GlobeStar advances Cerro de Maimon (June 24, 2004)

With a freshly granted environmental permit in hand, GlobeStar Mining (GMI-V) plans to shortly begin site preparations at the Cerro de Maimon copper-gold project in the Dominican Republic.

GlobeStar submitted an environmental impact statement (EIS) for the project in February; independent engineers, Pincock, Allen and Holt completed the study as part of their ongoing bankable feasibility study.

The company says the project now has the final mining and environmental licenses in place, but it still needs to comply with some minor municipal regulations before mine development can begin.

GlobeStar is in the midst of a 4-hole, 600-metre drill program aimed at boosting to the measured category some indicated resources within the planned open pit at Cerro de Maimon.

At last report, measured and indicated sulphide resources at Cerro de Maimon stood at 4.1 million tonnes grading 2.9% copper, 1.8% zinc, plus 35 grams silver and 1 gram gold. Similarly categorized material in the deposit’s oxide cap amounts to 660,000 tonnes running 64 grams silver and 2.5 grams gold.

The project is situated between Placer Dome‘s (PDG-T) Pueblo Viejo gold mine and Falconbridge‘s (FL-T) Falcondo nickel mine, two of the largest mines in the Americas.

Everton Resources (EVR-V) can earn a half-interest in Bayaguana by spending US$1.5 million over two years. Everton must spend an additional US$500,000 before GlobeStar is required to fund its share of exploration. Falconbridge’s 85%-owned subsidiary Falcondo retains a 2% net smelter return royalty.

In August, GlobeStar will sink around 400 metres of drilling designed to develop new reserves at the wholly owned Loma Barbuito massive sulphide zone, about 4 km from the mill site at Cerro de Maimon. Previous drilling there was highlighted by a 6.2-metre interval running 4.4% copper, 3% zinc, 108 grams silver and 1.4 grams gold per tonne. The deposit remains open along both directions of strike.

A second wave of 1,850 metres of exploration drilling will focus on the Bayaguana and Los Hojanchos projects later this summer.

At Bayaguana, 10 holes totalling 1,000 metres are planned around the Dona Loretta target. Previous drilling there returned up to 24 metres grading 2% copper and 0.3 gram gold. The holes will test three distinct groups of shallow induced polarization (IP) anomalies found in a 4-sq.-km area.

Another 3 holes totalling 450 metres are designed to extend the Dona Amanda deposit. At last count, the deposit was home to an inferred resource of 45 million tonnes grading 0.45% copper and 0.2 gram gold, based on a cutoff grade 0.3% copper. Dona Amanda represents a large secondary enrichment blanket situated between 10 and 120 metres below surface.

Drilling will then shift to the Los Hojanchos concessions, where 8 holes totalling 800 metres will be collared on a series of IP anomalies identified via a reinterpretation of surveying completed by Falconbridge in the mid-1990’s. Drilling at Los Hojanchos in 1999 returned up to 1.5 metres running 1.6% copper plus minor gold values.

Everton can earn a 50% interest at Los Hojanchos by funding US1.15 million of exploration. The company can boost its stake to 70% by completing a bankable feasibility study.