Meridian Mining Looks to Unlock Value at Giant Cabaçal Project in Brazil

• Meridian Mining (MNO) working on Cabaçal copper-gold BMS deposit in Brazil.
• Challenging market conditions in 2022, with drops in copper and gold prices.
• Managed liquidity events and warrant terminations affecting stock price.
• Raised $5.9 million in December 2022 at 35 cents/share, reducing overhang.
• Cleaned up capital structure, focusing on Q2 release of Preliminary Economic Assessment (PEA) for project launch.

About Meridian Mining

Meridian Mining is a copper and gold mining company focused on the development of its flagship Cabaçal project located in the state of Mato Grosso, Brazil. The company is led by Executive Chairman Gilbert Clark, who brings over 40 years of mining experience.

Meridian is focused on advancing the historic Cabaçal mine and delineating additional resources across its large land package along the prospective Jaurú Gold Belt. The company aims to fast-track Cabaçal into production to generate cash flow, while expanding exploration efforts across its district-scale land position. With a tight capital structure and funding in place, Meridian is poised to create significant value for shareholders as it unlocks the potential at Cabaçal.

Interview with Executive Chairman Gilbert Clark

Revisiting Cabaçal After Tough Markets in 2022

2022 proved to be a challenging year for mining equities, with falling metal prices and disappearing liquidity weighing on valuations across the sector. Meridian was not immune to the market pressures despite continued progress at Cabaçal.

The company completed two capital raises during 2022 to fund ongoing exploration and development activities. The first raise in September 2021 was done at a price of $0.70-0.75 per share without warrants. This placement was tightly held by long-term institutional investors.

The company completed a second raise in December 2022 at a price of $0.35 with some existing investors increasing their positions. While necessary, these raises did add liquidity. Compounding pressure, Meridian also had two warrant expirations which opened up shares for trading.

Executive Chairman Clark noted both raises were difficult but critical for positioning the company for growth in 2023. The capital structure has now been cleaned up, removing an overhang on the stock. Meridian starts 2023 funded for development, with a tight share structure and strong institutional support.

Advancing Cabaçal Towards Development

Meridian’s flagship Cabaçal project covers the past-producing Cabaçal mine, where high grade copper-gold mineralization was discovered in the 1980s. Historic drilling outlined significant zones of near surface mineralization, which Meridian has worked to expand.

The current indicated resource stands at 1.8 million ounces gold equivalent at 1.1 g/t. Initial metallurgical test work has shown strong recoveries for both copper and gold into high-grade concentrates. The scoping study currently underway is expected to outline robust economics for a 2.5 Mtpa open pit mine with low costs and low capex.

Meridian is targeting completion of the scoping study by Q2 2023. Early indications suggest the project could support a valuation above $400 million with +35% IRR based on comparisons to peers. The initial mine life is estimated at 10 years, with significant potential to expand through additional drilling.

Beyond the known resource, Meridian has outlined multiple satellite exploration targets that could provide additional high-grade feed in the future. Ongoing drilling continues to intersect copper and gold mineralization outside of the main deposit, demonstrating the potential scale of the system.

Unlocking District Potential

While Cabaçal itself presents a clear path to near term production, Meridian’s extensive land package covers over 55km of strike extent along the Jaurú belt. This presents a huge area for additional discovery and resource growth.

Recent exploration has delineated a number of high priority targets for follow up, including the 4km long Saint Helena anomaly. With additional field work ongoing, there is strong potential for new satellite deposits to be defined across the broader project area.

Meridian’s strategic Belt-scale approach gives it a pipeline of exploration targets to sustain long term growth at Cabaçal. The company is focused on fast tracking development at Cabaçal, while also ensuring ongoing exploration to fully capitalize on the district potential.

5 Key Takeaways for Investors

1. Meridian Mining is focused on advancing the Cabaçal copper-gold project in Brazil.
2. Cabaçal hosts a 1.8 million ounce gold equivalent resource with potential to grow.
3. A scoping study due in Q2 2023 is expected to outline robust economics for an initial 10-year mine life.
4. The company has significant exploration upside across its 55km belt position.
5. With the stock recovering from a tough 2022, Meridian offers leverage to rising copper and gold prices.

Conclusion

With the challenges of 2022 now in the rearview, Meridian Mining is poised for an exciting year ahead. Near term catalysts include the release of a scoping study for Cabaçal, which is expected to outline robust project economics. The company is fully funded through key development milestones at Cabaçal and exploration across its extensive land package.

After strong consolidation in 2022, Meridian starts 2023 with a tight capital structure and supportive institutional shareholder base. As the company continues to derisk Cabaçal and demonstrate the potential scale of the opportunity, it represents a compelling leverage play on copper and gold.

For investors looking for exposure to a unique copper-gold project on the cusp of development with significant upside potential, Meridian Mining stands out as a compelling opportunity.