SANTA HELENA Exploration Target is contained within only 1.4km of the ~3km prospective trend
8th Floor, 4 More London Riverside | London SE1 2AU| United Kingdom
MERIDIAN DEFINES INITIAL EXPLORATION TARGET OF 3.2 - 7.3 MT @ 3.0 – 3.2 G/T AUEQ AT
SANTA HELENA
Exploration Target is contained within only 1.4km of the ~3km prospective trend
LONDON, United Kingdom, December 5, 2023 / Accesswire / Meridian Mining UK S (TSX: MNO) (OTCQX:
MRRDF) (Frankfurt/Tradegate: 2MM) (“Meridian” or the “Company”) is pleased to report that it has
assessed the geological potential of the Santa Helena mine area (“Santa Helena”) based on new and
historical data, generating an initial Exploration Target with a tonnage range of 3.2 –7.2 Mt grading
between 3.0 - 3.2g/t AuEq*, which gives a potential high-grade metal inventory range of between 306,000
to 763,000 AuEq ounces, located within 10km of the proposed Cabaçal mill site1.
The Company is also reporting further strong intercepts at Santa Helena including CD-359: 36.6m @ 1.3g/t
AuEq from 13.0m; and CD-378: 5.9m @ 5.5g/t AuEq from 38.3m. These follow early positive results2 from
the Company’s verification and extensional drilling program, and now highlight an expan sion of Santa
Helena’s mineralization across strike, and at depths suitable to open pit development potential. Further
drill results remain pending.
HIGHLIGHTS REPORTED TODAY
• Meridian reports Exploration Target for Santa Helena mine area of 3.2 - 7.2 Mt @ 3.0 - 3.2g/t AuEq;
o Exploration Target’s contained metal is between 306,000 to 763,000 AuEq ounces;
o Mineralization grades 1.0 – 1.1g/t Au, 0.7 - 0.8 % Cu, 20.0 – 26.3 g/t Ag and 2.8 - 3.0 % Zn;
o Exploration target restricted to 1.4km of the ~3km prospective trend;
• Santa Helena’s drilling expands and confirms shallow VMS Au, Cu, Ag and Zn mineralization;
o CD-359: 36.6m @ 1.3g/t AuEq (0.6g/t Au, 0.4% Cu, 8.4g/t Ag & 0.8% Zn) from 13.0m;
Including:
9.4m @ 1.9g/t AuEq (1.3g/t Au, 0.6% Cu, 15.1g/t Ag & 0.5% Zn) from 13.0m;
o CD-378: 5.9m @ 5.5g/t AuEq (1.9g/t Au, 1.3% Cu, 33.5g/t Ag & 5.6% Zn) from 38.3m; and
• Expansion of drilling into Santa Helena’s prospective ~2km eastern extension is planned for 2024.
*The potential quantity and grade of an Exploration Target is conceptual in nature. There has been
insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in
the target being delineated as a mineral resource. The metal equivalence formula is based on the historical
Santa Helena resource report3 , calculated as AuEq based on gold being the dominant metal of the Cabaçal
VMS camp, as the expectation is that Santa Helena’s mineralization will be evaluated for processing
through a centralized facility at the Cabaçal mill with the addition of a zinc circuit. True width is considered
to be 80 to 90% of intersection width.
1 Meridian Mining news release dated March 6, 2023
2 See Meridian Mining news releases of: November 14, October 23 and September 27, 2023.
3 Monte Cristo Mine. State of Mato Grosso, Brazil. Report by SRK Consulting, Project Number 164802. Compiled by Nick Michael, Clay
Taylor, Alva Kuestermeyer. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources
or mineral reserves. Meridian has not treated the resource and reserve stated in this report as a current mineral resource or reserves for
purposes of National Instrument 43‐101.
Mr. Gilbert Clark, CEO, comments: “Today Meridian continues to confirm the tremendous value upside
opportunity that the Cabaçal belt presents. Santa Helena’s high- grade Exploration Target of 306,000 to
763,000 ounces of gold equivalent, within a small tonnage and high-grade ranges, presents a very exciting
upside opportunity for both the Cabaçal belt and for Meridian’s shareholders.”
