MERIDIAN MINERALS LTD - ASX: MII

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Description

Meridian Minerals Limited (ASX: MII) is an Australian based diverse mineral resource development and exploration company.

The company owns the Lennard Shelf Zinc Lead Project in the Kimberley region of Western Australia, one of the world’s premier Mississippi Valley Type zinc-lead provinces. Since acquiring the project late 2009, with its extensive drilling program, Meridian Minerals has increased the project’s mineral resources by 130%, from 8.2Mt @ 7.4% Zn and 4.0% Pb, to the current 17.7Mt @ 4.0% Pb and 5.5% Zn. Meridian is currently completing an Emanuel Range Feasibility Study examining the viability of recommencing mining at Kapok and developing the Kapok West and Cadjebut Splay resources.

In February 2011 Meridian entered into a non-binding Heads of Agreement with the aim to acquire a 75% Interest in the non-alluvial assets of pre-production Russian Gold Company “Omchak”. The Due diligence process is underway. Meridian Minerals continues to proactively identify and assess other project opportunities.

Lennard Shelf - Western Australia

The Lennard Shelf Zinc Lead Project encompasses 1000km2 and is located in the Kimberley region of Western Australia approximately 80km SE of Fitzroy Crossing. This area is recognised as one of the world’s premier Mississippi Valley Type zinc-lead provinces. Meridian Minerals is currently completing a Internal Feasibility Study examining the viability of recommencing mining at Kapok and developing the Kapok West and Cadjebut Splay resources.

With its extensive drilling program and the recent defining of a large mineral resource at the Gap Creek prospect, to date Meridian has increased the mineral resource inventory since the project acquisition by 130% to the current 17.7Mt @ 4.0% Pb and 5.5% Zn. The Emanuel Range Feasibility Study is due for completion in the third quarter of 2011.

The MVT style of zinc and lead mineralisation, which occurs on the Lennard Shelf project, produces metal concentrates which are very highly sought by smelting companies due to the very high-grade and clean nature of the concentrates. Of all the resources mined to date, the overall recovery has been around 95% for zinc and 85% for lead. Concentrate grades have also been high with the zinc concentrate historically containing 58-60% zinc and the lead concentrate containing 72-77% lead. The clean, high-grade nature concentrates from the Lennard Shelf project have in the past attracted a premium price from smelters.

Lachlan Fold Belt - New South Wales

The Lachlan Fold Belt tenements provide Meridian Minerals with an extremely strong ground position of approximately 1400km2 within the Lachlan Fold Belt, covering a series of high priority targets prospective for Cadia (352Mt @ 0.6g/t Au and 0.2% Cu) style gold-copper deposits and shear hosted gold. Teck Cominco and Mithril vended in their Lachlan Fold Belt tenements in New South Wales. All of Meridian Minerals’ Lachlan Project tenements are granted exploration licences.

Thomson Fold Belt - New South Wales

The Thomson Fold Belt Project area is an emerging exploration region in northern New South Wales where Meridian Minerals, through its agreement with Oresearch, has been able to gain early access to a number of targets prospective for gold-copper and base metal mineralisation. The area is thought to be the northern extension of the highly mineralised Lachlan Fold Belt and consequently is extremely prospective.

The Thomson region was, until recently, thought to be covered by thick sequences of younger cover obscuring the basement rocks prospective for copper-gold mineralisation. As a consequence, no gold-copper exploration has been conducted within this region. However, recent work has shown that the younger cover in this region is not as thick as previously thought. Drill testing gold-copper targets within the Thomson Fold Belt is economically feasible due to the cover being less than 250m thick over the defined targets.

Exploration drilling began in March 2011, making Meridian Minerals amongst the first exploration companies to test targets in this exciting new region.

Mine For

copper, gold, lead, silver, zinc

Location of operation(s)

New South Wales, Western Australia

Address

Level 1, 30 Little Cribb St
MILTON, QLD, Australia

Phone

(61 7) 3225 0400

Email

Website

http://www.meridianminerals.com.au/

Last Updated

11/5/2011