Global Minerals Reaches “Level 6”

Longitudinal section of Strieborná mine

Longitudinal section of underground workings at Strieborná. The mine has now been dewatered to Level 6, where a drill will be installed with the aim to increase the Strieborná resource estimate. (see high resolution image below)

Dewatering of the Strieborná mine, which is located in the Slovak Republic and 100% owned by Global Minerals Ltd. (CTG – $0.31), has reached Level 6, located approximately 180 metres below surface. On this Level, drill stations will be installed to drill for the Strieborná silver vein with an aim to expand the already substantial resource estimate for the property (see below).

The Strieborná vein is actually a silver/copper/antimony mineralized structure of 1.2 kilometres long, 600 metres deep with an average thickness of 3.4 metres. It was discovered in 1981 and 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. 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.

Category Tonnes
(000)
Ag
(g/t)
Cu
(%)
Sb
(%)
Ag
(Ounces)
Cu
(lbs)
Sb
(lbs)
Measured 215 468 2.2 1.4 3,235,000 10,427,900 6,635,900
Indicated 1,710 202 1.0 0.6 11,105,500 37,699,000 22,619,400
M&I 1,925 232 1.1 0.7 14,340,500 48,126,900 29,255,300
Inferred 1,500 280 0.9 0.6 13,500,000 29,762,400 19,841,600
The Strieborná NI43-101 compliant resource estimate from April 2008. The mineral resource is based on 394 channel samples taken on four Levels, one raise and 10 drill hole intercepts. No cut-off grade was applied. Source: Company Filings.

Because all underground workings were flooded after 1994, Global Minerals is dewatering the entire mine to regain access to the Strieborná silver vein to expand the resource and to improve the potential economics of the project.

What’s next

Global Minerals’ crew will first clean out and restore the shaft down to Level six. They will install full electrical service and ventilation and lay a rail system to transport equipment, tools and people up and down.

Next, a drill will be installed at Level 6. Approximately 3,500 to 4,000 metres of drilling is planned at this Level, targeted to intersect the Strieborná vein. Drilling should commence before the end of the year. Additionally, a bulk sample of the mineralized ore will be collected for additional metallurgical testing at this Level.

At the same time, dewatering of the shaft will continue to Level 8 (280 m below surface) to get to the internal vertical shaft, which provides access between Level 6 and 13 – the lowest Level at 525 metres below surface.

At Level 8, the Company plans an additional 6,000 to 6,500 metres of drilling aimed at the Strieborná vein. In total, 10,000 metres will be drilled. Although the property, in addition to the Strieborná vein, includes several parallel veins and similar structures which are known to be mineralized, they won’t be targeted in this drill campaign.

Finally, a Preliminary Economic Assessment, or PEA, is being prepared. This will include the NI 43-101 resource estimate and the results from the metallurgical testing.

Conclusion

With a cash position of approximately $13 million, Global Minerals is sufficiently funded to restore access to the Strieborná vein, commence an underground drill program to increase the already substantial resource estimate, prepare a Preliminary Economic Assessment and rehabilitate the rest of the property.

All of the progress at Global Minerals is obviously also good news for Esperanza Resources (EPZ – $1.10), as it owns about 27% of Global Minerals’ outstanding shares.


For important disclosures, please read our disclaimer.

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