Drill Program at Dasa Continues to Exceed Expectations 2017 Earnings Hit New Record
08 May 2018 - 1:15AM
Global Atomic Corporation (“Global Atomic” or the “Company”),
(TSX-V:GLO) is pleased to announce continuing positive results from
its 2018 DASA Uranium Project drill program in the Republic of
Niger, West Africa and a record zinc production year from its Zinc
operations in Iskenderun, Turkey.
At DASA, the focus of current drilling is to
continue to define the “Flank Zone” area in order to complete an
updated National Instrument 43-101 (“NI 43-101”) resource technical
report by CSA Global Pty Ltd of Perth, Western Australia. Two holes
just completed and probed have returned excellent results which
continue to improve the overall DASA resource.
DASA Project Highlights:
- Drill hole ASDH 126B intersected continuous high-grade
mineralization from 58.5 meters to 262.6 meters returning a 204.1
meter intersection grading 8,062 ppm; including 28,490 ppm (2.85%)
eU3O8 over 28.2 meters. This hole was drilled vertically and
oblique to the dip to prove that the mineralization is continuous
and is therefore not an indication of the true thickness of the
zone.
- Drill hole ASDH 563 intersected 7,277 ppm eU3O8 over 107.3
meters including 12,456 ppm over 46.1 meters. This hole has been
drilled perpendicular to the structure and approximates true
thickness in this area. In drill hole ASDH 563 the probe was
saturated for 8.5 meters from 231.2 meters to 239.7 meters.
- A new mineralized zone was discovered along strike and north of
the main DASA deposit, called Tagama East, which has not been
factored into the current resource estimate. See drill holes
below.
- DASA drilling table (drills sections attached):
Hole |
From (meters) – To (meters) |
Length (meters) |
Grade (ppm eU3O8) |
Flank ZoneASDH 126Bincluding |
58.5 - 262.6187.1 – 215.3 |
204.128.2 |
8,06228,490 |
ASDH 563includingincluding |
142.9 - 250.2198.0 - 244.1231.2 - 239.7 |
107.346.18.5 |
7,27712,45625,140 (saturated) |
Tagama EastDADH 380 |
521.4 – 544.5 |
23.1 |
1,027 |
DADH 386 |
290.5 – 315.8 |
25.3 |
1,759 |
* These are preliminary results based on gamma probing.
Drillhole ASDH 563 is currently being probed with a Geiger-Müller
probe, which will give a more accurate result. Final results
will be released once chemical assaying is completed at ALS Global
in Vancouver, Canada. |
Drilling on the Flank Zone will continue for the
next month in order to achieve a Measured and Indicated resource
classification in this area. Further drilling on strike and
down dip will continue in order to build the overall DASA resource.
A number of high priority targets will be the focus of the
exploration drilling.
Management expects the updated NI 43-101
resource estimate to be completed in Q3 2018 and a technical report
prior to year-end 2018.
Mr. George Flach, P.Geo., VP, Exploration for
Global Atomic said “The drilling, contractors and our local
Nigerien team are making significant progress advancing this high
value uranium project. DASA is proving to be an outstanding asset
which continues to improve”.
3D Model : DASA Open Pit and Underground
Resources Model With Planned Drilling is available
at http://resource.globenewswire.com/Resource/Download/8fb1d627-13d4-4dea-b49b-640f5f96b183
Drill Hole Longitudinal Section
1925 is available at
http://resource.globenewswire.com/Resource/Download/a71f0c3e-3d21-4673-beff-085c31062aad
Drill Hole Longitudinal Section
1950 is available at
http://resource.globenewswire.com/Resource/Download/b7745820-ccda-4094-8616-92da0038a466
Zinc Operation Highlights:
- 2017 was a record year with 33 million pounds (100%) of zinc
produced in concentrate (2016 – 22 million pounds).
- The Company’s 49% share of EBITDA of the joint venture was
$10.8 million in 2017 (2016 – $4.6 million).
- The Company’s 49% share of the net earnings of the joint
venture was $6.9 million in 2017 (2016 - $3.5 million) with
earnings per share of $0.048 based on the currently outstanding 107
million shares.
- Based on Turkish earnings for 2017, a dividend of 47.3 million
Turkish Lira was declared on April 27, 2018, with distribution to
the joint venture partners in mid-May (the Company’s share is
approximately $7.2 million).
- Steel market conditions in Turkey continue to improve and zinc
prices remain strong. Based on improved market conditions, the
Turkish joint venture is studying expansion and modernization of
the Turkish plant, which will double production and reduce costs.
The expansion is expected to be undertaken in 2019, with costs paid
from operating earnings and available lines of credit.
Please visit the corporation’s website,
www.globalatomiccorp.com, for the latest news and our 2017
Financial Statements and MD&A which are now posted to the
website and www.sedar.com.
Investor Relations Global
Atomic also announced it has entered into an agreement with third
party investor relations provider Renmark Financial Communications
(“Renmark”) for the period February 1, 2018 through January 31,
2019 subject to a right of early termination in favour of the
Company after the initial six month period. Renmark will provide
investor relations services including investment community outreach
programs, email distribution of news releases and broker
presentations. Annual compensation is $54,000 payable in cash.
Renmark was founded in 1999 by Henri Peron and based in Montreal,
Quebec.
QP StatementGeorge A. Flach, Vice President of
Exploration, P.Geo. is the Qualified Person (QP) as defined in NI
43-101 and has prepared, supervised the preparation of, and
approved the scientific technical disclosure in this news
release.
About Global AtomicGlobal
Atomic is a TSX Venture listed company providing a unique
combination of high grade uranium development and cash flowing zinc
concentrate production.
Global Atomics’ Uranium Division includes six
exploration permits in the Republic of Niger covering an area of
approximately 750 km2. Uranium mineralization has been
identified on each of the permits, with the most significant
discovery being the DASA deposit situated on the Adrar Emoles III
concession, discovered in 2010 by Global Atomic geologists through
grassroots field exploration.
Global Atomics’ Base Metals Division holds a 49%
interest in the BST joint venture which operates a re-processing
facility located in Iskenderun, Turkey that converts EAFD (Electric
Arc Furnace Dust) into a high-grade zinc oxide concentrate which is
sold to zinc smelters around the world. The Company’s joint venture
partner, Befesa Zinc S.A.U. (“Befesa”), holds a 51% interest in and
is the operator of BST. Befesa is a market leader in EAFD
recycling, capturing approximately 45% to 50% of the European EAFD
market with facilities located throughout Europe and Korea.
Key contacts:
Stephen G.
Roman |
George A. Flach,
P.Geo. |
Chairman, President
& CEO |
Vice President,
Exploration |
Tel: (416)
368-3949 |
Tel: (416)
368-3949 |
Email:
sgr@globalatomiccorp.com |
Email:
gaflach@globalatomiccorp.com |
The information in this release may contain
forward-looking information under applicable securities laws. This
forward-looking information is subject to known and unknown risks,
uncertainties and other factors that may cause actual results to
differ materially from those implied by the forward-looking
information. Factors that may cause actual results to vary include,
but are not limited to, inaccurate assumptions concerning the
exploration for and development of mineral deposits, political
instability, currency fluctuations, unanticipated operational or
technical difficulties, changes in laws or regulations, the risks
of obtaining necessary licenses and permits, changes in general
economic conditions or conditions in the financial markets and the
inability to raise additional financing. Readers are cautioned not
to place undue reliance on this forward-looking
information. The Company does not
assume the obligation to revise or update this forward-looking
information after the date of this release or to revise such
information to reflect the occurrence of future unanticipated
events, except as may be required under applicable securities
laws.
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