Meridian Mining Plc · TSX:MNO
Meridian Mining — Meridian Mining UK S — Investor Presentation (May 2023)
37 slides from Meridian Mining's investor presentation, May 2023
Slide 1: Cabaçal is Brazil's premier advanced Gold-Copper VMS
Cabaçal is Brazil’s premier advanced Gold-Copper VMS with potential upside of over 50KM belt scale exploration Corporate Presentation, May 2023 TSX: MNO / OTCQX: MRRDF / Frankfurt: 2MM meridianmining.co
Slide 2: Cautionary Note Regarding Forward-Looking Statements
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This presentation does not constitute or form a part of, and should not be construed as an offer, solicitation or invitation to subscribe for, underwrite or otherwise acquire, any securities of Meridian Mining UK Societas (“Meridian”), nor shall i
Slide 3: Meridian's Portfolio of Copper/Gold Assets
M E R I DI A N ’ S P O R T FO L I O O F C O PPE R / G OL D A SSE T S CABAÇAL: Development Priority: • Largest Cu-Au VMS project in Brazil • On-going exploration of 50km VMS belt Preliminary Economic Assessment (Base Case After-Tax): • NPV5 USD 573 M & IRR 58.4% PEA superior economics, driven by: • H
Slide 4: Unlocking the Belt Scale VMS Potential at Cabaçal
U NLOCKING THE B ELT S CALE VMS P OTENTIAL AT C ABAÇAL Cabaçal Discovered in 1980’s +50km Belt Scale Target Strike Multiple Resource Development Projects 2 Historic High-Grade Underground Mines PEA Defines Standalone Potential Mine at Cabaçal Limited Historic Exploration Newly Generated Open-Pit Tar
Slide 5: Cabaçal PEA Highlights
C ABAÇAL PEA H IGHLIGHTS PEA demonstrates an exceptional potential open-pit mining operation capable of supplying both base and precious metals to the global market BASE CASE AU $1,650 / CU $3.59 / AG $21.35 USD 573 M 58.4 % USD 180 M After-Tax NPV5 After-Tax IRR Low Initial Capex 10.6 months USD 67
Slide 6: Cabaçal Valuation Metrics
C ABAÇAL V ALUATION M ETRICS ˅ Post Tax NPV5 (USDm) & IRR Sensitivity to MetalsPost PricesTax NPV & IRR Sensitivity to Metal Prices Copper Price Downside Base Spot Upside 3.50 3.59 4.00 4.13 4.50 5.00 NPV IRR NPV IRR NPV IRR NPV IRR NPV IRR NPV IRR 1,550 $510 m 53.5% $523 m 54.2% $582 m 57.0% $600 m
Slide 7: Cabaçal vs Recent Gold Project Economic Studies
C ABAÇAL VS R ECENT G OLD P ROJECT E CONOMIC S TUDIES 1,2 ˅ After-Tax Unlevered IRR (%) ˅ After-Tax NPV5 / Initial Capex (USDm) ˅ Payback Period (Years) 2 Source CIBC Data, Market Data / Company Data – 10th May 2023 1 See News Release 6th March 2023 Notes: Corporate Presentation, May 2023 TSX: MNO /
Slide 8: Production Metrics
P RODUCTION METRICS 1.8 Moz AuEq Total Production 22.3 Year Life of Mine 55.6 Mt Total Milled 2.1x Strip Ratio 2.5 Mtpa Throughput Rate 131 koz AuEq Notes: Ave. Y1-5 Production 1 See News Release 6th March 2023 Corporate Presentation, May 2023 TSX: MNO / OTCQX: MRRDF / Frankfurt: 2MM Meridian Mining
Slide 9: Resource - Block Model
R ESOURCE - B LOCK M ODEL Cabaçal Mineral Resource Category Mt Au g/t Cu % Ag g/t AuEq g/t Au Mozs Cu Kt Ag Mozs AuEq Mozs Indicated 52.9 0.64 0.32 1.4 1.05 1.1 168 2.4 1.8 500 m Inferred 10.3 0.68 0.24 1.1 0.96 0.2 24.5 0.4 0.3 Note: 1 See News Release dated 26th September 2022 Corporate Presentati
Slide 10: Further Expanding and Infilling Cabaçal Resource
