Meridian Mining - Resource and PEA in Focus for 1H/22

Meridian Mining aims to become the next mid-tier copper/gold developer and producer in Brazil with its focus on the development of its Cabaçal copper/gold project in the state of Mato Grosso.  The Cabaçal copper/gold project is an advanced stage district-scale VMS deposit, which was discovered in 1983 by BP Minerals. The deposit contains broad zones of coalescing Cu-Au mineralization which starts close to surface and is open at a depth of 175 m whilst extending 2,000 m along strike.

Matthew Gordon spoke with Gilbert Clark, Executive Chairman of Meridian Mining to discuss the company’s latest activities and planned future endeavours. 

Company Overview

The company recently announced an exploration and metallurgical update for its Cabaçal copper/gold project. The metallurgical program at Cabaçal has intercepted some of the strongest intervals of copper mineralization that the company has seen to date. The highlights of the exploration and metallurgical update include the interception of a 66.0 m interval of disseminated, stringer and semi-massive veins of copper sulphide mineralization. The exploration and metallurgical update has also announced the discovery that the sulphide layers are cut by high angle veins, this suggests the occurrence of localised gold over-printing. XRF analysis has also confirmed cupriferous and auriferous sulphide hosted mineralization.

Meridian Mining plans to extend its exploration program of the Cabaçal copper/gold project with 15,000 m of exploration and in-fill drilling. The exploration and in-fill drilling program aims to enable the publishing of a NI 43-101 resource estimate by the end of July 2022.  The company is currently underway with laying the foundation to be able to complete a preliminary economic assessment (PEA) of the Cabaçal copper/gold project shortly after the resource estimate completion.

The company is well funded for its future endeavours and plans to be listed on the Toronto Stock Exchange (TSX) by the first half of 2022 dependent on the application process and progress.

The Cabaçal copper/gold project

The Cabaçal copper/gold project is an advanced stage volcanogenic massive sulphide (VMS) ore deposit, which has a district-scale size potential. The project is located in the state of Mato Grosso in West-Central Brazil.

The Cabaçal copper/gold project was discovered in 1982 by BP Minerals and was hidden from the public markets until the acquisition of the project in 2020 by Meridian Mining. The project has extensive historical geological data and various exploration targets.

The Cabaçal copper/gold project hosts broad zones of near-surface coalescing Copper-Gold-Silver VMS mineralization which contains high-grade mineralisation deposits. The company has stated that the potential metallurgical recoveries of the project are high. The mineralisation of the Cabaçal copper/gold project remains open below 175 m below the surface and extends 2,000 m along strike.

The Cabaçal copper/gold project also has the potential to include a satellite copper/gold deposit at the historically producing Santa Helena zinc-copper-gold-silver-lead mine. Meridian Mining believes that the St Helena mine, with its 1000 m footprint has a strong potential to be implemented as a future open-pit development. The potential of the deposit is accredited to it still possessing a medium to high-grade massive-sulphide ore body as well as unmined surface mineralization.

The company does not believe that the St Helena deposit has enough economic mass to justify a standalone mining operation, the deposit much rather has the potential to serve as an open-pit development that will feed a central processing facility at the Cabaçal copper/gold project.

Exploration

Meridian Mining initiated an exploration diamond drilling program and surface geophysical program at the Cabaçal copper/gold project initially in  March 2021. The initial exploration drilling intercepted mineralisation with highlights including 13.21% copper (Cu), 34 grams per ton gold (g/t Au), 29 grams per ton of silver (g.t Ag) and 1.08% zinc (zinc). The impressive mineralisation led to the company extending the exploration drilling at the Cabaçal copper/gold project by an additional 15,000 m.

The extended exploration and inf-fill drilling program will be focused on targeting open copper-gold mineralisation and is fully financed. The company states that the expanded 15,000 m drilling program will be able to not only validate the mineralisation but also aid in the extension of the central Cabaçal resource. The extended exploration drilling program will also explore possible mineralisation extension along the VMS belt of the Cabaçal copper/gold project.

The highlights to date of the ongoing exploration and in-fill drilling programs at the Cabaçal copper/gold project as well as the St Helena deposit includes the interception of high‐grade mineralisation including large amounts of visible gold. The peak assay results received by the company include mineralisation of 10.0% Cu, 127.0 g/t Au, 77.7 g/t Ag over 0.8 m from 81.9 m in drill hole CBDS11940. The highest-grade gold mineralization has been confirmed to be present in copper sulphide layers.

The company also reported the intersection of layers of semi-massive sulphides at the Cabaçal copper/gold project, with the sulphide layers cut by high angle veins suggesting localised gold over-printing. XRF analysis has also confirmed cupriferous and auriferous sulphide hosted mineralization. The St Helena deposit has also reported gold mineralisation close to the surface of up to 16.0 g/t Au and 100.2 g/t Ag.

Company finances

Meridian Mining announced in October 2021, that it had concluded with a brokered private placement deal. The deal entailed the issuing of 14,835,000 common shares of the company at a price of CAD$ 0.70 per share, which led to the gross proceeds of CAD$ 10,384,500. The company entered 2022 with a cash position of approximately CAD$ 11.25 million with an additional CAD$ 3.8 million possible through the execution of various warrants. Meridian Mining has a cash position of approximately CAD$ 15 million in total, which it believes will allow it to continue with all its planned exploration endeavours.

The management team of the company owns 10.3 million shares of Meridian Mining with 6.6% outstanding), 3.3 million warrants and 9.2 million options totalling 11.4% fully diluted. The company may look to raise funds in the future as it is required.

Future plans

Meridian Mining plans to continue with its exploration and in-fill drilling this year. The exploration and in-fill drilling will enable the company to publish its first NI 43-101 resource in the middle of 2022.

The results of the ongoing exploration and in-fill drilling program will be implemented to publish an internal scoping study of the Cabaçal copper/gold project by the end of Q1 2022. The company plans to then undertake engineering test work that will enable the publishing of a preliminary economic assessment (PEA) by the end of 2022.

As part of the data needed for the PEA, pre-feasibility study (PFS) as well as the bankable feasibility study (BFS). Meridian Mining is underway with final submissions of separate service providers, required to complete the comminution study as well as to conduct head assays, mineralogy, flotation, and gravity test work. The company believes that the metallurgical studies will confirm the anticipated high recoveries of copper, gold and silver, which it will include in future NI 43-101 reports.

Meridian mining has also launched the environmental impact study (EIS) for the Cabaçal copper/gold project. The company has enlisted the services of Sete Soluções e Tecnologia Ambiental, a Brazilian company, to conduct the EIS, which is scheduled to be completed by the end of 2022.

Meridian Mining plans to further the Cabaçal copper/gold project in 2023, with preliminary licensing, environmental licensing, a feasibility study and various exploration and resource initiatives already planned. 

‍To find out more, go to the Meridian Mining website