First Eight Underground Drill Holes All Intersect Mineralization at Strieborná

Underground drilling at Strieborná

Underground drilling activities from Level 6, approximately 180 metres below surface, aiming at the Strieborná silver vein.

Global Minerals (CTG – $0.38 & DFPN – €0.267) announced analytic results for the first eight holes drilled underground from level 6, approximately 180 metres below surface, at its 100% owned Strieborná silver project in Slovakia.

All eight holes intersected the Strieborná vein with highlights including 7.12 metres of 297 g/t Ag in hole STR-06-12-006 and 7.52 metres of 156 g/t Ag in hole STR-06-12-005.

Roughly 35 holes, totaling 5,000 metres, are planned from two drill sites on Level 6 (see cross section 1 below). All drill holes are aimed at the Strieborná vein, which is a silver/copper/antimony mineralized structure of 1.2 kilometres long, 600 metres deep with an average thickness of 3.4 metres. The top of the vein commences approximately 35-50 meters below Level 6 (see cross section 2 below).

The current drill program has several objectives. First, it aims to both expand and to upgrade the current resource from the Inferred category to the Measured and Indicated categories. Furthermore, it’s intended to define the upper limits of the deposit as well as the grade and continuity of the silver resource in this area. This is important as it will determine where the first actual mining will take place.

Hole
Number
From
(meters)
To
(meters)
Interval
(meters)
Ag Grade
(g/t)
Cu Grade
(%)
STR-06-12-001 125.80 127.95 2.15 289.0 1.22
STR-06-12-002 124.55 127.50 2.95 233.8 0.99
STR-06-12-003 148.10 148.55 0.45 1,420.0 11.25
STR-06-12-004 149.15 151.30 2.15
No Significant Intervals
STR-06-12-005 122.90 124.95 2.05 28.3 0.21
STR-06-12-006 138.05 145.57 7.52 156.1 0.61
STR-06-12-007 142.53 149.65 7.12 297.1 1.21
STR-06-12-008 132.65 140.30 7.65 41.2 0.16
Strieborná Underground Drill Results. Source: Company Press Release

The Strieborná Vein

The Mária Vein, which is part of the Strieborná property, has been mined since the mid-20th century. It was in operation from the end of the second World War when it became part of the newly established state enterprise Železorudné Bane š.p. (ŽELBA). The mine continued to be in operation under ZELBA until the 1990s.

The Strieborná (which translates as “Silver”) vein itself was discovered in 1981 adjacent to the Maria mine. It was subsequently explored on four underground levels totaling over 3,000 metres in length. Underground exploration and diamond core drilling on the vein was conducted from 1982 until 1994 by the exploration branch of the Slovak Geological Survey. However, due to depressed metals prices and the transition from a communist to a market economy in Slovakia, the property was abandoned in 1994.

After Global Minerals gained control over the Strieborná property in 2007, an NI 43-101 technical report was completed based on the work conducted between 1982 and 1994. The resource included 1.9 million tonnes (Measured and Indicated) grading 231.7 g/t silver, 1.1% copper, and 0.7% antimony and 1.5 million tonnes (Inferred) grading 280.0 g/t silver, 0.9% copper and 0.6% antimony.

In March of 2011, Global Minerals initiated a drill program designed to re-confirm high grade mineralization in the upper portion of the Strieborná vein, to test for extensions along strike and to test known parallel veins. This projected target area was not included in the NI 43-101 compliant resource estimate from AMC.

Six holes, totaling 1,703 metres, were drilled and showed promising results consistent with previous underground sample data.

Hole
Number
From
(m)
To
(m)
Interval
(m)
Grade Au
(g/t)
Grade Ag
(g/t)
Grade Cu
(%)
GMB-02 234.7 241.7 7.0 0.147 345.0 1.31
GMB-03 239.0 243.95 4.95 0.098 235.6 1.06
GMB-04 230.0 243.0 13.0 0.246 500.9 1.85
Highlights of the holes that intercepted the Strieborná vein. Source: Company press release.
Note: Holes GMB-01, GMC-01 and GMC-02 did not hit any mineralization.

Conclusion

All the analytic results from the current drill campaign will be included in a new resource estimate, which is expected in the third quarter of 2013. Moreover, a Preliminary Economic Assessment, or PEA, is being prepared, which will include the NI 43-101 resource estimate and the results from ongoing metallurgical tests.

We like the Strieborná project, as it’s already well advanced with limited downside risk. Drilling is ongoing, a new resource estimate and EPA are on the way and metallurgical studies are advancing. Strieborná has excellent infrastructure, including sufficient electrical power, railway access, paved highways and a work force experienced with underground operations. Last but not least, Global Minerals has about $7 million in cash.

Cross section 1 of Strieborná underground. Notice that current drill activities are focussing on the top of the Strieborná vein. Click the image for a high resolution image.
 
Cross section 2 of the entire Strieborná underground. Notice the vast mineralized structure as it’s known today. Click the image for a high resolution image.
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