F URTHER E XPANDING AND I NFILLING C ABAÇAL R ESOURCE 1 Note: 1 See News Release dated: 27th March 2023, A A’ 10th January 2023, 21st November 2022, 19th October 2022 & 26th September 2022 A’ A Drilling the deposit’s upside Further defining high-grade structures Corporate Presentation, May 2023 TSX:
Slide 11: Mine Layout
M INE L AYOUT Open Pit ~2,000m x 500m Optimized mine site design to minimise transport distances Plant site design flexible for expansion opportunities Potential to minimise cost by using depleted open pit for waste storage 1 See News Release 6th March 2023 Notes: Corporate Presentation, May 2023 TS
Slide 12: Process Flowsheet
P ROCESS F LOWSHEET Simple process flowsheet with high recoveries Jaw Crusher Crushing Primary Grind ~200 microns Gravity Circuit – 30% Au Copper Flotation First Cu Flotation Re-Grind Grinding Gravity Circuit ~40 microns Cleaner Circuit total Pyrite Flotation recovery up to Tailings Smelting ~ 90% A
Slide 13: Leading with Sustainable Power Sources
L EADING WITH SUSTAINABLE POWER SOURCES PEA assumes USD 0.075 / kWh power cost with significant potential for optimization Regional Hydroelectric Generation ~375 MW in 10 Facilities On-going run-of-river and solar power Notes: 1 See News Release 6th March 2023 Notes: 2 www.frontiersin.org/articles/1
Slide 14: Near-Term Potential Upside and Optimization
N EAR - TERM POTENTIAL UPSIDE AND OPTIMIZATION Key areas for near-term upside opportunities and optimization Evaluating potential increase Incorporate Santa Helena Throughput rate ~3.5 - 4.0 mtpa Potential for high-grade feed Cabaçal Resource Upgrade Mine corridor upside Expand resource Sucuri & Ala
Slide 15: Systematically Unlocking KM Belt Scale Potential
S YSTEMATICALLY U NLOCKING 50 KM B ELT S CALE P OTENTIAL C4-B Cabaçal Mine 1.9 km with ~2 Moz AuEq Au-Cu-Ag C2 Trend ~2 km strike Au-Ag Sucuri ~2 km strike Au-Ag Alamo ~4 km strike Cu-Au-Ag 1 See Meridian NI-43-101 2nd June 2022 Santa Helena Mine 1.3 km strike Zn-Cu-Au-Ag-Pb Corporate Presentation,
Slide 16: Santa Helena Historic Mine Open Pit Exploration Target
S ANTA H ELENA H ISTORIC M INE O PEN P IT E XPLORATION T ARGET ˅ Historic Drill Core – JUCHD031 Initial Meridian drill program contractor engaged Re-assaying historic core confirms high-grade mineralization Multiple Historic new EMResource Info plates extending out from Santa Helena Mine Untested ta
Slide 17: Milestones and Catalysts Post PEA
M I L E ST O NE S A ND C A T A L YST S P O ST P E A 2021 2022 2023 Initial drilling at Initial NI 43-101 PEA Cabaçal resource (Released) Cabaçal twin drilling Defines ~2m oz AuEq Cabaçal infill drilling program in pit for higher grades CNWE drilling - Top tier metallurgical Testing near mine 26.7m @
Slide 18: Corporate Information - Meridian Mining UK S
C OR P OR A T E I NFOR M A T I ON - M E R I DI A N M I NI NG U K S Corporate Structure1 Meridian Mining UK S Shares Outstanding 239.6 m Compensation Warrants 2.2 m (CAD 0.35-0.50) TSX OTCQX Frankfurt MNO MRRDF 2MM 18.1 m Options (CAD 0.07-1.10) Fully Diluted 259.9 m CAD 0.46 Share Price (19 May 2023
Slide 19: Investment Summary
I NV E S T M E NT S UM M A R Y Developing the next polymetallic mining belt in Brazil 1 See News Release 6th March 2023 Notes: Base Case PEA Low Initial Capital Cost After Tax NPV5 USD 573 M & IRR 58.4% USD 180 M Low All-in-Sustaining-Costs (AISC) Industry leading Payback USD 671 / oz (Year 1-5) 10.
