Meridian Updates on Granting of Álamo Licence and Cabaçal’s Strong Drill Results
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Meridian Updates on Granting of Álamo Licence and Cabaçal’s Strong Drill
Results
CD‐210 returns 26.8m @ 1.6g/t AuEq, including 4.5m @ 5.3g/t AuEq
LONDON, United Kingdom, January 10, 2023 / Accesswire / Meridia n Mining UK. S ( TSX: MNO),
(Frankfurt/Tradegate: 2MM) (OTCQB: MRRDF) (“Meridian” or the “Company”) is pleased to report the
g r a n t i n g o f t h e h i g h l y p r o s p e c t i v e Á l a m o e x p l o r a t i o n l i c e n c e ( “Á l a m o ” ) . Á l a m o h o s t s m u l t i p l e o p e n
copper‐gold soil geochemical targets, VTEM anomalies, and large alteration systems (“Figure 1”).
Meridian's initial reconnaissance and field portable XRF readin gs have identified untested gossans
associated with both BP soil survey areas and newly identified large alteration systems. Field work is
ongoing.
Meridian reports multiple strong drill results from the Cabaçal gold‐copper VMS deposit, where the latest
infill drilling continues to define strong coherent layers of h igh‐grade gold, copper and silver
mineralization (“Figure 2”) from Cabaçal’s Northwest Extension (“CNWE”). Results include 26.8m @
1.6g/t AuEq from 72.7m including 4.5m @ 5.3g/t AuEq from 95.0m (CD‐210); 25.0m @ 1.2 g/t AuEq from
37.0m including 2.6m @ 7.9g/t AuEq from 41.0m (CD‐211), and 35.1m @ 1.0g/t AuEq from 47.1m
including 3.3m @ 7.6g/t AuEq from 78.8m (CD‐216) (“Table 1”). These results continue to strengthen
Cabaçal’s open‐pit potential and enhance opportunities for a hi gh grade starter pit; further assays are
pending.
HIGHLIGHTS REPORTED TODAY
Álamo exploration title, hosting some of Cabaçal’s largest exploration targets, has been granted;
Álamo is along trend from the Santa Helena massive sulfide Cu‐Au‐Zn‐Ag deposit;
First field work program identifies copper gossans associated with principal target areas;
Targets within trucking distance of the Cabaçal gold‐copper resource1 area;
Cabaçal continues assaying multiple high‐grade gold‐copper layers; and
CNWE’s existing and new high‐grade trends remain to be covered by the ongoing drill program.
Dr. Adrian McArthur, CEO and President comments: “With the granting of the Álamo licence, Meridian
has been given the keys to one of the most prospective zones within the VMS belt and the opportunity to
test more of Cabaçal’s greenfields upside. We can now launch a systematic program of soil geochemical
surveys and geophysics to define future high priority drill tar gets. The Company is also very pleased with
the ongoing infill drill program, as it continues to increase definition of high‐grade trends which will be a
key driver in unlocking early value in the development of the Cabaçal gold‐copper rich VMS deposit.
Having recently completed a successful capital raise for gross proceed of CAD 5.9M, Meridian is well
financed to further Cabaçal’s field work and complete the PEA.”
1 Meridian News release of September 26, 2022
ÁLAMO EXPLORATION LICENCE GRANTING
The Álamo exploration licence (867407/2008) has had its interim exploration report approved and has
b e e n r e n e w e d f o r a s e c o n d t h r e e ‐ y e a r t e r m . Á l a m o i s p a r t o f t h e Cabaçal Purchase Agreement2. Its
approval opens an extensive fron tier along the southeast extens ion of the Mine Corridor, immediately
along strike for the Santa Helena VMS deposit. The licence cove rs an area of 9,813 Ha, measuring 15km
north‐south and 10km east‐west at its maximum extent. BP historically initiated but left open, soil
geochemical surveys over the licence, leaving large Copper‐Gold trends open to the south‐east.
