LONDON, Oct. 23, 2017 /CNW/ - Meridian Mining SE (TSX
V: MNO) ("Meridian " or the "Company") today provided an update
on exploration results from its Bom Futuro tin joint venture in the
state of Rondônia, in NW
Brazil.
PROJECT BACKGROUND
The Bom Futuro tin mine has produced 195,000t of tin over a
thirty-year history of continuous operation since its discovery in
1987. Meridian Mining entered a joint venture with the project
owners - Coopersanta – in late 20161. The initial
priority has been to evaluate opportunities to recover tin from the
millions of cubic meters of tailings which have accumulated around
the Bom Futuro Hill. The appreciation of the tin price in recent
years has created a more favourable climate for assessing
retreatment scenarios (current LME Cash buyer $US 20,925/t, from historical lows of
$US3,625 in September 2001).
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1
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Details of the
agreement are summarised in the Company's announcements of Dec. 19,
2016; March 16, 2017.
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HIGHLIGHTS
- Positive discussions with JV partners Coopersanta have expanded
the area subject to the mining services agreement. The total area
of tailings basins now allocated to Meridian for retreatment is
1,261 ha. Extensions to the southern palaeochannel system in the
Central Area have also been included.
- Drilling continues on the tailings with two percussion rigs in
operation. Site visit undertaken by resource consultancy H&S
Consulting in preparation for resource estimation, with the
objective of publishing the maiden resource and PEA in the current
quarter.
- Further geophysical surveys have been undertaken around the
perimeter of the Central Area, identifying new palaeochannel drill
targets.
- Percussion drilling will be ongoing on the newly allocated
target areas to the end of the year. The new geophysical targets
will be prioritized for testing after the conclusion of the
resource drilling.
"The expansion of the areas allocated under the mining
services agreement reflects confidence that improved processing
techniques can add value under our partnership," said Anthony Julien, President and CEO of Meridian.
"Palaeovalley mineralization has made a significant contribution to
the historical production at Bom Futuro, Brazil's second largest tin
mine. The addition of the palaeovalley
extensions offers scope to test for significant tonnages of
mineralized material beyond the large tailings areas now allocated
to the project."
MERIDIAN TAILINGS EVALUATION PROGRAM
The tailings evaluation program originally commenced with 437
auger holes completed in the first quarter of 2017, targeting 493ha
of allocated tailings basins at Jacaré Leste, EBESA, and the
Santa Cruz
corridor. Following the due diligence period, a program of
percussion drilling has continued. Two rigs are currently in
operation and a program of metallurgical testwork is progressing.
The joint-venture partners, Coopersanta, have allocated additional
tailings basins under the mining services agreement, expanding the
total area of allocated tailings now to 1,261 ha (Fig
1).
The current percussion drilling program is focussed on testing
the tailings basins on a 200 x 200m pattern, with 216 holes
completed to date. The program is defining coherent areas of more
elevated grades, typically in the range of 450 - 800ppm at Jacaré
Leste, EBESA, Carlinhos and, Gilberto (Fig 1). The western tailings
basins remain under drill definition. Highlights from the drilling
include:
- EBESA: 7m @ 1,704ppm Sn
- Jacaré Leste: 17m @ 834ppm Sn
- Gilberto: 13.7m @ 891ppm Sn
- Carlinhos: 12m @ 913ppm Sn
- Santa Cruz: 29m @ 428ppm
Sn
Drilling is currently in progress along Santa Cruz corridor and will then continue
over the newly allocated areas. The current objective is to
complete the broad-spaced drilling over the key basins this year
for definition of an Inferred Resource and Preliminary Economic
Assessment. A site visit has been undertaken by resource
consultancy H&S Consultants in preparation for the estimation
process.
ADDITIONAL ALLOCATION AREAS FOR PLACER MINERALIZATION
Discussions with the cooperative also focussed on unlocking
value for inactive areas that can be revisited with improved
recoveries. The extensions of the southern palaeochannel trend have
been nominated for inclusion in the mining services agreement (Fig
2).
Mining of the Bom Futuro palaeochannels commenced in 1991, with
activity peaking on the southern channel system from 2006 to 2012.
The channels are characterized by higher grade basal gravel
horizons which can contain >4-5 Sn kg/m3, and broader
lower grade packages of sands which can run between 270 - 800
g/m3. The extensions of the southern channel system have
never been drilled and provide a broad exploration footprint. The
unconsolidated palaeochannel material is considered to offer
synergies with tailings retreatment scenarios under evaluation.
GEOPHYSICAL PROGRAM
Exploration for additional palaeochannels and channel extensions
has continued through an expansion of Meridian's ground penetrating
radar (GPR) program. Orientation studies in the first quarter
showed a clear signature of bedded sediments along known
palaeochannel trends. An additional 30 line-kilometres of GPR
surveys has tested for channel positions outside the perimeter of
the Central Area. Erosion of the mineralised veins of the Bom
Futuro Hill is expected to have contributed to the sediment bedload
in these areas.
The recent program has successfully defined new targets
positions where the GPR response provides a signature consistent
with bedded unconsolidated sediments.
Geophysical exploration targets are preliminary in nature and
not conclusive evidence of the likelihood of a mineral deposit. The
Company commence a regional reconnaissance exploration drilling
program following the conclusion of the tailings evaluation to
screen targets for the presence of placer mineralization.
Examples of the GPR response and channel targets are illustrated
in Figure 3.
Next Steps
- Percussion drilling will be ongoing on the newly allocated
target areas to the end of the year.
- Resource evaluation will commence shortly with the objective of
publishing the maiden resource and PEA in the fourth quarter.
On behalf of the Board of Directors of
Meridian Mining SE
"Anthony Julien"
Anthony Julien
President, CEO and Director
QUALIFIED PERSON
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.
ABOUT MERIDIAN
Meridian Mining SE 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.
NOTES
Meridian ratified a joint venture agreement with Coopersanta
in March following a three-month due diligence period. The Company
is evaluating tailings reprocessing scenarios in allocated areas,
and is exploring for primary / palaeochannel targets in a 2000ha
"Central Area", and a 18000ha "Unexplored Area". Details of the
agreement are summarized in market releases of December 19, 2016 and March 16, 2017.
The drilling campaign commenced in Q1 2017 with a mechanical
auger drilling program. The subsequent percussion drilling program
is being conducted with a self-managed Sondeq SS5 and Bucyrus Erie
hammer percussion rigs. Samples are collected in 1m intervals,
weighed, dried, composited to 3m intervals and divided by riffle
splitter to produce a 5kg sample. Samples are pulverized at the
company's sample preparation facilities in Espigao do Oeste, with
one pulp sent for provisional analysis by pressed powder XRF at the
Coopersanta laboratory at Bom Futuro using a Rigaku X-ray
spectrometry (XRF). Final assays are determined through ALS Global
at Lima, Peru. Tin in analysed via
lithium borate fusion and ICP-MS (1-10000 ppm detection range).
Checks on higher-grade samples (>1000ppm) are conducted by
lithium metaborate - lithium tetraborate flux with XRF Finish
(method code XRF-15b). Certified reference materials and field
duplicates are submitted as part of a quality control program. Tin
grades quoted and illustrated in this report are those reported by
the ALS Global.
Ground Penetrating Radar survey were conducted using
Groundradar's proprietary UltraGPR technology (30Mhz system).
Survey post-processing has been conducted by Groundradar Inc., and
sectional interpretation has been conducted by Core
Geophysics.
SOURCE Meridian Mining S.E.