LONDON , Oct. 23, 2017 /CNW/ - Meridian Mining SE (TSX V: MNO) ("Meridian " or the "Company") today provided an update on exploration results from its Bom Futuro tin joint venture in the state of Rondônia, in NW Brazil .
PROJECT BACKGROUND
The Bom Futuro tin mine has produced 195,000t of tin over a thirty-year history of continuous operation since its discovery in 1987. Meridian Mining entered a joint venture with the project owners - Coopersanta – in late 20161 . The initial priority has been to evaluate opportunities to recover tin from the millions of cubic meters of tailings which have accumulated around the Bom Futuro Hill. The appreciation of the tin price in recent years has created a more favourable climate for assessing retreatment scenarios (current LME Cash buyer $US 20,925 /t, from historical lows of $US3,625 in September 2001 ).
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Details of the agreement are summarised in the Company's announcements of Dec. 19, 2016; March 16, 2017.
HIGHLIGHTS
Positive discussions with JV partners Coopersanta have expanded the area subject to the mining services agreement. The total area of tailings basins now allocated to Meridian for retreatment is 1,261 ha. Extensions to the southern palaeochannel system in the Central Area have also been included. Drilling continues on the tailings with two percussion rigs in operation. Site visit undertaken by resource consultancy H&S Consulting in preparation for resource estimation, with the objective of publishing the maiden resource and PEA in the current quarter. Further geophysical surveys have been undertaken around the perimeter of the Central Area, identifying new palaeochannel drill targets. Percussion drilling will be ongoing on the newly allocated target areas to the end of the year. The new geophysical targets will be prioritized for testing after the conclusion of the resource drilling.
"The expansion of the areas allocated under the mining services agreement reflects confidence that improved processing techniques can add value under our partnership," said Anthony Julien , President and CEO of Meridian. "Palaeovalley mineralization has made a significant contribution to the historical production at Bom Futuro, Brazil's second largest tin mine . The addition of the palaeovalley extensions offers scope to test for significant tonnages of mineralized material beyond the large tailings areas now allocated to the project."
MERIDIAN TAILINGS EVALUATION PROGRAM
The tailings evaluation program originally commenced with 437 auger holes completed in the first quarter of 2017, targeting 493ha of allocated tailings basins at Jacaré Leste, EBESA, and the Santa Cruz corridor. Following the due diligence period, a program of percussion drilling has continued. Two rigs are currently in operation and a program of metallurgical testwork is progressing. The joint-venture partners, Coopersanta, have allocated additional tailings basins under the mining services agreement, expanding the total area of allocated tailings now to 1,261 ha (Fig 1).
The current percussion drilling program is focussed on testing the tailings basins on a 200 x 200m pattern, with 216 holes completed to date. The program is defining coherent areas of more elevated grades, typically in the range of 450 - 800ppm at Jacaré Leste, EBESA, Carlinhos and, Gilberto (Fig 1). The western tailings basins remain under drill definition. Highlights from the drilling include:
EBESA: 7m @ 1,704ppm Sn Jacaré Leste: 17m @ 834ppm Sn Gilberto: 13.7m @ 891ppm Sn Carlinhos: 12m @ 913ppm Sn Santa Cruz : 29m @ 428ppm Sn
Drilling is currently in progress along Santa Cruz corridor and will then continue over the newly allocated areas. The current objective is to complete the broad-spaced drilling over the key basins this year for definition of an Inferred Resource and Preliminary Economic Assessment. A site visit has been undertaken by resource consultancy H&S Consultants in preparation for the estimation process.
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