New Drill Results Confirm Continuity of Silver Rich Resource at Strieborná

The Strieborná underground

Detail of Strieborná underground cross section

After releasing the first results in January, Global Minerals (CTG – $0.19 & DFPN – €0.125) this week announced analytic data on eight more drill holes from its on-going infill and expansion underground drill program at its 100% owned Strieborná silver/copper project in Slovakia.

The results were as expected, and as such good, confirming the continuity of the silver rich resource area.

Drilling continues to expand and upgrade the current resource from the Inferred category to the Measured and Indicated categories. Furthermore, the drill program is intended to define the upper limits of the deposit as well as the grade and continuity of the silver resource in this area. Drilling is expected to be completed in May (see red dots on cross section 1 below).

Hole
Number
From
(meters)
To
(meters)
Interval
(meters)
Ag Grade
(g/t)
Cu Grade
(%)
STR-06-12-009 129.60 135.22 5.62 453.1 1.82
STR-06-12-010 133.75 136.55 2.80 352.9 1.43
STR-06-12-011 125.90 126.20 0.30
No Significant Intervals
STR-06-12-012 124.45 124.70 0.25
No Significant Intervals
STR-06-12-013 118.42 118.84 0.42
No Significant Intervals
STR-06-12-014 126.14 129.87 3.73 238.8 0.91
STR-06-12-015 113.03 117.90 4.87 390.2 1.51
STR-06-12-016 105.45 107.15 1.70 202.3 0.79
STR-06-12-017 100.14 104.32 4.18 114.7 0.50
Drill intercepts from holes STR-06-12-009 through STR-06-12-017 from Global Mineral’s underground drill campaign at its Strieborná silver property in Slovakia. Note that drill holes STR-06-12-011 to 013 didn’t encounter significant mineralization, confirming the upper limit of the vein. Source: Company press release.

The Strieborná Resource Area

The entire Strieborná resource area, as it’s known today (see cross section 2), was derived by channel sampling and diamond core drilling by previous owners of the property.

Looking at the cross sections below, the top of the resource is situated around Level 7 over a length of approximately 300 metres. In the images it then appears that the resource all of a sudden dips to Level 9 where it continues for an additional 1,000 metres.

In reality, the top of the resource is most likely to continue towards the southwest (to the left on the cross section) at Level 7. The reason that it’s not shown is that no drilling or channel sampling was ever conducted there. In the 1990s, on Level 8, channels were cut across the vein at intervals of about 20 to 25 metres only along 300 metres of strike length, while on Levels 10 and 13, channels were cut across the vein along 1350 metres of strike length.

Also the vertical continuity of the resource was only tested in the middle of the vein by underground drilling from Levels 6, 10 and 13 and by one surface drillhole (see the dip of the resource area in cross section 2). The vein is also expected to continue deeper and much broader than shown.

Noteworthy is that other veins in the Rož?ava ore field, of which Strieborná is part, typically are approximately 1.5 km long and more than 500 metres in vertical extent.

So although the resource area already looks impressive, and provides many years of mining opportunity, it’s safe to assume that the actual vein is much bigger than what is shown on the cross sections.

News Flow

In the coming weeks and months a steady flow of news is expected from Global Minerals.

  • More drill results will be announced as they’re received back from the lab;
  • All these results will go into an updated NI 43-101 resource estimate which is expected to be published in July;
  • Ongoing metallurgical tests will be finalized;
  • Engineering studies on how to mine the ore in the most economical way, are in progress. Although the Company is looking at different underground mining methods, sublevel stoping seems to be the most likely scenario at the moment;
  • The new resource estimate, metallurgical tests and engineering studies will all be incorporated into a Preliminary Economic Assessment (PEA). This is expected in the third quarter;
  • Moreover, environmental permits will be submitted in the second quarter. Usually, it takes about six months to get a response from the Slovak government;
  • And last but not least, the Company is evaluating all alternatives to finance the development of the Strieborná project.

Conclusion

The Company’s management was very happy with the latest drill results as they continue to demonstrate the high grade nature of the vein. At the same time, lots of work goes into the preparation of the PEA and environmental permits.

When all goes well, silver will be produced from Strieborná in 2014, while you can purchase shares from Global Minerals at a grass roots project’s valuation today.

By the way, we will soon publish a new interview with Mr. Bill Pincus, the President and CEO of Global Minerals to get the latest on the Company.


For important disclosures, please read our disclaimer.

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.
0 comments… add one

Leave a Comment