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Meridian Drills Further High-Grade VMS Mineralization at Santa Helena - 58.9m @ 3.6g/t AuEq (2.8g/t Au, 0.7% Cu, 19.0g/t Ag & 1.7% Zn)
Meridian Mining UK. S (TSX:MNO)(Frankfurt/Tradegate:2MM)(OTCQX:MRRDF) ("Meridian" or the "Company") is pleased to provide a drilling update for the Santa Helena Cu-Au-Ag & Zn deposit ("Santa Helena"). CD-612 has drilled another lateral extension, assaying 58.9m @ 3.6g/t AuEq * (2.8g/t Au, 0.7% Cu, 19.0g/t Ag & 1.7% Zn), including a higher-grade zone of 26.8m @ 4.1g/t AuEq (4.2g/t Au, 0.7% Cu, 13.1g/t Ag & 0.8% Zn) , in the western gold domain of the Santa Helena deposit ("Figure 1", "Figure 2"). This result extends the localized across strike thickness of CD-605's 1 75.6m @ 4.6g/t AuEq (3.0g/t Au, 1.0% Cu, 30.2 g/t Ag & 2.5% Zn). Drilling is continuing with further assays pending.
Meridian is also announcing the securing of new licence applications, expanding the Company's footprint in the Cabaçal, Jaurú and Araputanga Belts ("Figure 3").
Highlights Reported Today
Meridian extends the western gold mineralization at Santa Helena, drilling 58.9m @ 3.6g/t AuEq ;
Santa Helena assays further gold rich VMS mineralization with CD-612's 58.9m @ 2.8g/t Au, 0.7% Cu, 19.0g/t Ag & 1.7% Zn from 29.1m, widening the western gold extension;
Shallowest high-grade zone assays 26.8m @ 4.1g/t AuEq (4.2g/t Au, 0.7% Cu, 13.1g/t Ag & 0.8% Zn) from 29.1m;
Ongoing lateral drill results to the west of Santa Helena extend the potential for future open pit development;
CD-612 returns a down-hole 212.0 AuEq gram-metre interval within open pitable depths;
Western gold domain of Santa Helena deposit remains open; and
Meridian expands land position within the Cabaçal, Jaurú and Araputanga greenstone belts.
*See technical note for true thickness estimate and separate AuEq and CuEq equations.
Mr. Gilbert Clark, CEO, comments:
"CD-612's 58.9m @ 3.6g/t AuEq is part of the ongoing success we are having in defining this shallow, gold-dominant western extension to the Santa Helena VMS system. These western expansion results have necessitated a revision to Santa Helena's resource estimation parameters, particularly in the localized gold rich zone, and consequently the Santa Helena Mineral Resource Estimate is now expected to be published in early January."
"We have recently secured potentially significant additional exploration ground to the southeast of the Cabaçal belt's current limits, where we believe that the belt is covered by a younger sedimentary unit. We look forward to expanding our systematic belt-scale exploration program in the Cabaçal belt in 2025."
1 Meridian Mining news release of November 20th, 2024.
Santa Helena Update
The recent Santa Helena drilling program has focused on the open western domain where our results have indicated that historical drill programs and the practice of selective assaying have missed significant gold-rich VMS mineralization. CD-612 has returned 58.9m @ 3.6g/t AuEq of near surface. This equates to a down-hole interval of 212.0 gram-meters (AuEq) from 21.9m within potential open-pitable depths. CD-612 has widened the across-strike footprint and allows for a better interpretation up and down dip to CD-605.
Within the 58.9m of mineralization there are several high-grade sub-sections which include:
26.8m @ 4.1g/t AuEq / 2.8% CuEq (4.2g/t Au, 0.7% Cu, 13.1g/t Ag & 0.8% Zn) from 29.1m;
2.1m @ 14.3g/t AuEq / 9.6% CuEq (9.1g/t Au, 5.2% Cu, 67.4g/t Ag & 2.1% Zn) from 62.5m; and
16.6m @ 4.3g/t AuEq / 2.9% CuEq (2.6g/t Au, 1.1% Cu, 25.7g/t Ag & 2.4% Zn) from 60.5m.
Drilling in the open western sector of Santa Helena, is confirming that the host mine horizon's poor surface expression is due to colluvial cover. The Company's recent geophysical surveys delineated a continuous chargeability anomaly extending from the mine area. This anomaly has been converted to robust gold dominant Au-Cu-Ag & Zn mineralization extending uninterrupted to the west from the edge of Santa Helena where it remains open. The recent intersection strengthens the interpretation of a thickened WNW-plunging gold-dominant sector of the sheet, with an interpreted true width of up to 17m. The Santa Helena VMS package to the east can reach widths of up to 28m and we look forward to further work in the continuing delineation of these extensions, where previously a gap in the continuity of the sheet has been projected.
Figure 1: Santa Helena drill results reported today and previous highlights.
The Company has been working since September with an independent consultancy to prepare Santa Helena for a resource update, during which time they have analysed the recent and historical data to refine the geological model. A number of aspects of the deposit have required some analysis, including the historical data, for which at times core intervals were only partially sampled, or for which not all elements of economic interest were assayed. This can influence the geometric interpretation of the main sheet and footwall positions. The Company's recent drilling to the west has required some revisions to the interpretation which has influenced the schedule, and consequently the timing of the planned estimation of the mineral resource has been extended and is now expected in early January.
Figure 2: Longitudinal view looking north (top) and plan view (bottom), showing the extent of the newly intersected mineralization in relation to the 2008 end-of-mine interpreted extents of the VMS layer.
Regional Exploration Portfolio Update
The Company is pleased to report three new licence applications, expanding its footprint in each of the Cabaçal, Jaurú and Araputanga Belts.
