AMSTERDAM, The Netherlands,
Jan. 24, 2017 /CNW/ - Meridian
Mining S.E. (TSX V: MNO) ("Meridian" or the "Company"), today
announced production data from its Brasil Manganês Corporation
Mineração S.A. ("BMC") high-grade manganese project and provided an
update on its Bom Futuro tin joint venture option. Both projects
are located in the state of Rondônia, in northwestern Brazil.
"In 2016 we substantially increased both production and sales of
our high grade manganese ore, particularly in the second half of
the year when commodity pricing continued to rapidly improve," said
Anthony Julien, President and CEO of
Meridian. "With a growing roster of both domestic and international
customers, our focus for 2017 remains on growing and leveraging
early stage production to partially offset spending on a range of
exploration and development initiatives."
Growing Manganese Production
Meridian produced 13,326 tonnes of manganese oxide mineral
product in the fourth quarter of 2016 versus 6,536 tonnes in the
fourth quarter of 2015, a 104% increase in production over the
prior year period. Production for 2016 totalled 34,622 tonnes
compared with 17,037 tonnes in 2015, a 103% increase over the prior
year. The installation of the dry screens to separate waste
products in the field prior to trucking to the plant for processing
was a key driver of the increased production.
Construction of the Jaburi pilot plant and installation of all
processing equipment is proceeding on time and on budget. The pilot
plant will introduce more efficient jigging and improved water
utilisation, along with the ability to crush and process harder
breccia ore types. The pilot plant is expected to be commissioned
early in the second quarter of 2017. The pilot plant will treat
primary vein material and verify metallurgy for more advanced
studies. The pilot plant is anticipated to generate significant
data for a preliminary economic assessment and feasibility study on
the project.
By comparison with 2015 when BMC sold a total of 1,906 tonnes of
mineral product, during the fourth quarter of 2016, BMC sold 19,592
tonnes of manganese mineral product, reaching a total of 39,820
tonnes shipped for the 12-month period ending December 31, 2016. In addition, during the fourth
quarter of 2016 Meridian negotiated commitments for an additional
22,500 tonnes, of which 5,000 are expected to ship in January. The
sales team continues to target speciality applications in the
battery, fertilizer, welding and steel industries, which recognize
a premium for the high quality of Meridian's product. During the
fourth quarter the Company concluded sales agreements for 17,199
tonnes with international steel alloy producers primarily in
China and Korea.
CIF Tianjin benchmark pricing for 44% manganese was US$1.86 per dmtu as of January 4, 2016 and it was US$9.17 per dmtu as of December 24, 2016 (source:
www.metalbulletin.com).
Bom Futuro Joint Venture Option
In December 2016 Meridian
announced it had entered into an option agreement with a group of
local cooperatives whereby it could earn an interest in selected
assets around the Bom Futuro tin mine located in the state of
Rondônia. Under the terms of the Agreement, Meridian has the right
to explore a 492.57ha Tailings Reprocessable Area (the "Tailings
Area"), a 2,000ha Central Area, which includes the existing Bom
Futuro mine, and an 18,000ha Non-Explored Area. The Company has
until March 15, 2017 to complete a
preliminary technical audit of the various areas, to determine if
it wishes to exercise its option under the Agreement. Meridian has
commenced its technical reviews, in addition to assessing the
capital expenditures (such as the construction of a 69 kV power
transmission line, required to meet its obligations under the
Agreement).
To date the Company has completed 106 auger holes into the
Tailings Area to scope the depth of the tailings pile and provide
provisional grade data. A Banka rig has been purchased for a more
detailed sampling program and is undergoing refurbishment. Samples
will be analyzed in an on-site laboratory and through an
independent certified laboratory (ALS Canada). The program will
continue over the full audit period and will be accompanied by
metallurgical studies to test tin recoveries through a variety of
gravity-based recovery techniques.
Layne Do Brasil Sondagens Ltda has been contracted for a 500m
diamond drilling program, for an initial review of the bedrock
mineralization. A hand-portable rig subleased from Energold will be
used to test sites in steeper terrain. The Bom Futuro primary
cassiterite mineralization is hosted within veins and pegmatite
ring structures around the Bom Futuro Hill.
