AMSTERDAM, Feb. 15, 2017 /CNW/ - Meridian Mining S.E.
(TSX V: MNO) ("Meridian " or the "Company"), today provided an
update on exploration activities on its Bom Futuro tin joint
venture in the state of Rondônia, in northwest Brazil.
KEY HIGHLIGHTS
- Tailings program accelerates: 212 auger holes have been
completed with peak composite grades of 0.11% Sn (tin). The Jacaré
Leste tailings area has been prioritized for initial resource
evaluation. The first percussion holes here indicate this tailings
pile is 3 to 18 metres thick, providing a good target for
appreciable tonnage over the 177 hectares area.
- Primary targets emerging: The core drilling program is
on its 6th hole, with 741 m completed. Coarse cassiterite has been
observed in pegmatites and quartz veins. Initial samples have been
dispatched to ALS Global for independent, third party analysis.
Structurally controlled vein mineralization is being mapped on the
Bom Futuro Hill and the Palanqueta Hill, 1.2 kilometres to the
northeast. Reconnaissance field inspection confirms that surficial
cassiterite occurrences extend to the immediate north of Palanqueta
into the 18,000ha Non-Explored Area. Geophysical orientation
surveys are in progress to assist in under-cover target
definition.
"We are thrilled with the rapid progress and early outcomes of
our initial work program," said Anthony
Julien, President and CEO of Meridian. "We have received
excellent logistical support from Coopersanta, our joint venture
partner. Together we believe there are excellent opportunities to
apply modern technology to optimize recoveries and explore for new
tin deposits in this important mining centre. Our goal is to
finalize our technical audit ahead of the March 15, 2017 deadline to confirm our intention
to exercise our option under the Investment Agreement."
PROJECT BACKGROUND
Over a 30-year operational history, 192,000 tonnes of tin have
been produced and some millions of cubic metres of tailings have
accumulated around the Bom Futuro Hill. Meridian's joint-venture
partner, Coopersanta, has been operating the project since 2004.
Coopersanta is currently sourcing production from tailings
retreatment plants, and from mining operations on palaeochannels
and primary vein / pegmatite mineralization.
Coopersanta's tailings reprocessing operations have contributed
6,742 t of tin production over seven years since commencing in
2010. There are four main plants with treatment capacities of
~20,000 m³ per month each. The plants use a combination of jigs,
shaking tables, and magnetic separation techniques to produce a
cassiterite concentrate. Opportunities exist to further optimize
tin recoveries through developing a thorough understanding of the
tailings resource, its metallurgical characteristics, and the
optimal technologies for recovering tin in all size fractions.
Coopersanta's long-term geological consultancy – Avistar –
estimates that, through the entire project area, there are 85
million cubic metres of rejects in active and inactive tailings
ponds covering 3,548 ha. This represents 128
Mt of mineralized waste at an assumed a density of 1.5
t/m3 on a dry basis. Avistar estimates the tailings have
recoverable grades in the range of 350-800 g/m³ / 230 – 530 g/t
based on processing trials. A qualified person (as defined in
National Instrument 43-101) has not done sufficient work to
classify this estimate as a mineral resource and Meridian is not
treating the estimate as a current mineral resource. Meridian
plans to complete further work based on the Avistar estimate to
establish an NI 43-101 compliant mineral resource
estimate.
MERIDIAN TAILINGS EVALUATION PROGRAM
The Company commenced a scout auger geochemical drilling program
immediately following entry into the Investment Agreement
referenced in the press release dated December 19, 2016. The purpose of this was to
provide provisional information on the thickness and grade of the
tailings pile, which has been deposited on an incised topography.
Programs have been focussed in the main tailings prospect areas of
Jacaré Leste, EBESA, and the Santa
Cruz corridor (Santa Cruz
"LC80", Santa Cruz Central, and Santa
Cruz "LC75"; Figure 1).
