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 newsfile on
- Company
- Meridian Mining Plc
- Ticker
- MNO
- Exchange
- Unavailable
- Region
- Mato Grosso, Brazil
- Primary commodity
- Gold
- Secondary commodities
- Copper, Silver
- Document categories
- Resource update, Economic study, Metallurgy
- Extracted
- 2026-09-22 06:50:41 UTC
Analysis by Minestarters Atlas
Minestarters Atlas analysis
Summary
Meridian Mining has released a Definitive Feasibility Study (DFS) for its Cabaçal gold-copper-silver project in Brazil, reporting a post-tax NPV5% of USD 2.09 billion and an Internal Rate of Return (IRR) of 108% in the base case, with a rapid payback period of 0.9 years. The study outlines a 13.9-year mine life with initial capital expenditure of USD 322 million and life-of-mine All-in Sustaining Costs (AISC) of USD 1,056/oz AuEq. The DFS is supported by updated mineral reserves and comprehensive metallurgical testwork, showing high recoveries for all three metals. The company is advancing financing and permitting activities, with an installation license lodged and pre-construction investments underway.
Reasoning: Meridian Mining's DFS for Cabaçal demonstrates exceptional economics with a high NPV, IRR, and rapid payback, supported by robust reserves and strong metallurgical recoveries. While capital and operating costs have increased, the project remains highly attractive. The main constraint is the current permit limiting immediate expansion, but future upside from underground targets and expanded pit is noted.
Positive factors
- Exceptional post-tax NPV and IRR for both base and spot cases, indicating robust project economics.
- Very fast payback period of less than one year, suggesting rapid capital recovery.
- Low life-of-mine AISC for gold equivalent, placing the project in a competitive cost position.
- DFS study class provides high confidence in the economic assessment.
- Significant proven and probable reserves underpin the mine plan.
- High metallurgical recoveries for gold, copper, and silver are projected.
- Comprehensive metallurgical testwork completed through four phases, including a mini pilot plant.
- Permitting for the power line construction has been granted, and the installation license for the project has been lodged.
- Project is located in a mining-friendly jurisdiction with existing infrastructure.
Negative factors
- Initial capital cost has increased compared to the prior PFS, attributed to inflation and exchange rate movements.
- Operating costs have also increased due to higher energy costs and reagent usage.
- The current mine plan is constrained by the existing Preliminary Licence, limiting immediate expansion of mined material volumes.
- The resource estimate does not classify Inferred resources within the open-pit constraints, which could limit future reserve conversion without further work.
Facts used in scoring: 8
Classification and evidence
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")
Extracted facts
Stored fact records: 6. Some facts used in scoring do not have a stored record.
Resource Estimates (3)
probableCabaçal · 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
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:84636e3d1a3ae0e7abe1
- Mining method
- combined
Resource Data
- Category
- probable
- 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
- Yes
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Reasoning: A substantial total Proven and Probable reserve for gold, providing a strong foundation for the project's economic viability. The estimate is NI 43-101 compliant and QP-signed, ensuring high confidence.
Positive factors
- Large total Proven and Probable reserve, indicating high confidence for economic viability.
- QP signed off on the estimate, adhering to NI 43-101 standards.
- Reserve estimate is recent and supports the DFS.
Tags used in scoring
Probable Reservepositive
Indicated Resource with demonstrated economic viability after applying modifying factors.
Why it applies: The reserve is classified as Probable, indicating good confidence for economic viability.
Evidence · table
“Probable”
Context: Probable
NI 43-101 Compliantpositive
Resource estimate prepared in compliance with NI 43-101 (Canada) — high reporting standard.
Why it applies: Mineral Reserves estimates were prepared in accordance with the CIM Standards (May 2014).
Evidence · text
“Mineral Reserves estimates were prepared in accordance with the CIM Standards (May 2014).”
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: Porfírio Cabaleiro, BSc (Mining Engineering), FAIG, FAusIMM, a Qualified Person as defined by NI 43-101, is responsible for the Mineral Reserves estimation.
Evidence · text
“The estimate was prepared by Porfírio Cabaleiro, BSc (Mining Engineering), FAIG, FAusIMM, a Qualified Person as defined by NI 43-101”
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
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
probableCabaçal · 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
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:84636e3d1a3ae0e7abe1
- Mining method
- combined
Resource Data
- Category
- probable
- 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
- Yes
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Reasoning: A substantial total Proven and Probable reserve for silver, providing a strong foundation for the project's economic viability. The estimate is NI 43-101 compliant and QP-signed, ensuring high confidence.
Positive factors
- Large total Proven and Probable reserve, indicating high confidence for economic viability.
- QP signed off on the estimate, adhering to NI 43-101 standards.
- Reserve estimate is recent and supports the DFS.
Tags used in scoring
Probable Reservepositive
Indicated Resource with demonstrated economic viability after applying modifying factors.
Why it applies: The reserve is classified as Probable, indicating good confidence for economic viability.
Evidence · table
“Probable”
Context: Probable
NI 43-101 Compliantpositive
Resource estimate prepared in compliance with NI 43-101 (Canada) — high reporting standard.
Why it applies: Mineral Reserves estimates were prepared in accordance with the CIM Standards (May 2014).
Evidence · text
“Mineral Reserves estimates were prepared in accordance with the CIM Standards (May 2014).”
