"We are excited to have identified, only 35m below CD-058's hole current level at 441m, the corrected position of the Cabacal West conductor, being directly below a new copper-zinc sulphide VMS feeder system," CEO and president Dr Adrian McArthur said.

"Holes CD-038, and historical hole AMCD-15-006 (which was terminated above the conductor's position) both show mineralisation overlying CD-058's conductor, which extends over 1km strike length, indicating a vast footprint to the targeted system."

The company said although it had a wealth of geological information on Cabacal, the VMS camp's modern geophysical attributes were only starting to be incorporated "and possibly starting to unlock an exciting future".

It took an option 12 months ago on the project, which was previously looked at by Rio Tinto.

The company also has the Espigao polymetallic project in Rondonia, while Orosur Mining signed a letter of intent to earn up to 75% of its Aruqemes tin project last month.

Meridian had about C$5 million in cash at mid-June after receiving $2.37 million from the conversion of warrants.

It said it was preparing to expand its drill programme at Cabacal West and expected assays soon from ongoing drilling at the Cabacal mine.

Its shares (TSXV: MNO) have spanned 11-79c over the past year and closed up 11.4% yesterday to 44c, valuing it about $56 million (US$44 million).