“Looking to the medium term growth plans, utilizing a robust Exploration Target and continuing strong
drill results, we will evaluate Santa Helena’s potential for contributing additional high- grade
mineralization to Cabaçal’s future. Being within ten km of the advanced Cabaçal Mine project, if ongoing
work at Santa Helena proves successful, future economic studies will not need to carry the capital
expenditure of building a stand-alone mill. After a great year of advancement of the Cabaçal belt in 2023,
including the submission of the Cabaçal mine ’s Preliminary Licence Application, we look forward to the
further strong progress in 2024.”
SANTA HELENA INITIAL EXPLORATION TARGET
The Santa Helena mine area provides for the continuation of Meridian’s low -risk investment model of
targeting prospects with a high degree of potential and untested upside. A robust geological and
mineralization model has been achieved b y incorporating the results from historical drill campaigns,
geology, and mining records, with Merdian’s recent results from diamond drilling, trenching, mapping and
geophysical surveys. This, with the removal of the limited mined areas, was then used as the basis for the
reasonable ranges of tonnes and contained metals defined within the Exploration Target.
The VMS mineralization has been modelled and the plan view ( “Figure 1”) shows a strong correlation to
the historical geological maps and reports . The long sections indicate that the mineralization again
strongly follows the known geology of a continuous mineralized trend (“Figure 2”).
Figure 1: Upper Range Santa Helena Upper Range Exploration target footprint in relation to the historical
resource outline.
The Santa Helena database consists of data generated from multiple campaigns of surface and
underground drilling and sampling, summarized as follows:
Campaign Code Number Meterage Average
Depth (m)
Historical DDH (BP Minerals) JUCHD 80 8,301.42 103.77
Meridian DDH CD 14 731.1 52.22
Historical DDH (Prometálica)
FS 35 1,170.81 33.45
PM 39 2,487.98 63.79
Historical Channels/Trenches (BPM/RTZ) C2C_TR 14 707.66 50.55
Grand Total 182 13,398.97 73.62
Campaign Code Number Meterage Average
Length (m)
Grade Control (Prometálica)
FP 249 793.61 3.19
CAN / M 90 129.4 1.44
Grand Total 339 923.01 2.72
Table 1: Summary of Santa Helena Exploration Target database.
Surface drilling and locally trenching to the east was historically conducted on nominally 50 x 25 m spaced
sections along a strike length of ~ 1,350m, with a cross-strike footprint of ~130 -220m, with some outlying
holes. Spacing was not always regular, and a combination of vertical and inclined holes were drilled.
Sectional azimuth varied from 10 to 35 degrees across the deposit. Meridian has since concluded 1,258m
of drilling including 6 twin holes and 18 resource delineation holes within and outside the historical
resource envelope. The model utilizes 14 of Meridian’s holes (731.1 m of drilling) for which results were
available.
Figure 2: Top: long section looking north of Lower Range Exploration Target (after depletion), Bottom
long section looking north of Upper Range Exploration Target (after depletion).
Geological modelling was completed generating a mineralization wireframe at a 0.3g/t AuEq cut-off grade,
consistent with the resource cut- off grade of the Cabaç al deposit. Modelling of key lithologies included
bounding post -mineralization gabbro sills which are present in the footwall and hangingwall of the
deposit. A block model constrained by the interpreted mineralized bodies was constructed with the
parent cell size of 10 mE x 10 mN x 5 mRL. Drillhole sample intervals have been composited to 1 m length
and were used to interpolate all main modelled grades (Zn, Pb, Cu, Au, Ag) into the block model using
inverse distance2 and ordinary kriging (OK) interpolation techniques. Block grades were validated both
visually and statistically and all modelling was completed using Leapfrog software.
To estimate the grades inside of the 0.3g/t AuEq cut-off grade wireframe, 1,644 samples of Au, 1,715 of
Cu, 1,606 of Ag, 1,745 of Zn and 1,714 of Pb were used. For the lower limit of the exploration target, the
unsampled drilling intervals were replaced by zero grade. Meri dian’s drilling indicates that like at the
Cabaçal mine, areas of mineralization were left unsampled due to a particular commodity or development
focus. For the upper limit, the unsampled intervals were omitted and the wireframe projected along a
trend considered reasonable based on geometry and geological logging.
The search radius used was 70m x 70m x 10m for the major, semi-major and minor axes respectively, the
same used to classify inferred resources in the Cabaçal deposit, with restrictions of a minimum of 2 and a
maximum of 10 samples. For the interpolation of the grades, dynamic anisotropy was used with the
geometry of a synclinal fold plunging up-plunge towards the east-south-east.
