ADVANCED CABAÇAL COPPER-GOLD PROJECT
Preliminary Economic Assessment (Base Case After-Tax) – NPV5 USD 573 M & IRR 58.4%
Cabaçal deposit is a potential open-pit standalone project. Mineralization extends over ~ 2km and remains open with near mine satellite prospect
Predefined Copper-Gold-Silver VMS mineralization with high-grade gold overprint over 11km mine corridor
Licenses covering 50km of the 55km VMS belt and hosts two previous selective high grade underground mines
Brazil is a Tier 1 mining jurisdiction, with recent M&A for Copper and Gold assets
Meridian Mining is focused on the development and exploration of the advanced stage Cabaçal VMS gold‐copper project, and on regional scale exploration of the Cabaçal VMS belt in 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. A later‐stage sub‐vertical gold overprint event has emplaced high‐grade gold mineralization cross‐cutting the VMS layers. The Cabaçal Mineral Resource estimate consists of Indicated resources of 52.9mt at 0.6g/t gold, 0.3% copper and 1.4g/t silver and Inferred resources of 10.3mt at 0.7g/t gold, 0.2% copper & 1.1g/t silver, including a higher‐grade near‐surface zone supporting a starter pit.
The PEA outlines base case after‐tax NPV5 of USD 573m and 58.4% IRR from a capital cost of USD 180m, leading to repayment in 10.6 months (assumed metals prices USD 1,650/oz gold, USD 3.59/lbs copper, and USD 21.35/oz silver). Cabaçal has low ASIC of USD 671/oz 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.
Cabaçal Cu-Au Mine
- Polymetallic VMS system Cu-Au + Ag-Zn-Pb
- Defined multiple thick shallow dipping zones of Copper-Gold plus Silver-Zinc-Lead mineralization
- Indicated Resource – 52.9Mt @ AuEq 1.1 g/t (Au 0.64 g/t / Cu 0.32% / Ag 1.4 g/t)
- Inferred Resource – 10.3Mt @ AuEq 1.1 g/t (Au 0.68 g/t / Cu 0.24% / Ag 0.96 g/t)
- Starter Pit ~ 3Mt @ 2.5 g/t AuEq
Cabaçal PEA
- Preliminary Economic Assessment (Base Case After-Tax) – NPV5 USD 573 M & IRR 58.4%
- Low Initial Capex – USD 180 M
- NPV5 to Capex Ratio – 3.2 X
- Payback After-Tax – 10.6 months
- AISC (Y1-5) – USD 671 / oz
Cabaçal PEA superior economics, driven by:
- High-grade starter pit
- Simple processing
- High metallurgical recoveries
- Low strip ratio Low-cost hydroelectric power
- Brazil’s low-cost operating environment
