Meridian Mining plc(TSX: Mobile network operator; OTCC: MRRDF; FSE: 2MM) An ongoing drilling program targeting the Santa Helena VMS system, Brazil, has intercepted a new VMS (volcanic massive sulphide) layer of strong precious and base metal mineralization. CD-869 returned a seven-meter-wide zone of gold, silver, zinc and lead mineralization, including an interval containing visible gold. This new layer of Au-Ag and Zn-Pb mineralization is located beneath and east of the Central Santa Helena Resource. The area is interpreted to represent the downward projection of the northern Santa Helena charge susceptibility anomaly.
Highlights: The Santa Helena Expansion Program discovered a second Au-Ag and Zn-Pb mineralization system.
A new VMS layer of Au-Ag and Zn-Pb mineralization was intercepted below and east of Santa Helena Central Resource: CD-869 returns 7.2m at 1.4 g/t gold, 0.1% copper, 24.3 g/t silver, 2.3% zinc, and 0.9% lead.
First appearance of visible gold found within the Santa Helena Mineralization Zone; CD-869 is interpreted as a downward extension of the Santa Helena North IP anomaly; The mineralization remains open. Exploration drilling programs continue for more of the multiple stacked horizons hosted within the Santa Helena VMS: a program to test both open and underground extensions of CD-869.
CD-869 returned 7.2 meters at 1.4 g/t Au, 0.1% Cu, 24.3 g/t Ag, 2.3% Zn and 0.9% Pb from 177.6 metres, highlighting the potential for downslope and downdipping extensions of the geophysical and geochemical anomalies of the northern Santa Helena surface. Au-Ag and Zn-Pb mineralization remains open and subsequent drilling continues.
Gilbert Clark, CEO, commented: “CD-869’s discovery of a second layer of strong precious metal and base metal mineralization at Santa Helena represents an exciting opportunity for Meridian shareholders. The potential for further resource growth is enhanced as is the future installation of a second axis along the Kabacal Belt. Both CD-869 and CD-852 recently reported at Alamo2 have intercepted gold-rich mineralization. The visible gold of CD-869 is a feature rarely seen in Santa Helena, this may indicate additional structural gold overprinting or gold-enriched VMS mineralization such as that seen at Capacal Following the London IPO, well-funded exploration programs are delivering, with a high frequency of exceptionally encouraging results, and this reflects the high probability of what we consider to be the most prospective VMS belt in South America.
Ongoing exploratory drilling in the Santa Helena area continues to enhance the potential for defining stacked VMS prospects within the Capacal Project. Drill hole CD-869 returned an interval of over seven meters of gold, silver and base metal mineralization, north of and below the Central Santa Helena Resource Area.
CD-869 was collared on the eastern edge of the Central Santa Helena Resource Area and drilled north to test the regression projection of the charging response in the Santa Helena North (SHN). This SHN anomaly extends for about 1 km and remains open to the west. Initial confirmation of mineralization within this anomaly came from CD-607, which intersected VMS tracks and traced the mineralization.
In the current campaign, CD-859 drilled 390 meters west-west of CD-607, and returned VMS gold and base metal horizons, including one sample grading 5.0 g/t Au, 3.2 g/t Ag, 1.0% Zn and 0.3% Pb over 0.8 meters from a depth of 63.2 metres. The charge potential and surface geochemical anomalies of the SHN are interpreted as the upper surface expression of the VMS sapphire horizon. The horizon is likely for thick dips or downward extensions. Large-scale drilling began this year to improve geological understanding and assess the potential for resource expansion. There is also additional potential for structurally controlled gold through epiphytic mineralization associated with later deformation events in the Kabakkal Belt.
Shallow-dipping stratigraphy provides access to a wide range of potential greenstone contact at exploreable depths, and CD-869 was drilled approximately 270 m to the south of the southern edge of the SHN chargeability anomaly.
CD-869 intersected an interval with a higher abundance of banded sulphides, returning 7.2 meters at 1.4 g/t Au, 0.1% Cu, 24.3 g/t Ag, 2.3% Zn and 0.9% Pb from 177.6 meters, including 6.2 meters at 1.6 g/t Au, 0.1% Cu, 26.6 g/t Ag, 2.6% zinc and 1.0% lead from 178.1 metres.
The CD-869 site is located more than 330 meters from the shallow gold intersection CD-859, confirming the wide range of potential contact available for testing and the potential for thicker mineralized zones.