Meridian commenced engagement with local landholders for exploration access agreements and initiated
field reconnaissance in mid‐December. Gossanous float was locat ed along strike from the Santa Helena
Mine associated with the projection of the BP Cu‐Au‐Zn soil ano malies compiled from historical records.
Gossanous float was also located in the vicinity of the VTEM conductivity cluster and WorldView 3 satellite
target in the southwest quadrant of the licence, where soil sam pling has yet to be undertaken. Portable
XRF readings detected anomalous copper and zinc readings, with laboratory analytical data pending. The
early detection of gossan is encouraging and expanded programs of rock chip sampling, soil sampling, and
surface geophysics are planned for 2023, continuing after the n ew year recess, to define drill targets in
this new licence area.
The licence was partially covered by a 2007 VTEM helicopter geophysical survey, providing detailed aerial
magnetic and conductivity data. The conductivity trend marking the mine corridor position is evident
e x t e n d i n g s o u t h e a s t f r o m t h e S a n t a H e l e n a V M S d e p o s i t . A s e r i e s of conductivity clusters at a similar
threshold to the VTEM anomaly detected over the Cabaçal deposit are distributed over a trend of ~4km,
commencing ~2.3 km from the limit of the Santa Helena historica l resource. These anomalies lie close to
where an onlapping younger cover sequence of the Aguapei Group overlie the basement sequence, with
basement potentially locally covered by a sedimentary veneer. A second cluster of VTEM anomalies is
located in the southwest quadrant of the licence area, where two NW‐SE trending conductivity corridors
extend over ~1.1 and 2.8 km respectively. These anomalies overlap with large alteration systems mapped
by Meridian’s 2021 WorldView 3 remote sensing satellite survey. Additional WorldView 3 alteration
systems are located in the eastern sector of the licence area, in regions not covered by the VTEM survey
or the historical soil sampling program.
2 Meridian News releases of August 26 and November 9, 2020
Figure 1: Location of Álamo licence, on the southeastern extension of the mine corridor, showing extent of
geochemical coverage, WorldView 3 Satellite targets, soil cover age, and VTEM anomalies. Gridded
conductivity image in the background, with the darker blue areas marking conductive trends.
CABAÇAL’S INFILL AND EXTENSIONAL DRILL PROGRAM
Drilling at Cabaçal continues to focus on extending and infilli ng the multiple higher‐grade zones of the
deposit which will be targeted for early development. Today's r esults continue to build on the
recommended 25mx25m infill drill pattern for the CNWE’s starter zone study area.
CD‐210 retuned 71.5m @ 0.8g/t AuEq (0.5 g/t Au, 0.2% Cu & 0.7g/t Ag ) f r om 28. 0m d e pt h , in c lu d i ng
26.8m @ 1.6g/t AuEq (0.9g/t Au, 0.5% Cu & 1.6g/t Ag) from 72.7m, including 4.5m @ 5.3g/t AuEq (4.4g/t
Au, 0.7% Cu & 2.7g/t Ag) from 95.0m. The hole is positioned 25m down‐dip from CD‐101, which retuned
36.2m @ 1.3g/t Au, 0.2% Cu & 0.9g/t Ag from 54.6m including 7.8m @ 5.4g/t Au , 0.6% Cu & 1.8g/t Ag
from 83.0m3, and up‐dip from CD‐187, which returned 25.3m @ 0.8g/t Au, 0.1% Cu & 0. 4g /t A g f r om
15.0m4. CD‐207, a further hole down‐dip from CD‐187, has retuned 46.2m @ 0.6g/t AuEq (0.4g/t Au, 0.2%
Cu & 0.4g/t Ag) from 9.0m, including 10.0m @ 1.7g/t AuEq (1.7g/t Au, 0.1% Cu & 0.1g/t Ag) from 33.0m.
Further on‐section drilling is required to constrain grade up‐ and down‐dip. The results continue to
highlight the wide footprint of mineralization easily accessible to open‐pit development.
