New high grade vein discovery at El Penon, along with additional significant exploration results



    RENO, Nevada, Sept. 4 /CNW/ - Meridian Gold Inc. ("Meridian Gold" or the
"Company") (TSX: MNG) (NYSE:   MDG) today announced the exciting discovery, at
its flagship El Penon mine in Chile, of another new high-grade vein and the
extension of the Al Este vein, forming a major new nucleus of high grade gold
and silver mineralization. Meridian Gold also reported on further significant
drilling success at the Mercedes project in Mexico, encouraging exploration
results from its La Pepa project in Chile and the acquisition of a 65%
interest in the Membrillo and Chancon mining districts adjacent to Minera
Florida.

    
    Highlights include:

    -   New high-grade vein discovery at El Penon, with the best
        drill result to-date of 8 meters at 17.7 grams per tonne gold
        and 329 grams per tonne silver;

    -   Extension of the Al Este vein at El Penon by 500 meters to
        the north for a total strike length of 3,000 meters and
        definition of a new ore shoot;

    -   At the Company's 100% owned Mercedes project in Mexico, a
        high-grade ore shoot has been identified at depth on the
        Klondike vein;

    -   Definition of the Cavancha gold  porphyry deposit at La Pepa,
        Chile; and

    -   Consolidation of properties in the Membrillo and Chancon
        districts with Minera Florida.
    

    Ed Dowling, President and CEO of Meridian Gold, said: "These exciting
developments demonstrate Meridian Gold's ability to add value through the
drill bit, delivering superior returns to shareholders while growing our
company organically."

    El Penon, Chile
    ---------------

    New High-Grade "Bonanza" Vein

    At El Penon the Company has discovered another new high grade vein.
Drilling 300 meters to the northeast of Al Este has intersected a new,
previously untested mineralized vein structure, named Bonanza. This new vein
has been delineated along a minimum strike length of 300 meters and,
importantly, remains open in all directions. A total of seven reverse
circulation drill holes have been completed to date and three drills continue
to test the new structure along strike and to depth.

    
    Table 1: New High Grade Bonanza Vein Drill Results

    -----------------------------------------------------------------
    Hole           From      To     Horizontal       Au          Ag
                   (m)      (m)      Width (m)     (g/t)       (g/t)
    -----------------------------------------------------------------
    SPA-0124       415      420        2.35         7.48       157.3
    -----------------------------------------------------------------
    SAE-0005       436      437        0.45         5.90        51.5
    -----------------------------------------------------------------
    SAE-0006       448      451        1.54        38.83        68.2
    -----------------------------------------------------------------
                   456      460        2.06         7.53       263.8
    -----------------------------------------------------------------
    SAE-0008       414      427        5.69        33.22       734.4
    -----------------------------------------------------------------
    SAE-0009       309      310        0.47        16.20       743.0
    -----------------------------------------------------------------
    SAE-0010       364      366        0.94        51.37        66.0
    -----------------------------------------------------------------
    SAE-0012       436      455        8.00        17.66       329.3
    -----------------------------------------------------------------

    The Al Este Extension North

    Drilling on the Al Este vein itself has resulted in the discovery of a new
ore shoot, which extends the strike length of the vein northwards for 500
meters, to a total of 3,000 meters. This vein remains open along strike and at
depth.

    Table 2: Al Este Extension Drill Results

    -----------------------------------------------------------------
    Hole           From      To     Horizontal       Au          Ag
                   (m)      (m)      Width (m)     (g/t)       (g/t)
    -----------------------------------------------------------------
    SPA-0105       355      357        0.92        18.45       755.5
    -----------------------------------------------------------------
    SPA-0119       407      408        0.35         2.43       131.0
    -----------------------------------------------------------------
    SPA-0126       396      397        0.50        34.10     1,522.0
    -----------------------------------------------------------------
    SAE-0002       412      413        0.52         9.00       367.0
    -----------------------------------------------------------------
    

    Stabro Kasaneva, General Manager of the El Penon mine, stated: "The new
high-grade Bonanza vien and the Al Este vein extension are parallel and strike
North - South, similar to Quebrada Colorada, the mainstay of the Company's
production for many years. This strike orientation has historically been the
most favorable orientation in the region for the discovery of high-grade gold
and silver mineralization. These two discoveries, added to the previously
announced Esmeralda vein form a new nucleus of high-grade gold and silver
mineralization at El Penon which is expected to have sufficient critical mass
to become a future center for cost effective mining operations. This discovery
supports our previously reported view that El Penon is located within a major
gold district. Meridian Gold's land position in this district, surrounding El
Penon, exceeds 750 square kilometers."

