News2007-09-26 14:26 ET - News Release
Mr. George Heard reports
FRONT RANGE PROJECT UPDATE PRODUCTION & SALES
Global Minerals Ltd. has shipped, year to date, over 260,000 pounds of gold/silver flotation concentrate to the Met-Mex Peoles smelter in Torrean, Coahuila, Mexico.
Partial payment of over $160,000 (U.S.) has been received on over 600 ounces of gold and over 3,000 ounces of silver. Final payments are expected to total an additional $275,000 (U.S.) to $300,000 (U.S.). Forty thousand pounds of concentrate remain in inventory. In addition, the project has produced a significant amount of gravity gold/silver concentrate and is finalizing plans for sale of that product. Head grades to the mill are rising as the ratio of mined ore to development ore increases. Current head grades for mined ore have assayed 1.1 ounces per ton gold and 8.37 ounces per ton silver.
Mine production and development
Production from the underground is currently averaging 20 tons per day on a sustained basis. The mine is allowed to produce up to 200 tons per day under the current permit. To date, over 1,000 feet of drift on the Cash and Frieburg veins have been completely rehabilitated. There are currently five stopes in production and two stopes in development. Four additional stopes are planned, based on current geologic knowledge.
The recruiting of additional miners is now under way with a view to doubling current production and development rates. In July, work began on a new development heading to the northeast on the Cash vein. This drift had advanced approximately 100 feet. Samples for assay have been taken after every round. Gold results along the drift have ranged from 0.199 ounce per ton to 2.314 ounces per ton, with results of 1.32 ounces per ton, 1.275 ounces per ton, 0.978 ounce per ton, 0.53 ounce per ton, 0.41 ounce per ton, 0.366 ounce per ton and 0.336 ounce per ton occurring over an average cut width of 10 feet.
These assay results on this unexplored portion of the vein are particularly encouraging because they are consistent with known grades and widths sampled elsewhere on the same vein.
This development drift is aimed at an area of the vein where diamond drill hole assays showed 11 ounces per ton of gold.
Exploration drilling and geology
Both underground and surface core drilling continues. Year to date, 16 core holes have been completed (four underground and 12 on surface). The goal of this drilling is to provide information on the location width and grades on the Mack, Freiburg, Cash and St. Joe vein system. To optimize mine development plans, further mine modelling is necessary in this vein swarm.
Assays are still pending on many of the drill holes. In general, vein intercepts are predictable and widths are increasing. When all of the assays have been received and modelled, the results will be updated and released accordingly.
This press release was prepared by George Heard, BSc, MBA, PEng, a qualified person in accordance with National Instrument 43-101, standards of disclosure for mineral projects.