Meridian Mining's Cabaçal Pre-Feasibility Study: Promising Economic Prospects

The recent pre-feasibility study of Meridian Mining's Cabaçal project in Brazil reveals promising economic prospects. Conducted by Ausenco and GE 21, the study reports an after-tax NPV5 of USD 984 million and an IRR of 61.2%, assuming base metal prices. Under spot prices, these figures rise to USD 1.41 billion and 79.5%, respectively. The Cabaçal mine plans average annual production of 141,000 AuEq ounces over 10 years, peaking at 178,000 ounces in the initial five years.

The study highlights low all-in-sustaining costs of USD 742/oz and initial CAPEX of USD 248 million. The maiden Cabaçal reserve stands at 41.7Mt with high metal grades. As the study progresses to a feasibility stage, Meridian notes its potential impact on the company and industry. Moreover, further drilling could unlock additional opportunities, with exploration on the broader mineralized belt already underway. Meridian's strategic focus is on expanding resources and optimizing prospects.