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Monday, 6 May 2013
Global Minerals says Strieborna drilling at Slovakia project extends strike of mineralization ahead of updated resource
Of the three holes, drill hole STR-06-13-020 hit two intervals, being 8.8 metres at 338 grams per tonne (g/t) silver and 1.2% copper, followed by 11.9 metres at 157 g/t silver and 0.6% copper.
Also of note, hole STR-06-13-021 returned 14.9 metres at 321 g/t silver and 1.2% copper.
The company told investors on Monday that these two holes are the deepest of the infill and expansion drill program, and intersected some of the widest mineralized portions of the Strieborná vein, with the drilling showing that these wide zones now extend at least 75 metres further to the southwest than was previously known.
"Some of the best grades have also been found in this area. On-going drilling will define the potential up-dip extension of this high-grade zone," Global Minerals said in the statement on Monday.
The company is looking to advance the undeveloped Strieborná vein in an old mine, adjacent to the previously mined Maria Vein.
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, with underground access available through the workings of the past producing Maria mine.
In March, 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.
Strieborna currently has an NI 43-101 compliant resource estimate containing 28 million ounces of silver and 80 million pounds of copper at an average grade of in excess of 8 oz/t silver and 1% copper.
The drill program underway is designed to both expand and upgrade the current resource base, with the campaign expected to be completed "in the coming weeks", the company said, after which it will proceed with a resource update to include the new drill results.
The release of the updated resource estimate is anticipated in the second half of this year, followed by a preliminary economic assessment/prefeasibily study shortly thereafter, with the intent to start development work as early as next year.
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 Global Minerals closed Friday at 13 cents on the TSX Venture Exchange, giving it a market cap of $14.4 million.