Jul 8 2014
Global Minerals Ltd. is pleased to announce the discovery of a new high-grade extension of the Strieborná vein at its 100% owned silver/copper property in Slovakia. The extension was discovered during the collection of a bulk sample for metallurgical purposes and has been explored by a combination of drifting on the vein as well as three cross-cuts which fully intersect it.
Highlights include:
- Average grade of 348 grams silver per tonne and 1.55% Cu across 5.5 meters in cross-cut 1
- Average grade of 496 grams silver per tonne and 2.21% Cu across 5.0 meters in cross-cut 3
- Average grade of 434 grams silver per tonne and 1.85% Cu across 4.5 meters in cross-cut 5
New Discovery Extends High Grade Zone
Tunneling was conducted during March to May 2014 on Level 6 (approximately 150 meters below surface) to intersect the Strieborná vein and collect a bulk sample for metallurgical testing. Nearby drilling had indicated the presence of the vein that is now confirmed by the tunneling. This newly defined section is the continuation of a high-grade zone in the deposit that begins on Level 10, a further 200 meters below Level 6. Its full extension up the dip of the vein above Level 6 is not yet known but thought to be meaningful given the Company's past experience studying Strieborná. The high-grade zone extends along the strike of the vein for at least 250 meters.
An extensive sampling program was conducted to assess this zone and includes channel and panel samples. Results are compiled in the accompanying Table. The Company now has approximately 500 tonnes of mineralized material stockpiled on surface for future metallurgical testing.
Phase I Development May Yield Significant Capital Savings
The new data collected from this bulk sampling program is currently being incorporated into our existing resource model, and the Company is now evaluating a Phase I development program for Strieborná. Phase I is a mine plan that targets the high grade zone of the Strieborná vein to produce a silver/copper concentrate within the parameters of the Company's mine operating permit (see press release of May 15, 2014). Phase I can be largely accomplished with existing mine infrastructure and result in significant savings in the capital expenditure to commence operations. Management anticipates that the further development of the mine, including a wider area of ore recovery and a metallurgical solution for antimony can be accomplished in a subsequent Phase II expansion.
Existing infrastructure is extensive and includes a newly rehabilitated shaft and hoist with a 500 tonne per day capacity, rehabilitated tunnels which now bring rail to the vein itself, mine ventilation and an operational pumping and water treatment system. Power, water and other utilities are now connected to the mine site.
Global will now conduct a resource update including the new data. This will be used in a Preliminary Economic Assessment (PEA) that will focus on the Phase I development. The PEA is anticipated in the fourth quarter of 2014.
Tim McCutcheon, Global's CEO said, "The team at Global is solving issues one by one ahead of our drive to put Strieborná into production. With this latest announcement it is clear to me the project's geological risk is more than removed, demonstrating a high grade zone we believe will have favorable economics. We have rehabilitated a significant part of the infrastructure that would be used at the beginning of mine operations, our water treatment facility is fully operational, our metallurgical test work is very advanced, and we have a mine operating permit. Our next steps are to finalize our PEA for Phase I development and then collect the last bits of data to progress to a feasibility study and subsequent mine financing."
About Strieborná
Strieborná is a high-grade silver/copper vein deposit in an historic mining district near the town of Roznava in eastern Slovakia. It has excellent expansion potential over and above the already well-defined resource. Significant infrastructure at site includes a working shaft and hoisting system, extensive underground access through a series of drifts, crosscuts and tunnels and associated surface facilities.
QUALIFIED PERSONS: William Bond C.P.G., M.Sc., Geol. and VP Exploration for Global is the Qualified Person (QP) under NI 43-101 responsible for the Strieborná exploration program and this press release. He has verified the results and other data disclosed in this news release, including sampling, analytical and test data. Fieldwork has been conducted under his supervision. All samples were submitted to ALS Minerals for analysis in Rosia Montana, Romania and Vancouver, Canada. Silver and copper were analyzed by induction coupled plasma - atomic emission spectroscopy (ICP-AES) using four-acid digestion methods. Quality-control and quality-assurance protocols were incorporated with the submitted samples which included standards, blanks, and duplicate analysis.