Two hundred and twelve holes have been completed to date, with
the program ongoing. Initial drilling was conducted on a broad 400
x 400 m grid due to the extensive area. This pattern is being
progressively infilled on a 100 x 100 m grid. Assay results from
the broad spaced program have been received with data from the
infill program pending.
The mechanical augers are capable of returning a good sample to
a depth of approximately two to nine metres below surface in the
upper drier part of the tailings pile. Results will be used to
prioritize more detailed resource definition drilling. Meridian has
purchased and refurbished a Bucyrus percussion drill rig to provide
a high quality sample through the full tailings profile. The rig
has just commenced operations in the Jacaré Leste Area, and will continue in parallel with
the ongoing auger program.
The Jacaré Leste area is dominated by reject material from
primary mining operations. The area has been prioritized for the
next phase of evaluation based on elevated grades and indications
of an appreciable thickness. The tailings from Jacaré Leste
accumulated during the same era of mining as those which have
supplied Coopersanta's tailings production for the past seven
years. The auger composites from the central and eastern sector are
higher grade, returning values of 300 – 892 g/t Sn (Figure 2).
Eighty percent of the auger holes bottomed in tailings, indicating
minimum depths of two to eight metres over wide areas. Three new
percussion holes have been completed to date, encountering the base
of the tailings pile at depths of three, ten and eighteen metres
(assay results pending). Ground penetrating radar techniques will
be used in conjunction with drilling data to interpret the position
of the base of the tailings profile. The percussion holes are being
continued into the underlying soil, alluvium and saprolite to test
whether any residual mineralization exists in the original
substrate.
The EBESA area also shows promise for good thickness of
tailings. Auger holes have terminated within the reject pile at
depths of three to nine metres. The full thickness of the profile
will be confirmed by follow-up percussion drilling. These tailings
are from the historical operations of the company EBESA, and were
originally crushed by a hammer mill nominally screened at six
millimetres before processing. The first phase of drilling
encountered grades of 144 - 690 g/t Sn. The area allocated to BMC
spans 51 ha and is bordered by an active tailings pond. The Company
is maintaining a dialogue with the Coopersanta regarding
integrating further tailings areas into the agreement when not
required for operational purposes.
The Santa Cruz corridor along
the western boundary of the project area has returned some of the
highest composite grades to date (Santa
Cruz LC80: 2.95m @ 1070 ppm, Santa Cruz Central: 1.5m @ 1080
ppm – both open at depth). The thicker and higher grade
tailings in these areas are believed to be deposited in lower lying
channels and will form the last stage of detailed evaluation.
Figure 1: Grade distribution from
composites of initial auger results (holes positions with results
available illustrated).
Figure 2: Top: Grade distribution in
the Jacaré Leste Area. Composites in
labelled in black are reported from ALS Canada; those in blue are
from the local Bom Futuro laboratory with ALS checks pending.
Bottom: Overview of tailings area, and example of freely liberated
cassiterite panned from the tailings (metallic grey gravel) and
sand particles.
The Company has engaged metallurgical consultant Mr.
Ian Gordon Hall Dun, who was
involved with the Ariquemes tin district during its initial
development in the 1980's with Cia Estanifera do Brasil. Mr Dun has
since worked on tin-tantalum-niobium projects with Minsur SA,
Mineração Taboca SA, and in a consulting capacity on various
projects through South America and
Africa. The Company will use SGS
Brazil, Mineral Technologies and Laboratório de Caracterização
Tecnológica to support its initial metallurgical testwork.
Meridian's engineering consultancy Küttner Engineering will scope
plant designs as data becomes progressively available.
Metallurical testwork will determine the most appropriate flowsheet
to produce a concentrate of at least 50% Sn. This flowsheet will
include conventional gravity, magnetic and electrostatic separation
equipment. Fine grinding and flotation will not be necessary
thereby reducing operating costs substantially.
EXPLORATION PROGRAM
In parallel with the tailings activities, the Company has
commenced an exploration program focussed on the 2,000ha Central
Area of the project. The purpose of the program is to develop an
early understanding of the structural controls on the vein and
pegmatite mineralization, and characterize the response of
palaeochannels and primary mineralization in various geophysical
techniques.
