VANCOUVER, Aug. 14 /CNW/ - Global Minerals Ltd. (CTG: TSX-V) (Frankfurt: DFP) (the "Company") announces that the Independent Technical Report on the Company's Dome Claims located in the Red Lake Mining District, Ontario has been completed and reviewed by management.
Although the Company recommends reading the report in its entirety on SEDAR (www.sedar.com), excerpts from the Executive Summary, Recommendations, Conclusions and Deposit Types are presented below in the interests of brevity.
Capital terms defined below have the same meaning as those set out in the Independent Technical Report.
Executive Summary
At the request of Global Minerals Ltd. (the "Company"), Caracle Creek International Consulting Inc. ("CCIC") has completed a review of the Dome Claims (the "Property") and prepared an Independent Technical Report (the "Report"), compliant with National Instrument 43-101 ("NI43-101"), companion policy NI43-101CP and Form 43-101F1.
CCIC has prepared this Report to provide a summary of scientific and technical data on the Property, including recent exploration activities, and make recommendations concerning future exploration and development. This Report is based on exploration and property information supplied to CCIC by Global and a review of public domain geological and exploration information. A site visit was completed by Brad Leonard on March 14 to 16 (inclusive), 2007.
The Property consists of 13 unpatented mining claims that cover approximately 500 hectares within the townships of Dome, Heyson and Byshe. The Property is located about 1 km east of the Town of Red Lake and 3 km southwest of Balmertown, Ontario, located in the Municipality of Red Lake, Ontario.
Much of the Property overlies a large quartz diorite intrusion which is host to several past-producing gold mines and numerous gold occurrences. In addition, diamond drilling and surface exploration by Sabina Resources Limited and Wolfden Resources Limited (Press Releases - 2005) reported significant high grade gold mineralization from their Follansbee Property, located about 2 km north of the Property. Sulphide associated gold with values as high as 5.05 g/t Au over 34.95 m occur in metasedimentary rocks in contact with metavolcanic rocks of the Balmer Assemblage. This significant new discovery represents a previously unrecognized environment for gold mineralization in the Red Lake Camp. This suggests that opportunities exist for the discovery of gold in areas previously thought to be non-prospective. It is important to note that there are two sequences of metasedimentary and metavolcanic rocks inferred to occur within the northwestern portion of the Property under Red Lake (that may be associated with a possible projection of the unconformity between the Confederation assemblage rocks and the older Balmer assemblage rocks) and within the southernmost portion of the Property. These areas should be considered as key targets for any future exploration program. In addition, the Howie diorite is also an attractive exploration target given the results of a recent ground geophysical (total field magnetics and IP) survey as well as previous work on and around the Property, which have illustrated the potential for shear related structures in the area.
It is CCIC's professional opinion that these unpatented mining claims represent a significant exploration target for gold mineralization and recommends that further exploration work be carried out on the Property. Specifically, CCIC recommends CAD$520,000 exploration program with geological mapping and stripping and trenching followed by a 1,500 metre diamond drilling program dependent on the results of the mapping campaign.
Recommendations
In order to advance the Dome Claims Property, an exploration program totalling approximately CAD$520,000 in expenditures is recommended. This exploration program, contingent on availability of personnel, a backhoe and a diamond drill, should take about 2 months to complete. Dollar values (CAD$) as presented are general estimates and may change going forward as increased level of details in program planning develop and initial results are interpreted.
This budget focuses on testing the geophysical IP anomalies as well as the possible projection of the unconformity between the Confederation assemblage and Balmer assemblage. Geophysical anomalies/targets generated by the IP survey in February/March 2007 should be mapped in detail and, where necessary stripped and trenched. A 1500 metre drilling program is recommended as a follow-up to test the IP anomalies found by Abitibi Geophysics in 2007 and other targets found as a result of mapping, stripping and trenching, in addition to the possible unconformity that may exist in claim 1234522. The drilling program on land can be conducted in the fall or winter, but the drilling program testing the target under Red Lake would be done on the ice during winter.
Conclusions
The Global Minerals Dome Claims Property presents an interesting exploration opportunity. The proximity of the Property to the unconformity between Balmer assemblage and Confederation assemblage rocks in the northwestern part of the claim group (that may project through mining claim 1234522) gives this property an excellent potential for a shear zone related gold deposit. The mineral occurrences and past-producing mines found in the Howie Diorite as listed in the Mineral Deposits Inventory database of MNDM also gives this property an excellent potential to host a shear zone related gold deposit.
Deposit Types
Gold has been the only metal mined in the Red Lake belt. A total of 19,223,307 ounces of gold have been produced from 13 mines in the Red Lake area. Gold production has been continuous since 1930 when the Howey Gold Mine entered production. Current gold production is around 700,000 ounces per year from the Campbell mine of Placer Dome and the Dickenson mine of Goldcorp.
The potential for additional gold discoveries in the Red Lake area is well illustrated by the recent discovery of the "High-grade" (Hanging Wall 5 Zone) in the Dickenson mine of Goldcorp. This zone contains in excess of 1 million ounces of gold and was discovered within an area that was accessible from a mine that had been in operation for 50 years. Recent mapping by both Federal and Provincial geological surveys has identified a number of alterations, structural and stratigraphic features that strongly influence the distribution of gold within the belt. These features are of belt scale and have not been systematically explored.
Two new significant discoveries have been made since 2005 in sedimentary rocks of the Bruce Channel. These include the Bonanza deposit reported by Wolfden Resources Inc. (2006) under the Bruce Channel. The Wolfden Bonanza discovery is approximately 1.5 kilometres to the east of the Broulan Reef property and the Southern Star discovery lies 1.5 kilometres north of the property. Both discoveries are believed to be within the Bruce Channel group of rocks.
Virtually all of the gold production from Red Lake can be classified as Lode Gold deposits. These deposits are typically vein style and generally follow lithology and structures in the enclosing rocks. In the Red Lake area rocks, structures and veins have a steep dip. Gold occurrences are known in every rock type and age in the Red Lake belt. The vast bulk of production in the Red Lake belt has come from rocks of the Balmer Assemblage. The Balmer Assemblage makes up over half of the total area of the Red Lake belt.
The Company also announces the resignation of Mr. Sean McGrath, B.Comm (Hons), CGA, CPA as Chief Financial Officer and the appointment of Chester Shynkaryk, a current director of the Company, as CFO. The Company's Board wishes to thank the contributions of Mr. Sean McGrath, who resigned as the Company's CFO effective July 25, 2007.
This press release was prepared by George Heard, B.Sc., MBA, P.Eng, a qualified person in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects.
Global Minerals Ltd. is a Canadian-based company with a focus on the acquisition, exploration and development of mineral property interests.
ON BEHALF OF THE BOARD
George W. Heard
President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.