At Cabaçal, the Company has extended its landbank to the southeast, with an area of 7,561 Ha to the east of the Alamo licence. This is an unexplored frontier region, under a younger cover sequence. A recent review of the geophysical signature suggested that structural trends projecting east-south-east from Santa Helena continue to extend under this cover, presenting an opportunity for the long-term exploration of the belt. The licence adds magnetic target corridors of 8 to 9 km strike extent (~equal to the distance between Cabaçal and Santa Helena). The depth to the interpreted greenstone sequence needs to be verified, but the magnetic signature indicates that it is at explorable depths.
In the Jaurú Belt, an area of 2,116 Ha has been added. The area was selected based on analysis of BP stream sampling data, which showed clustered gold and base metal anomalies (peak copper: 36 ppm; peak zinc: 99 ppm, peak lead: 30 ppm; peak gold: 27 counts 2 ). These anomaly thresholds compare well to reconnaissance levels for the known deposits (Cabaçal: 34 - 56 ppm Cu, 36 - 60ppm Zn, 6 - 13 ppm Pb, 1 - 14 gold counts; Santa Helena: 20 - 36 ppm Cu, 13 - 149 ppm Zn; 8 - 80 ppm Pb, 1 - 30 gold counts).
The new licence in the Araputanga Belt covers a total of 2,337 Ha. It does not have a record of complete stream geochemical data coverage, lacking gold information, but does have stream anomalies with Cu to 22 ppm, Zn to 87 ppm, and Pb to 38 ppm.
Figure 3: Licence map showing the new applications.
2 Empirical number of number of gold specks in a 5 litre panned channel gravel sample
About Meridian
Meridian Mining is focused on:
The development and exploration of the advanced stage Cabaçal VMS gold‐copper project;
The initial resource definition at the second higher-grade VMS asset at Santa Helena as the first stage of the Cabaçal Hub development strategy;
Regional scale exploration of the Cabaçal VMS belt to expand the Cabaçal Hub strategy; and
Exploration in the Jaurú & Araputanga Greenstone belts (the above all located in the State of Mato Grosso, Brazil).
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.
The Cabaçal Mineral Resource estimate consists of Indicated resources of 52.9 million tonnes at 0.6g/t gold, 0.3% copper and 1.4g/t silver and Inferred resources of 10.3 million tonnes at 0.7g/t gold, 0.2% copper & 1.1g/t silver (at a 0.3 g/t gold equivalent cut-off grade). Santa Helena mine area generated 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 site.
Readers are encouraged to read the PEA Technical Report in its entirety. The PEA Technical Report may be found on the Company's website at www.meridianmining.co and under the Company's profile on SEDAR+ at www.sedarplus.ca.
The qualified persons for the PEA Technical Report are: Robert Raponi (P. Eng), Principal Metallurgist with Ausenco Engineering), Scott Elfen (P. E.), Global Lead Geotechnical and Civil Services with Ausenco Engineering), Simon Tear (PGeo, EurGeol), Principal Geological Consultant of H&SC, Marcelo Batelochi, (MAusIMM, CP Geo), Geological Consultant of MB Geologia Ltda, Joseph Keane (Mineral Processing Engineer; P.E), of SGS, and Guilherme Gomides Ferreira (Mine Engineer MAIG) of GE21 Consultoria Mineral.
On behalf of the Board of Directors of Meridian Mining UK S
Samples have been analysed at ALS laboratory in Lima, Peru. Samples are dried, crushed with 70% passing 85% passing 200µm. Routine gold analyses have been conducted by Au‐AA24 (fire assay of a 50g charge with AAS finish). High‐grade samples (>10g/t Au) are repeated with a gravimetric finish (Au‐GRA22), and base metal analysis by methods ME-ICP61 and OG62 (four acid digest with ICP-AES finish). Visible gold intervals are sampled by metallic 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. Pulps and coarse rejects are retained and returned to the Company for storage. The Company submits a range of quality control samples, including blanks and gold and polymetallic standards supplied by Rocklabs, ITAK and OREAS, supplementing laboratory quality control procedures. Approximately 5% of archived samples are sent for umpire laboratory analysis, including any lots exhibiting QAQC outliers after discussion with the laboratory. In BP Minerals sampling, gold was analysed historically by fire assay and base metals by three acid digest and ICP finish at the Nomos laboratory in Rio de Janeiro. Silver was analysed by aqua regia digest with an atomic absorption finish. True width is considered to be ~20 -30% of intersection width for CD. Assay figures and intervals are rounded to 1 decimal place.
Gold equivalents for Santa Helena are based on metallurgical recoveries from the historical resource calculation, updated with pricing forecasts aligned with the Cabaçal PEA. AuEq (g/t) = (Au(g/t) * 65%Recovery) + (1.492*Cu(%) * 89%Recovery) + (0.474*Zn% * 89%Recovery)) + (0.013*Ag(g/t) * 61%Recovery)). CuEq (%) = (Cu(%) * 89%Recovery) + (0.318*Zn% * 89%Recovery)) + (0.67*Au(g/t) * 65%Recovery) + (0.0087*Ag(g/t) * 61%Recovery)). Metallurgical testwork is currently in progress to evaluate recoveries in primary lithologies and saprolite, with formulas to be updated based on revised recoveries pricing.
Qualified Person
Mr. Erich Marques, B.Sc., FAIG, Chief Geologist of Meridian Mining and a Qualified Person as defined by National Instrument 43-101, has reviewed, and verified the technical information in this news release.
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 uncertainties, as disclosed under the heading "Risk Factors" in Meridian's most recent Annual Information Form filed on www.sedarplus.ca . While these factors and assumptions are considered reasonable by 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-looking statement, whether as a result of new information, future events, or results or otherwise.
