Meridian Announces Filing of the NI 43-101 Definitive Feasibility Study Technical Report for the Cabaçal Gold-Copper-Silver Deposit in Brazil

Meridian Mining's DFS projects a $2.1B NPV and 108% IRR for Cabaçal, but execution risk remains.

What the company is saying

Meridian Mining has filed its independent Definitive Feasibility Study (DFS) for the Cabaçal Au-Cu-Ag Project in Mato Grosso, Brazil, emphasizing robust project economics and technical readiness. The company highlights a base case after-tax NPV5 of USD 2.1 billion and an IRR of 108%, derived from a pre-production capital cost of USD 322 million and a rapid capital payback of 0.9 years. The narrative stresses low all-in-sustaining costs at USD 1,056 per ounce gold equivalent and an average annual production of 183,526 ounces of gold equivalent over the first five years. Meridian frames the project as benefiting from high metallurgical recovery, a low strip ratio of 1.4:1, and Brazil's cost environment. The announcement names the technical consultants and Qualified Person, underscoring compliance with NI 43-101 and technical rigor. The tone is confident and data-driven, with repeated encouragement for readers to consult the full DFS for all assumptions and risks.

What the data suggests

The DFS discloses a strong modeled after-tax NPV5 of USD 2.1 billion and an IRR of 108%, based on a pre-production capital cost of USD 322 million and payback in 0.9 years. These projections assume metal prices of USD 3,570/oz gold, USD 5.03/lb copper, and USD 50.17/oz silver. The project is forecast to produce an average of 183,526 ounces of gold equivalent per year for the first five years, at an all-in-sustaining cost of USD 1,056/oz. Proven and Probable reserves are 56.04 million tonnes at 0.61g/t gold, 0.35% copper, and 1.33g/t silver, using a 0.138 g/t gold equivalent cut-off. The technical report is prepared by named independent consultants and reviewed by Meridian's Chief Geologist. All figures are forward-looking and based on DFS modeling; no actual production, sales, or realised financials are reported. The data is comprehensive for a DFS, but all value is contingent on future execution and market conditions.

Analysis

The announcement is positive in tone and provides detailed technical and economic metrics from the Definitive Feasibility Study (DFS) for the Cabaçal project. The DFS is a significant milestone, and the disclosure of NPV, IRR, capital cost, and reserve grades is comprehensive for this stage. However, all economic benefits (NPV, IRR, payback, production profile) are forward-looking projections based on modelled assumptions, not realised outcomes. The project requires a large pre-production capital outlay (USD 322 million), and there is no disclosure of committed financing, construction start, or near-term cash flow. The stated benefits (high IRR, rapid payback) are contingent on future execution and commodity prices, which are notably high in the base case. While the DFS is a credible technical milestone, the gap between the narrative of imminent value and the actual stage (pre-construction, pre-financing) is material. The language is proportionate for a DFS, but the economic projections should be interpreted as potential, not realised value.

Risk flags

• ●The economic projections rely on high commodity price assumptions—USD 3,570/oz gold, USD 5.03/lb copper, and USD 50.17/oz silver—which may not be sustained in future market conditions. If prices fall below these levels, project returns could be materially lower.
• ●A large pre-production capital requirement of USD 322 million must be financed before construction can begin. There is no disclosure of committed funding, and failure to secure capital could delay or prevent project development.
• ●All-in-sustaining cost and production profile are modeled, not proven by operations. Actual costs and recoveries may differ once mining commences, impacting margins and payback.
• ●Permitting, construction, and ramp-up risks remain. The DFS does not confirm that all regulatory, environmental, and community approvals are in place, and delays or opposition could impact timelines and costs.
• ●The rapid payback period of 0.9 years is highly sensitive to operational performance and commodity prices. Any shortfall in grade, recovery, or throughput could extend payback and reduce IRR.

Bottom line

Meridian Mining's DFS for the Cabaçal project presents compelling modeled economics, with a projected after-tax NPV5 of USD 2.1 billion, 108% IRR, and a payback period under one year, assuming optimistic commodity prices and successful execution. The technical disclosure is thorough, with reserves of 56.04 million tonnes at competitive grades and a low modeled all-in-sustaining cost. However, all value is forward-looking: the company must still secure USD 322 million in financing, obtain permits, and deliver on construction and ramp-up before any cash flow is realised. The rapid payback and high IRR are attractive but depend on maintaining high prices and flawless execution. Investors should treat the DFS as a credible technical milestone, but not as evidence of imminent cash flow or guaranteed returns. The most important takeaway is that Meridian has a technically robust project on paper, but the path to value remains long and capital-intensive, with substantial execution and market risks ahead.

Announcement summary

(LSE: MNO) (TSX: MNO) (FSE: N2E0) (OTCQX: MRRDF) Meridian Mining plc has filed its independent Definitive Feasibility Study technical report (DFS Technical Report) for the advanced Cabaçal Au-Cu-Ag Project located in Mato Grosso, Brazil, with an effective date of September 15, 2026. The DFS Technical Report, dated October 28, 2026, is titled 'Cabaçal Gold-Copper Project NI 43-101 Technical Report & Definitive Feasibility Study, Mato Grosso, Brazil.' The base case outlined in the DFS Technical Report shows an after-tax NPV5 of USD 2.1 billion and an IRR of 108%, based on a pre-production capital cost of USD 322 million, with capital repayment in 0.9 years. The metals price scenario used in the study assumes USD 3,570 per ounce of gold, USD 5.03 per pound of copper, and USD 50.17 per ounce of silver, net of tax credits. The Cabaçal project is projected to have a low All-in-Sustaining-Cost of USD 1,056 per ounce of gold equivalent and an average annual production profile of 183,526 ounces of gold equivalent over years 1-5. The project benefits from high metallurgical recovery, a low life-of-mine strip ratio of 1.4:1, and the low operating cost environment of Brazil. The Cabaçal Mineral Reserve estimate consists of Proven and Probable reserves of 56.04 million tonnes at 0.61g/t gold, 0.35% copper, and 1.33g/t silver, using a 0.138 g/t gold equivalent cut-off grade. The DFS Technical Report was prepared by Tommaso Roberto Raponi (P. Eng), Principal Metallurgist with Ausenco Engineering Canada ULC; Scott Elfen (P. E. & P.Eng.), Global Lead Geotechnical and Civil Services with Ausenco Engineering Canada ULC; Porfirio Cabaleiro Rodriguez (FAIG), Senior Mining Engineer with GE21 Consultoria Mineral; Leonardo Soares (BSc. (Geo) MAIG), Senior Geologist with GE21 Consultoria Mineral; and Norman Lotter (P.Eng., PrEng., C.Eng.), President and Consulting Engineer with Flowsheets Metallurgical Consulting Inc. Qualified Person Mr Erich Marques, B.Sc., FAIG, Chief Geologist of Meridian Mining and a non-independent Qualified Person as defined by National Instrument 43-101, has reviewed and approved the technical disclosure in the news release. Meridian Mining is focused on the development and exploration of the advanced-stage Cabaçal VMS gold‐copper project, expanding the initial resource inventory at the Santa Helena area, regional-scale exploration of the Cabaçal VMS Belt, and exploration in the Jauru & Araputanga Greenstone Belts, all located in the State of Mato Grosso, Brazil. The DFS Technical Report will be filed on the Company's website and on SEDAR+ in accordance with NI 43-101.

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