Meridian Mining Plc · TSX:MNO
Meridian Mining — Investor Presentation (March 2023)
34 slides from Meridian Mining's investor presentation, March 2023
Slide 1: Preliminary Economic Assessment: Cabaçal Corporate Presentation
Preliminary Economic Assessment: Cabaçal presents a compelling opportunity for a standalone mining operation within underexplored 50km VMS belt Corporate Presentation, March 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, March 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: 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 202.8 m Compensation Warrants 0.5 m (CAD 0.35) TSX OTCQB Frankfurt MNO MRRDF 2MM 18.1 m Options (CAD 0.07-1.10) Fully Diluted 221.4 m CAD 0.43 Share Price (13 March 2023) M
Slide 11: Meridian Leadership
M E R I DI A N L E A DE R S HI P G I L B E RT C L A RK MARTIN MCFARLANE JOEL BRANDAO Executive Chairman President Manager, Director of Brazil +25 years experience + 30 years experience + 40 years experience A D R I A N M C A RT HU R SORAIA MORAIS FREDERIC VANDEROOST CEO & Director Chief Financial Of
Slide 12: 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 SO N JO HN F I G U E I RE D O OSBORNE T E I X E I RA W A G HO RN Geologist Geologist Geologist Geologist + 50 years + 4
Slide 13: 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 14: 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 15: 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 16: 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 17: Additional Information
ADDITIONAL INFORMATION Corporate Presentation, March 2023 TSX: MNO / OTCQB: MRRDF / Frankfurt: 2MM Meridian Mining UK S | 17
Slide 18: 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 19: 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 20: 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 21: Appendix
APPENDIX Corporate Presentation, March 2023 TSX: MNO / OTCQB: MRRDF / Frankfurt: 2MM Meridian Mining UK S | 21
Slide 22: Further Expanding and Infilling Cabaçal Resource
CABAÇAL F URTHER E XPANDING AND I NFILLING C ABAÇAL R ESOURCE 1 CD-049 Drilling the deposit’s 53.7m @ 11.1 g/t AuEq including 26.7m @ 21.8g/t AuEq upside Further defining high- grade structures New targeted zones around Cabaçal Resource CNWE grid reducing to 25 x 25m Meridian Mining Claims Assays re
Slide 23: 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 24: 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 Wide copper-gold VMS package cut by later stage high-grade gold veins A’ Note 1 See Ne
Slide 25: Initial Focus on the CNWE Shallow High-Grade Trends
CABAÇAL 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
Slide 26: Systematically Unlocking Belt Scale Upside
CABAÇAL 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, M
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, March 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 Potential Upside of Cabaçal to Global VMS deposits 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 to form periodically, rel
Slide 32: 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 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 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 will have ex
Slide 34: 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, March 2023 TSX: MNO / OTCQB: MRRDF / Frank