Another strong result delivered from recent drilling in the sta rter pit study area includes CD‐216, which
returned 35.1m @ 1.0g/t AuEq (0.7g/t Au, 0.2% Cu & 0.5g/t Ag) from 47.0m, including 3.3m @ 7.6g/t
AuEq (6.0g/t Au, 1.1% Cu & 2.5g/t Ag) from 78.8m. The result is 25m up‐dip from CD‐100, which returned
50.8m @ 0.8g/t Au 0.5% Cu & 1.3g/t Ag from 41.9m, including 15m @ 1.3g/t Au, 1.0% Cu & 2.5g/t Ag from
3 Meridian Mining news release of May 3, 2022
4 Meridian Mining news release of October 19, 2022
75.2m5. The CD‐216 result is much stronger than results immediately along strike (CD‐1053, CD‐1896),
highlighting the importance of the 25x25m closure pattern. Additional drilling is being programed to test
the shallow up‐dip potential from this position.
The latest results also include encouraging results in the down ‐dip infill holes from the 25x25m infill drill
pattern for the CNWE’s starter zone study area, amongst which include:
CD‐211: 25.0m @ 1.2g/t AuEq (1.0g/t Au, 0.1% Cu & 0.8g/t Ag) from 37.0m, including;
o 2.6m @ 7.9g/t AuEq (8.0g/t Au7) from 41.0m; and
CD‐209: 45.6m @ 0.5g/t AuEq (0.4g/t Au, 0.1% Cu & 0.1g/t Ag) from 12.0m, including;
o 10.0m @ 1.4g/t AuEq (1.4g/t Au, 0.1% Cu & 0.2g/t Ag) from 29.0m.
The immediate strike projection of the CD‐211 position remains to be tested with the modern angled
drilling program.
Additional drilling is planned to both infill and extend the drilling pattern on peripheral areas of the
deposit (both up‐dip, down‐dip, and along strike) where the resource is currently inferred or unclassified.
Drilling has commenced to test the strike projection of the CD‐193 position, with assays pending. This will
test for potential extensions to shallow copper‐gold mineralization. The CD‐193 returned 15.6m @ 1.6 g/t
AuEq (0.4 g/t Au, 0.8% Cu & 1.3 g/t Ag) from 42.0m, including 7.5m @ 3.0g/t AuEq (0.8g/t Au, 1.5% Cu &
2.1g/t Ag) from 48.9m6.
Resource drilling will be interspersed with periodic exploratio n drilling, with an initial focus in the C2‐A
target area to the south‐east of Cabaçal. Assays are pending from CD‐218, a hole drilled as an initial test
of a satellite IP / geochemical target over 600m along strike f rom the C4‐A Gold‐Silver precious metal
discovery zone. Exploration agreements have been confirmed with various landholders in this region to
conduct further exploratory dr illing and the Company will liais e with the landholders to confirm optimal
timing of drilling within the current wet‐season conditions. Ca baçal’s drilling activity is now in its annual
recess until late January when the two rigs will recommence the infill, extensional and exploratory drilling
program.
5 Meridian Mining news release of April 26, 2022
6 Meridian Mining news release of November 21, 2022
7 Grade difference in Au vs. AuEq grade due to factor for metallurgical recovery, reference to Notes.
Figure 2: Resource enhancement program, highlighting target corridors for resource conversion with
recent post‐resource intersections illustrated.
Figure 3: Cross section showing new results from CD‐210 and CD‐207 in relation to the resource block
model coloured by AuEq.
ABOUT CABAÇAL
In November 2020, Meridian signed a Purchase Agreement to acquire 100% ownership of certain licences
covering the historical Cabaçal and Santa Helena mines and the along‐strike licences, from two, private
Brazilian companies (“Vendors”). Subsequently, Meridian expande d its land tenure to today’s 50km of
strike length. Cabaçal had two historical, shallow, high‐grade selectively mined underground mines that
cumulatively produced ~34 million pounds of copper, ~170,108 ounces of gold, ~1,033,532 ounces of
silver and ~103 million pounds of zinc via conventional flotation and gravity metallurgical processes.
