Meridian Mining's Definitive Feasibility Study for Cabaçal Delivers After-Tax NPV5 of USD 2.09 Billion, 108% IRR, and 0.9 Year Payback
Original announcement by orestocks on
- Company
- Meridian Mining plc
- Ticker
- MNO.TO
- Exchange
- Unavailable
- Region
- Mato Grosso, Brazil
- Primary commodity
- Gold
- Secondary commodities
- Copper, Silver
- Document categories
- Resource update, Economic study, Metallurgy
- Extracted
- 2026-09-22 07:04:05 UTC
Analysis by Minestarters Atlas
Minestarters Atlas analysis
Summary
Meridian Mining's Definitive Feasibility Study for the Cabaçal project in Brazil reports exceptional economics, including a post-tax NPV5 of USD 2.09 billion, an IRR of 108%, and a payback period of 0.9 years. The study is based on an updated Mineral Reserve estimate and improved metallurgy, with average LOM recoveries of 89.3% for gold and 92.8% for copper. While initial capital and operating costs have increased from the prior PFS, the project is advancing with pre-construction activities and financing efforts underway, supported by granted permits for its initial development footprint.
Reasoning: Meridian Mining's DFS for Cabaçal delivers outstanding economics with a post-tax NPV5 of USD 2.09 billion and an IRR of 108%, indicating a highly robust project. The study is based on an updated and larger Mineral Reserve, improved metallurgy, and is supported by ongoing pre-construction and financing activities. While capital and operating costs have increased from the PFS, the overall economic potential remains exceptional, positioning Cabaçal as a compelling near-term VMS gold-copper mine.
Positive factors
- Exceptional economic metrics (NPV, IRR, payback)
- DFS level study with strong engineering maturity
- Significant increase in Mineral Reserve statement
- Clean, high-grade concentrate with low impurities
- Fully permitted for initial development footprint
- Pre-construction activities underway and financing progressing
Negative factors
- Capital costs increased compared to prior PFS
- Operating costs increased compared to prior PFS
- Inferred resources not included in open-pit constraints
- Potential for future permitting amendments for expansion
Facts used in scoring: 8
Classification and evidence
DFS Bankablepositive
AACE Class 2-1 study complete and within the staleness window.
Why it applies: The document is a Definitive Feasibility Study (DFS) for the Cabaçal project, indicating a high level of engineering maturity.
Evidence · text
“Meridian Mining's Definitive Feasibility Study for Cabaçal Delivers After-Tax NPV5 of USD 2.09 Billion, 108% IRR, and 0.9 Year Payback”
High IRRpositive
Post-tax real unlevered IRR in the strong tier or better.
Why it applies: The Base Case IRR is 107.6%, which is well above the strong tier threshold for economic studies.
Evidence · table
“107.6.%”
Context: Internal Rate of Return
Fast Paybackpositive
Payback in the strong tier or better, on the required basis.
Why it applies: The Base Case payback period is 0.9 years, which is within the exceptional tier for economic studies.
Evidence · table
“0.9 Year”
Context: Payback Period
Conservative Pricingpositive
Conservative on the worst of the spot, 3-year and consensus comparisons.
Why it applies: The study uses long-term TC/RCs rather than more favourable forward curves, indicating a conservative approach to pricing assumptions.
Evidence · text
“For the DFS, Meridian elected to use the long-term TC/RCs supplied by Ocean Partners rather than the more favourable forward curve.”
Fully Permittedpositive
Key permits granted with no unresolved challenge.
Why it applies: The Preliminary Licence for the development footprint is approved, and the Installation Licence for the power line has been granted.
Evidence · text
“SEMA granted Meridian the Cabaçal Preliminary Licence (LP) in October 2025. In May 2026, Meridian lodged the documents for the Cabaçal Installation Licence. This documentation is currently being reviewed by SEMA.”
Tonnage Growthpositive
Tonnage increase reaching the strong tier vs prior estimate, with grade maintained or improved.
Why it applies: The DFS includes an updated and larger Mineral Reserve statement compared to the prior PFS.
Evidence · text
“Key updates reported in the Study include stronger economics, an updated and larger Mineral Reserve statement, an optimised mine plan, and improved metallurgy.”
High Recoverypositive
Recovery at or above the exceptional band for the commodity and processing route.
Why it applies: Average metallurgical recoveries are 89.3% for gold and 92.8% for copper, which are strong to exceptional for their respective processing routes.
Evidence · table
“89.3%”
Context: Average metallurgical recovery - Gold
Pilot Scale Completepositive
Pilot or demonstration plant testing completed under continuous operation.
