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MER M
Developing a dynamic
MINING | MERIDIAN MINING
RIDIAN MINING
c copper-gold (and polymetallic) portfolio inside mining frontier Brazil
Meridian Mining S.E. is a Toronto-listed exploration, development and mining company in Brazil that originally focused on a manganese project in a joint venture with fellow Canadian junior Cancana Resources Corp. The companies merged in 2016 and continued to run the Espigão manganese project, located in the state of Rondônia in Northwestern Brazil, which produced a high quality and highly sought-after product. “But along the way, we recognised the project had a bit more to offer,” says Meridian’s CEO and President Dr Adrian McArthur. “We commenced a programme of stream sediment sampling, mapping and soil surveys, and that gradually uncovered two very substantial gold soil anomalies.” The company also realised that the manganese mineralisation was associated with a much broader set of metals, particularly rich in copper, with some of the concentrates running up to 1% copper. Additional styles of hydrothermal mineralisation were also detected, including iron oxide breccia systems. “We’ve recently reinvented the project with a focus on a higher value-adding proposition. We believe there is a polymetallic exploration opportunity.” In line with its new focus on discovering a high-grade copper-gold system, Meridian has placed the manganese operation on care and maintenance, while refocusing on copper-gold exploration and project development opportunities.
environment. It has a good
Corporate evolution
mining history and good
McArthur has been with
mining laws, but some of
Meridian for around five years
these areas have only recently
and is based in Brisbane,
been opened up for economic
although he commutes to
activities. Mapping is at a very
Brazil to work on-site for two
early stage and we recognised
to three months at a time. The
that there are several satellite
experienced geologist started
projects around.
as the company’s exploration
“Brazil is an underexplored
manager but has recently seen “One of those is Mirante
his role transition from chief
da Serra, where we have a
geologist to CEO.
number of our own licences and an option agreement over
McArthur’s appointment was
an undeveloped manganese
announced in July along with
deposit. We also have licences
other corporate changes,
in the Ariquemes district,
including the retention of
which is a very large tin mining
former CEO Gilbert Clarke as
centre, but still underexplored,”
a company director and the
Meridian’s CEO says.
retirement of Peter Weidmann, who represented the Private
Meridian has also recently
Equity fund Sentient Global
signed an option agreement
Resource Fund IV L.P. on the
on the Cabaçal Copper‐Gold
Meridian board. The company’s
Project in the neighbouring
chairman, Charles Riopel, is an
state of Mato Grosso, which
accomplished senior executive
hosts a historical copper-
with a strong business
gold mine with undeveloped
background and over 25 years
extensions and is undertaking
of international investment
due diligence on this project.
experience in mining.
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MINING | MERIDIAN MINING
The company had previously received strong financial backing from the Fund’s managers Sentient Equity Partners, but the decision was made this year to reduce its shareholding to below 10% to provide opportunities for new investors. “We have a new set of investors behind us, we have more liquidity and a broader shareholder base, and we’ve just started to initiate our programmes, carefully monitoring the COVID-19 situation,” McArthur proclaims.
Copper-gold focus Following a successful C$3.5 million capital raise in July, Meridian is initiating a geochemistry programme at the Espigão Copper-Gold Project, which is located within the Amazon Craton – a hotspot for copper and gold mineralisation in Brazil.
ESPIGÃO PRIORITY TARGET AREAS (2020 SOIL PROGRAMME)
“We’ve accumulated a large
vectors for targeting a zoned
“For the remaining months
dataset in previous years
hydrothermal copper-gold
of this year the focus is going
which contains a lot of
system, with the ultimate goal
to be on the geochemical
geophysical information, not
of identifying and prioritising
programme, getting a
all of which has been fully
targets for drilling.
good sweep on pathfinding
processed. The plan is to start
elements and understanding
with the basics and go back
While McArthur is cognisant
more about the gold anomalies
to some promising areas that
of the market’s desire to see
and the extension of those into
haven’t yet had the first pass
drill results, he highlights the
adjoining licences, processing
soil and stream geochemistry.”
vast nature of this prospective
the geophysics and optimising
project’s area – 55 km East-
that.
As many areas are yet to have
West and 30 km North-South –
preliminary geochemical
and underlines the importance
“We expect to learn a lot in
coverage, Meridian will
of building a good targeting
the coming months and going
start with a reconnaissance
criteria to accurately define
into next year we will be
programme and develop ore
targets for drilling.
ready with a set of prioritised
MINING | MERIDIAN MINING
CABAÇAL PROJECT MAP
targets identifying where the
disseminated copper-gold
style. Globally, such deposits
best bang for the buck will
sulphide mineralisation was
have been major global hosts
be on what is a very large
never exploited. Meridian
of base metals, gold and
hydrothermal system.”
is currently commencing a
silver. Deposits tend to form
due diligence process at the
as clusters within districts
project.
of about 40 km in diameter,
Moving into Mato Grosso
that may once have contained
The Cabaçal deposit was
The Cabaçal project presents
dozens of periodically spaced
discovered in 1983 by BP
an opportunity to leverage
mineral centres.
