Meridian Mining Unveils Impressive Financials in Cabaçal Pre-Feasibility Study

Meridian Mining has announced the results of its Pre-Feasibility Study (PFS) for the Cabaçal gold-copper-silver project in Brazil, revealing strong financial metrics that position the project as a potential mid-tier production asset. The study highlights a robust after-tax net present value (NPV) and internal rate of return (IRR), indicating significant economic potential for the company.

Key Takeaways

• After-Tax NPV5: USD 984 million (CAD 1.43 billion) at base case prices.
• IRR: 61.2% at base case prices, increasing to 79.5% at spot prices.
• Annual Average Production: 141,000 AuEq ounces over a 10-year period.
• Initial Capital Expenditure (CAPEX): USD 248 million (CAD 359 million).
• All-In Sustaining Costs (AISC): USD 742/oz AuEq.

Strong Economic Metrics

The PFS, conducted by Ausenco, indicates that the Cabaçal project has a base case after-tax NPV of USD 984 million, with an impressive IRR of 61.2%. Under favorable market conditions, the spot case NPV rises to USD 1.41 billion, with an IRR of 79.5%. These figures are based on assumed prices of USD 2,119/oz for gold, USD 4.16/lb for copper, and USD 26.89/oz for silver.

Production Profile

The Cabaçal project is expected to produce an average of 141,000 AuEq ounces annually over its lifespan, with the first five years projected to yield 178,000 AuEq ounces per year. This production profile establishes Cabaçal as a significant player in the gold-copper market.

Cost Efficiency

The project boasts low AISC of USD 742 per ounce, which is competitive within the industry. The initial CAPEX is set at USD 248 million, with a payback period of just 17 months, underscoring the project's financial viability.

Resource and Reserve Estimates

The PFS has declared a maiden reserve of 41.7 million tonnes at an average grade of 0.63 g/t Au, 0.44% Cu, and 1.64 g/t Ag, with 89% classified as proven. This robust resource base supports the anticipated production levels and economic returns.

Future Plans

Meridian Mining plans to commence a detailed feasibility study soon, aiming to further enhance the project's value. The company is also exploring additional opportunities within the Cabaçal region, including resource expansion and new exploration targets.

Conclusion

The results of the Cabaçal PFS mark a significant milestone for Meridian Mining, showcasing the project's strong economic fundamentals and potential for future growth. With a solid production profile and cost structure, Cabaçal is poised to become a key asset in the company's portfolio, contributing to its long-term success in the mining sector.

Sources

• Meridian Mining’s Cabaçal Pre-Feasibility Study Delivers USD 984 million NPV5 & 61.2% IRR (After-Tax), and Annual Average Production 141,000 AuEq Ounces, Junior Mining Network.