CD-869 was also collared approximately 390 meters west-northwest of the recently reported CD-852 Alamo gold junction. At this early stage of the mine exploration program near Santa Helena, results continue to indicate the potential of the surrounding areas to find potential new sites for resource expansions. The CD-869 shows consistently high gold and silver tones.
Peak grades at the CD-869 intersection included 4.8% Zn (CBDS129216), 3.8 g/t Au (CBDS129224), 41.5 g/t Ag (CBDS129218) and 1.6% Pb (CBDS129216). Copper peaked at 0.2 percent (CBDS129216). The distribution of minerals suggests that this sulphide zone may represent a cooler, more distant domain of the broader VMS, with continued drilling along strike designed to test variations in copper:zinc ratios.
The mineralized zone is placed within and immediately above the sodium depletion zone, indicating hydrothermal leaching. The footwall also shows increased magnesium, consistent with chlorite alteration.
Additional drilling is underway. CD-857 was tested approximately 80 meters deeper than CD-869, and CD-867 was drilled at approximately 117 meters obliquely. Both holes contain multiple intersections of low grade mineralization. The stratigraphic succession is locally disrupted by mafic intrusions, and the extent to which these intrusions offset or offset the CD-869 projection is currently under review. Due to the hill-like shape of the VMS and the linear character of known deposits in the belt, there is still ample room to display the emerging mineralized zones CD-869 and CD-852.
Santa Helena Drill Results: The latest drill results were obtained from the Santa Helena Central Drilling Program, which collects additional data near historical grade control and mine development (Table 3). CD-866 highlights include: 15.4 meters at 0.7 g/t Au, 0.6% Cu, 29.1 g/t Ag and 5.1% Zn from 31.3 metres, including 8.6 meters at 0.8 g/t Au, 1.0% Cu, 42.7 g/t Ag and 8.6% Zn from 38.1 metres.
CD-861: 12.0 m at 0.8 g/t Au, 0.6% Cu, 36.7 g/t Ag and 4.9% Zn from 29.7 m, including 3.4 m at 1.0 g/t Au, 1.3% Cu, 68.7 g/t Ag and 7.7% Zn from 30.1 m.
CD-862: 11.1 m at 0.2 g/t Au, 0.2% Cu, 15.2 g/t Ag and 2.1% Zn from 48.0 m and 13.6 m at 0.3 g/t Au, 0.2% Cu, 16.2 g/t Ag and 2.3% Zn from 61.9 m.
Large swaths of the Santa Helena and adjacent Alamo systems remain untested. With the recognition of gold zone CD-852, gold base mineralized zone CD-869, and the currently unrestricted outlook for the resource area, the Company will await further drilling and mineralogy results before initiating the next resource assessment to properly optimize the development strategy.
Espigao Exploration Program: The company has also begun field evaluation of the Espigao Cu-Au targets to plan logistics and access for the first phase of reconnaissance drilling to be carried out in the coming months. The company has received permission from the government environmental agency SEDAM to implement a drilling program at the Espejao project.
Meridian Mining is focused on the development and exploration of the advanced Cabacal VMS gold and copper project; Expansion of the primary resource stock in the Santa Helena area through expansion of the central Santa Helena area and new discoveries; Regional-scale exploration of the Cabacal VMS belt to expand the Cabacal axis strategy and exploration in the Jauru and Araputanga greenstone belts (located above in Mato Grosso state, Brazil).
The pre-feasibility study technical report dated 31 March 2025, entitled “Cabacal Gold-Copper Project NI 43-101 Technical Report and Pre-Feasibility Study”, determined a base case after-tax NPV (discounted by 5%) of US$984 million and an internal rate of return of 61.2% of the pre-production capital cost of US$248 million, resulting in the capital being paid back in 17 months (assuming a metal price scenario of US$2,119 per ounce of gold, US$4.16 per pound of copper, and US$26.89 per ounce of silver).
Cabacal has a low sustainable cost of US$742/oz gold and a production profile of 141,000 oz gold equivalent mine life, driven by high mineral recovery, a lower mine sector age ratio of 2.3:1 and a lower operating environment in Brazil.
The Cabacal mineral reserve estimate at PFS consists of proven and probable reserves of 41.7 million tonnes at 0.63 g/t gold, 0.44% copper and 1.64 g/t silver (at a cut-off grade of 0.25 g/t gold equivalent).
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