Minerals and was later
off a historical database
acquired by Rio Tinto. It
with over 70,000 metres
Validation drilling was
operated as a selective high‐
of historical drilling. The
previously conducted in
grade underground mine
deposit is considered to
2015 on the undeveloped
in the late 1980s to early
be deformed copper-gold
mineralised halo with
1990s, but the main envelope
rich of the volcanic-hosted
impressive results. Subject to
of stockwork, stringer and
massive sulphide deposit
a positive due diligence, the
RGN editor Jacob Ambrose Willson interviews Meridian Mining CEO and president Adrian McArthur, August 13, 2020
next steps would be to conduct
discovery. The company has a
presented to them. Approval
a systematic programme of
regional exploration package
of the report will then be the
validation drilling and support
and an option agreement
trigger for initiating a resource
a NI 43-101 resource update
covering an extensive system
delineation programme
and feasibility study in an
of sediment-hosted manganese on the Mirante da Serra
open-pit operation.
mineralisation.
mineralisation.”
Manganese at Mirante da Serra
“At the core option agreement
The first step for Meridian,
area, we are just waiting
subject to AMM approvals, is
Meridian is balancing its
for the national mining
to initiate a pitting programme
upcoming workload between
agency (AMM) to complete
at Mirante da Serra. At the
Espigão and the nearby
an assessment of a technical
project there exists significant
Mirante da Serra project - an
report that was recently
colluvial mineralisation at
undeveloped manganese
surface, which means that
MINING | MERIDIAN MINING
the surficial material can
Mirante da Serra project as
are and when we get to the
be evaluated by pitting and
those approvals come through
stage of extraction, we will run
trenching, with shallow
in the coming year.”
through very carefully what
drilling on the underlying
the programme will entail and
Instead, the company
Thinking globally, acting locally
plans to screen the soil
Meridian is also working hard
lawyer who deals with
and put it through a gravity
to build local environmental,
contractual arrangements with
concentration circuit
social and corporate
landholders and there is also
(if needed), to produce
governance (ESG) programmes
a dedicated environmental
a concentrate with no
throughout the rural areas
specialist that studies
chemicals. This examination
surrounding the projects in
environmental impacts and
of the colluvial layer
Rondônia. The company views
manages recuperation of the
represents the easiest pathway
ESG as an essential part of its
land.
to production for Mirante da
licence to operate, especially
Serra, according to McArthur.
in Brazil.
The following step at the
“We are very conscientious
project will involve a decision
about the importance of
relating to a small-scale trial
good relationships with the
plant before getting into full
landholders in our local
production. “We’re looking at
regions. All the work we
all those options, but at the
execute is done with the
moment the copper and gold
agreement and blessing of
market is doing very well.
those landholders,” explains
primary.
McArthur. “Manganese has softened a bit, so our priority is to focus on
“All the work is done very
Espigão, where there is a high
carefully through a process
value-add proposition. Then
of consultation. We inform
we can gradually build up the
them what the programmes
how it will impact them.” Meridian has an in-house
“We have a new set of investors behind us, we have more liquidity and a broader shareholder base, and we’ve just started to initiate our programmes, carefully monitoring the COVID-19 situation” Adrian McArthur, Meridian Mining CEO and president
“We are quite proud of this as it’s critical for having good relations with landholders. We are active in formalising the mediation programmes from all phases of mining that are being executed and returning it to a productive state, whether it was an area of vegetation or pasture.”
Strong team, strong jurisdiction McArthur summarises by highlighting the skilled and capable team that will drive
M E R I DI AN M IN I N G
AT A G L A N C E
STOCK TICKER TSXV:MNO
the project’s forward from
the market that we have the
MARKET CAPITALISATION
grassroots concepts through to
necessary skills in-house. The
feasibility and permitting.
management team has a track
US$37.3 million (as of August 20, 2020)
j
record of project execution “We try to set ourselves
and I do believe Brazil is a
apart by demonstrating to
great frontier compared to
MINING | MERIDIAN MINING
many other areas I’ve worked
geophysics or drilling before
believe in the potential of the
over the years.
and so there are opportunities
country and the people that
here that don’t exist in other
are part of this team.”
“I find it amazing that some
economies. This is one of
of these areas simply haven’t
the reasons I’ve sat with this
had any form of geochemistry,
project for some time. I really
Published by Anderson Murray Media Ltd
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