To evaluate the reconciliation of the Exploration Target with historical mining production of the vendors,
Prometálica, the block model was resized to 4 mE x 4 mN x 2 mRL to better adhere to the geometry of the
mining void. The difference in the estimated tonnage was -0.6%, and for the grades the variation was ,
+9.3% for Au, +4.5% for Cu, -2.9% for Ag, and -5.7% for Zn (“Table 2”). Lead production was not reported
and is currently not contributing to the metal equivalence formula. Production is based on the historical
digital archives of the Run-of-Mine monthly records of the Prometálica geology department, from October
2006 to August 2008. These Run-of-Mine production figures close ly align with the modelled estimate,
providing confidence in the Exploration Target's potential. The estimated range in tonnage and grade for
the Exploration Target after mining depletion are 3.2 –7.2 Mt @ 3.0 – 3.2 g/t AuEq / 2.0 - 2.2% CuEq (1.0
- 1.1 g/t Au, 0.7 – 0.8% Cu, 20.0 - 26.3 g/t Ag & 2.8 - 3.0 % Zn; “Table 3”; “Table 4”). Metal equivalence is
based on the historical SRK resource report, with metal prices applied from the Meridian’s Cabaçal PEA
dated March 6, 2023 ( AuEq = (Au(g/t) * 65%Recovery) + (1.492Cu% * 89%Recovery) + (0. 474Zn% *
89%Recovery)) + (0.008Ag(g/t) * 61%Recovery)). Recovery formulas will be updated with future testwork
programs.
An average bulk density values of 2.94 - 2.97 t/m3 was derived for the deposit, based on interpolation of
267 density readings on drill core. Values were derived by immersion techniques in Meridian and historical
campaigns of drilling.
Reconciliation
Item Mass (t) Zn_pct Cu_pct Au ppm Ag ppm
Historical Prometálica Production Report 439,813 6.65 1.62 1.77 43.02
Meridian Estimation - Void Model 437,290 6.27 1.69 1.94 41.79
Difference -0.6% -5.7% 4.5% 9.3% -2.9%
Table 2: Comparison of the model with Run of Mine production records of Santa Helena.
Exploration Target
Item Mt
Au Ag Cu Zn Pb AuEq AuEq CuEq CuEq
(g/t) (g/t) (pct) (pct) (pct) (g/t) (koz) (pct) (Mlbs)
Pre-Mining - Upper Range Exploration Target 7.8 1.2 27.2 0.8 3.2 0.7 3.4 854 2.3 393
Pre-Mining - Lower Range Exploration Target 3.6 1.1 22.7 0.9 3.3 0.6 3.4 397 2.3 183
Mining Depletion 0.4 1.8 43.0 1.6 6.7 1.0* 6.4 91 4.3 42
Upper Range Exploration Target
(after depletion) 7.3 1.1 26.3 0.8 3.0 0.7 3.2 763 2.2 351
Lower Range Exploration Target
(after depletion) 3.2 1.0 20.0 0.7 2.8 0 .6 3.0 306 2.0 141
Table 3: Exploration Target for the Santa Helena Deposit, with recovery-factored gold equivalent and
copper equivalent content. Individual metal grades are pre-recovery.
* Lead production was not officially reported, but figures indicated based on metallurgical feed reports aligning well with modeled
calculation. Lead does not contribute to the metal equivalence formula.
Item Mt
Au Au_rec Ag Ag_rec Cu Cu_rec Zn Zn_rec
(koz) (koz) (koz ) (koz ) (Mlbs) (Mlbs) (Mlbs) (Mlbs)
Pre-Mining - Upper Range Exploration Target 7.8 291 189 6793 4144 143 127 544 484
Pre-Mining - Lower Range Exploration Target 3.6 123 80 2666 1626 69 61 264 235
Mining Depletion 0.4 25 16 608 371 16 14 64 57
Upper Range Exploration Target after depletion 7.3 266 173 6185 3773 127 113 480 427
Lower Range Exploration Target after depletion 3.2 98 64 2058 1255 53 47 200 178
Table 4: Exploration Target metal contents, before and after metallurgical recovery factoring.
