LONDON, Oct. 23, 2017 /CNW/ - Meridian Mining SE (TSX V: MNO) ("Meridian " or the "Company") today provided an update on exploration results from its Bom Futuro tin joint venture in the state of Rondônia, in NW Brazil.
The Bom Futuro tin mine has produced 195,000t of tin over a thirty-year history of continuous operation since its discovery in 1987. Meridian Mining entered a joint venture with the project owners - Coopersanta – in late 20161. The initial priority has been to evaluate opportunities to recover tin from the millions of cubic meters of tailings which have accumulated around the Bom Futuro Hill. The appreciation of the tin price in recent years has created a more favourable climate for assessing retreatment scenarios (current LME Cash buyer $US 20,925/t, from historical lows of $US3,625 in September 2001).
1 Details of the agreement are summarised in the Company's announcements of Dec. 19, 2016; March 16, 2017.
HIGHLIGHTS
- Positive discussions with JV partners Coopersanta have expanded the area subject to the mining services agreement. The total area of tailings basins now allocated to Meridian for retreatment is 1,261 ha. Extensions to the southern palaeochannel system in the Central Area have also been included.
- Drilling continues on the tailings with two percussion rigs in operation. Site visit undertaken by resource consultancy H&S Consulting in preparation for resource estimation, with the objective of publishing the maiden resource and PEA in the current quarter.
- Further geophysical surveys have been undertaken around the perimeter of the Central Area, identifying new palaeochannel drill targets.
- Percussion drilling will be ongoing on the newly allocated target areas to the end of the year. The new geophysical targets will be prioritized for testing after the conclusion of the resource drilling.
"The expansion of the areas allocated under the mining services agreement reflects confidence that improved processing techniques can add value under our partnership," said Anthony Julien, President and CEO of Meridian. "Palaeovalley mineralization has made a significant contribution to the historical production at Bom Futuro, Brazil's second largest tin mine. The addition of the palaeovalley extensions offers scope to test for significant tonnages of mineralized material beyond the large tailings areas now allocated to the project."
MERIDIAN TAILINGS EVALUATION PROGRAM
The tailings evaluation program originally commenced with 437 auger holes completed in the first quarter of 2017, targeting 493ha of allocated tailings basins at Jacaré Leste, EBESA, and the Santa Cruz corridor. Following the due diligence period, a program of percussion drilling has continued. Two rigs are currently in operation and a program of metallurgical testwork is progressing. The joint-venture partners, Coopersanta, have allocated additional tailings basins under the mining services agreement, expanding the total area of allocated tailings now to 1,261 ha (Fig 1).
The current percussion drilling program is focussed on testing the tailings basins on a 200 x 200m pattern, with 216 holes completed to date. The program is defining coherent areas of more elevated grades, typically in the range of 450 - 800ppm at Jacaré Leste, EBESA, Carlinhos and, Gilberto (Fig 1). The western tailings basins remain under drill definition. Highlights from the drilling include:
- EBESA: 7m @ 1,704ppm Sn
- Jacaré Leste: 17m @ 834ppm Sn
- Gilberto: 13.7m @ 891ppm Sn
- Carlinhos: 12m @ 913ppm Sn
- Santa Cruz: 29m @ 428ppm Sn
Drilling is currently in progress along Santa Cruz corridor and will then continue over the newly allocated areas. The current objective is to complete the broad-spaced drilling over the key basins this year for definition of an Inferred Resource and Preliminary Economic Assessment. A site visit has been undertaken by resource consultancy H&S Consultants in preparation for the estimation process.
ADDITIONAL ALLOCATION AREAS FOR PLACER MINERALIZATION
Discussions with the cooperative also focussed on unlocking value for inactive areas that can be revisited with improved recoveries. The extensions of the southern palaeochannel trend have been nominated for inclusion in the mining services agreement (Fig 2).
Mining of the Bom Futuro palaeochannels commenced in 1991, with activity peaking on the southern channel system from 2006 to 2012. The channels are characterized by higher grade basal gravel horizons which can contain >4-5 Sn kg/m3, and broader lower grade packages of sands which can run between 270 - 800 g/m3. The extensions of the southern channel system have never been drilled and provide a broad exploration footprint. The unconsolidated palaeochannel material is considered to offer synergies with tailings retreatment scenarios under evaluation.
GEOPHYSICAL PROGRAM
Exploration for additional palaeochannels and channel extensions has continued through an expansion of Meridian's ground penetrating radar (GPR) program. Orientation studies in the first quarter showed a clear signature of bedded sediments along known palaeochannel trends. An additional 30 line-kilometres of GPR surveys has tested for channel positions outside the perimeter of the Central Area. Erosion of the mineralised veins of the Bom Futuro Hill is expected to have contributed to the sediment bedload in these areas.
The recent program has successfully defined new targets positions where the GPR response provides a signature consistent with bedded unconsolidated sediments.
Geophysical exploration targets are preliminary in nature and not conclusive evidence of the likelihood of a mineral deposit. The Company commence a regional reconnaissance exploration drilling program following the conclusion of the tailings evaluation to screen targets for the presence of placer mineralization.
Examples of the GPR response and channel targets are illustrated in Figure 3.
Next Steps
- Percussion drilling will be ongoing on the newly allocated target areas to the end of the year.
- Resource evaluation will commence shortly with the objective of publishing the maiden resource and PEA in the fourth quarter.
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, who is a "qualified person" within the meaning of National Instrument 43-101.
ABOUT MERIDIAN
Meridian Mining SE is focused on the acquisition, exploration, development and mining activities in Brazil. The Company is currently focused on exploring and developing the Espigão 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 do Oeste.