Why it applies: The fourth phase of test work included a mini pilot plant run to demonstrate scale.
Evidence · text
“Test work included variability flotation of samples from each six-month period of the first 5 years of the mine plan, and a mini pilot plant run of mineralised feed from the first 5 years of the mine plan, to demonstrate scale and provide samples for other test work to fill gaps in the data for the DFS.”
Refractory Orenegative
Ore requires oxidation/pressure treatment before recovery — a processing and recovery risk.
Why it applies: The test work identified significant amounts of chlorite that interfere with sulphide flotation, requiring adjusted reagent dosing and a re-cleaner circuit.
Evidence · text
“This sample material contained significant amounts of chlorite, in the range of 14.2 to 27.0%, an amount that would interfere with sulphide flotation by absorbing flotation reagent and destabilising the froth bed.”
Cut-off Disclosedpositive
Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison.
Why it applies: A current resource fact retains the disclosed cut-off grade
Mill Routeneutral
Processing via mill or concentrator (CIL, CIP, tank leach, flotation).
Why it applies: the document describes a mill_cil route ("concentrator")
Gravity Routeneutral
Gravity separation forms a material part of the flowsheet.
Why it applies: the document describes a gravity route ("gravity")
Single Domain Onlynegative
Testing limited to one composite or domain — representativeness not established.
Why it applies: only one composite was tested
Extracted facts
Stored fact records: 6. Some facts used in scoring do not have a stored record.
Resource Estimates (3)
provenCabaçal · goldTonnes: 56040000Grade: 0.61Grade Unit: g/tContained Metal: 1106.5Contained Unit: kozView all detailsHide details
Identity
- Project
- Cabaçal
- Commodity
- gold
- Region
- brazil
- Reported Region
- Mato Grosso, Brazil
- Ticker
- MNO.TO
Resource scope
- Estimate type
- reserve
- Effective date
- 2025-12-31T00:00:00.000Z
- Reporting standards
- ni_43_101
- QP Signed
- Yes
- Qualified person names
- Porfirio Cabaleiro
- Resource group id
- resource:54612a5f7b8d4e2355fc
- Mining method
- open_pit
Resource Data
- Category
- proven
- Tonnes
- 56040000
- Grade
- 0.61
- Grade Unit
- g/t
- Contained Metal
- 1106.5
- Contained Unit
- koz
- Cutoff Grade
- 0.138
- Cutoff Unit
- g/t
Prior Estimate
- Resource Date
- 2025-12-31
Metal Equivalent
- Assumptions Disclosed
- No
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Positive factors
- Highest confidence category (Proven Reserve)
- Significant contained metal
- QP signed off on the estimate
- Compliant with NI 43-101 standards
- Updated and larger Mineral Reserve statement
Tags used in scoring
Proven Reservepositive
Measured Resource with demonstrated economic viability after applying modifying factors.
Why it applies: category is "proven"
Cut-off Disclosedpositive
Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison.
Why it applies: cutoff_grade is stated
QP/CP Signedpositive
Qualified Person (QP) or Competent Person (CP) named and signed off — a member of a recognized professional association (e.g., AusIMM, SME, AIG, P.Geo) with relevant experience.
Why it applies: qp_signed is true
NI 43-101 Compliantpositive
Resource estimate prepared in compliance with NI 43-101 (Canada) — high reporting standard.
Why it applies: reporting_standards includes ni_43_101
PEA-Supportingneutral
Resource estimate prepared to support a Preliminary Economic Assessment — early-stage study.
Why it applies: the release names the study this estimate supports
PFS-Supportingneutral
Resource estimate prepared to support a Pre-Feasibility Study — requires adequate M&I component.
Why it applies: the release names the study this estimate supports
DFS-Supportingneutral
Resource estimate prepared to support a Definitive Feasibility Study — requires high M&I confidence.