The estimated potential quantity of tonnes and grades are conceptual in nature as there has been
insufficient data and evaluation to support estimation of a Mineral Resource. Tonnages and grades are
expressed as ranges that are considered appropriate for the Exploration Target. There is no certainty that
further exploration, verification drilling, or twinned drilling will result in the estimation of a Mineral
Resource. The Exploration Target is not to be considered in any way to represent a Mineral Resource or
Ore Reserve.
Steps being taken to update the Exploration Target to a resource include:
• Independent QP review – field checks completed by H&SC associate, Marcello Batelochi. Full
review of database to be conducted after receipt of additional assay results;
• Update of surface relief topographic model for open pit development assessment – completed
with high-precision Lidar survey flown by Brazilian Contractor, Embratop;
• Resampling checks on available historical drill core – completed;
• Maximizing collar surveys of all historical holes that can be located at surface (over 50%
confirmed);
• Assess spatial shift between modern surfaces and historical theodolite -based surfaces (Current
reconciliation of coordinates based on drill holes, mine entrance and ventilation shaft indicate a
shift of x-3.3m, y-3.6m, z+12.9m between mine database records and SIRGAS200 grid;
• Resampling umpire checks on available historical pulps – in progress;
• Compilation of historical records – completed for assays and geological coding; compilation of
recovery data and geotechnical data in progress;
• Addition of more density data into the database – proceeding in parallel with Meridian drilling;
• Completion of 50 x 50m infill check and extensional cross -strike drilling, with 25 x 25 m infill test
area – objectives of current program and continuing into 2024 campaign;
• Final spatial review of collar and void underground data integrity;
• Review metallurgical recovery assumptions with new testwork program, including the assessment
of potential for Pb concentrate with precious metal credits, and assessment of oxide – transition
zone recoveries which affect ~20% of the exploration target: scheduled for 2024; and
• Checks of historical records of plant throughput and tailings grade to compare against the geology
department run-of-mine production records – ongoing.
Scope remains to test further potential for extension to the mineralized system, along the geophysical
anomalies projecting along strike from Santa Helena.
Opportunities to recover a lead concentrate will be assessed as part of the future metallurgical test
programs. The historical processing facility did also not include a gravity circuit. Gravity recoverable gold
is anticipated at least in the oxide zone, with past surface geochemical surveys identifying a surface gold
in soil anomaly at Santa Helena by pan concentrate methods.
SANTA HELENA HISTORICAL RESOURCE ESTIMATE
SRK was previously commissioned by the Cabaçal Vendors to undertake a resource study on the Monte
Cristo (Santa Helena) Zn Deposit in 2007 (“Table 5”). This estimate was last updated in a report dated 30
May 2007. The estimation procedure used three iterations of the inverse distance squared method on
composited drillhole data with progressively longer search ranges. A Zn Equivalent % calculation was
applied for reporting the estimates (ZnEq % = Zn% + (2.14 * Cu%) + (0.39 * Au ppm)+ (0.007* Ag_ppm);
Metallurgical Recovery = 89% Zn, 89% Cu, 65% Au, 61% Ag; Au price USD 570 / oz; Ag price USD 11 / oz,
Cu price USD 3.36/ lb; Zn price = 1.57 / lb). A qualified person has not done sufficient work to classify the
historical estimate as current mineral resources or mineral reserves; and the issuer is not treating the
historical estimate as current mineral resources or mineral reserves. The 2007 historical resource does
not account for final depletion.
Table 5: Historical Santa Helena 2007 Resource Estimate.
The historical resource had a number of limitations reducing its tonnage compared to the current
Exploration Target range:
• The historical resource was quoted at a 3% Zinc Equivalent cut-off grade, reducing the amount of
lower grade mineralization at reasonable grades that could alternatively be considered for open-
pit development;
• The historical resource estimate did not incorporate data from mineralization intersected in BP
trenching and drilling programs at the eastern end of the deposit;
• Checks against original BP maps and reports retrieved from historical archives, coupled with field
checks, indicated than a number of holes were wrongly placed in the database; and
• New drilling indicates a greater cross-strike footprint of mineralization than originally modelled.
