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Wednesday, 3 April 2013
Global Minerals’ shares soar as drill results confirm “high grade nature” of vein at Strieborná silver/copper deposit - UPDATE
* updated with latest share price
Global Minerals (CVE:CTG) (OTCBB:GMLFF) on Wednesday saw its shares surge over 16%, after it said that drilling continues to confirm the high grade nature of the vein in the upper portion of its Strieborná silver/copper deposit in Slovakia.
The company noted that the upper portion of the deposit, as part of its mine planning study, is expected to be mined first.
Highlights from the results of eight holes from its ongoing infill and expansion underground drill program include drill hole STR-06-12-009, which intercepted 5.6 metres at 453 grams per tonne (g/t) silver and 1.8 % copper.
Hole STR-06-12-010 also hit 2.8 metres at 353 g/t silver and 1.4% copper and hole STR-06-12-015 returned 4.9 metres at 390 g/t silver and 1.1% copper.
Global Minerals said that the drilling confirmed the upper limit at the northeast extension of the vein, roughly in line with the limits of a 2008 geological model.
Drilling continues from the second, southwest drill platform to test for grade continuity and new areas that may lead to resource expansion, the company said, adding that the results will be used in an updated resource estimate and ongoing economic assessment - expected in the July-September quarter this year.
The high-grade, Strieborná silver-copper vein type deposit is located in an historic mining district near the town of Roznava. The former Mária mine site, which sits on land owned by Global Minerals, provides space for infrastructure and facilities that are necessary for ore processing and tailings disposal. Underground access is also available through the workings of the past producing Maria mine.
Last month, the company signed a cooperation agreement with the municipality of Roznava to develop Strieborná, and also inked a deal to buy a tailings facility adjacent to the planned processing mill site for 2.5 million euros.
The company is looking to advance the undeveloped Strieborná vein in an old mine, adjacent to the previously mined Maria Vein.
Global Minerals said the capacity of the tailings facility it has acquired is sufficient for five years of production at a proposed rate of 750 tonnes per day.
Because of the extensive existing infrastructure, the company expects the project could move into production in relatively short order and at a low cost.
Shares of the company were higher by 16.67%, or 3 cents, as at about 11 a.m. EDT, trading at 21 cents.