Annual Report 30 June 2016
Sydney, Sep 30, 2016 AEST (ABN Newswire) - The directors of Global Geoscience Limited (
ASX:GSC) present their report on the consolidated entity (Group), consisting of Global Geoscience Limited and the entities it controlled at the end of, and during, the financial year ended 30 June 2016.
REVIEW OF OPERATIONS - EXPLORATION
Introduction
Global Geoscience Ltd (the "Company" or "Global") is a Sydney based exploration company listed on the Australian Securities Exchange (ASX). The Company's focus is the advanced Rhyolite Ridge Lithium-Boron project located in Nevada, USA.
On 3 June, 2016 the Company announced that it had secured an exclusive option to acquire a 100% interest in the Rhyolite Ridge Project, an advanced, high quality lithium-boron asset located close to existing infrastructure in Nevada with significant potential to grow and rapidly advance.
- Strategic location in a stable, mining friendly jurisdiction and close to existing infrastructure
- Advanced project with opportunity to move quickly into development
- Large and scaleable deposit with potential to become a major, low-cost supplier to support the rising global demand for lithium carbonate
FY2016 - Summary of Key Events
- 28 Oct 2015: $1 million capital raising to fund new acquisitions
- 3 June 2016: Option agreement to acquire 100% of Rhyolite Ridge Li-B Project
- 8 June 2016: Exploration Target announced for South Basin at Rhyolite Ridge
- 4 July 2016: Due diligence completed and decision to proceed with Rhyolite Ridge acquisition
Rhyolite Ridge Lithium-Boron Project, USA (GSC option for 100%)
The Rhyolite Ridge lithium-boron project (22km2) is located close to existing road and power infrastructure in southern Nevada. The project has potential as a strategic, long-life, low-cost source of lithium, boron and potassium. Two sedimentary basins (North and South) contain thick, shallow, flat-lying zones of lithium-boron-potassium mineralisation. The mineralisation is hosted within carbonate-rich, fine-grained sediments (marl) that were deposited in a shallow lake environment. The two basins have a combined surface area of approximately 17 sq km. Previous exploration includes over 100 drill holes. Global Geoscience has the exclusive right to purchase 100% interest in the project from the owner, a private Nevada company.
Exploration Target
Global has estimated an Exploration Target for the area drilled at South Basin:
- 200 to 300 million tonnes of 1200 to 2000ppm Lithium (Li) (0.64 to 1.06% Lithium Carbonate Equivalent) and 0.6 to 1.2% Boron (B)
The potential quantity and grade of the Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in the estimation of a Mineral Resource.
The Exploration Target is based on actual exploration results including 15 Reverse Circulation (RC) drill holes. Potential exists for a target of several times this size in extensions in the south and north basins. Higher-grade zones are thought to exist adjacent to feeder structures.
The 15 RC holes were drilled by a previous explorer at 200-400m spacing and dips of -60 to -90 degrees. The drill holes intersected mineralisation at 75 to 90 degrees. The Company does not know details of the drilling, sampling and assaying methods nor quality control.
For further information on the Exploration Target, refer to the Company reported titled "Global Announces Exploration Target at Nevada Lithium-Boron Project" dated 8 June, 2016.
Leach Test Work
Global has undertaken preliminary test work on five rock chip samples collected from outcropping mineralisation at South Basin. The results show that >90% of total lithium content can be recovered using a weak-acid digest. The high recovery of lithium is evidence that the contained lithium is not tightly bound within lithium bearing silicate minerals such as hectorite. The results provide further evidence that the lithium is relatively easy to liberate and can be extracted using a low-cost leaching process route without the need for roasting (calcining).
For further information on the leach test work, refer to the Company reported titled "Sampling Test Work Supports Low Cost Processing" dated 18 July, 2016.
Work In Progress at Rhyolite Ridge
- Evaluation of the North Basin using historic and recently collected data (Sept 2016)
- Maiden JORC-compliant Resource estimate at South Basin (Oct 2016)
- Drilling of high-grade targets at North and South Basins (Dec Qtr)
- Preliminary process and metallurgical test work and economic modelling (Dec Qtr).
Tokop Gold Project, USA (GSC 100%)
The Tokop project is an Intrusion Related Gold System (IRGS) located 330km southeast of Reno in southern Nevada, USA. Global owns 100% interest in 73 unpatented mining claims covering an area of 4.82 sq km. A further 5 unpatented and 11 patented claims (1.14 sq km) are held under a lease and option to purchase agreement with a third party owner.
Gold mineralisation is hosted by a multiphase granitic porphyry stock and adjacent Palaeozoic limestone and limey sediments. Gold mineralisation is associated with arsenic, bismuth, tellurium and molybdenum.
Lone Mt Gold Project, USA (GSC option for 100%)
The Lone Mt gold-silver-base metal project is located 35 km northwest of Elko and 35km from the Carlin Trend in northern Nevada. Global owns 100% interest in 37 unpatented mining claims. A party owners. Global can purchase 100% of the third party claims for US$3 million with the owner retaining a 3% net smelter return royalty.
Lone Mt shares a number of similarities with the nearby Carlin Trend - an area hosting more than 150 million ounces of gold. The sedimentary and intrusive rocks at Lone Mt are of the same type and age as those hosting mineralisation in the Carlin district. The exploration targets at Lone Mt are for Carlin-style gold mineralisation, skarn-related gold-silver-base metal mineralisation and breccia-hosted silver-lead-zinc mineralisation. All styles of mineralisation appear to be related to a number of intrusive bodies.
Towers Mountain Gold Project, USA (GSC 100%)
The Towers Mountain porphyry copper project is located 2 km west of Crown King and 90 km north of Phoenix in central Arizona. Global owns 100% interest in 32 unpatented mining claims covering an area of 2.54 sq km.
Porphyry style alteration and mineralisation is exposed over an area of approximately 1.5 sq km. Previous exploration is limited and focussed on the central molybdenum-rich breccia bodies. The large, annular copper zone remains largely untested by drilling. Freeport-McMoRan Copper & Gold's Bagdad porphyry copper mine (about three billion tonnes at 0.4% copper) is located 80km to the northwest.
Other USA Projects
Global holds several other projects in Nevada (Bartlett and Orovada) and Arizona (New Morenci).
To view the full report, please visit:
http://abnnewswire.net/lnk/70E5302L
About Global Geoscience Limited
Global Geoscience Limited (ASX:GSC) is a Sydney-based mineral exploration company specialising in greenfield exploration and mineral discovery. The Company's main focus is for copper, gold and silver on its mostly 100%-owned projects in Nevada and Arizona in the United States, and Peru in South America.
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