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: Porfírio Cabaleiro, BSc (Mining Engineering), FAIG, FAusIMM, a Qualified Person as defined by NI 43-101, is responsible for the Mineral Reserves estimation.
Evidence · text
“The estimate was prepared by Porfírio Cabaleiro, BSc (Mining Engineering), FAIG, FAusIMM, a Qualified Person as defined by NI 43-101”
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
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
probableCabaçal · 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
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:84636e3d1a3ae0e7abe1
- Mining method
- combined
Resource Data
- Category
- probable
- 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
- Yes
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Reasoning: A substantial total Proven and Probable reserve for copper, providing a strong foundation for the project's economic viability. The estimate is NI 43-101 compliant and QP-signed, ensuring high confidence.
Positive factors
- Large total Proven and Probable reserve, indicating high confidence for economic viability.
- QP signed off on the estimate, adhering to NI 43-101 standards.
- Reserve estimate is recent and supports the DFS.
Tags used in scoring
Probable Reservepositive
Indicated Resource with demonstrated economic viability after applying modifying factors.
Why it applies: The reserve is classified as Probable, indicating good confidence for economic viability.
Evidence · table
“Probable”
Context: Probable
NI 43-101 Compliantpositive
Resource estimate prepared in compliance with NI 43-101 (Canada) — high reporting standard.
Why it applies: Mineral Reserves estimates were prepared in accordance with the CIM Standards (May 2014).
Evidence · text
“Mineral Reserves estimates were prepared in accordance with the CIM Standards (May 2014).”
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: Porfírio Cabaleiro, BSc (Mining Engineering), FAIG, FAusIMM, a Qualified Person as defined by NI 43-101, is responsible for the Mineral Reserves estimation.
Evidence · text
“The estimate was prepared by Porfírio Cabaleiro, BSc (Mining Engineering), FAIG, FAusIMM, a Qualified Person as defined by NI 43-101”
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
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
Test Work
- Program Status
- detailed
- Test Type
- flotation
- Processing Route
- gravity, flotation
Recovery
- Recovery
- 89.3 %
- Recovery Basis
- actual_test
Lab
- Laboratory
- SGS Lakefield
- Consultant
- Flowsheets Metallurgical Consulting Inc
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Reasoning: The DFS projects a strong average gold recovery of 89.3%, which is a positive indicator for the project's economic viability. This is supported by detailed test work.
Positive factors
- High gold recovery achieved through flotation and gravity circuits.
- Detailed test program status indicates advanced metallurgical understanding.
- Test work conducted by reputable laboratories and consultants.
Tags used in scoring
High Recoverypositive
Recovery at or above the exceptional band for the commodity and processing route.
Why it applies: The average metallurgical recovery for gold is 89.3%, which is within the strong band for mill/CIL processing.
Evidence · table
“89.3%”
Context: Average metallurgical recovery - Gold
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
Test Work
- Program Status
- detailed
- Test Type
- flotation
- Processing Route
- flotation
Recovery
- Recovery
- 92.8 %
- Recovery Basis
- actual_test
Lab
- Laboratory
- SGS Lakefield
- Consultant
- Flowsheets Metallurgical Consulting Inc
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Reasoning: The DFS projects an excellent average copper recovery of 92.8%, which is a very strong indicator for the project's economic viability. This is supported by detailed test work.
Positive factors
- Very high copper recovery achieved through flotation.
- Detailed test program status indicates advanced metallurgical understanding.
- Test work conducted by reputable laboratories and consultants.
Tags used in scoring
High Recoverypositive
Recovery at or above the exceptional band for the commodity and processing route.
Why it applies: The average metallurgical recovery for copper is 92.8%, which is within the exceptional band for flotation processing.
Evidence · table
“92.8%”
Context: Average metallurgical recovery - Copper
Mill Routeneutral
Processing via mill or concentrator (CIL, CIP, tank leach, flotation).
Why it applies: processing_route matches the flotation signal
flotationCabaçal · silverRecovery: 74.3 %View all detailsHide details
Identity
- Project
- Cabaçal
- Commodity
- silver
- Region
- brazil
- Reported Region
- Mato Grosso, Brazil
- Ticker
- MNO
Test Work
- Program Status
- detailed
- Test Type
- flotation
- Processing Route
- gravity, flotation
Recovery
- Recovery
- 74.3 %
- Recovery Basis
- actual_test
Lab
- Laboratory
- SGS Lakefield
- Consultant
- Flowsheets Metallurgical Consulting Inc
Review
- Needs Review
- No
- Historical
- No
Dates
- Event date
- 2026-09-22T00:00:00.000Z
Reasoning: The DFS projects a good average silver recovery of 74.3%, which is a positive indicator for the project's economic viability, especially as a byproduct. This is supported by detailed test work.
Positive factors
- Good silver recovery achieved through flotation and gravity circuits.
- Detailed test program status indicates advanced metallurgical understanding.
- Test work conducted by reputable laboratories and consultants.
Tags used in scoring
Byproduct Commodityneutral
The tested commodity is a byproduct rather than the primary economic driver.
Why it applies: Silver is mentioned as a byproduct credit alongside gold and copper, indicating it is not the primary economic driver.
Evidence · text
“Cabaçal gold-copper-silver deposit”
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.