255 drill hole adds context for further exploration for VMS sulphide mounds;
o Arrival of Geonics down‐hole probe to assist in targeting thicker Cu‐Zn‐Ag‐Au zones;
Preparations advance for mobilization of new Santa Helena drill rig
o Contractor representative due on site this month to prepare for mobilization of regional drill
rig, with program to commence at Santa Helena;
o Program targeting verification of historic drilling and explora tory holes into satellite zones
surrounding the historic resource ; and
Cabaçal development studies are advancing in preparation for submission of the Environmental
Impact Assessment for the consideration of up to 4.5Mtpa expanded production scenario.
Dr. Adrian McArthur, CEO, comments: “The CD‐264 high‐grade result of 12.6m @ 15.5g/t AuEq from
43.3m shows the value of infill drilling in achieving better definit ion of shallow high‐grade trends within
the Cabaçal deposit. The result continues to build on the importance of the CNWE as a focal point for early
production scenarios. We are advancing Cabaçal vigorously on mu ltiple fronts, with drilling, with
geotechnical evaluation, and with environmental studies to supp ort expanded production scenarios to be
evaluated in a PEA update. Our goal remains to continue moving Cabaçal on its pathway to development,
whilst laying the foundation to realize the broader discovery potential of this under‐explored belt."
1 Meridian News Release of November 29, 2021, September 7, 2021, May 3, 2022.
CABAÇAL RESOURCE AND EXTENSIONS
The drilling program at Cabaçal continues to follow recommendations arising from the PEA. The resource
definition program aims to achieve better definition of the higher grade trends within the broader
mineralized halo. The projection of the high‐grade trend at shallowing depths in CD‐264 returning 12.6m
@ 15.5g/t AuEq from 43.3m is encouraging (Figure 1; Figure 2). Further drilling is being scheduled to test
for the projection of the trend within the broader footprint of Cu‐Au mineralization, both to the northwest
and southeast where the drill spacing is currently more open.
Figure 1: Location of CD‐264’s intersection, extending the projection of the high‐grade CNWE trend. Colour
points represent drill assays plotted as AuEq (g/t) in plan view. Digital elevation image in the background.
Figure 2: Quartz veining in chloritic host rock associated with CD‐264's intersection hosting visible gold.
Additional drilling has been conducted in the Eastern Copper Zo ne ("ECZ"), where it was noted that the
high‐grade trends in the block model clustered around drill hol es in areas of wider spacing, dropping off
in‐between. The new drill results show that basal concentrations of high‐grade mineralization continue in
these intervening areas (CD‐256 & CD‐263; Table 1). The cumulat ive effect of such results is expected to
present a more accurate depiction of the higher grade population across the deposit as the drilling
advances for the next resource update. The Company is currently conducting a Mise‐a‐la‐Masse survey to
follow up on the geophysical response of stringer sulphide miner a l i z a t i o n i n t h e E C Z , w i t h t h e s u r v e y
currently targeting extensions to the CD‐254 result of 17.7m @ 1.6% CuEq / 2.4g/t AuEq from 50.0m2.
Exploratory evaluation of the extensions of the Cabaçal system continues. CD‐255 was a 1km step‐out
along the Cabaçal trend (Figure 3). It intersected a base metal horizon interpreted to be correlative with
the Cabaçal system (5.3% Zn, 0.1% Cu, 0.2g/t Au & 32.4g/t Ag over 0.3m from 119.9m). The drill hole adds
useful context for further planning of exploration for VMS sulphide mounds over time. The Company
awaits the arrival of a down‐hole probe from Geonics to assist in targeting thicker Cu‐Zn‐Ag‐Au sulphide
accumulations, which are less conductive than the copper dominant end member.
Recent prospecting by the geological team has also located some copper gossan at the south‐west flank
of the resource area (Figure 4). Drilling in this area is spars e, with wide‐spaced historical BP holes not
sampled systematically from surface. The gossan is located ~350 m southeast of CD‐240's copper feeder
zone, possibly in an up‐dip position to the Cabaçal South FLTEM conductivity anomaly3, where the
Company has drilled just one hole. Following recognition of the gossan, trenching will be undertaken to
guide further drilling and evaluate possible links to the feeder system.
2 Meridian News release June 14, 2023
3 Meridian News release April 12, 2021
Figure 3: Drilling overview, wi th location of CD‐255, pinpointi ng the open extension of the Cabaçal VMS
horizon in a 1km step out from the resource area.
SANTA HELENA
Preparations continue at Santa Helena in advance of the arrival of the fourth drill rig. The objective of the
drilling program will be to conduct both validation drilling on historical resource holes, and a first phase
of exploratory drilling on satellite drill targets marked by ge ophysical responses for potential discoveries
satellite to the main resource.
PROJECT DEVELOPMENT
Project development studies are advancing in preparation for su bmission of the Environmental Impact
Assessment (EIA‐RIMA), positioning the project for the consideration of an expanded production scenario
of up to 4.5Mtpa. Project development studies underway also include a 12‐hole geotechnical drilling
program. The PEA utilized default assumptions for pit will angl es. Based on the PEA pit shell, a series of
holes are being drilled to now gather specific data for the nex t phase of evaluation. If data supports a
steepening of pit wall angles in a competent rock mass, results will have a positive impact on the stripping
ratio.
Figure 4: Copper Gossan with portable XRF reading from surface float at the southwestern flank of the
resource area.
