Cabaçal Copper-Gold Project

 

Cabaçal hosts two previous high grade shallow underground mines.
Open at depth and along strike.

 

Cabaçal Copper-Gold Project

 

Meridian Mining is focused on becoming the next mid-tier Copper-Gold developer and producer with a focus on Brazil. The Company’s priority is on the Cabaçal project, an advanced stage VMS district scale Cu-Au project located in the state of Mato Grosso, discovered in 1983 by BP Minerals. The 36km Cabaçal VMS belt hosts a large historic resource, and two historic high-grade underground mines. The Cabaçal Central resource contains broad zones of coalescing Cu-Au mineralisation starting from shallow depths containing high-grade internals layers with top percentile metallurgical recoveries. Cabaçal Central’s mineralisation remains open beyond ~175 meters below surface and extends 3,700 meters along strike. Meridian’s on-going 10,000 metre drill program involves a combination of infill and twin drilling to statistically validate the BP Minerals / Rio Tinto database and expand along the belt leveraging the state-of-the-art Geophysics exploration. Cabaçal represents a low risk, pre-defined Copper-Gold investment opportunity, with the Cabaçal Central providing a standalone open pit resource development project to drive the camp scale expansion.

 

Cabaçal Tenure


Advanced permitting covering 768 km2

  • Cabaçal  – Mining Lease Application
  • St Helena – Mining License
  • Cabaçal Direct Extension – 3 x Exploration Licenses
  • Cabaçal Southern extension – Exploration license
  • Jaurú & Araputanga belts – 8 x Exploration license

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 ideal for open-pit development
  • Large Historic Resource

Cabaçal Database


  • 600 DDH: 70,000 metres of drilling

  • 17,300 assays
  • 2,800km of aerial geophysics
  • 190km of ground geophysics

Cabaçal Production


Historical production and excellent recoveries:

  • Produced 869,279t @ 5g/t Au + 0.82% Cu over 4 years
  • Historic recoveries -+90% Cu / 90% Au  / +85% Ag
  • Simple recovery process – Crush / Grind (110μm) / Float / Gravity

Cabaçal Program


  • Initial drill program involves a combination of infill drilling and twin drilling to statistically validate the historic database
  • Validation drilling program at Cabaçal Central:
    • 60-70 drillholes (30 twin) ~ 7,000 – 8,000 m
    • 2,000 – 3,000 m of Drilling and Trenching along the belt

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 including Road access, Rail ~385km & Power ~20km. 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 extracted 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. In 2021 Meridian has commenced 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.