    Mercedes, Mexico
    ----------------

    The Klondike Vein

    At Meridian Gold's 100%-owned Mercedes project, the Company released the
first set of results from the 2007 drill campaign on the Klondike vein. The
Klondike vein has been regarded historically as one of the highest grade
low-sulfidation epithermal veins in the region, with previous underground
mining focusing on vein zones 0.2 to 5.0 meters wide and typically containing
greater than 30.0 grams of gold per tonne. To date, a total of 4,956 meters in
25 core holes (K07-020 to K07-044) have been completed. The holes have been
drilled on approximately a 60 x 60 meter grid, covering a 450-meter strike
length of the Klondike vein over a vertical range of approximately 200 meters.
    Initial results from holes K07-020 to K07-029 have been very encouraging,
confirming the high-grade nature of the principal vein zone, as well as
further defining the extent of wide zones of disseminated gold mineralization,
hosted in stockworks and breccias adjacent to the vein. For illustrative
purposes the results presented in the following table are shown at both 0.5
grams per tonne and 2.0 grams per tonne cutoffs, to reflect the exploitation
potential of this vein using either open pit or underground mining methods,
respectively.

    
    Table 3: Klondike Vein Drill Results

    -----------------------------------------------------------------
    Hole       Cut-off    From      To    True Width     Au       Ag
               (Au g/t)    (m)      (m)      (m)       (g/t)    (g/t)
    -----------------------------------------------------------------
    K07-020      0.5     71.95     90.96     17.00      3.00    16.0
    -----------------------------------------------------------------
                 2.0     79.45     87.94      7.20      5.86    15.0
    -----------------------------------------------------------------
    K07-021      0.5     92.85     94.92      1.15      0.98    19.7
    -----------------------------------------------------------------
                 2.0     92.85     93.21      0.20      4.07      20
    -----------------------------------------------------------------
    K07-022      0.5    108.92    133.64     15.00      1.91    18.0
    -----------------------------------------------------------------
                 2.0    108.92    113.15      3.10      8.40    30.0
    -----------------------------------------------------------------
    K07-023      0.5    149.07    155.36      4.90      1.21    34.6
    -----------------------------------------------------------------
                 2.0    154.11    155.36      0.97      3.83    32.4
    -----------------------------------------------------------------
    K07-024      0.5     87.78     94.95      6.70     24.01    26.0
    -----------------------------------------------------------------
                 2.0     89.76     94.95      4.55     32.34    28.0
    -----------------------------------------------------------------
    K07-025      0.5    193.15    197.90      3.10      1.42    47.0
    -----------------------------------------------------------------
                 2.0    196.22    196.90      0.50      6.72   119.0
    -----------------------------------------------------------------
    K07-026      0.5    123.40    134.11      9.50      0.74    12.0
    -----------------------------------------------------------------
                 2.0    129.90    130.40      0.40      1.92    14.0
    -----------------------------------------------------------------
    K07-027      0.5    118.87    145.90     24.33      2.60    17.0
    -----------------------------------------------------------------
                 2.0    122.17    126.43      3.28     13.75    20.0
    -----------------------------------------------------------------
    K07-028      0.5    192.02    222.50     26.00      1.31    15.0
    -----------------------------------------------------------------
                 2.0    199.85    206.30      5.48      4.74     8.0
    -----------------------------------------------------------------
    K07-029      0.5    147.00    155.45      7.50      3.43    31.8
    -----------------------------------------------------------------
                 2.0    148.70    152.40      3.28      6.57    32.4
    -----------------------------------------------------------------
    

    Mark Hawksworth, Senior Project Geologist and Manager of Exploration for
Mercedes, commented: "We are very pleased with these exciting results from
Klondike. We have substantially increased the strike length and the depth of
mineralization and have confirmed that Mercedes is a multi-vein project. This
bodes well for the prospectivity of the numerous veins we have currently
identified and for the extensive property as a whole."

    La Pepa, Chile
    --------------
    In 2004, the Company entered into an agreement to acquire the La Pepa
project in Northern Chile, consisting of mining and exploration claims
totaling 6,780 hectares. Since the agreement, drilling has delineated a gold
porphyry of Miocene age, confirming results obtained by previous operators.
The best intersections from the drill campaigns include the following.