SANTA HELENA DRILL PROGRAM
Santa Helena is a Cu-Au-Ag & Zn VMS deposit located ~9km to the southeast of the Cabaçal Mine in Mato
Grosso Brazil. It has over 10,000m of historical drilling and is one of a series of exploration targets along
the 11km Cabaçal Mine Corridor. The Company commenced initial drilling in August 2023 as part of a
verification program, to validate the historical data in line with NI43 -101 requirements, and to initiate
scout drilling for potential extensions defined by geophysics. The Company's compilation of historical drill
data indicated that many past holes were not completely sampled, that reconciliation of surveyed drilled
positions and mine workings suggested that the high -grade massive sulphide mineralization was only
partially mined. and that extensions of near-surface mineralization to the south and to the east were also
not integrated into the historical resource calculations 4. The Company has concluded that this historical
resource area is considered open.
Figure 3: Santa Helena drill results, with 2.0km eastern exploration extension, and newly emerging target
area remaining open to the southeast.
The Company has completed twenty -four holes to date. Initial results from holes drilled along the main
trend for resource verification were very positive, confirming high -grade massive to semi massive near-
surface mineralization 5. Further drilling across strike into a geochemical anomaly located s outh of the
historical resource also confirmed strong mineralization, locally increasing the cross -strike footprint of
mineralization by up to 300%6. These results have included:
• CD-311: 19.1m @ 1.9g/t AuEq from 8.0m; including 4.9m @ 6.8g/t AuEq from 22.2m;
• CD-321: 23.1m @ 1.5 g/t AuEq from 6.1m, including 3.6m @ 4.9 g/t AuEq from 10.0m;
• CD-325: 14.9m @ 4.6 g/t AuEq from 26.3m;
• CD-329: 6.8m @ 7.4g/t AuEq from 38.7m;
• CD-332: 5.8m @ 6.8g/t AuEq from 32.2m;
• CD-335: 7.2m @ 6.0g/t AuEq from 35.5m;
4 Meridian Mining News Release of March 29, 2022.
5 Meridian Mining News Release of September 12, 2023.
6 Meridian Mining News Release of November 14, 2023.
• CD-336: 30.7m @ 1.1g/t AuEq from 6.0m, including: 5.7m @ 2.2g/t AuEq; and
• CD-351: 11.7m @ 2.0g/t AuEq from 27.0m, including 5.4m @ 2.8g/t AuEq from 27.0m.
The latest results (“Table 6”; “Figure 3” ) have been returned from a range of positions throughout the
deposit.
Additional drilling across strike from the historical resource has returned further shallow mineralization
with a wide zone intersected in CD -359, located 55m along strike from CD -336. Further drilling is in
progress to extend this position eastwards along strike.
• CD-359: 36.6m @ 1.3g/t AuEq (0.6g/t Au, 0.4% Cu, 8.4g/t Ag & 0.8% Zn) from 13.0m;
including:
o 9.4m @ 1.9g/t AuEq (1.3g/t Au, 0.6% Cu, 15.1g/t Ag & 0.5% Zn) from 13.0m, and
o 5.6m @ 1.7g/t AuEq (0.9g/t Au, 0.4% Cu, 10.8g/t Ag & 1.4% Zn) from 29.7m.
Drilling further to the east confirmed shallow mineralization both within the historical resource envelope
aligned with expectations (CD -378, CD-382), and mineralization to the south of the projected resource
envelope, below historical surface trenching of BP Minerals (CD-372):
• CD-372 20.0m @ 0.7g/t AuEq (0.2g/t Au, 0.2% Cu, 8.9g/t Ag & 0.3% Zn) from 0.0m;
including:
o 7.6m @ 1.2 g/t AuEq (0.4g/t Au, 0.6% Cu, 5.4g/t Ag & 0.5% Zn) from 0.0m;
o 4.9m @ 0.8g/t AuEq (0.1g/t Au, 0.2% Cu, 6.7g/t Ag & 1.3% Zn) from 31.4m;
• CD-378: 5.9m @ 5.5g/t AuEq (1.9g/t Au, 1.3% Cu, 33.5g/t Ag & 5.6% Zn) from 38.3m; and
• CD-382: 8.4m @ 1.3g/t AuEq (0.5g/t Au, 0.3% Cu, 12.6g/t Ag & 1.3% Zn) from 41.0m.
The growing confidence in the data combined with historical compilations has allowed the Company to
nominate the Exploration Target for the Santa Helena Deposit . The Company aims to continue the
program with the objective of defining a Mineral Resource, and we look forward to further results.
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; and
• Exploration in the Jaurú & Araputanga Greenstone belts (the above all located in the State of
Mato Grosso, 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 gold overprint event has emplaced high-grade gold mineralization.
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).