Quarterly Activities Report - September 2016
Sydney, Oct 31, 2016 AEST (ABN Newswire) - Global Geoscience (
ASX:GSC) ("Global" or "the Company") is pleased to provide the company's Quarterly Activities Report for the period ended 30th September 2016.
HIGHLIGHTS FOR THE QUARTER
- Maiden Resource estimate demonstrates the significant scale of the Rhyolite Ridge Lithium-Boron project
- 3.4 million tonnes of lithium carbonate and 11.3 million tonnes of boric acid contained within the South Basin Resource
- Highly regarded consultants Silvio Bertolli and Peter Ehren engaged to design and manage metallurgical test work and modelling
- Metallurgical test work in progress to confirm cost-effective extraction by acid-leaching without roasting
- Drill results from North Basin show thick, shallow mineralisation over an area of at least five square kilometres (excluded from Resource)
- $6 million capital raising completed and fully funded through to completion of PFS
The company is developing the Rhyolite Ridge lithium-boron deposit into potentially one of the world's largest strategic, scalable and reliable sources of high quality lithium carbonate. The Company is positioning itself as a major US-based supplier to support the rising global demand for lithium carbonate that is expected from the increased use of mobile electronics and hybrid/electric vehicles.
Key characteristics that make Rhyolite Ridge a strategic asset:
Location: stable, mining friendly jurisdiction of Nevada, close to existing infrastructure, 100% Federal (BLM) land
Advanced: Resource containing 3.4 million tonnes of lithium carbonate and 11.3 million tonnes of boric acid; opportunity to move quickly into development
Potential: Large deposit amenable to open-pit mining methods; extraction by low-cost leaching; potential long-life, low-cost supplier of lithium and boron
The work program for the December quarter is focusing on metallurgical test work. A drilling program will test for extensions to existing and new zones of high-grade lithium-boron mineralisation at North and South Basin and provide additional sample material for metallurgical test work.
Exploration Activities - USA
Rhyolite Ridge Lithium-Boron Project, Nevada (option to acquire 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 and reliable 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 fine-grained, carbonate-rich sediments (marl). Global has the exclusive right to purchase 100% interest in the project from the owner, a private Nevada company.
Resource Estimation
Independent consultants RungePincockMinarco ("RPM") completed a JORC-compliant Mineral Resource Estimate at the South Basin using the existing database of 21 core and 15 RC holes that were drilled by a previous exploration company in 2010-2011.
The total Indicated and Inferred Mineral Resource is estimated at 393 million tonnes at 0.9% Lithium Carbonate (Li2CO3), 2.9% Boric Acid (H3BO3) and 1.7% Potassium Sulphate (K2SO4) (1.2% Lithium Carbonate Equivalent) calculated using a 0.6% LCE cut-off grade.
The Resource contains a high-grade zone of 65 million tonnes at 1.0% Lithium Carbonate, 9.1% Boric Acid and 2.2% Potassium Sulphate (2.0% Lithium Carbonate Equivalent) calculated using a 1.8% LCE cut-off grade.
The Resource at South Basin remains open to the north, south and east and has significant potential to expand with successful exploration. North Basin is not included in the Resource and also has potential to add significantly to the Resource. Further information regarding the Resource estimate can be found in the public report titled "Maiden Resource for South Basin at Nevada Lithium-Boron Project" dated 10/10/2016 and released by the Company on the ASX.
Metallurgical Test Work
Preliminary test work has shown that lithium and boron can be leached from the host rock using dilute acid without roasting. Metallurgical test work and economic modelling has commenced under the direction of consulting engineers, Mr Silvio Bertolli and Mr Peter Ehren. Mr Bertolli and Mr Ehren are globally recognized experts in the lithium mining industry and their complimentary skills will prove instrumental to the rapid advancement of the Rhyolite Ridge project. Mr Bertolli is a chemical engineer with over 40 years of experience in process design and technology development in the chemicals and metallurgical industries for rare and base metals with emphasis during the last decade on lithium clay deposits. Mr Ehren is a consulting mineral processing engineer with global experience in lithium, boron and potassium deposits.
Key parts to the initial metallurgical study are:
- Metallurgical mapping of the deposit
- Optimum upgrading conditions for lithium and boron (beneficiation)
- Best leaching conditions aimed at minimizing reagent and energy consumption
- Processing steps required to separate lithium, boron and potassium and achieve commercial products
North Basin Drill Results
North Basin hosts thick, shallow zones of lithium-boron mineralisation similar to South Basin. Drilling at North Basin was undertaken by US Borax during the 1980's using a combination of rotary and percussion drilling methods. The results show very thick (100-260m) zones of lithium-boron mineralisation at very shallow depths (<30m) over an area of at least 5 sq km. Drill holes are spaced at 400 to 900m and selected results include:
- 125m at 1868ppm Li (0.99% LCE) and 0.21% B from 12.2m including 33m at 2290ppm Li (1.22% LCE) and 0.38% B from 15m
- 259m at 1597ppm Li (0.85% LCE) and 0.16% B from 15.2m including 67m at 1645ppm Li (0.88 %LCE) and 0.49% B from 24m
- 201m at 1364ppm Li (0.73% LCE) and 0.74% B from 27m
Further information regarding the North Basin drill results can be found in the public report titled "Thick, shallow Li-B mineralisation extending over 5 sq km at North Basin" dated 30/09/2016 and released by the Company on the ASX.
Work Program for the December Quarter
The December work program is focussing on metallurgical test work using recently acquired existing drill core. A drilling program will test for extensions to existing and new zones of high-grade lithium-boron mineralisation at North and South Basin and provide additional sample for metallurgical test work.
Tokop Gold Project, Nevada (100% and option to acquire 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. No exploration work was undertaken during the quarter.
Lone Mt Gold and Ag-Pb-Zn Project, Nevada (option to acquire 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 further 71 unpatented claims are held under a lease and option to purchase agreement with third 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. No exploration work was undertaken during the quarter.
Other Projects in the USA
Global holds several other projects in Nevada (Bartlett and Orovada) and Arizona (Towers Mt and New Morenci). No exploration work was undertaken on these projects during the quarter.
Corporate
Global completed a $6 million capital raising in August 2016 and is fully funded through FY2017. The Company also received $878,000 from the exercise of options. During the quarter, the Company spent $792,000 on exploration and $485,000 on corporate/administration. The higher corporate costs reflect the end of financial year and one-off costs relating to the capital raising and other corporate transactions.
To view the report, please visit:
http://abnnewswire.net/lnk/FM5T21Y1
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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