Down-dip resource drilling has intercepted new strong gold-copper trends within the CNWE area, while infill drilling has continued to confirm the high-grade near-surface gold trend within the indicated resource envelope, designed to enhance its level of confidence in the evaluation of high-grade starter pits. Today’s results include a new copper-enriched trend within Cabacal’s Northwest Extension (CNWE) located outside of the current Cabacal resource model with one of the new gold-copper zones also overprinted by a new high-grade open gold structure. Further assay results are pending.
Meridian drilled multiple new high-grade gold veins and copper-gold layers at Cabacal. Extension drilling defined new gold-copper rich trend with localized gold overprint. The new trend graded 13 metres at 3.4 g/t gold, 0.9% copper and 5.1 g/t silver from 50.4 metres (CD-171); with intervals of 6.2% copper over 0.7 metres and 27.7 g/t gold over 0.3 metres.
CNWE extensional drilling hits new high-grade gold trend while infill drilling confirms the near-surface high-grade gold trend. There is a new down-dip high-grade gold trend drilled at the limit of the Indicated Resource with 8.8 metres at 4.8 g/t gold, 0.2% Cu and 0.8 g/t Ag from 46.7 metres (CD-194). Peak gold interval graded 70.1 g/t gold over 0.35 metres from 52.87 metres.
Infill drilling confirms CNWE’s shallow high-grade gold trend within the Indicated Resource envelope with 28.4 metres at 1.0 g/t Au, 0.2% Cu and 0.4 g/t Ag, from 23.5 metres (CD-185), including 4.3 metres at 4.6 g/t Au, 0.1% Cu and 0.3 g/t Ag from 37.0 metres.
Extension drilling intercepts further strong zones of copper enriched VMS mineralization within the CNWE. Up-dip trend graded 15.6 metres at 0.8% Cu, 0.2 g/t Au and 1.1 g/t Ag from 42 metres (CD-193). There were intervals of 6.0% Cu over 0.4 metres, 4.4% Cu over 0.35 metres and 3.8% Cu over 0.8 metres.
Assays results to be included in the 2023 Resource update. True widths are approximately 80-90% of downhole lengths.
The separate gold-dominant and copper-enriched trends confirm the zonal aspect of the 1.9km Cabacal VMS deposit. Consistent strong copper zones are generally concentrated in the south-east sector of the deposit, however new copper enriched lenses are emerging within the CNWE. The entire deposit is overprinted by a later stage high grade gold event.
Dr Adrian McArthur, CEO and President commented: “Today’s results have identified new VMS high-grade gold rich zones and copper-gold layers and are very encouraging as these and future results will contribute to the 2023 resource update. These results have also opened the CNWE for another two corridors where the high-grade gold overprint is present. Having continual strong results at shallow depths support our views that the Cabacal gold-copper deposit offers strong optionality in its early years for high-grade feed for rapid capital payback, backed by a larger resource. The Company plans to update the resource early in the second quarter of 2023, and in parallel continues with data compilation and evaluation of targets to prepare for expanded exploration programs targeting and unlocking the potential of the broader belt.”
In November 2020, Meridian signed a Purchase Agreement to acquire 100% ownership of certain tenements covering the historical Cabacal and Santa Helena mines and the along strike tenements from two, private, Brazilian companies. Subsequently, Meridian expanded its land tenure to 55 km of strike length. Cabacal had two historical, shallow, high-grade selectively mined underground mines that cumulatively produced ~34 million pounds of copper, ~170,108 ounces of gold, ~1,033,532 ounces of silver and ~103 million pounds of zinc via conventional flotation and gravity metallurgical processes.
Cabacal has excellent infrastructure with access by all-weather road, industrial electricity provided by the adjacent hydroelectric power station supplying this clean energy grid, and local communities provide a large population to draw employees from.