Capex for Meridian's Brazil project Cabaçal put at US$248mn

Meridian Mining announced the results of a prefeasibility study for its Cabaçal gold-copper-silver project in Brazil that outlines capex of US$248mn. 

The project, in Mato Grosso state, has a life of mine of 10.6 years, according to the study that was led by Ausenco do Brasil Engenharia and Ausenco Engineering Canada, supported by GE21 Mineral Consultants.

The capex figure compares to an estimated pre-production capital cost of US$180mn in a preliminary economic assessment from March 2023. 

"This study is a game-changer for our company. We have demonstrated nearly US$1bn in post-tax value. That jumps to almost US$1.5bn using the spot gold and copper prices, confirming Cabaçal as a high-margin Au-Cu-Ag mine. It starts with over 178,000 gold-equivalent ounces a year for five years and averages more than 141,000 ounces over the life of the mine," Meridian's CEO Gilbert Clark said in a statement.

"We have shown these strong results using consensus long-term prices and low operating costs, while also planning ahead with a step up to 4.5-million-tonnes production. I believe it is just the beginning of what we can do in this highly prospective gold-copper-silver [volcanogenic massive sulfide] VMS belt," he added.

In January, the firm announced that it raised Cdn$10mn (US$7mn) to advance the project. The funds were secured through a private placement of shares with an undisclosed European investor.