Posted in | News | Silver | Mining Business

Global Minerals Files PEA for Strieborná Silver-Copper-Antimony Deposit in Slovakia

Global Minerals Ltd. ("Global" or the "Company") is pleased to announce it has filed on SEDAR the Preliminary Economic Assessment ("PEA") for its 100%-owned Strieborná silver-copper-antimony deposit in Slovakia ("Strieborná" or the "Project").

As previously announced (see Company news release 12 December 2014), the PEA envisions an underground mine and conventional flotation milling operation with an initial seven year mine life. Mining output is modeled at 300 tonnes per day ("tpd") for the first two years, increasing to 500 tpd starting from year three. Over the life of mine ("LOM"), the Project is estimated to produce an annual average of 1.4 million silver ounces and 4.1 million pounds of copper. Cash cost per ounce of silver, after copper by-product credits, is $10.82 per ounce.

PEA Highlights (all amounts in US dollars unless otherwise indicated)

  • Base Case is stated assuming $20/oz silver and $3.00/lb copper as long term metal prices.
  • Pre-tax NPV (5%) of $11 million, IRR of 12.4%, and payback of 4.7 years.
  • Post-tax NPV (5%) of $5 million, IRR of 8.3% and payback of 5.1 years.
  • Pre-development capital costs of approximately $25.3 million, including contingency.
  • Average silver cash costs (net of by-product sales) of $10.82/oz silver (see Non-U.S. GAAP Performance Measurement below).
  • Post-tax LOM free cashflow generated is approximately $14.9 million.
  • Average annual production in the initial 5 years is 1.4 million ounces of silver and 4.3 million pounds of copper.
  • The study contemplates mining 983,000 tonnes of mineral at average grades of 307 gpt Ag and 1.3% Cu.
  • LOM production of 9.5 million silver ounces and 28 million pounds of copper.
  • LOM average silver and copper recovery in concentrate of 98%.
  • Silver-copper concentrate with average grades of 6,570 gpt silver and 27.8% copper.

The Base Case discounted cash flows in the PEA are shown as both pre-tax and post-tax, and are prepared in compliance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") of the Canadian Securities Administrators. The PEA was completed by AGP Mining Consultants ("AGP"), an independent Canadian-based engineering firm. Unless otherwise noted, a reference to "$" in this news release is to United States currency. Due to rounding, some of the totals in the tables in this news release may not sum exactly.

The PEA is preliminary in nature and includes Inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

Non-U.S. GAAP Performance Measurement

"Cash Costs" is a non-U.S. GAAP Performance Measurement. This performance measure is included because this statistic is widely accepted as the standard of reporting cash costs of production in North America. This performance measure does not have a meaning within U.S. GAAP and, therefore, amounts presented may not be comparable to similar data presented by other mining companies. This performance measure should not be considered in isolation as a substitute for measures of performance in accordance with U.S. GAAP.


The PEA was completed independently by AGP Mining Consultants Inc. ("AGP"), Toronto, Ontario and Mine Development Associates ("MDA"), Reno, Nevada. The information in this news release that relates to the PEA was prepared by: Gordon Zurowski, P.Eng., Principal Mining Engineer, Geoffrey Challiner, C.Eng, Chief Mining Engineer (AGP), Andy Holloway, P.Eng Principal Metallurgist all of AGP, each of whom are independent of Global and are recognized as a Qualified Person ("QP") within the meaning of ("NI 43-101"). The resource was prepared by Steven Ristorcelli, C.P.G, Principal Geologist with MDA and is independent of Global and recognized as a Qualified Person ("QP") within the meaning of ("NI 43-101").

William Bond C.P.G., M.Sc., Geol. and VP Exploration for Global is a Qualified Person as defined by NI 43-101 and has approved this news release.


Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type