Snub the BCSC and guess what George....2004-06-22 20:30 ET - News Release
Mr. George Heard reports
CONSOLIDATED GLOBAL MINERALS LTD. (CTG-TSXV) CLARIFYING PRESS RELEASE
Consolidated Global Minerals Ltd. has clarified its disclosures as a result of a review by the British Columbia Securities Commission.
Front Range gold project mill capacity and status
The nominal capacity of the ball mill at the Front Range gold project is 50 tons per day. The mill manager employed by the company to refurbish and operate the facility is currently estimating that $10,000 (U.S.) to $20,000 (U.S.) will have to be spent to make the mill fully operational. Company personnel are currently sourcing a larger ball mill that may be required so that 125 tons per day can be processed. The current estimate to acquire and install the larger ball mill is $40,000 (U.S.) to $60,000 (U.S.). To swap ball mills it is forecast that output may be interrupted by two to four weeks. All cost estimates were prepared by company personnel and were not subject to independent engineering.
Premature and promotional disclosure of planned acquisition Slide and Grey Eagle mines
The announcement regarding the planned acquisition of the Slide and Grey Eagle mines was premature and promotional and is henceforth retracted.
The company currently controls 50 per cent of the Slide and Grey Eagle mines as part of a prior acquisition on the Front Range project. At the time of these acquisitions the Slide and Grey Eagle properties were not considered all that important because in management's judgment at the time it was felt that it would be many years before development could begin.
With the subsequent increase in the price of gold and the possibility of joint venture partner participation company management approached the vendors and obtained agreement in principle to acquire the remaining 50-per-cent participating interest. In the opinion of George Heard, the company's president, the project looked like it may have materiality and a news release was put out. Subsequent to the news release company management got involved in several acquisitions and joint venture agreements and the Slide and Grey Eagle project had to wait.
The property is located in the northwest quarter of the Gold Hill mining district in Boulder county, Colorado. The Slide mine shaft is located approximately 1,500 feet north of the company's 50-ton-per-day mill. Boulder county road 89 (BCR89) crosses the southern part of the property. BCR89 is a paved all-weather road. The distance to the company's mill is approximately one-half mile by road.
The current status of the project is that on April 16, 2004, a letter of intent was signed with Aberdene Mines Ltd. that states the following:
1. For a period of 120 days, Aberdene will have the exclusive right to:
(a) conduct due diligence investigations in respect of the properties and Global's interest therein; and
(b) negotiate the terms and conditions of the option.
2. Conversion of interest
Global agrees to use its best commercial efforts to negotiate and complete, prior to the expiry of the exclusive period, the transfer of the other 50-per-cent undivided interest in the properties from the current owner(s) of the properties to Global and the conversion of such interest by the current owner(s) into a royalty equal to 5 per cent of net smelter returns with provision for the purchase of percentage points to reduce the royalty.
3. Terms of option agreement
The option agreement would give Aberdene the sole and exclusive right and option to acquire a 100-per-cent undivided interest in and to Global's interest in the properties free and clear of all liens, charges encumbrances and claims, by:
(a) paying to Global the following cash sums on or before the dates specified below:
(i) $10,000 to be paid on signing of the option agreement (firm commitment); and
(ii) $100,000 to be paid on or before the first anniversary of the option agreement (optional);
(b) issuing to Global the following shares of common stock of Aberdene on or before the dates specified below:
Shares Date of issuance
100,000 (optional) Within 30 days of
signing the
option agreement
200,000 (optional) On or before first
anniversary of the
option agreement
Total 300,000
(c) incurring a total of $1.5-million in exploration and development expenditures on the properties in the amounts and on or before the dates specified below:
Expenditures Date for completion
$750,000 (optional) On or before the
first anniversary
of the option
agreement
$750,000 (optional) On or before the
second anniversary
of the option
agreement
Total $1.5-million
Should negotiations succeed and development be financed with TSX Venture Exchange approval additional disclosure will be required as to the details.
Currently no reserves or resources can be reported in the Slide and Grey Eagle mine group that meet the disclosure standards of National Instrument 43-101, standards of disclosure for mineral projects.
Tunisia
Disclosure of results from adjoining properties
The company has four exploration licences and options to acquire two government run mines and mills. In previous disclosure it was not clear that the company had the right to acquire the mines and mills adjacent to the Fej Lahdoum and Ouled Moussa exploration licences in Tunisia.
On Oct. 4, 2001, the company was granted an exclusive three-year option on two operating mines and mills in the country. To exercise the option the company must spend $500,000 (Canadian) on each operation. Any resource and/or reserve estimates previously disclosed for the Fej Lahdoum and Ouled Moussa/BouJabeur mines do not comply with National Instrument 43-101 and are forthwith retracted.
The company has signed a heads of agreement with Maghreb Minerals Ltd. on the development of these Tunisian assets. Initially the company will control 60 to 65 per cent of Maghreb after Maghreb raises an initial $2-million (U.S.). The company's interest will be diluted after Maghreb raises an additional $10-million (U.S.). The initial $2-million (U.S.) will be used for drilling at Djebba, Fej Lahdoum and Ouled Moussa/BouJaber. If results are positive and an additional $10-million (U.S.) can be raised, it will be used to begin lead/zinc production in Tunisia. If the company can conclude a definitive development agreement with Maghreb, drilling should begin in August, 2004, with completion slated for October, 2004. All agreements will be subject to TSX Venture Exchange approval. Additional disclosure will be made when contracts and agreements are signed and approved.
As of today's date the company's Tunisian assets can not be deemed to be material.
Financial projections based on exploration target
Financial projections relating to the company's Tunisian properties are contrary to Section 2.3(1) of National Instrument 43-101 and are forthwith retracted.
Non-compliant disclosure of mineral reserves -- Djebba property
In previous disclosure, references to historical reserve and resource estimates were made which are no longer current or acceptable, and which may have been misunderstood as being current. The technical report has been revised, and as of the date of the revision there are no current reserves and resources as defined under National Instrument 43-101 on the Djebba exploration permit.
Jerritt Canyon property
Non-compliant disclosure of exploration potential
Non-compliant disclosure of mineral resources
The company forthwith retracts its previous disclosure of exploration potential as it was not provided in accordance with Section 2.3(2) of National Instrument 43-101.
The historical resource disclosed in the company's Oct. 14, 2003, news in Stockwatch does not comply with National Instrument 43-101 and is forthwith retracted.
This news release was prepared by Mr. Heard, a qualified person in accordance with National Instrument 43-101.