Slide 20: Appendix
APPENDIX Corporate Presentation, May 2023 TSX: MNO / OTCQX: MRRDF / Frankfurt: 2MM Meridian Mining UK S | 20
Slide 21: Meridian Leadership
M E R I DI A N L E A DE R S HI P The Management GILBERT CLARK A D R I A N M C A R T H U R M A R TI N M C F A R LA N E SORAIA MORAIS MARIANA BERMUDEZ KATHERINE MACLEAN J A M E S MCLUCAS Executive Chairman CEO & Director President Chief Financial Officer Company Secretary Sustainability & Comms Corp.
Slide 22: Meridian Advisory Board
M E R I DI A N A DV I SO R Y B O A R D Cabaçal History BP Minerals Rio Tinto Discovery Development Production Acquisition 1980-1984 1984-1986 1986-1991 1989-2005 AFONSO ROCKY G I L S ON J OH N FIGUEIREDO OSBORNE TE I X E I R A WAG H OR N Geologist Geologist Geologist Geologist + 50 years + 40 years
Slide 23: ESG Clean Industrial Renewable Energy
ESG CLEAN I NDUSTRIAL R ENEWABLE ENERGY Regional 2 www.frontiersin.org/articles/10.3389/fenvs.2020.579031/full Hydroelectric Generation1,2 Source: 1 www.quebecengenharia.com.br/complexo-juruena Jaurú Cascade 235.9 MW (6 Facilities) Juba Cascade 139.4 MW (4 Facilities) Governing ESG Philosophies a LO
Slide 24: Structured Option Agreement to Acquire a 100% Beneficial Interest
S T R UCT UR E D O PT I O N A GR E E M E NT T O A CQUI R E A 1 0 0 % B E NE FI CI A L I NT E R E S T 1 Protects Meridian Shareholders Equity and provides Vendors an Interest Going Forward Payment Schedule Vendor Payment Vendor Payment Payments Requirements Comments Status (Months) (USD) (Shares) MNO
Slide 25: Production Metrics
P R ODUCT I O N M E T R I CS Item Plant Feed Mined Mt 55.6 Waste Mined Mt 118.1 Total Mined Mt 173.7 Mill Throughput Mt/annum 2.5 Total gold production ounces 1,021,320 Total copper production tonnes 159,926 Total silver production ounces 1,758,923 Item Milled tonnes Mt 55.6 Mill throughput Mt/ annu
Slide 26: Capital & Operating Cost Breakdown
C A PI T A L & O PE R A T I NG C O ST B R E A K DOWN Cabaçal Initial Capital Costs Cabaçal Sustaining Capital Costs Item US$mm Item US$mm Equipment & Packages 39.93 Process 30.53 Materials 9.67 Tailings 47.73 Construction And Erection 36.51 Indirect Costs 7.83 Others 32.14 Owner Costs 3.91 Indirects
Slide 27: Project Economics
P R O J E CT E CCONOM I CS Item Base Case Spot Case Life of mine Years 22.3 22.3 NPV(5%) USD million 572.5 745.2 IRR % 58.4% 69.7% Payback Days 321 279 Initial Capital Expenditure USD million 180 180 Sustaining Capital Expenditure USD million 108 108 Item Average Year 1-5 Total LOM Average Year 1-5
Slide 28: Top Tier Metallurgical Recoveries
T OP T I E R M E T A L L UR GI CA L R E COV E R I E S +94% Copper Recoveries Copper Recovery Copper recovery exceeds 90% from 0.1% to >3% Cu head grade While copper recovery declines with head grade the slope is very moderate Consideration will therefore be given to the viability of processing lower
Slide 29: Cabaçal Concentrate Test Work