Table 1: Drilling results
Hole‐ID Dip Azi EOH Zone Int AuEq CuEq Cu Au Ag Zn From
(m) (m) (g/t) (%) (%) (g/t) (g/t) (%) (m)
CD‐264 ‐49 060 98.3 CNWE
12.6 15.5 10.4 0.2 15.3 0.6 0.0 43.3
14.7 0.6 0.4 0.2 0.3 0.6 0.0 65.5
CD‐263 ‐70 048 104.1 ECZ
4.0 0.3 0.2 0.2 0.0 1.3 0.0 66.9
15.0 1.0 0.7 0.6 0.2 2.9 0.1 74.7
Including 4.0 2.5 1.7 1.4 0.5 7.1 0.1 85.4
CD‐262 ‐49 045 49.3 ECZ
2.6 0.5 0.3 0.3 0.1 1.1 0.0 17.0
1.3 3.3 2.2 1.8 0.6 11.3 0.1 22.8
CD‐261 ‐49 059 95.3 CNWE
6.2 0.7 0.5 0.3 0.3 0.3 0.0 20.0
13.0 0.8 0.5 0.3 0.4 1.0 0.0 40.1
7.0 0.7 0.5 0.3 0.3 0.9 0.0 59.4
7.4 0.5 0.3 0.2 0.1 1.1 0.0 72.0
CD‐260 ‐49 059 113.2 CNWE
1.0 1.0 0.6 0.1 0.9 0.1 0.0 13.3
1.0 0.8 0.5 0.0 0.8 0.4 0.0 18.0
20.1 0.6 0.4 0.3 0.2 1.1 0.0 34.8
6.3 0.2 0.1 0.1 0.1 1.1 0.0 61.1
10.3 0.1 0.1 0.0 0.1 2.8 1.0 85.6
CD‐259 ‐67 045 36.0 Cabaçal‐
Sth
Abandoned
CD‐258 ‐44 045 49.4 ECZ /
Gabbro
NSI
CD‐257 ‐51 058 127.2 CNWE
23.8 0.5 0.3 0.3 0.1 0.7 0.0 11.3
3.2 0.8 0.5 0.5 0.2 0.7 0.0 85.0
6.8 1.7 1.1 0.7 0.8 2.6 0.0 98.1
CD‐256 ‐90 000 108.2 ECZ
4.5 0.4 0.3 0.3 0.0 0.3 0.0 16.0
28.6 0.7 0.5 0.4 0.1 2.0 0.0 66.7
Including 4.9 2.3 1.5 1.2 0.5 6.2 0.2 88.5
CD‐255 ‐49 046 184.1 C4A‐Sth
4.0 0.3 0.2 0.1 0.1 5.1 0.6 117.3
Including 0.3 0.1 0.2 32.4 5.3 119.9
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 abo ve 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 poten tial to be a standalone mine within the
50km VMS belt. Cabaçal’s base and precious metal‐rich mineraliz ation 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 est imate consists of Indicated res ources of 52.9 million tonnes at 0.6g/t
gold, 0.3% copper and 1.4g/t silver and Inferred resources of 1 0.3 million tonnes at 0.7g/t gold, 0.2%
copper & 1.1g/t silver (at a 0.3 g/t gold equivalent cut‐off gr ade), including a higher‐grade near‐surface
zone supporting a starter pit.
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 t o c a p i t a l r e p a y m e n t i n 1 0 . 6 m o n t h s
(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 Geotechn ical and Civil 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)
Technical Notes
Samples have been analysed at the accredited ALS laboratory in Lima, Peru, and SGS laboratory in Belo
Horizonte. Samples at ALS are dried, crushed with 70% passing < 2 m m , s p l i t o f f t o g i v e a m a s s o f
approximately 250g, and pulverized to >85% passing 200#. Routine gold analyses have been conducted by
Au‐AA23 (fire assay of a 30g charge with AAS finish). High‐grade samples (>10g/t Au) are repeated with a
gravimetric finish (Au‐GRA21). Samples with visible gold identi fied during logging are analysed by screen
fire assay method Au‐SCR21. Samples at SGS are dried, crushed w ith 75% passing <3 mm, split to give a
mass of 250‐300g, pulverized with 95% passing 150#. Gold analys es are conducted by FAA505 (fire assay
of a 50g charge), and base metal analysis by methods ICP40B and ICP40B_S (four acid digest with ICP‐OES
finish). Visible gold intervals are sampled by metallic screen fire assay method MET150‐FAASCR. Samples
are held in the Company’s secure facilities until dispatched and delivered by staff and commercial couriers
to the laboratory. Pulps are retained for umpire testwork, and ultimately returned to the Company for
storage. The Company submits a range of quality control samples , including blanks and gold and
polymetallic standards supplied by Rocklabs, ITAK and OREAS, su pplementing laboratory quality control
procedures. In BPM sampling, gold was analysed historically by fire assay and base metals by three acid
digest and ICP finish at the Nomos laboratory in Rio de Janeiro . Silver was analysed by aqua regia digest
with an atomic absorption finish. True width is considered to be 80‐90% of intersection width. Assay figures
and intervals are rounded to 1 decimal place. 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 = 5.4368ln(Au_Grade_ppm)+88.856
• Cu_recovery_pct = 2.0006l n(Cu_Grade_pct)+94.686
• Ag_recovery_ppm = 13.342ln(Ag_Grade_ppm)+71.037
Recoveries based on 2022 metallurgical testwork on core submitted to SGS Lakefield
The Mise‐a‐la‐Masse survey is being conducted using the Company's in‐house team, utilizing its GDD GRx8‐
16c receiver and 5000W‐2400‐15A transmitter. Data is proce ssed by the Company’s independent
consultancy Core Geophysics. Geophysical and geochemical explor ation targets are preliminary in nature
and not conclusive evidence of the likelihood of a mineral deposit.
Qualified Person
Dr. Adrian McArthur, B.Sc. Hons, Ph.D. FAusIMM., CEO and Direct or of Meridian as well as a Qualified
Person as defined by National Instrument 43‐101, has reviewed a nd 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 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.