Global Minerals (CTG – $0.14 & DFPN – €0.078) released results on four additional drill holes from its 100% owned Strieborná silver/copper project, which confirm the high silver rich content of the vein.
Highlights from the drilling include:
* Drill hole STR-06-13-020 intercepted two intervals: 8.8 m at 338 g/t silver and 1.2 % copper and 11.9 m at 157 g/t silver and 0.6 % copper.
* Drill hole STR-06-13-021 intercepted 14.9 m at 321 g/t silver and 1.2% copper.
Results from 9 additional holes (see blue dots on the cross sections below) are currently being analyzed at the lab, bringing the total to 30 holes. At the start of the drill campaign, 35 holes, totaling 5,000 metres, were planned, so our guess is that drilling will be finished in a couple of weeks. Most likely, the five remaining ones will be drilled more to the southwest (to the left of the blue dots on the cross sections).
No Significant Intervals
No Significant Intervals
Drill intercepts from holes STR-06-13-018 through STR-06-13-021 from Global Mineral’s underground drill campaign at its Strieborná silver property in Slovakia. Note that drill holes STR-06-13-018 and 019 didn’t encounter significant mineralization, confirming the previously defined upper limit of the vein in this area. Source: Company press release.
Thanks to the encouraging drill data, which is fairly consistent with previous results, the Company is on track to execute the rest of its plans.
An updated NI 43-101 resource estimate, which will incorporate all the drill results from the ongoing drill campaign, will be published in July.
Global Minerals contracted AGP Mining Consultants (AGP), a well respected mining consultancy with lots of experience in central and eastern Europe, to conduct engineering studies and to determine the most optimal way to get the mined ore to the mill site. Remember that the Company recently purchased a tailings site and the land on which it will build its mill and ore processing facilities, right next to the Strieborná mine.
The new resource estimate, results from ongoing metallurgical tests and the report from AGP will all be incorporated into a Preliminary Economic Assessment (PEA), which is expected in the third quarter. The PEA will also give us a clearer image on the development plan of the mine and the cost estimate to take Strieborná into production.
Mr. Bill Pincus, the President and CEO of Global Minerals, indicated in a recent interview with Smallcaps.us that the CAPEX to put the mine back into production would be relatively modest by mining standards, at well below $100 million dollars.
After the resource update and PEA are published, the Company will review all alternatives for financing Strieborná into production. Based on the excellent drill results that we have today and the solid reputation of the Company’s management team in the resource world, we believe also this will be achieved within the foreseen timeframe.
We have a buy recommendation on Global Minerals’ shares with an initial price target of $0.55, more than four times today’s stock price.
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