Global Minerals Signs Agreement To Form Joint Venture To Develop The Strieborna Silva Copper Antimony Deposit
Global Minerals Ltd. (TSX VENTURE: CTG)(FRANKFURT: DFP) is pleased to announce that subject to TSX Venture Exchange approval Global Minerals has entered into an agreement to form a joint venture to develop the Strieborna Silver Copper Antimony deposit.
Upon the formation of the Joint Venture Company Global Minerals will have a 60% interest in the project and the Slovak partners Pideco CGF sro will hold 40%. Global Minerals can then earn an additional 10% through the expenditure of US 2 million dollars over two years. At that time the venture becomes a 70/30 participating joint venture. If Pedico elect not to participate, their remaining 30% interest can be purchased for US 6 million dollars.
A finders fee of 300,000 shares of Global Minerals is payable upon exchange approval.
The deposit is located in eastern Slovakia near the town of Rosnova, a mining town with a skilled work force and the infrastructure to support mining operations. The Slovak Republic is a member of the European Union and as such meets Global Minerals Corporate criteria regarding country risk.
The Strieborna Mine Project consists of two mining leases (totalling approximately 140 ha. In addition to the Strieborna vein, the property also includes the Maria mine (a past producer now on care and maintenance), and three other siderite-quartz-sulphide veins, the Mayer, Podlozna, and Pallag veins.
Since its discovery in 1981, the Strieborna vein has been explored underground by over 3000 m of drifts on four levels. Drifting has defined a total strike length of about 1300 m, and surface and underground drilling have defined a vertical extent of over 500 m. Strieborna is a silver bearing siderite-quartz-sulphide vein hosted in Early Palaeozoic rocks. The vein strikes northeasterly, has a variable dip from 50deg NW to subvertical, and varies in thickness from 0.5 m to 7.1 m, averaging about 2.5 m. The main minerals of economic interest are silver, copper and antimony bearing tetrahedrite.
During 1995 the Sunshine Mining and Refining Company calculated a “Geological Resource” of 1,570,000 tonnes grading 394.2 gms/tonne (12.67 oz/tonne) Silver 1.7% (37.40 lbs/tonne) Copper and 1.12% (24.60 lbs/tonne) Antimony. In addition, resource estimates were completed by independent geologists and the Slovak Geological Bureau issued a Certificate accepting the evaluation and approval of the resource.
These data are historical in nature, and were compiled before the implementation of National Instrument 43-101 reporting standards; as such they are NOT compliant with the requirements of NI 43-101, and should therefore NOT be relied upon for investment decisions. A qualified person has not done sufficient work to classify the historical estimate as current resources or mineral reserves.
During June of this year the Company has scheduled a series of joint venture meetings with our Slovak partners to discuss mine permitting, mine planning, development and processing to provide data for pre-feasability studies. Following that the Company plans to commission a NI 43-101 compliant technical report on the property.
With current metal prices of $14.04/oz for Sliver, $3.50/lb for Copper and $2.68/lb for Antimony management believes that the Strieborna Project could provide an attractive return on investment.
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