Meridian Mining Plc · TSX:MNO
Meridian Mining — Meridian Mining UK S — Investor Presentation (April 2023)
34 slides from Meridian Mining's investor presentation, April 2023
Slide 1: Preliminary Economic Assessment: Cabaçal standalone mining operation
Preliminary Economic Assessment: Cabaçal presents a compelling opportunity for a standalone mining operation within underexplored 50km VMS belt Corporate Presentation, April 2023 TSX: MNO / OTCQB: 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: Cabaçal PEA Highlights
C ABAÇAL PEA H IGHLIGHTS Cabaçal’s PEA delivers superior economics, driven by simple processing, low strip ratio, low-cost hydroelectric power supply, high-grade starter pit, and Brazil’s low-cost operating environment USD 573 M 58.4% USD 180 M Base Case After-Tax NPV5 After-Tax IRR Low Initial Cape
Slide 4: Production Metrics
P RODUCTION M ETRICS 1.8 Moz AuEq 131 koz AuEq USD21.25/t Milled Total Production Ave. Y1-5 Production Total Operating Costs 55.6 Mt 22.3 Year 2.1x Total Milled Life of Mine Strip Ratio 2.5 Mtpa 92.4% 89.7% Throughput Rate Average Cu Recovery Average Au Recovery Notes: 1 See News Release 6th March 2
Slide 5: Valuation Metrics
V ALUATION M ETRICS ˅ Post Tax NPV5 (USD) & IRR Sensitivity to Metals Prices Post Tax 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 57.9% $
Slide 6: Mine Layout
M INE L AYOUT Open Pit ~2,000m x 500m Compact site 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, April 2023 TSX: MNO / OTC
Slide 7: Flowsheet
F LOWSHEET Simple process flowsheet with high recoveries Jaw Crusher Primary Grind ~200 microns Gravity Circuit – 30% Au First Cu Flotation Re-Grind ~40 microns Cleaner Circuit total recovery up to ~ 90% Au & ~ +93% Cu Sulphide Flotation Non-Acid Generating TSF Notes: 1 See News Release 6th March 20
Slide 8: Leading with Sustainable Power Sources
L EADING WITH SUSTAINABLE POWER SOURCES Sustainable local hydroelectric power 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 evaluation Extensive use of ethanol flex f
Slide 9: 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 - 4.5 mtpa Potential for high-grade feed Cabaçal Resource Upgrade Mine corridor development Expand resource C2A Au-
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, 10th January 2023, 21st November 2022, 19th October 2022 & 26th September 2022 Drilling the deposit’s upside Further defining high-grade structures New targeted zones around Cabaçal Resource Corp
Slide 11: Systematically Unlocking Belt Scale Upside
S YSTEMATICALLY U NLOCKING B ELT S CALE U PSIDE 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, April 202
Slide 12: Milestones and Catalysts
M ILESTONES AND C ATALYSTS 2021 2022 2023 Initial drilling at Initial NI 43-101 PEA Cabaçal resource (Released) Cabaçal twin drilling Defines ~2m oz AuEq Infill drilling high- program in pit grade starter zone CNWE drilling returns Top tier Near mine 26.7m @ 21.5 g/t Au metallurgical results explora
Slide 13: Corporate Information
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 202.8 m Compensation Warrants 0.5 m (CAD 0.35) TSX OTCQB Frankfurt Options 18.1 m (CAD 0.07-1.10) MNO MRRDF 2MM Fully Diluted 221.4 m CAD 0.54 Share Price (31 March 2023) M
Slide 14: Meridian Leadership
M E R I DI A N L E A DE R S HI P G IL B E R T C LA R K M A R TIN M C F A R LAN E J O EL B R AN D AO Executive Chairman President Manager, Director of Brazil +25 years experience + 30 years experience + 40 years experience A D R IA N M C A R T H U R S O R A IA M O R A IS F R E D E R IC VA N D E R O O
Slide 15: 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 AF O N SO R O C KY G ILS O N JOHN F IG U E IR E D O O SBO RNE TE IXE IR A W AGH O RN Geologist Geologist Geologist Geologist + 50 years +
Slide 16: ESG Clean Industrial Renewable Energy
ESG CLEAN I NDUSTRIAL R ENEWABLE ENERGY Regional Hydroelectric 2 www.frontiersin.org/articles/10.3389/fenvs.2020.579031/full Generation1 Source: 1 www.quebecengenharia.com.br/complexo-juruena Jaurú Cascade2 235.9 MW (6 Facilities) Juba Cascade2 139.4 MW (4 Facilities) Governing ESG Philosophies a LO
