Meridian Mining UK Societas Enhances Cabacal Project with Key Engineering and Partnership Developments
- Meridian Mining UK Societas appoints Ausenco as lead engineer for the Cabacal project's Definitive Feasibility Study (DFS).
- The DFS aims to enhance economic viability, building on a robust pre-feasibility study with significant NPV and IRR.
- Meridian signs a non-binding Letter of Intent with Aurubis AG to optimize copper-gold-silver concentrate production for EU export.
Meridian Mining UK Societas Advances Cabacal Project with Key Partnerships
Meridian Mining UK Societas (TSX:MNO) embarks on a significant step in its Cabacal Au-Cu project located in Mato Grosso, Brazil, by appointing Ausenco do Brasil Engenharia Ltda as the lead engineer for the Definitive Feasibility Study (DFS). This study is poised to build upon the promising results of the recent Pre-Feasibility Study (PFS), which indicated a robust after-tax net present value (NPV) of USD 984 million and an impressive internal rate of return (IRR) of 61.2%. With the DFS set to commence immediately and target completion by mid-2026, Meridian intends to refine the project’s economic viability while maintaining the foundational findings of the PFS, which estimated a pre-production capital cost of USD 248 million.
The collaboration with Ausenco is pivotal as it brings specialized engineering capabilities that will facilitate a thorough evaluation of the Cabacal project’s operational and financial parameters. The DFS will not only enhance the understanding of the project’s potential but will also align with Meridian’s strategic objectives to transition from a resource developer to a full-scale mining and exporting company. The strong mineral reserve estimate of 41.7 million tonnes, with grades of 0.63 g/t gold, 0.44% copper, and 1.64 g/t silver, positions the company favorably in the competitive mining landscape, especially as it eyes potential expansion into international markets.
In a complementary move, Meridian also signs a non-binding Letter of Intent (LOI) with Aurubis AG, which marks the beginning of a long-term corporate partnership aimed at optimizing the production of high-quality copper-gold-silver sulphide concentrates. This partnership is particularly significant as it focuses on ensuring compliance with European Union regulations, thereby facilitating Meridian’s future export opportunities to the European market. The LOI serves as a strategic tool for Meridian to engage with international banks and funds for project financing, enhancing its capability to secure the necessary capital for advancing its mining operations.
Meridian’s proactive approach through these partnerships reflects its commitment to not only enhancing the Cabacal project’s feasibility but also establishing a foothold in the European market. By leveraging its strong mineral reserves and strategic collaborations, Meridian is well-positioned to capitalize on the growing demand for high-quality mineral resources.