Meridian has defined an open trend of shallow copper‐gold mineralization centred on the Cabaçal Mine.
This mineralization trends North west‐Southeast, sub‐crops along its Northeast limits, dips to the
southwest at 26° and is up to 90m thick; presenting excellent open‐pit geometry and mineral endowment.
Meridian is currently focused on infill drilling along a 2,000m corridor along this trend.
Cabaçal’s base and precious metal‐rich mineralization is hosted by volcanogenic type, massive, semi‐
massive, stringer, and disseminated sulphides within units of d eformed metavolcanic‐sedimentary rocks
( “ V M S ” ) . A l a t e r ‐ s t a g e s u b ‐ v e r t i c a l g o l d o v e r p r i n t e v e n t h a s e mplaced high‐grade gold mineralization
truncating the dipping VMS layers. It was explored and developed by BP Minerals/Rio‐Tinto from 1983 to
1991 and then by the Vendors in the mid‐2000’s. This historical exploration database includes over 83,000
metres of drilling, extensive regional mapping, soil surveys, metallurgy from production reports, and both
surface and airborne geophysics. The majority of Cabaçal’s prospects remain to be tested.
Cabaçal has excellent infrastructure with access by all‐weather roads, clean electricity provided by nearby
hydroelectric power stations, and local communities provide mining services and employees. Cabaçal
consists of 1 mining license, 1 mining lease application, and 7 exploration claims which total 44,265
hectares. The September 2022 Cabaçal mineral resource estimate consists of Indicated resources of
52.9Mt @ 0.6g/t Au, 0.3% Cu and 1.4g/t Ag and Inferred resources of 9.0Mt @ 0.7g/t Au, 0.2% Cu & 1.1g/t
Ag (0.3 g/t AuEq cut‐off grade), with strong optionality for ta rgeting higher grade mineralization using a
0.5 AuEq cut‐off for the future development studies.
ABOUT MERIDIAN
Meridian Mining UK S is focused on the acquisition, exploration, and development activities in Brazil. The
C o m p a n y i s c u r r e n t l y f o c u s e d o n r e s o u r c e d e v e l o p m e n t o f t h e C a baçal VMS gold‐copper project, the
regional scale exploration of the Cabaçal VMS belt, the exploration in the Jaurú & Araputanga Greenstone
belts all located in the state of Mato Grosso, and exploring th e Espigão polymetallic project in the State
of Rondônia Brazil.
On behalf of the Board of Directors of Meridian Mining UK S
Dr. Adrian McArthur
CEO, President, and Director
Meridian Mining UK S
Email: [email protected]
Ph: +1 (778) 715‐6410 (PST)
Technical Note
Drill holes have been drilled HQ through the saprolite and upper b e d r o c k a n d t h e n r e d u c e d t o N Q –
mineralized intervals represent half HQ or NQ drill core. Samples have been analysed at the accredited ALS
laboratory in Lima, Peru. Samples are dried, crushed with 70% p assing <2mm, split off to give a mass of
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 are held in the Company’s secure facilities until dispatched and
delivered by staff and commercial couriers to the laboratory. P ulps 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 b y ITAK and OREAS, supplementing
laboratory quality control procedures. True widths are approxim ately 80‐90% of downhole lengths and
assay figures and intervals rounded to 1 decimal place.
Gold equivalents are calculated as: AuEq(g/t) = (Au(g/t) * %Reco v e r y ) + ( 1 . 4 9 2 * ( C u % * % R e c o v e r y ) ) +
(0.013*(Ag(g/t) * %Recovery)), where:
Au_recovery_ppm = 5.4368ln(Au_Grade_ppm)+88.856
Cu_recovery_pct = 2.0006ln(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.
Qualified Person
Dr. Adrian McArthur, B.Sc. Hons, Ph.D. FAusIMM., CEO and Presid ent of Meridian as well as a Qualified
Person as defined by National Instrument 43‐101, has supervised the preparation of the technical
information in this news release.
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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.