A Brazilian geophysical services company (AFC Geofisica) has
been contracted to test the effectiveness of ground-based surveys
in fingerprinting the character of mineralized positions,
commencing with 2km2 survey over palaeochannels
and the structurally controlled primary mineralization.
Planned survey techniques will include ground magnetics, induced
polarization, gravity and ground-penetrating radar. Following
review of results from the initial survey requirements for trial
surveys in the Non-Explored Area will be evaluated.
"With our model based on identifying assets with early
production potential, we are initially focused on assessing the
Tailings Area to see if it can generate revenue and cash flow that
will support a broader exploration program in the surrounding
area," said Anthony Julien.
"Commodity pricing for tin has improved steadily in the last year
as stocks have dwindled in the face of relatively stable demand,
lower production from key producing regions, and high new mine
costs. With this option, we feel that we are well positioned to
rapidly capitalize on improving market conditions."
QUALIFIED PERSON
The technical information about the Company's production and
sales activities has been prepared under the supervision of and
verified by Carlos Braga (B.Sc.,
MBA, member of the Chilean Mining Commission), the Chief Operating
Officer of Meridian Mining, who is a "qualified person" within the
meaning of National Instrument 43-101.
The technical information about the Company's exploration
activity has been has been prepared under the supervision of and
verified by Dr. Adrian McArthur
(B.Sc. Hons, PhD. FAusIMM), the Chief Geologist of Meridian Mining,
who is a "qualified person" within the meaning of National
Instrument 43-101.
On behalf of the Board of Directors of
Meridian Mining S.E.
"Anthony Julien"
Anthony Julien
President, CEO and Director
ABOUT MERIDIAN
Meridian Mining S.E. is focused on acquisition, exploration,
development and mining activities in Brazil. The Company is currently focused on
exploring and developing the BMC manganese project, the Bom Futuro
tin JV area, and adjacent areas in the state of Rondônia. The
Company employs a two-pronged strategy with the objective of
growing pilot production while advancing a parallel multi-commodity
regional exploration program. Meridian is currently producing high
grade manganese at its project located at Espigão de Oeste.
Further information can be found at www.meridianmining.co and
http://bmcorporation.com.br/.
FORWARD-LOOKING STATEMENTS
Some statements in this
news release contain forward-looking information or forward-looking
statements for the purposes of applicable securities laws. These
statements include, among others, statements with respect to the
Company's plans for exploration and development of its properties
and potential mineralization. These statements address future
events and conditions and, as such, involve known and unknown
risks, uncertainties and other factors, which may cause the actual
results, performance or achievements to be materially different
from any future results, performance or achievements expressed or
implied by the statements. Such risk factors include, among others,
failure to obtain regulatory approvals, failure to complete
anticipated transactions, the timing and success of future
exploration and development activities, exploration and development
risks, title matters, inability to obtain any required third party
consents, operating hazards, metal prices, political and economic
factors, competitive factors, general economic conditions,
relationships with strategic partners, governmental regulation and
supervision, seasonality, technological change, industry practices
and one-time events. In making the forward-looking statements, the
Company has applied several material assumptions including, but not
limited to, the assumptions that: (1) the proposed exploration and
development of mineral projects will proceed as planned; (2) market
fundamentals will result in sustained metals and minerals prices
and (3) any additional financing needed will be available on
reasonable terms. The Company expressly disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise
except as otherwise required by applicable securities
legislation.
The Company cautions that it has not completed any feasibility
studies on any of its mineral properties, and no mineral reserve
estimate has been established. In particular, because the Company's
production decision relating to BMC's manganese project is not
based upon a feasibility study of mineral reserves, the economic
and technical viability of the BMC manganese project has not been
established.
The TSX Venture Exchange has in no way passed upon the merits of
the proposed Arrangement and has neither approved nor disapproved
the contents of this news release. Neither TSX Venture
Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Meridian Mining S.E.