    
    Table 4: La Pepa Drill Results

    -----------------------------------------------------------------
    Hole             From (m)       To (m)   Length (m)      Au (g/t)
    -----------------------------------------------------------------
    LCV0001               12           24           12          1.16
    -----------------------------------------------------------------
                          40           46            6          1.17
    -----------------------------------------------------------------
                          66           88           22          1.18
    -----------------------------------------------------------------
    LCV0002              268          278           10          1.31
    -----------------------------------------------------------------
    LCV0003              260          266            6          1.06
    -----------------------------------------------------------------
    LCV0009              280          300           20          0.79
    -----------------------------------------------------------------
    LCV0010              254          296           42          0.74
    -----------------------------------------------------------------
                         314          400           86          0.76
    -----------------------------------------------------------------
                         344          400           56          0.83
    -----------------------------------------------------------------
    LCV0015               22          240          218          1.20
    -----------------------------------------------------------------
    LCV0016              106          200           94          1.02
    -----------------------------------------------------------------
                         286          400          114          0.76
    -----------------------------------------------------------------

    In addition, Meridian Gold's exploration team completed wall sampling
along an underground adit driven through the porphyry deposit in 1994, which
returned an average grade of 1.66 grams of gold per tonne along its 182 meter
length. Numerous surface trenches along drilling road cuts were also sampled
with results as presented below.

    Table 5: La Pepa Trench Results

                -------------------------------------
                Trench       Width (m)       Au (g/t)
                -------------------------------------
                 4                82.5           0.48
                -------------------------------------
                 5                35.6           1.65
                -------------------------------------
                 6                26.2           1.64
                -------------------------------------
                 7                20.5           1.12
                -------------------------------------
                 8                18.2           1.28
                -------------------------------------
    

    Plans are being finalized for an infill drilling program to define the
mineral reserves and resources at the project and a technical report compliant
with NI 43-101 standards will be commenced in September. On August 28th, 2007,
the Company exercised its option to acquire the property and equipment at the
La Pepa site for consideration of US$14.5 million and a royalty of 2.3%.

    Membrillo and Chancon Districts Consolidated
    --------------------------------------------
    Meridian Gold announced that on August 23, 2007 a landmark option
agreement was concluded with a private Chilean mining company to acquire a 65%
interest in the Membrillo and Chancon mining districts east of and contiguous
with Meridian Gold's 100% owned Minera Florida mine. Under the option
agreement, Meridian Gold can earn a 65% interest in 12,500 hectares of mining
concessions by spending US$5.5 million on exploration over the next 42 months
and paying the owners a variable rate, depending on size and gold price, for
each gold ounce identified with a feasibility study. This option agreement
doubles Meridian Gold's land holdings in the highly prospective region around
Minera Florida and, more importantly, consolidates a large part of the
Alhue-Membrillo-Chancon mining districts for the first time. Combined, these
districts have produced more than 2 million ounces of gold and currently there
are at least three active mines in the area including Minera Florida.

    Summary
    -------
    Darcy Marud, Meridian Gold's Vice President of Exploration, commented, "I
am delighted to be announcing these promising exploration results from a
number of our projects. These results confirm our confidence in the value of
Meridian Gold's robust exploration and development pipeline. The exploration
team's mandate is to grow the Company's reserves and resources through
aggressive drilling programs and we remain committed to this objective. We
firmly believe that the exploration results announced today will contribute to
the Company's production profile as we begin to advance the projects into the
next stages in the near future. Through the course of the year we expect to
provide additional exploration updates and technical reports from these
properties and to complete technical reports from the Company's Jeronimo and
Amancaya deposits in Chile which are currently in progress."

    Conference Call
    ---------------
    Meridian Gold will be hosting a conference call and simultaneous live
webcast on Tuesday September 4, 2007, at 10:00 a.m. EDT through Thomson/CCBN.
If you would like to listen to our conference call, you may dial (888)
396.2369 in the United States or Canada, and (617) 847.8710 from other
international locations. Passcode No. 73312648. All participants will be
required to register with the operator. If you would prefer to follow the
presentation on the web, go to the Company's home page at www.meridiangold.com
and click on the link under Calendar of Events. There will be a slide show
available in conjunction with the call, which will also be available for
viewing on the Meridian Gold website. You will need to have Windows Media
Player installed on your computer and you will also be required to complete a
registration page in order to log on to the webcast. For those whose schedules
do not permit participation during the call, or for those who would like to
hear the discussion again, a replay will be available for one week beginning
at 9a.m. EDT on Wednesday September 5, 2007 by dialing toll-free (888)
286-8010 or internationally (617) 801-6888. Passcode No. 89625816.

