AMSTERDAM, The Netherlands,
April 10, 2017 /CNW/ - Meridian
Mining S.E. (TSX V: MNO) ("Meridian" or the "Company"), today
announced first quarter 2017 production and sales from its
manganese project in Espigão and provided an update on its Bom
Futuro tin joint venture. Both projects are located in the state of
Rondônia, in northwestern Brazil.
Espigão Project Production Data
In the first quarter of 2017 production reached 5,530 tonnes of
manganese oxide mineral product. This represents a 127% increase
over production of 2,438 tonnes in the first quarter of 2016.
Production dropped compared to the fourth quarter of 2016, which
was expected, as the "rainy season" in Rondônia occurs
predominantly in the first calendar quarter of the year, and the
Rio Madeira plant was undergoing general maintenance. In early
March, operations at the Jaburi plant were temporarily suspended so
that the installation of the new jigging equipment for the pilot
plant could proceed. The expanded pilot plant will introduce more
efficient jigging and improved water utilization, along with the
ability to crush and process the primary mineralized material. The
pilot plant is expected to be commissioned early in the second
quarter of 2017 and bring total production capacity at the Espigão
project to 50,000tpa.
Sales in the first quarter were 12,871 tonnes of manganese oxide
mineral product. This represents a nearly three-fold increase over
sales of 4,404 tonnes in the first quarter of 2016. Sales in the
quarter were for a range of specialty applications including
fertilizer and steel production. Higher manganese spot prices
in the first quarter of 2017 made it possible to sell product to
international customers in Asia.
Approximately half of the product sold in first quarter of 2017
went to international customers.
Manganese prices fluctuated fairly dramatically in late 2016 and
early 2017. CIF Tianjin pricing for 44% manganese was US$9.01 per dmtu as of January 7, 2017 and was US$4.15 per dmtu as of March 31, 2017 (source:
www.metalbulletin.com).
"We continue to make progress on a range of initiatives at each
of our Rondônia-based projects," said Anthony Julien, President and CEO of Meridian.
"The completion of the pilot plant will not only expand our
production capacity to 50,000tpa, but it will also give us the
ability to treat and beneficiate primary vein material so we can
verify the metallurgy and advance our understanding of the
operational model at Espigão. In parallel, we continue to advance
our exploration activities at Bom Futuro looking at both the
nearer-term potential of the tailings, which we hope to multiply as
we further understand the opportunities in and around the Bom
Futuro mine and the Non-Explored area in the 18,000 hectare
tenement package surrounding the mine."
Espigão Project Exploration Activities
Manganese exploration programs continued at Espigão do Oeste
with an emphasis on ground geophysics. The Company engaged AFC
Geofisica to conduct an induced polarisation program ("IP"),
prioritized on structural corridors close to the Jaburi and Rio
Madeira plants. One hundred and twenty-five line kilometres of
gradient array and 19 line kilometres of dipole-dipole surveys have
been completed to date. The program has identified a number of
chargeability anomalies for follow-up evaluation, with final data
processing to be completed following the conclusion of the
contracted program in April. Meridian has purchased its own IP
equipment from Instrumentation GDD Inc., and will be continuing IP
survey coverage with an in-house crew across project area.
Bom Futuro Joint Venture Exploration Update
The Bom Futuro due diligence program concluded during the
quarter, culminating in the notification of the Cooperativa de
Garimpeiros de Santa Cruz Ltda. ("Coopersanta") and Cooperativa
Metalúrgica de Rondônia Ltda. ("Coopermetal") (together the
"Cooperatives"), that Meridian Brasil will proceed with the
transactions contemplated in the investment agreement (the
"Investment Agreement") previously announced on December 19, 2016. Meridian has continued
its auger drilling program, with 420 holes completed to date. The
auger drilling will be phased out upon completion of a 100m x 100m
drill pattern over the assigned tailings and will be replaced by a
percussion drilling program for ongoing resource definition. The
program will be supplemented by a second percussion drill rig, to
be dispatched from the manufacturer, Sondeq, in mid-April.
Exploration on the Bom Futuro licences will continue in parallel
with resource definition programs, with an immediate focus on
reconnaissance mapping and surface geochemistry. Quotations are
being evaluated from aerial geophysical survey contractors to fly
the licence area to assist in definition of under-cover targets.
The company also completed an 11-hole / 1,288m diamond drilling
program in the Central Area, confirming that pegmatites and quartz
veins containing coarse cassiterite persist at depth in
outward-dipping ring structures around the Bom Futuro Hill.
Complete analytical data is pending for the diamond drilling
program.
QUALIFIED PERSON
The technical information about the Company's production and
sales activities has been prepared under the supervision of and
verified by Carlos Braga (B.Sc.,
MBA, member of the Chilean Mining Commission), the Chief Operating
Officer of Meridian Mining, who is a "qualified person" within the
meaning of National Instrument 43-101.
The technical information about the Company's exploration
activity has been has been prepared under the supervision of and
verified by Dr. Adrian McArthur
(B.Sc. Hons, PhD. FAusIMM), the Chief Geologist of Meridian Mining,
who is a "qualified person" within the meaning of National
Instrument 43-101.
On behalf of the Board of Directors of
Meridian Mining S.E.
"Anthony Julien"
Anthony Julien
President, CEO and Director
ABOUT MERIDIAN
Meridian Mining S.E. is focused on the acquisition, exploration,
development and mining activities in Brazil. The Company is currently focused on
exploring and developing the Espigão manganese project, the Bom
Futuro tin JV area, and adjacent areas in the state of Rondônia.
The Company employs a two-pronged strategy with the objective of
growing pilot production while advancing a parallel multi-commodity
regional exploration program. Meridian is currently producing high
grade manganese at its project located at Espigão do Oeste.
Further information can be found at www.meridianmining.co.
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 include, among others,
statements with respect to the Company's plans for exploration and
development of its properties and potential mineralization. These
statements address future events and conditions and, as such,
involve known and unknown risks, uncertainties and other factors,
which may cause the actual results, performance or achievements to
be materially different from any future results, performance or
achievements expressed or implied by the statements. Such risk
factors include, among others, failure to obtain regulatory
approvals, failure to complete anticipated transactions, the timing
and success of future exploration and development activities,
exploration and development risks, title matters, inability to
obtain any required third party consents, operating hazards, metal
prices, political and economic factors, competitive factors,
general economic conditions, relationships with strategic partners,
governmental regulation and supervision, seasonality, technological
change, industry practices and one-time events. In making the
forward-looking statements, the Company has applied several
material assumptions including, but not limited to, the assumptions
that: (1) the proposed exploration and development of mineral
projects will proceed as planned; (2) market fundamentals will
result in sustained metals and minerals prices and (3) any
additional financing needed will be available on reasonable terms.
The Company expressly disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise except as otherwise
required by applicable securities legislation.
The Company cautions that it has not completed any feasibility
studies on any of its mineral properties, and no mineral reserve
estimate has been established. In particular, because the Company's
production decision relating to BMC's manganese project is not
based upon a feasibility study of mineral reserves, the economic
and technical viability of the Espigão manganese project has not
been established.
The TSX Venture Exchange has in no way passed upon the merits of
the proposed Arrangement and has neither approved nor disapproved
the contents of this news release. Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Meridian Mining S.E.