C A B A ÇA L C ONCE NT R A T E T E ST WO R K 25-29% Copper Concentrate High-grade Copper Concentrate Copper concentrate grade correlates well to Sulphur : Copper feed grade ratio Concentrate grades varied up to 30% Cu with average mineralization expected to yield 25 – 29% Cu concentrate grade Copper
Slide 30: Sections Through Cabaçal Deposit
S ECTIONS T HROUGH C ABAÇAL D EPOSIT 1 ^ A-A’ - LONG SECTION THROUGH CABAÇAL LOOKING NORTHEAST A ~1,900 m Resource Strike A’ ^ B-B’ - CROSS SECTION THROUGH CABAÇAL MAIN LOOKING NORTHWEST A B B’ B’ ~450 m B Wide copper-gold VMS package cut by later stage high-grade gold veins A’ Note 1 See News Relea
Slide 31: Initial Focus on the CNWE Shallow High-Grade Trends
I NITIAL FOCUS ON THE CNWE SHALLOW HIGH - GRADE TRENDS Open high-grade shallow gold zone on Cabaçal ridge - Potential to become a starter pit in a development scenario Expansion through ongoing resource definition and belt-scale exploration Indicated Resource C’ C C’ Inferred Resource C Note: 1 See
Slide 32: Expanding the Copper Potential from Archives
E XPANDING THE COPPER POTENTIAL FROM A RCHIVES Alvorada uncovered as Cabaçal’s most Cabaçal Mine significant copper in stream anomaly Peak Cu: 56 ppm Cabaçal Resource: Indicated: 52.9Mt @ 0.6g/t Au, 0.3% Cu and 1.4g/t Ag Inferred: 10.3Mt @ 0.7g/t Au, 0.2% Cu & 1.1g/t Ag Santa Helena Mine Peak Cu: 36
Slide 33: Regional Exploration Targets
R EGIONAL E XPLORATION TARGETS 1 928 km2 tenements Regional Exploration by BP Minerals Historical Cu-Au-Zn Hydroelectric Dam geochemical anomalies Potential extensions Local Electric Substation of VMS belt stratigraphy Jaurú & Araputanga Greenstone belts potential to repeat discovery success at Caba
Slide 34: Potential Upside of Cabaçal to Global VMS Deposits
CA B A ÇA L P o t e n t ia l Up s id e o f Ca b a ç a l t o Glo b a l VMS d e p o s it s Cabaçal VMS Project Analogues Cabaçal is a camp scale VMS project underexplored and under-developed compared to analogue camps Cabaçal has already one giant VMS deposit defined Cabaçal (+53Mt)4 VMS deposits tend
Slide 35: Evolution of VMS Camps over Time
CA B A ÇA L Evolution of VMS Camps over time1 Flin Flon Greenstone Belt Mine Life The Technical Evolution & Discovery Methods First discovery identified through prospecting (David Collins - Tom Method Used Creighton, 1914) Geophysical • Early mapping and geochemistry may Geological identify hydrothe
Slide 36: Espigão IOCG Target
E SPIGÃO IOCG T ARGET Espigão Project Iron Oxide-Copper-Gold (“IOCG”) type deposits host the giant Cu-Au mines of Brazil and some of the biggest Cu-Au mines internationally e.g. Salobo and Olympic Dam Espigão hosts the prospective geochemistry comparable to large-scale IOCG type deposits First gravi
Slide 37: Meridian Mining UK S Contact
Meridian Mining UK S Dr Adrian McArthur Gilbert Clark Phone: +1 778 715 6410 Corporate Address: Chief Executive Officer Executive Chairman Email: info@meridianmining.net.br 6th Floor, 65 Gresham Street, London EC2V 7NQ United Kingdom Corporate Presentation, May 2023 TSX: MNO / OTCQX: MRRDF / Frankfu
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