Meridian releases construction update for Brazil VMS mine
Meridian Mining Plc [MNO-TSX, MRRDF-OTCQX, N2E0-FSE] has released an update on the advancement towards the final investment decision for its Cabacal VMS gold-copper and silver project in Mato Grosso, Brazil.
The company said AFRY, an international leader in engineering, project management and advisory services, has been awarded Cabacal’s Engineering, Procurement and Construction Management (EPCM) contract.
The company has committed US$30.9 million for pre-construction on multiple fronts, including the EPCM contract, power transformers, off-site civil infrastructure (bridges and road upgrades), a SAG mille, Jameson Cells and an IsaMill.
The company is also advancing the selection of Cabacal’s project finance partners after receiving numerous indicative financing proposals which include several fully funded proposals. It also said long-lead items are placed and off-site access ugrades are on track for 2026.
Meridian shares advanced on the news, rising 2.03% or $0.035 to $1.75 on Monday. The shares currently trade in a 52-week range of $2.50 to $1.20.
“AFRY’s Brazilian team have built and expanded many Brazilian mines over the last 50 years, and we look forward to their input as we bring into production one of South America’s most watched mine developments,’’ said Meridian CEO Gilbert Clark.
A definitive feasibility study technical report dated October 28, 2026 outlines a base case after-tax NPV5 of US$2.1 billion and an IRR of 108% from a pre-productive capital cost of US$322 million. Cabacal has a low all-in-sustaining cost of US$1,056 per ounce gold equivalent and an average annual production profile of 183,526 ounces of gold equivalent for mining years one to five, driven by high metallurgical recovery and a low life-of-mine strip ratio of 1.4:1, and the low operating cost environment in Brazil.
The Cabacal mineral reserve estimate consists of proven and probable reserves of 56.04 million tonnes at 0.61 g/t gold, 0.35% copper and 1.33 g/t silver (at a 0.138 g/t gold equivalent cut-off grade).
Meanwhile, in the construction update, the company said the 24.3 kilometre, 138 kV power line has secured its installation license and easement access, while heavy-vehicle road engineering contracts have been awarded. The company said finance outreach generated more than 20 indicative proposals, including multiple debt offers above US$300 million, and several fully-funded US$400 million packages covering debt, overrun, required equity and offtake services.
Next steps include shortlisting financing partners, advancing procurement and infrastructure work, and progressing towards a final investment decision, supported by approximately US$90 million in the company’s treasury.
Cabacal was discovered by BP Minerals in 1983 and historically mined as a small-scale, high-grade underground operation. The project now represents the cornerstone of Meridian’s bid to establish a scalable gold-copper platform in Brazil. The deposit supports a conventional open-pit development approach. It is being advanced as a stand-alone operation while the company continues to explore the broader belt, positioning the project as both a near-term development opportunity and a platform for long term growth.
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