Meridian Mining UK [TSX: MNO; FSE/Tradegate: 2MM; OTCQX: MRRDF] has announced significant drilling results from its Santa Helena Au-Cu-Ag and Zn project located in Brazil. The company continues to drill multiple shallow, high-grade mineralization zones. This is part of its expanded resource delineation program. The results indicate promising intersections of gold (Au), copper (Cu), silver (Ag), and zinc (Zn). These findings confirm the potential of this VMS (Volcanogenic Massive Sulfide) deposit.
Santa Helena Drilling Results Strengthen Resource Estimates
Meridian Mining’s Santa Helena drilling program has yielded promising results. These are particularly from the eastern and western sectors of the deposit. These results help refine the geometry and grade continuity of the Au-Cu-Ag & Zn mineralization at shallow depths. For instance, hole CD-686 returned 8.3 meters at 3.7 g/t AuEq (2.5% CuEq) from 53 meters depth. This included a higher-grade core of 4.2 meters at 6.8 g/t AuEq (4.6% CuEq). Similarly, hole CD-701 intersected 7.0 meters at 5.2 g/t AuEq (3.5% CuEq) from 42 meters. A high-grade sample of 25.4 g/t Au, 449 g/t Ag, and 3.1% Zn was also found from 48 meters depth.
The drilling at Santa Helena continues to reinforce the company’s confidence in the resource estimate. This estimate is expected to be finalized later this year. The high-grade intersections further highlight the prospect of expanding the resource base. Such expansion could lead to the development of a second open pit operation within the Cabaçal belt.
Expansion of Exploration at Santa Fé Target
Along with the ongoing work at Santa Helena, Meridian Mining is also advancing exploration at the Santa Fé target area, located just 5 kilometers south. The company has expanded its geophysical and geochemical programs here. These efforts have uncovered significant geochemical anomalies. Santa Fé is positioned as an important part of the broader exploration strategy within the Cabaçal belt. The exploration focus on Santa Fé, combined with the ongoing drilling at Cabaçal, provides Meridian Mining with significant growth potential in the region.
Meridian Mining is also extending its exploration efforts into areas previously obscured by colluvial cover. The use of stream geochemistry and induced polarization surveys is expected. These methods will lead to the discovery of new mineralized zones in these areas. Thus, this further bolsters the potential of the Cabaçal Hub development.
SuperMetalPrice Commentary:
The drilling success at Santa Helena strengthens Meridian Mining’s position in the highly competitive gold and copper sectors of South America. With its expanding resource base and strategic exploration at the Santa Fé target, the company is positioning itself as a key player in the region. The Cabaçal VMS gold-copper project continues to offer impressive financial projections. These include a post-tax NPV5 of US$984 million and a 61.2% IRR. However, the real test will be translating these early exploration results into sustainable, scalable production. Ongoing technical work and resource definition will be crucial in establishing the true potential of this multi-deposit system. It could significantly contribute to the global supply of precious and base metals.
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