Interview with Gilbert Clark, Executive Chairman of Meridian Mining (TSX: MNO)

Merlin Marr-Johnson spoke with Gilbert Clark, the Executive Chairman of Meridian Mining (TSX: MNO) to discuss the company’s recent activities. 

Meridian Mining aims to become the next mid-tier copper developer and producer in Brazil with its focus on the development of its Cabaçal copper-gold-silver project located in the state of Mato Grosso. The Cabaçal copper-gold-silver project is an advanced-stage district-scale VMS deposit, which was discovered in 1983 by BP Minerals. The deposit contains broad zones of coalescing Cu-Au mineralization which starts close to the surface and is open at a depth of 175 m whilst extending 2,000 m along the strike.
 

Meridian Mining on the 6th of March 2023 announced the results of its preliminary economic assessment (PEA) for the Cabaçal copper-gold-silver project. The PEA was conducted by Ausenco Engineering Canada Inc. and confirms the project’s economic potential with growth opportunities. 

The highlights of the PEA include a base case after-tax NPV5 of CAD$778 million and an internal rate of return (IRR) of 58.4%. The NPV5 and IRR are based on a gold price of USD$ 1,650 per ounce, a copper price of USD$ 3.59 per pound and a silver price of USD$21.35 per ounce. The envisioned life of mine for the Cabaçal copper-gold-silver project is 22.3 years with the envisioned operation’s capital cost being USD$179.6 million. The first year of the operation will see a mill feed of 2.3 g/t of gold and 0.29% copper which will generate an after-free cash flow of USD$204 million, resulting in a payback period of 10.6 months.

Meridian Mining believes that the economics of the PEA will only be improved in the future with the ongoing drill initiatives of the company aimed at expanding the project’s mineralisation and as such throughput.