Meridian Mining UK Societas (TSX:MNO) shares surged 20% to $0.56 on Monday after the explorer and resource project developer provided an update on the ongoing drill program at its Cabaçal volcanogenic massive sulphide (VMS) gold‐copper project in Brazil, which included a 12.8 metre intersection of 12.7% copper equivalent, or 19 grams per tonne (g/t) gold equivalent, from a high-grade feeder zone found in drill hole CD-240.
Meridian said CD-240 hit the highest-grade VMS copper-gold feeder zone to date at Cabaçal, with peak assay grades of 17.9% copper and 34.1 g/t gold, and multiple copper assays grading greater than 17.0% copper.
“The highest-grade VMS results reported today from CD-240's copper-gold feeder zone highlight the tremendous upside that Cabaçal continues to offer,” CEO Adrian McArthur said in a statement.
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“This trend has the potential to enhance the existing resource base and extends below the current open pit design,” he added.
McArthur also noted the targeting of this open mineralization in the Southern Copper Zone is part of the ongoing drill program, and the company expects the results to deliver a positive contribution to the next phase of economic studies.
Meridian added that the CD-240 high-grade zone remains open.
As well, the company stated that it will include this new zone, and the multiple of other higher-grade trends, defined since August 2022, in an upcoming Cabaçal resource update.
Contact Sean at sean@proactiveinvestors.com