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Operations

Cabaçal Copper-Gold VMS Project

Cabaçal is an advanced Volcanogenic Massive Sulphide (“VMS”) Cu-Au project in the state of Mato Grosso, Brazil. Meridian has an option to acquire 100% of Cabaçal that consists of 30km of strike of prospective geology and two historical mines. Discovered in 1983 by BP Minerals, the main zone of massive to stockwork, stringer and disseminated Copper-Gold sulphide mineralization at Cabaçal was never mined. Cabaçal’s Cu-Au mineralisation remains open beyond ~175 meters below surface and extends 1,800 meters along strike. Cabaçal was selectively mined for small-scale high-grade gold. Regional and near mine historical exploration indicates that Cabaçal is highly prospective for repeat VMS mineralisation.

Cabaçal Tenure:

  • 1x Mining application
  • 1x Mining lease
  • 3x exploration licenses
  • 18,462 ha of tenure

Cabaçal Cu-Au Mine:

  • 400 historic diamond drill holes
  • Shallow dipping attractive target for open pit development

Cabaçal Database:

  • 600 DDH: 70,000 metres of drilling
  • 17,300 assays
  • 2,800km of aerial geophysics
  • 190km of ground geophysics

Cabaçal Upside

Highly prospective geological, geochemical and geophysical anomalies to be tested

Cabaçal Value Add

Historical mine production produce clean concentrates using conventional flotation and Au-Ag dore

Land Position and Geology

 

Cabaçal is a camp scale VMS project endowed with Copper Gold Silver Zinc and Lead mineralisation. It is under-explored and under-developed compared to analogue camps. Located on grazing farmland in the State of Mato Grosso, there is good community support backed by past operational history. The project has excellent local and regional infrastructure. The regional capital of Cuiabá is 4.5 hours by car to the west while the state has an active, well serviced and producing mining sector.

History

The Cabaçal Mine was discovered by BP Minerals in 1983, operated as a small-scale selective high-grade underground gold mine from 1987 to 1991 and extracting 869,279t at 5.00 g/t Au and 0.82 % Cu. The mine was acquired by RTZ (Rio Tinto), as part of global mining portfolio acquired after acquiring BP Minerals in 1989. It was decommissioned in 1991 during a global slump in commodity prices. The company was held via a single Brazilian private Co, until 2020 when Meridian signed the option agreement. The Cabaçal mine had over 400 historical surface DDH completed, with a twinned hole completed in 2015. In 2021 Meridian is planning an extensive Cabaçal DDH verification program to validate the historical drill collars, assays and geology data.

Geology

The Cabaçal and St Helena deposits and other known targets form part of a Paleoproterozoic VMS system in deformed metavolcanic-sedimentary rocks of the Alto Jauru Greenstone Belt. The package consists of a bimodal sequence, similar to many major VMS districts. Cabaçal’s stacked mineralisation lenses can exceed 25m in thickness and be variable enriched in Cu, Cu-Au, Cu-Au-Ag-Zn-Pb.
VMS deposits typically occur in clusters, with deposits not uncommonly spaced at 4 to 6km intervals, making both near-mine and regional exploration targets attractive. There is good scope to capitalize on significant advances in geochemical and geophysical methods for exploration for VMS systems which have advanced significantly since the 1980’s when the deposit was first discovered.

CSR – A Strong Partner for Local Stakeholders

Meridian’s operations team has extensive local and regional expertise and the Company believes in being a strong, contributing member of any community in which it operates. From the earliest stages of a project, Meridian seeks to build consensus among all stakeholders including employees, landowners, government and residents. Meridian strives to be an equal partner, investing alongside the community so that all parties have a stake in a project’s long-term success. Over the last two years, Meridian has undertaken specific initiatives including internal workshops on ethics and corruption, community and school information programs, working with local council to assist in road and infrastructure maintenance, investing in health and social programs and assisting the police force to implement road safety programs.  These initiatives provide tangible proof of Meridian’s commitment to the local community and help further de-risk the project. Meridian employees wear the words “Respect, Connect and Prosper” on their uniforms. It’s a constant reminder of shared responsibilities to the project and each other, and what can be achieved when all stakeholders work together.