Meridian Mining DFS Delivers Robust Economic Assessment for Cabaçal Project

Meridian Mining plc has announced the results of its Definitive Feasibility Study (DFS) for the Cabaçal gold-copper-silver deposit in Mato Grosso, Brazil. The DFS, completed by Ausenco do Brasil Engenharia Ltda and Ausenco Engineering Canada ULC, supported by GE21 Consultoria Mineral Ltd, has delivered a robust economic assessment for the project.

The DFS highlights a total Life of Mine (LOM) revenue of USD 5.4 billion, with an LOM After-Tax Free Cash Flow of USD 2.9 billion. The project’s All-In-Sustaining-Costs (AISC) are estimated at USD 1,056/oz AuEq. For the first five years of production, the DFS indicates an average annual production of 183,526 AuEq, with an AISC of USD 715/oz AuEq. The average annual after-tax free cash flow for these initial years is projected at USD 413.8 million.

The initial Capital Expenditure (Capex) for the project is USD 322 million, which includes a 10% contingency and tax credits. Pre-investment for expansion to a 4.5 million tonnes per annum (mtpa) capacity is planned from year four onwards. Meridian has already committed USD 15.9 million in capital contracts for preconstruction investments, and an installation licence for power line construction has been granted.

The DFS supersedes the March 2025 Preliminary Feasibility Study (PFS) and includes stronger economics, an updated and larger Mineral Reserve statement, an optimised mine plan, and improved metallurgy. The mineral resource for Cabaçal, classified and prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards, has a resource cut-off grade of 0.117 g/t AuEq. The mineral resource database consists of 1,290 drillholes, 34 trenches, 83 channels, 25 auger drillholes, 15 mixed drillholes, 13 percussion drillholes, and 12 rotary percussion drillholes, totalling 139,956.78 metres, with 96,900.22 metres of assayed intervals.

The DFS results are significant, with an NPV5 exceeding two billion dollars, an Internal Rate of Return (IRR) over 108%, and a payback period of less than one year. The NPV5 to Capex ratio is 6.5 times, a testament to the project's economic potential.

Meridian is already well on the path to building Cabaçal. Preconstruction investments are underway, and financing activities to construct the project are progressing. Developing the next near-term VMS Au-Cu-Ag mine of South America is a tremendous opportunity, combined with a highly prospective exploration portfolio, creating an incredibly compelling mining investment opportunity.