    Qualified Persons
    -----------------
    Charles Robbins, P.Geo, a Senior Project Geologist of Meridian Gold, has
supervised the preparation of the El Penon technical data contained within
this release and serves as the "Qualified Person" as defined by National
Instrument 43-101.
    Mark Hawksworth, P. Geo., a Senior Project Geologist of Meridian Gold,
has supervised the preparation of the Mercedes Project technical data
contained within this release and serves as the "Qualified Person" as defined
by National Instrument 43-101.
    William Wulftange, P. Geo., a Senior Project Geologist of Meridian Gold,
has supervised the preparation of the La Pepa Project technical data contained
within this release and serves as the "Qualified Person" as defined by
National Instrument 43-101.

    About Meridian Gold
    -------------------
    A unique mid-tier gold producer, with world-class mining operations in
Chile and Nevada and a pipeline of promising exploration projects throughout
the Americas, Meridian Gold's success to date has been based on grassroots
gold discoveries and a low-cost strategy, resulting in a better approach to
adding value and balancing growth. Meridian Gold strives to be "The Premier
Value Gold Mining Company," while building a better future for all of its
stakeholders.

    Additional Information for Meridian Gold Shareholders
    -----------------------------------------------------
    Shareholders of Meridian Gold and other interested parties are advised to
read Meridian Gold's Directors' Circular and the Solicitation/Recommendation
Statement on Schedule 14D-9 filed with the U.S. Securities and Exchange
Commission ("SEC") on July 31, 2007 (including any amendments or supplements
thereto and the other documents filed as exhibits thereto), because they
contain important information. Shareholders may obtain a free copy of the
Directors' Circular and Meridian Gold's Schedule 14D-9 at the Investor
Relations section of Meridian Gold's website at www.meridiangold.com, or by
contacting Georgeson Shareholder, the information agent retained by Meridian
Gold, at 1-888-605-7618. Free copies of the Directors' Circular are also
available at www.sedar.com and, together with Meridian Gold's Schedule 14D-9,
at www.sec.gov. The Directors' Circular was filed by Meridian Gold as an
exhibit to Meridian Gold's Schedule 14D-9.

    Cautionary Statement
    --------------------
    This press release contains forward-looking information (as defined in
the Securities Act (Ontario)) that is based on expectations, estimates and
projections as of the date of this press release. These forward-looking
statements can often, but not always, be identified by the use of
forward-looking terminology such as "plans", "predicts", "expects" or "does
not expect", "is expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes", or
variations of such words and phrases, or statements that certain actions,
events or results "may", "could", "would", "might" or "will" be taken, occur
or be achieved. Actual results and developments (including forecasted
production, earnings and cash flows) are likely to differ, and may differ
materially, from those expressed or implied by the forward-looking statements
contained in this press release.
    Forward-looking statements contained in this press release are based on a
number of assumptions that may prove to be incorrect, including, but not
limited to: timely implementation of Meridian Gold's anticipated drilling
program; the successful completion of new development projects, planned
expansions or other projects within the timelines anticipated and at
anticipated production levels; the accuracy of reserve and resource estimates,
grades, mine life and cash cost estimates; whether mineral resources can be
developed; title to mineral properties; financing requirements; general
economic conditions; and changes in laws, rules and regulations applicable to
Meridian Gold. In addition to being subject to a number of assumptions,
forward-looking statements in this press release involve known and unknown
risks, uncertainties and other factors that may cause actual results and
developments to be materially different from those expressed or implied by
such forward-looking statements, including the risks identified under "Note
Concerning Resource Calculations" in Meridian Gold's Directors' Circular as
well as the risks identified in the filings by Meridian Gold with the SEC and
Canadian provincial securities regulatory authorities, including Meridian
Gold's Annual Report on Form 40-F for the fiscal year ended December 31, 2006.
    Meridian Gold believes that the expectations reflected in the
forward-looking statements contained in this press release are reasonable, but
no assurance can be given that these expectations will prove to be correct. In
addition, although Meridian Gold has attempted to identify important factors
that could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other factors that
cause actions, events or results not to be as anticipated, estimated or
intended. Accordingly, you should not place undue reliance on any
forward-looking statements contained in this press release.





For further information:

For further information: Meridian Gold Inc., Investor Relations: Krista
Muhr, Senior Manager, 1-800-572-4519, fax: (775) 850-3733,
krista.muhr@meridiangold.com or Media Relations: Sard Verbinnen & Co., Dan
Gagnier, (212) 687-8080 x.226; Paul Kranhold, (415) 618-8750

Organization Profile

MERIDIAN GOLD

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890