Meridian Mining has signed an option agreement to acquire 100pc beneficial interest in the Cabaçal Copper‐Gold Project in Mato Grosso, Brazil from Prometálica Mineração Ltda and IMS Engenharia Mineral Ltda, the company announced in a statement.
Meridian will pay $8.75mn and issue 4.5mn shares to the two Brazilian companies over a period of 39 months linked to specific milestones.
The volcanic-hosted massive sulfide project is a historical center of gold and base metal mining in the Alto Jauru Belt.
Its mineralized zone is undeveloped, stretching from near-surface to 175m depth, traced across 1.8km in historical drilling, and stays open at depth and along strike.
Discovered by BP Minerals in 1983, the project was acquired by Rio Tinto in 1989. The vendors obtained the project from Rio in 2005.
Meridian stated that BPM’s historical mineralization could be exceptionally thick, including one intersection of 21m grading 0.59pc copper and 1.04 grams per mt of gold.
The project possesses an extensive database of 600 drill holes totalling to 70,000m, which includes 17,300 associated assay samples, 2,800km line of areal geophysics, and 190km of ground geophysics.
Cabaçal has a historical inferred resource of 21.7mn mt grading 0.6pc of copper and 0.6g/mt of gold, done per Falcon Metals in 2009.
Meridian Minerals SE, an acquisition, exploration, development, and mining company, is focusing on several Brazilian projects including the Espigao polymetallic project, the Mirante da Serra portfolio of manganese projects, and the Ariquemes tin exploration portfolio in Rondônia.