Why it applies: the release names the study this estimate supports
provenCabaçal · silverTonnes: 56040000Grade: 1.33Grade Unit: g/tContained Metal: 2388Contained Unit: kozView all detailsHide details
Identity
- Project
- Cabaçal
- Commodity
- silver
- Region
- brazil
- Reported Region
- Mato Grosso, Brazil
- Ticker
- MNO.TO
Resource scope
- Estimate type
- reserve
- Effective date
- 2025-12-31T00:00:00.000Z
- Reporting standards
- ni_43_101
- QP Signed
- Yes
- Qualified person names
- Porfirio Cabaleiro
- Resource group id
- resource:54612a5f7b8d4e2355fc
- Mining method
- open_pit
Resource Data
- Category
- proven
- Tonnes
- 56040000
- Grade
- 1.33
- Grade Unit
- g/t
- Contained Metal
- 2388
- Contained Unit
- koz
- Cutoff Grade
- 0.138
- Cutoff Unit
- g/t
Prior Estimate
- Resource Date
- 2025-12-31
Metal Equivalent
- Assumptions Disclosed
- No
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Positive factors
- Highest confidence category (Proven Reserve)
- Significant contained metal
- QP signed off on the estimate
- Compliant with NI 43-101 standards
- Updated and larger Mineral Reserve statement
Tags used in scoring
Proven Reservepositive
Measured Resource with demonstrated economic viability after applying modifying factors.
Why it applies: category is "proven"
Cut-off Disclosedpositive
Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison.
Why it applies: cutoff_grade is stated
QP/CP Signedpositive
Qualified Person (QP) or Competent Person (CP) named and signed off — a member of a recognized professional association (e.g., AusIMM, SME, AIG, P.Geo) with relevant experience.
Why it applies: qp_signed is true
NI 43-101 Compliantpositive
Resource estimate prepared in compliance with NI 43-101 (Canada) — high reporting standard.
Why it applies: reporting_standards includes ni_43_101
PEA-Supportingneutral
Resource estimate prepared to support a Preliminary Economic Assessment — early-stage study.
Why it applies: the release names the study this estimate supports
PFS-Supportingneutral
Resource estimate prepared to support a Pre-Feasibility Study — requires adequate M&I component.
Why it applies: the release names the study this estimate supports
DFS-Supportingneutral
Resource estimate prepared to support a Definitive Feasibility Study — requires high M&I confidence.
Why it applies: the release names the study this estimate supports
provenCabaçal · copperTonnes: 56040000Grade: 0.35Grade Unit: %Contained Metal: 429.9Contained Unit: mlbView all detailsHide details
Identity
- Project
- Cabaçal
- Commodity
- copper
- Region
- brazil
- Reported Region
- Mato Grosso, Brazil
- Ticker
- MNO.TO
Resource scope
- Estimate type
- reserve
- Effective date
- 2025-12-31T00:00:00.000Z
- Reporting standards
- ni_43_101
- QP Signed
- Yes
- Qualified person names
- Porfirio Cabaleiro
- Resource group id
- resource:54612a5f7b8d4e2355fc
- Mining method
- open_pit
Resource Data
- Category
- proven
- Tonnes
- 56040000
- Grade
- 0.35
- Grade Unit
- %
- Contained Metal
- 429.9
- Contained Unit
- mlb
- Cutoff Grade
- 0.138
- Cutoff Unit
- g/t
Prior Estimate
- Resource Date
- 2025-12-31
Metal Equivalent
- Assumptions Disclosed
- No
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Positive factors
- Highest confidence category (Proven Reserve)
- Significant contained metal
- QP signed off on the estimate
- Compliant with NI 43-101 standards
- Updated and larger Mineral Reserve statement
Tags used in scoring
Proven Reservepositive
Measured Resource with demonstrated economic viability after applying modifying factors.
Why it applies: category is "proven"
Cut-off Disclosedpositive
Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison.
Why it applies: cutoff_grade is stated
QP/CP Signedpositive
Qualified Person (QP) or Competent Person (CP) named and signed off — a member of a recognized professional association (e.g., AusIMM, SME, AIG, P.Geo) with relevant experience.
Why it applies: qp_signed is true
NI 43-101 Compliantpositive
Resource estimate prepared in compliance with NI 43-101 (Canada) — high reporting standard.
Why it applies: reporting_standards includes ni_43_101
PEA-Supportingneutral
Resource estimate prepared to support a Preliminary Economic Assessment — early-stage study.
Why it applies: the release names the study this estimate supports
PFS-Supportingneutral
Resource estimate prepared to support a Pre-Feasibility Study — requires adequate M&I component.
Why it applies: the release names the study this estimate supports
DFS-Supportingneutral
Resource estimate prepared to support a Definitive Feasibility Study — requires high M&I confidence.