Slide 17: Brazil - Top Tier Mining Jurisdiction
B R A Z I L - T O P T I E R M I NI NG J UR I S DI CT I ON C A B A ÇA L : Development Priority - largest Cu-Au VMS project in Brazil; one of the largest in South America E SP I GÃ O : Exploration Upside - large IOCG exploration target comparable to Carajás and Olympic Dam ESPIGÃO C A B A ÇA L Corpora
Slide 18: PEA Highlights
PEA H IGHLIGHTS 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) 10.6 months (0.9 Y
Slide 19: Additional Information
ADDITIONAL INFORMATION Corporate Presentation, April 2023 TSX: MNO / OTCQB: MRRDF / Frankfurt: 2MM Meridian Mining UK S | 19
Slide 20: Production Metrics
P RODUCTION M ETRICS 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/ annum 2.5 St
Slide 21: Capital & Operating Cost Breakdown
C APITAL & O PERATING C OST B REAKDOWN 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 Costs 31.43 C
Slide 22: Project Economics
P ROJECT E CONOMICS 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 Total L
Slide 23: Appendix
APPENDIX Corporate Presentation, April 2023 TSX: MNO / OTCQB: MRRDF / Frankfurt: 2MM Meridian Mining UK S | 23
Slide 24: Cabaçal Higher Grade Continuous Sub-Domains
CABAÇAL H IGHER G RADE C ONTINUOUS S UB -D OMAINS 1 Note 1 See News Release dated 26th September 2022 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 Inferred 10.3 0.68 0.24 1.1 0.96 0.2 24.5 0.4 0.3 C
Slide 25: Sections Through Cabaçal Deposit
CABAÇAL 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 W id e c o p p e r-g o ld VMS p a c k a g e c u t b y la t e r s t a g e h ig h -g ra
Slide 26: Initial Focus on the CNWE Shallow High-Grade Trends
CABAÇAL I NITIAL FOCUS ON THE CNWE SHALLOW HIGH - GRADE TRENDS O p e n h ig h -g ra d e s h a llo w g o ld zo n e o n Ca b a ç a l rid g e - P o t e n t ia l t o b e c o m e a s t a rt e r p it in a d e ve lo p m e n t s c e n a rio Exp a n s io n t h ro u g h o n g o in g re s o u rc e d e fin it i
Slide 27: Santa Helena Historic Mine Open Pit Exploration Target
CABAÇAL S ANTA H ELENA H ISTORIC M INE O PEN P IT E XPLORATION T ARGET Multiple new EM plates extending out from Santa Helena Mine Historic Resource Info Untested targets for further Cu‐Zn‐Au‐Ag massive sulphide and feeder zones defined Corporate Presentation, April 2023 TSX: MNO / OTCQB: MRRDF / Fr
Slide 28: Expanding the Copper Potential from Archives
CABAÇAL E XPANDING THE COPPER POTENTIAL FROM A RCHIVES Alvorada uncovered as Cabaçal’s most significant Cabaçal Mine 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 Pea
Slide 29: Regional Exploration Targets
CABAÇAL R EGIONAL E XPLORATION TARGETS 1 928 km2 tenements Regional Exploration by BP Minerals Historical Cu-Au-Zn Hydroelectric Dam geochemical anomalies Local Electric Substation Potential extensions of VMS belt stratigraphy Jaurú & Araputanga Greenstone belts potential to repeat discovery success
Slide 30: Espigão IOCG Target
ESPIGÃO 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 Fir
Slide 31: 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 Ca b a ç a l VMS P ro je c t An a lo g u e s 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 VM
Slide 32: Evolution of VMS Camps over Time
CA B A ÇA L Evolution of VMS Camps over time1 Flin Flo n Gre e n s t o n e Be lt Min e Life Th e Te c h n ic a l Evo lu t io n & D is c o ve ry Me t h o d s First discovery identified through prospecting (David Collins - Tom Method Used Creighton, 1914) Geophysical • Early mapping and geochemistry m
Slide 33: Structured Option Agreement to Acquire Cabaçal
Structured Option A g r e e m e n t t o a c q u i r e a CABAÇAL 100% beneficial interest1 P ro t e c t s Me rid ia n Sh a re h o ld e rs Eq u it y a n d p ro vid e s Ve n d o rs a n In t e re s t Go in g Fo rw a rd Payment Schedule Vendor Payment Vendor Payment Payments Requirements Comments Status
Slide 34: 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, April 2023 TSX: MNO / OTCQB: MRRDF / Frank
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