While GlobeStar Minings (GMI-T) name might still be tied to copper in the Dominican Republic, courtesy of its Cerro de Maimon project, lately its nickel concessions have been driving stock prices.
That was the case again on Sept. 13 when the latest assays from its Cumpie Hill nickel concession pushed it up 8% or 13 to $1.76 on roughly 360,000 shares traded.
The results are from 17 diamond drill holes, which are part of a 64-hole in-fill drill at the Cumpie Hill.Highlights include:
- Hole CM-LATD-122 — 27.4 metres grading 1.78% nickel.
- Hole CM-LATD-124 –19.8 metres grading 1.72% nickel.
- Hole CM-LATD-102 — 16.0 metres grading 1.74% nickel.
With the completion of the assays results from 50 of the 64-hole program have now been released, with assays pending on the remaining 14 holes.
Another 21 holes, out of a planned 27 have been completed at its Loma Mala concession, which is adjacent to Cumpie Hill. Earlier drilling at Loma Mala returned a highlight 13 metres grading 2.01% nickel.
The company has committed $4 million to exploration during 2007 and early 2008 and says it will publish separate resource estimates as the two programs are completed.
Currently its using a recently finished airborne electro magnetic survey to target new areas over 95 sq. km of nickel concessions.
GlobeStar also owns the Cerro de Maimon copper/gold project in the Dominican Republic. Production at Cerro de Maimon is slated to begin in the summer of 2008.
The project has a net present value (based upon an 8% discount rate) of US$176 million and an internal rate of return (IRR) of 56%, based upon projected gross revenues of US$624 million.
Payback on the estimated US$68.6 million that will go into capital costs is projected at 15 months based upon a US$2.45 per lb copper price a, US$543 per oz. gold price a US$10 per oz. silver price, and an estimated cash cost, net of by-products, of US$0.42 per lb of copper.
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