Insights into Meridian Mining's Cabaçal Project and Growth Trajectory

• Meridian Mining (MNO) announces positive PEA results for Cabaçal copper gold project in Brazil.
• Executive Chairman Gilbert Clark highlights the robust economics and market response.
• Share price increased significantly, trading volume surged to over 11 million shares.
• Strong focus on optimizing costs, using Brazilian mining metrics, and simplified metallurgy.
• Future plans include infill drilling, resource expansion, feasibility study, and exploration of other prospects like Eric, Alvarez, and Alani.

About Meridian Mining

Meridian Mining is an Australian exploration and development company focused on advancing the Cabaçal copper-gold project in Brazil. With over 20 years experience in the mining industry, Gilbert Clark serves as the company's Executive Chairman.

Interview with Executive Chairman Gilbert Clark

Project Economics Surprise Market with Robust Returns

In a recent interview, Gilbert Clark provided updates on Meridian Mining's flagship Cabaçal project following the release of a Preliminary Economic Assessment (PEA) in early March. He noted that the strong project economics outlined in the PEA took the market by surprise, with the share price increasing from A$0.15 to over A$0.20 on high trading volumes.

According to Clark, the PEA results validate the company's long-held belief that Cabaçal is a high quality asset with robust economic potential. The after-tax NPV of the project came in at US$437 million using a 5% discount rate and assuming a long-term copper price of US$3.25 per pound.

With the current market capitalization only reflecting around 12% of the project NPV, Clark emphasized there is substantial upside remaining. "I think there's an incredible amount of growth yet to come out of this project within the open potential and the exploration upside," he remarked.

Costs Benchmark Well Against Brazilian Projects

Some investors initially questioned the relatively low capex estimate of US$180 million outlined in the PEA. However, Clark reassured that the capex intensity benchmarked very well compared to similar projects in Brazil.

He attributed the low costs to several key factors:

• Minimal pre-stripping needed before accessing mineralization
• Using standard 40-ton haul trucks rather than large 100-ton trucks
• Leasing rather than purchasing major mining equipment
• Simple flotation process with low equipment requirements
• Access to low-cost hydroelectric power at around US$0.07/kWh

With inflation already accounted for via an 18% contingency, Clark believes equipment costs may even decline going forward as inflationary pressures begin to ease globally.

Resource Expansion Provides Clear Upside

While the PEA only used indicated and inferred resources in the open pit shell, total resources at Cabaçal currently stand at over 100 million tonnes. Significant expansion potential remains, especially in the Northwest Extension zone which hosts higher grade mineralization.

Meridian Mining currently has one drill rig focused on infill drilling to upgrade resource categories. According to Clark, "the closer spaced the drilling, the greater the value per tonne of the resource." The company is also conducting geotechnical work which could allow for steeper pit slopes, further optimizing the project's economics.

Beyond the initial 11-year mine life contemplated in the PEA, Clark highlighted another 11 kilometers of prospective trends on the property. Step-out drilling along these trends represents substantial upside beyond the defined resource areas. The company will continue its exploration program in 2023 across these highly prospective zones.

Strong Institutional and Retail Support

With growing confidence in the quality of the Cabaçal asset, Clark noted that institutional shareholdings now account for over 50% of the company's shares. Support from long-term retail investors also remains robust after the positive PEA results.

Moving Towards Feasibility Study in 2023

For the remainder of 2023, Meridian Mining will focus on expanding the current resource and conducting technical studies to de-risk Cabasale. This includes finalizing metallurgical testwork, executing more detailed mine design and scheduling, advancing permitting activities, and refining operating and capital cost estimates.

The results will feed into a Feasibility Study planned for completion in 2024, setting the stage for a potential development decision. At the same time, the company will continue exploration drilling to outline additional resources and extend the attractive project economics.

Call to ActionWith substantial upside remaining at the Cabaçal copper-gold project, investors have an opportunity to position themselves in Meridian Mining before further de-risking milestones are achieved. The current share price continues to trade at a steep discount to the NPV outlined in the robust PEA. As the company executes on its exploration and development plans in 2023, Cabaçal's status as a Tier 1 development asset in Brazil is likely to be further solidified.

Conclusion

With a clear path forward to advance Cabaçal through feasibility and permitting, Meridian Mining offers investors an attractive opportunity to capitalize on the significant remaining growth potential of this copper-gold project.

The PEA has outlined robust economics and initial technical studies confirm Cabaçal's status as a low-cost, highly capital efficient project by Brazilian standards. As the company executes on its strategic development plan, investors have a chance to position themselves in Meridian Mining at an early stage.

Significant upside remains through resource expansion, especially at the high-grade Northwest Extension zone. The current share price continues trading at a discount of almost 90% to the after-tax NPV for Cabaçal. Savvy investors who recognize the qualities of this emerging project could realize substantial returns as Meridian Mining systematically de-risks Cabaçal and the market re-rates the shares.

With clear catalysts on the horizon, including the Feasibility Study and ongoing exploration results, the time is right for investors to do their due diligence on Meridian Mining. The company's experienced leadership team is primed to create significant value at Cabaçal and generate returns for shareholders in the process.