Why it applies: the release names the study this estimate supports
Metallurgical Results (3)
flotationCabaçal · goldRecovery: 89.3 %View all detailsHide details
Identity
- Project
- Cabaçal
- Commodity
- gold
- Region
- brazil
- Reported Region
- Mato Grosso, Brazil
- Ticker
- MNO.TO
Test Work
- Program Status
- detailed
- Test Type
- flotation
- Processing Route
- gravity and flotation
- Sample
- LOM average
- Grind P80
- 150 µm
Recovery
- Recovery
- 89.3 %
- Recovery Basis
- actual_test
Lab
- Laboratory
- SGS Lakefield Canada
- Consultant
- Flowsheets Metallurgical Consulting Inc.
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Reasoning: The average LOM gold recovery of 89.3% is strong, achieved through a detailed test program including a mini pilot plant. The process produces a clean concentrate, although the presence of chlorite required specific reagent adjustments, indicating some ore complexity.
Positive factors
- High recovery for gold
- Detailed test program status (DFS inputs)
- Pilot plant run completed
- Clean concentrate with low impurities
Negative factors
- Chlorite identified as an interfering mineral, requiring reagent adjustments
Tags used in scoring
Mill Routeneutral
Processing via mill or concentrator (CIL, CIP, tank leach, flotation).
Why it applies: processing_route matches the flotation signal
Gravity Routeneutral
Gravity separation forms a material part of the flowsheet.
Why it applies: processing_route matches the gravity signal
flotationCabaçal · copperRecovery: 92.8 %View all detailsHide details
Identity
- Project
- Cabaçal
- Commodity
- copper
- Region
- brazil
- Reported Region
- Mato Grosso, Brazil
- Ticker
- MNO.TO
Test Work
- Program Status
- detailed
- Test Type
- flotation
- Processing Route
- flotation
- Sample
- LOM average
- Grind P80
- 150 µm
Recovery
- Recovery
- 92.8 %
- Recovery Basis
- actual_test
Lab
- Laboratory
- SGS Lakefield Canada
- Consultant
- Flowsheets Metallurgical Consulting Inc.
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Reasoning: The average LOM copper recovery of 92.8% is exceptional, supported by detailed test work and pilot plant results. The ore's chalcopyrite exhibits excellent auto-flotation, contributing to high recovery, though chlorite required specific reagent management.
Positive factors
- Exceptional recovery for copper
- Detailed test program status (DFS inputs)
- Pilot plant run completed
- Clean concentrate with low impurities
- Excellent auto-flotation characteristics of chalcopyrite
Negative factors
- Chlorite identified as an interfering mineral, requiring reagent adjustments
Tags used in scoring
Mill Routeneutral
Processing via mill or concentrator (CIL, CIP, tank leach, flotation).
Why it applies: processing_route matches the flotation signal
High Recoverypositive
Recovery at or above the exceptional band for the commodity and processing route.
Why it applies: 92.8% is at or above the exceptional band (92%)
flotationCabaçal · silverRecovery: 74.3 %View all detailsHide details
Identity
- Project
- Cabaçal
- Commodity
- silver
- Region
- brazil
- Reported Region
- Mato Grosso, Brazil
- Ticker
- MNO.TO
Test Work
- Program Status
- detailed
- Test Type
- flotation
- Processing Route
- gravity and flotation
- Sample
- LOM average
- Grind P80
- 150 µm
Recovery
- Recovery
- 74.3 %
- Recovery Basis
- actual_test
Lab
- Laboratory
- SGS Lakefield Canada
- Consultant
- Flowsheets Metallurgical Consulting Inc.
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Reasoning: The average LOM silver recovery of 74.3% is moderate, falling below the strong band for silver flotation. While the test program was detailed and included pilot plant work, the recovery suggests some challenges, potentially related to the identified chlorite interference.
Positive factors
- Detailed test program status (DFS inputs)
- Pilot plant run completed
- Clean concentrate with low impurities
Negative factors
- Recovery is below the strong band for silver flotation
- Chlorite identified as an interfering mineral, requiring reagent adjustments
Tags used in scoring
Mill Routeneutral
Processing via mill or concentrator (CIL, CIP, tank leach, flotation).
Why it applies: processing_route matches the flotation signal
Gravity Routeneutral
Gravity separation forms a material part of the flowsheet.
Why it applies: processing_route matches the gravity signal
Low Recoverynegative
Recovery below the weak band for the commodity and processing route.
Why it applies: 74.3% is below the weak band (75%)
How Atlas produces this analysis
Minestarters Atlas uses automated extraction to summarize mining announcements, identify reported measurements, and classify supporting evidence. Sentiment reflects the extracted narrative and classification rules; it is an interpretation, not a reported measurement. Evidence quotes and context are provided where available. Missing data, low-confidence results, and review flags indicate limitations. Check the original publisher announcement before relying on an interpretation.