AFC Geofisica has initiated ground geophysical surveys involving
gravity surveys, ground magnetics, and induced polarization.
Palaeochannel positions will also be tested with two-dimensional
electrical imaging studies. The initial survey covers an area of
~2km2. The Company's geophysical consultancy, Core Geophysics, will
assist in a review of the results with an objective to extending
the most effective surveys to under-cover extensional exploration
programs, involving aerial surveys augmented by further ground
programs.
Four holes have been completed in the Company's core drilling
program, and two are currently in progress. A total of 741m has
been completed to date (Figure 3). Two holes have been
designed for verification of historical results (DDH_BF_0001,
DDH_BF_0003), where prior drill results were limited by maximum
upper detection limits of 1%, and to compare results of an
uncertified laboratory for historical sampling. Some holes have
provided first tests below historical pits on the southern and
western flanks of the hill (DDH_BF_0002, DDH_BF_0005). DDH_BF_0004
is testing along strike to the east of an historical hole which
intersected a wider vein package (3.45 m @ 1.11% Sn).
Figure 3: Location of Meridian drill
sites (DDH_BF series), in relation to vein systems and historical
drill collars around the Bom Futuro Hill. The location of current
vein mining by Coopersanta is shown on the eastern flank of the
hill. Historical drill results are highlighted in yellow.
Drilling indicates that the veins can reach widths of several
metres (Figure 4). However assay results for the drilling remain
pending to confirm grades. First samples have been sent to ALS
Global for analysis. Samples will be analyzed for tin and base
metals, with sphalerite and chalcopyrite observed in drill core
along with the cassiterite mineralization.
Additional drilling over the coming weeks is planned in the
vicinity Coopersanta's current active mine area, where channel
sampling of an exposed vein returned a result of 5.25m @ 0.56% Sn,
including 2.45m @ 1.16% Sn. Some scout drilling will also be
conducted on the Palanqueta Hill, a granite plug centred 1.2k north
of the Bom Futuro Hill just within the northern limit of the
Central Area. Hand-workings on vein systems cutting the granite
here have returned samples of coarse cassiterite (Figure 5).
Figure 4: Drill core from Meridian
drill hole DDH_BF_0004, illustrating oxide-sulphide mineralization
with a package of quartz veins, 103.9 - 115.9m (example arrowed to
the right). Assay results pending.
Figure 5: Cassiterite samples from
garimpeiro workings on the Palanqueta Hill.
Next Steps
- Auger drilling will continue on the tailings areas to
mid-March. This will be supported by the deeper percussion drilling
that will become the preferred technique for resource definition
activities subject to satisfying due diligence outcomes.
- Provisional metallurgical testwork will be extended as samples
become available in key areas through the full width of the
tailings profile. Metallurgical testwork will examine concentration
processes and recoveries using a variety of gravity-based mineral
separation techniques, such as jigs, spirals, and centrifugal
concentration.
- The diamond drilling evaluation will conclude in the first
quarter and the focus will switch to evaluation of geophysical
data. After preferred techniques are confirmed, the focus of
primary and palaeochannel exploration would be on target definition
through an expanded geophysical survey program.
QUALIFIED PERSON
The technical information about the Company's exploration
activity has been has been prepared under the supervision of and
verified by Dr. Adrian McArthur
(B.Sc. Hons, PhD. FAusIMM), the Chief Geologist of Meridian Mining
S.E., who is a "qualified person" within the meaning of National
Instrument 43-101.
On behalf of the Board of Directors of
Meridian Mining S.E.
"Anthony Julien"
Anthony Julien
President, CEO and Director
ABOUT MERIDIAN
Meridian Mining S.E. is focused on the acquisition, exploration,
development and mining activities in Brazil. The Company is currently focused on
exploring and developing the BMC manganese project, the Bom Futuro
tin JV area, and adjacent areas in the state of Rondônia. The
Company employs a two-pronged strategy with the objective of
growing pilot production while advancing a parallel multi-commodity
regional exploration program. Meridian is currently producing high
grade manganese at its project located at Espigão de Oeste.
