Global Minerals (CVE:CTG) is focused on production from a past-producing mine on its Strieborná project in eastern Slovakia, but analysts at Stonecap Securities say that the exploration upside for the company shouldn't be overlooked.
In a Morning Advantage report on Friday, in a section titled The Stonecap Claim Stake, in which companies are introduced with no official rating, analysts Ali Kahn and Brian Szeto took note of the fact that the resource at Strieborná is currently based on only a single vein.
The analysts noted that so far, the company has already discovered four known veins that parallel the existing resource, where preliminary exploration drilling has returned "impressive drill results". This includes 667 grams per tonne (g/t) silver, 5.1% copper, and 3.4% antimony over 2.2 metres.
On a more regional scale, the company has indicated that there are 90 known veins across its 13,500 hectare land package, "highlighting the longer-term exploration upside of the project", Khan and Szeto wrote.
The company is advancing its high grade silver-copper project, which hosts total global resources of 28 million ounces of silver at 253 g/t silver and 78 million pounds of copper at 1.0% copper.
The high grade nature of the deposit is further amplified by the relatively near surface nature of the resource, which currently has a depth of only 600 metres, the analysts wrote.
"With an underground drill program currently underway, the company is hoping to not only increase the level of confidence of the deposit, but also the grades," the Stonecap analysts said.
The Strieborná project is part of the past producing Maria Mine, which operated until the late 1990s. As a result, in addition to having much of the necessary surface infrastructure already in place, such as rail, power, and water, there are approximately 3,000 metres of underground development tunnels that are expected to significantly reduce both the cost of underground exploration work now underway and the initial capex necessary to bring the mine back into production.
The research report took note of upcoming catalysts for the company, including additional drill results in the second quarter, an updated resource estimate in the third quarter as well as a preliminary economic assessment study, along with metallurgical results and mining permits in the second half of this year.
Stonecap Securities has no rating on Global Minerals, which closed Thursday at 12 cents on the TSX Venture Exchange.
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