This report to shareholders will cover the following:
1.Present status of furnacing and electrowinning processes
2.Present status of leach and precipitation method
Summary
Since our last news release and report to shareholders dated May 24, 1999 and May 21, 1999 respectively, Global has been actively engaged in producing anode
slimes that are derived from our furnacing and electrowinning procedures. Although we have been running 15 shifts per week, our plan to run three furnaces
continuously has been frustrated by a number of factors,
including, among others, the higher than anticipated maintenance and repair of our three furnaces, defective crucibles that resulted in passing metal and slag between
the crucible and refractory material, lack of qualified staff to repair and replace furnace components, and long lead time for crucible replacements.
There is little question that greater furnace capacity is required along with greater burner efficiency for this system to work properly. We have an inventory of anode
slimes along with approximately 1700 pounds of dore bars that have not been electrowinned as of the date of this report. To increase our electrowinning capacity,
we are in the process of shipping an additional six tanks along with one transformer and two rectifiers. To date, the furnacing and electrowinning methods have been
disappointing to the extent that we have been unable to produce sufficient slimes that warrant a shipment of the same to Sabin Metals. Management has determined
rather to use our present inventory of slimes and utilize the same as inquarts for our large tests of our leach and precipitation method.
Leach and Precipitation tests
Commencing this date, Global is undertaking to conduct a 5 ton test of its leach and precipitation methodology. Tests of this method have performed well in the lab,
and clearly the success of this test is key to the future of the Company. This method of production increases dramatically the number of tons of head ore that can be
processed per day as compared with the
furnacing and electrowinning procedures. This test is expected to take two weeks to complete.
As indicated earlier, the development of a successful leach method would allow the Company, with making only minor modifications, to process up to 150 tons of
ore per day. Presently, it is the feeling of Management that until larger and more efficient furnaces can be procured, all anode slimes presently being produced will be
preserved and used as inquart for our leach process. As new equipment is procured, any excess of slimes needed for inquart will be shipped to Sabin for refining.
Mike McKay
Facilities Manager
June 22, 1999
This communication to shareholders and the public contains forward-looking statements. Actual results may differ materially from those indicated by such statements.
All statements, other than statements of historical fact, included herein, including, without limitation, statements regarding future production, are forward-looking
statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events
could differ materially from those anticipated in such statements.
OTCBB: GPGI
June 22, 1999
Progress Report |
