“We are continuing to see broad layers of VMS style mineralization hosting strong grades of copper-gold-silver from shallow depths,” CEO Adrian McArthur said in a press release.
The “potentially higher-grade zones” would help boost Cabacal’s resource statement, McArthur added.
The project was discovered in 1983 by BP Minerals and later acquired by Rio Tinto in 1989. A past-producing underground mine at the project mined 869,279 tonnes grading 5 grams gold per tonne and 0.82% copper over four years up to 1991.
In 2020, Meridian entered into an option agreement with a group of private Brazilian companies that allows them to acquire 100% of the property for a total consideration of $8.8 million and 4.5 million Meridian shares. The company is currently in the process of fulfilling the third of seven instalments outlined in the agreement.
The property hosts a historic resource of 21.7 million tonnes grading 0.6% copper and 0.6 gram gold per tonne, which was completed by a previous owner in 2009. Meridian is in the process of completing a further 11,000 metres of drilling to announce an updated resource estimate.
Eariler this month, the company announced drill results from the same project, including highlights of 19.9 metres grading 1.8% copper, 6 grams gold per tonne and 7.7 grams silver starting from 66.5 metres in drillhole CD-094; as well as3.6 metres grading 2.1% copper, 0.6 gram gold per tonne and 7.8 grams silver starting from 47.3 metres in drillhole CD-090.
Midday in Toronto, Meridian Mining was trading at C$1 per share, up 9.9%, within a 52-week trading range of C34¢ and C$1.34. The company has 147.6 million common shares outstanding for a market cap of C$147.6 million ($117.2m).
