- Positive due-diligence confirms potential for tailings
reprocessing and regional exploration
- Tailings Reprocessing Area expanded to more than
875ha
AMSTERDAM, March 16, 2017 /CNW/ - Meridian Mining S.E. (TSX
V: MNO) ("Meridian" or the "Company"), today announced that,
through its wholly-owned subsidiary Meridian Mineração Jaburi S.A.
(formerly named Brasil Manganês Corporation Mineração S.A.)
("Meridian Brasil"), it has successfully completed its due
diligence on the Bom Futuro tin joint venture in the state of
Rondônia, in Northwest Brazil and
has notified the Cooperativa de Garimperiros de Santa Cruz Ltda.
("Coopersanta") and Cooperativa Metalúrgica de Rondônia Ltda.
("Coopermetal") (together the "Cooperatives"), that Meridian Brasil
will proceed with the transactions contemplated in the investment
agreement (the "Investment Agreement") previously announced on
December 19, 2016.
Due Diligence
Meridian Brasil has completed the preliminary technical audit of
the Tailings Area and has completed initial exploration on the
Central Area and the Non-Explored Area. Initial results were
announced in the news release dated February
15, 2017. Key highlights to date include:
- Tailings program: 361 auger holes have been completed. Peak
composite grades of 0.13% tin. Encouraging thicknesses of tailings
were encountered in the Jacare Leste area, where auger holes
terminated still within tailings at depths of up to 10m. This area
has been prioritized for initial resource evaluation, with
percussion drilling commencing to penetrate the full thickness of
the tailings profile. Maximum depths of 18m have been encountered
where the tailings infilled older valley systems.
- Exploration: The core drilling program has concluded with 11
holes completed for 1,288 metres. Results confirm that pegmatites
and quartz veins containing coarse cassiterite persist at depth in
outward-dipping ring structures around the hill (complete
analytical results pending). Trial geophysical surveys indicate
that a combination of ground magnetics, induced polarisation
techniques and ground penetrating radar assist in the definition of
primary structures and palaeochannel positions. The orientation
surveys provide a valuable template for expansion into covered
areas regionally through the joint venture area.
- Provisional metallurgical testwork supervised by independent
consultant Ian Gordon shows positive
results with finer cassiterite fractions amenable to concentration
through Falcon Concentrators and coarser material amenable to
jigging. Results from spiral tests are pending. The next phase of
testwork will utilise composites gathered through the percussion
drilling program.
"We are pleased with the progress we made during the due
diligence period and outcomes of our due diligence work program,"
said Anthony Julien, President and
Chief Executive Officer of Meridian. "We continue to receive
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. We are pleased to
receive such positive results and to finalize our technical audit
so we can continue to advance the joint venture together with the
Cooperatives."
Cooperative Update
During the due diligence period, the Cooperatives obtained a
favourable commitment from the Public Prosecutor's Office and
Centrais Eléctricas de Rondônia S/A – CERON (Electrobrás) ("CERON")
for the granting of the necessary approvals for Meridian Brasil to
take over construction of a power transmission line. The
Cooperatives also approved a Tailings Reprocessing Permit and the
Exploration Permit over the Total Area.
In addition, the Cooperatives agreed to significantly expand the
Tailings Reprocessable Area to 878.80ha from 492.57ha initially
contemplated in the Investment Agreement. In addition, the
Cooperatives have also granted to Meridian Brasil the exclusive
right to carry out mining operations in the Non-Explored Area,
prior to the completion of a feasibility study as originally
contemplated in the Investment Agreement, provided that the
committed investment and exploration works continue. The interests
of the parties in the mining operations will be 80% for Meridian
Brasil and 20% to the Cooperatives.
Investment Arrangement
Meridian Brasil can earn an interest in up to three components
of the Cooperatives' operation. Pursuant to the Investment
Agreement, as discussed in further detail in the news release dated
December 19, 2016, Meridian Brasil
has: (i) the right to provide tailings reprocessing
services on certain tailings deriving from the Tailings
Reprocessable Area to the Cooperatives and will execute a formal
services agreement in this sense with the Cooperatives;
(ii) a right of first refusal on either the
acquisition of the mineral rights or the provision of underground
mining services in the Central Area; and (iii) the
right to earn 80% of the Non-Explored Area surrounding the mines
and, in addition, as mentioned above, can now (iv)
exploit the Non- Explored Area, prior to the conclusion of the
exploration phase and issuance of the feasibility study, provided
that the committed investment and exploration works for this area
continue.
The Bom Futuro mine has produced more than 192,000 tonnes of tin
since its discovery in 1987, and is the largest producing tin mine
in the Ariquemes district. The Ariquemes District, located in
Rondônia, NW Brazil has produced
approximately 3% of the world's tin supply over the past 30
years
QUALIFIED PERSON
The technical information about the Company's activities has
been prepared under the supervision of and verified by Dr.
Adrian McArthur (B.Sc. Hons, PhD.
FAusIMM), a consultant to Meridian Brasil, 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 Meridian Brasil 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. The Company is
currently producing high grade manganese at the Meridian Brasil
project located near, Espigão de Oeste, also in the state of
Rondônia.
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.
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.
SOURCE Meridian Mining S.E.