Further information can be found at www.meridianmining.co.
FORWARD-LOOKING STATEMENTS
Some statements in this
news release contain forward-looking information or forward-looking
statements for the purposes of applicable securities laws. These
statements include, among others, statements with respect to the
Company's plans for exploration and development of its properties
and potential mineralization. These statements address future
events and conditions and, as such, involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the statements. Such risk factors include, among others,
failure to obtain regulatory approvals, failure to complete
anticipated transactions, the timing and success of future
exploration and development activities, exploration and development
risks, title matters, inability to obtain any required third party
consents, operating hazards, metal prices, political and economic
factors, competitive factors, general economic conditions,
relationships with strategic partners, governmental regulation and
supervision, seasonality, technological change, industry practices
and one-time events. In making the forward-looking statements, the
Company has applied several material assumptions including, but not
limited to, the assumptions that: (1) the proposed exploration and
development of mineral projects will proceed as planned; (2) market
fundamentals will result in sustained metals and minerals prices
and (3) any additional financing needed will be available on
reasonable terms. The Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise
except as otherwise required by applicable securities
legislation.
The Company cautions that it has not completed any feasibility
studies on any of its mineral properties, and no mineral reserve
estimate has been established. In particular, because the Company's
production decision relating to BMC's manganese project is not
based upon a feasibility study of mineral reserves, the economic
and technical viability of the BMC manganese project has not been
established.
The TSX Venture Exchange has in no way passed upon the merits of
the proposed Arrangement and has neither approved nor disapproved
the contents of this news release. Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
NOTES
Auger program are samples downhole by material type where
some stratification is encountered or in regular 1m intervals in
more massive domains. Material is dried a divided by riffle
splitter to produce a 5kg sample. Samples are pulverized at the
company's sample preparation facilities in Espigão do
Oeste, with one pulp sent for analysis by pressed powder XRF at the
Coopersanta laboratory at Bom Futuro using a Rigaku X-ray
spectrometry (XRF). Checks are being conducted via ALS Global.
Sample quality is monitored through the use of certified reference
materials. Tin grades quoted are those reported by the certified
ALS laboratory unless otherwise indicated.
The diamond drilling program is being conducted by Layne Do
Brasil Sondagens Ltda, and by an internal Meridian team using a
hand-portable drill rig subleased from Energold Perfurações Ltda.
Sampling is conducted to geological boundaries with a maximum
interval of 1m. Half HQ core has been submitted for analysis at ALS
Global Vancouver. Sample preparation is being conducted at ALS
Global's sample preparation facilities in Goiânia.
The estimated volume and tonnage of tailings were compiled in
May 2016 for Meridian by
Coopersanta's geological consultant Renato Muzzolon of Avistar
Engenharia de Meio Ambiente e Segurança do Trabalho. Renato
Muzzolon has worked on Bom Futuro project since 1988. The
figures do not constitute a resource and a qualified person
has not done sufficient work to classify this estimate as a mineral
resources. Meridian is not treating the estimate as a current
mineral resources.
The volume calculations are based on the known areal extent
of the tailings coupled with estimated depths. Inspections of
active Coopersanta mining areas where tailings are being
reprocessed indicate the assigned thicknesses are not unreasonable.
Grade estimates are based on processing trials, a limited number of
analyses from localized historical auger drilling, and a 1996
report on reject grades from historical operations. Work required
to define a formal mineral resource estimate on the tailings
assigned to Meridian include:
- Regular grid drilling with techniques ensuring good sample
recovery (sonic drilling or percussion casing advance
techniques).
- Systematic analyses coupled with quality control and
metallurgical testwork to determine grade distribution and
recoveries
- Accurate topographic survey of the current relief on the
tailings ponds coupled with a relief model of the substrate for
volume calculations
- Data on the wet and dry density of the
pile.
SOURCE Meridian Mining S.E.