Meridian Mining drills 7.2 metres of 1.4 g/t gold at Santa Helena, Brazil

Meridian Mining PLC’s [TSX: MNO; OTCQX: MRRDF; FSE: 2MM] continuing drill program targeting the Santa Helena VMS system, Brazil, has intercepted a new VMS (volcanogenic massive sulphide) layer of strong precious and base metal mineralization. CD-869 returned a seven-metre-wide zone of gold-silver and zinc-lead dominated mineralization, including an interval containing visible gold. This new layer of Au-Ag and Zn-Pb mineralization is located below and east of the Santa Helena Central resource. The zone is interpreted to represent the downdip projection of the Santa Helena North chargeability anomaly.

Highlights: Santa Helena expansion program discovered a second Au-Ag and Zn-Pb system of VMS mineralization.

New VMS layer of Au-Ag and Zn-Pb mineralization intercepted below and east of Santa Helena Central resource: CD-869 returns 7.2 metres 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 hosted within the Santa Helena area mineralization; CD-869 interpreted as the downdip extension of Santa Helena North IP anomaly; mineralization remains open; Exploration drill programs for further multiple stacked horizons hosted within the Santa Helena VMS system continue: program to test for both open-pit and underground extensions to CD-869.

CD-869 returned 7.2 metres 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 prospectivity of the downdip and down-plunge extensions of Santa Helena North’s surface geophysical and geochemical anomalies. The Au-Ag and Zn-Pb mineralization remains open and follow-up drilling continues.

Gilbert Clark, CEO, commented: “CD-869’s discovery of a second layer of strong precious and base metal mineralization at Santa Helena presents an exciting opportunity for Meridian’s shareholders. The potential of further resource growth is enhanced as is the future installation of a second hub along the Cabacal belt. CD-869 and the recently reported CD-852 at Alamo2 both intercepted gold-rich mineralization. CD-869’s visible gold is an attribute rarely seen at Santa Helena, and this may signal an additional structural gold overprint or gold-enriched VMS mineralization like that seen at Cabacal. Following the London IPO [initial public offering], our well-funded exploration programs are delivering, with a high frequency of exceptionally encouraging results. This reflects the high prospectivity of what we see as South America’s most prospective VMS belt.”

Continuing exploratory drilling in the Santa Helena area continues to enhance the potential for defining stacked VMS horizons within the Cabacal Project. Drill hole CD-869 has returned an interval of more than seven m of gold-silver and base metal mineralization, north of and below the Santa Helena Central resource area.

CD-869 was collared on the eastern margin of the Santa Helena Central resource area and drilled northward to test the downdip projection of the Santa Helena North (SHN) chargeability response. This SHN anomaly extends for approximately one kilometre and remains open to the west. Initial confirmation of mineralization within this anomaly came from CD-607, which intersected VMS pathfinders and trace mineralization.

In the current campaign, CD-859, drilled 390 metres WNW of CD-607, returned gold and base metal VMS 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 metres from a depth of 63.2 metres. SHN’s chargeability and surface geochemical anomalies are interpreted as the uppermost surficial expression of a VMS exhalative horizon. The horizon is considered prospective for thickened downdip or down-plunge extensions. Broad-spaced drilling commenced this year to improve geological understanding and assess the potential for resource extensions. Additional potential also exists for structurally controlled gold with overprinting mineralization associated with later deformational events in the Cabacal belt.

The shallow-dipping stratigraphy provides access to a broad extent of prospective greenstone contact at explorable 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 metre 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 metres at 1.6 g/t Au, 0.1% Cu, 26.6 g/t Ag, 2.6% Zn and 1.0% Pb from 178.1 metres.

The CD-869 position lies more than 330 metres downdip from the shallower CD-859 gold intersection, underscoring the broad extent of prospective contact available for testing and the potential for mineral zones to thicken.

CD-869 was also collared approximately 390 metres west-northwest of the recently reported CD-852 Alamo gold intersection. In this early phase of the Santa Helena near-mine exploration program, the results continue to indicate the potential of the surrounding areas to yield new positions prospective for resource extensions. CD-869 shows consistently elevated gold and silver grades.

Peak grades in 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). Peak Cu was 0.2 per cent (CBDS129216). The metal distribution suggests that this sulphide zone may represent a more distal cooler domain of a broader VMS system, with continuing drilling along strike designed to test for variations in Cu:Zn ratios.

The mineralized zone is positioned within and immediately above a zone of sodium depletion, indicative of hydrothermal leaching. The footwall also shows increased magnesium, consistent with chloritic alteration.

Additional drilling is in progress. CD-857 tested approximately 80 m downdip from CD-869, and CD-867 was drilled approximately 117 metres obliquely up-dip. Both holes returned multiple intersections of lower-grade mineralization. The stratigraphic succession is locally disrupted by mafic intrusions, and the extent to which these intrusions offset or displace the dip projection of CD-869 is currently under review. Given the mound-like morphology of VMS systems and linear character of the known deposits in the belt, there remains ample space to project the emerging CD-869 and CD-852 mineralized zones.

Santa Helena drill results: The last of the drill results from the Santa Helena Central drill program, gathering additional data in proximity to historical grade control and mine development, have been received (Table 3). Highlights include CD-866: 15.4 metres 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 metres 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 extents of the Santa Helena and neighbouring Alamo system remain untested. With the recognition of the CD-852 gold zone, the CD-869 gold-base metal zone, and the currently unconstrained strike projection of the resource area, the company will await further drilling and metallurgical results before initiating the next resource assessment to properly optimize the development strategy.

Espigao exploration program: The company has also commenced field evaluation of Espigao Cu-Au targets to plan logistics and access for a first phase of reconnaissance drilling to be executed in the coming months. The company has obtained permission from the state environmental agency, SEDAM, to carry out the drilling program in the Espigao project.

Meridian Mining is focused on the development and exploration of the advanced-stage Cabacal VMS gold-copper project; expanding the initial resource inventory at the Santa Helena area through extension of Santa Helena Central and new discoveries; regional-scale exploration of the Cabacal VMS belt to expand the Cabacal hub strategy and exploration in the Jauru and Araputanga greenstone belts (the above all located in the state of Mato Grosso, Brazil).

The prefeasibility study technical report dated March 31, 2025, entitled “Cabacal Gold-Copper Project NI 43-101 Technical Report and Pre-feasibility Study,” outlined a base-case after-tax net present value (discounted at 5%) of US$984 million and internal rate of return of 61.2% from a preproduction capital cost of US$248 million, leading to capital repayment in 17 months (assuming a metals price scenario of US$2,119/oz of gold, US$4.16 per pound of copper and US$26.89/oz of silver).

Cabacal has a low all-in-sustaining cost of US$742/oz gold equivalent and production profile of 141,000 ounces of gold equivalent life of mine, driven by high metallurgical recovery, a low life-of-mine strip ratio of 2.3:1 and the low operating cost environment of Brazil.

The Cabacal mineral reserve estimate in the 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).