Globestar Mining Corp (GMI)

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MOBLAN - Lithium Project

OVERVIEW

GlobeStar’s Moblan project covers a group of pegmatite sills and dykes in Archean-age greenstone north of Chibougamau, Quebec, Canada that are characterized by high lithium (Li) values in the mineral, spodumene, a lithium aluminum silicate. The project is divided into two areas, West and East. The Moblan West property hosts the Main Sill pegmatite body.

The Moblan West property comprises 14 contiguous staked claims covering 235 hectares in which GlobeStar earned an interest of 60% from SOQUEM in November 2008, having exceeding the required initial earn-in of US$150,000. A Technical Report prepared for GlobeStar on the Moblan West property was completed in December 2008. It provided Indicated mineral resources for the Main Sill in the Moblan West property of 5.34 million tonnes at an average grade of 1.51% Li2O and a cut-off grade of 0.43% Li2O.. In the higher grade eastern half of the Moblan West property, Indicated mineral resources were estimated at 2.09 million tonnes at an average grade of 1.85% Li2O, and at the same cut-off grade. The Moblan East property is less advanced than Moblan West and is made up of 11 contiguous staked claims covering 163 hectares owned 100% by GlobeStar.


LOCATION AND ACCESS

The Moblan property is located 112 kilometers north of Chibougamau and is accessible from Chibougamau via Route du Nord, an all-weather gravel road, to Kilometre 112.5 where a 2-kilometer winter trail runs south to the centre of the Moblan West property. At Kilometre 105 on the Route du Nord, a logging road and winter diamond drill trail provides access to the Moblan East property.



Location of the Moblan lithium pegmatite property


GEOLOGICAL SETTING

The Moblan property is located in the eastern segment of the Frotet-Evans greenstone belt of Archean age in the Opatica Sub-Province of the Canadian Superior Province. The greenstone belt is enclosed by a granitic-gneissic complex and has itself been intruded by post-tectonic granodiorite to tonalite plutons. The volcanic and sedimentary package is composed of tholeiitic basalts, ferrotholeiites, transitional basaltic flows, calc-alkaline pyroclastic units and sedimentary rocks. Numerous sills and feeder dykes of ultramafic to granophyric composition intruded the sequence and these are very abundant in parts of the belt. Calc-alkaline porphyritic dykes are thought to be the feeders for, or contemporaneous intrusions with, the felsic pyroclastic deposits.

The Frotet anticline divides the greenstone belt into two structural domains. The northern part is characterized by prominent northeast to north-northeast regional schistosity truncated by southeast-trending reverse faults and east-northeast to east-west strike-slip dextral faults. In the southern branch of the anticline, features are oriented east-southeast to southeast where regional-scale reverse faulting interferes with large synclines. Regional metamorphism is greenschist facies in the core of the greenstone belt, increasing to lower amphibolite facies at the margins and around felsic intrusions. The Moblan pegmatite swarm is localized in the nose of the Frotet anticline where confining pressures and readily deformed, impermeable basic volcanic and mafic rocks provided the conditions for containment and crystallization of the elements, such as lithium, tantalum and niobium that characterize a so-called rare metal pegmatite suite.


MINERALIZATION AND RESOURCES

A 12-hole diamond drilling program totalling 1,245 meters was completed in December 2007 on the Moblan West part of the property. The principal objective of the drilling program was to test the continuity, geometry and structural control of the pegmatite bodies. Preliminary metallurgical testing by SGS Lakefield produced a spodumene concentrate containing 7.4% Li2O and which exceeds the industry standard specification of 7.25% Li2O for ceramics and glass applications. A lower grade, 5% Li2O, concentrate suitable for the glass industry was also recovered.

The independent Technical Report completed in December 2008 incorporates the results of the 2007 drilling program and metallurgical work, and provides an estimate of mineral resources and a preliminary assessment (scoping study). View Technical Report

The main conclusions of the Technical Report, which focused on the Main Sill pegmatite body, are summarized below:


* Drilling confirmed the presence and structure of the Main Sill underlying the central part of the West Moblan property. Defined by holes MS-07-04 to MS-07-09 totalling 747.4 meters and the surface geology, this body is approximately 600 meters long, strikes east-west, dips approximately 30o north and averages nearly 40 meters thick.

* The Main Sill is classified as an albite-spodumene pegmatite and has three principal zones. From the contacts inward these are: an albite-rich contact wall zone with quartz, dark green mica and generally minor potassium-feldspar; a potassium-feldspar zone with quartz bands, green mica and lesser albite; and a central quartz-spodumene core which is generally banded with concordant albite-potassium-feldspar-quartz-mica subzones and chains of coarse potassium-feldspar crystals.

* Inferred mineral resources for the Main Sill, potentially amenable to open pit mining along a strike length of 600 meters and to a depth of 50 meters, were estimated to be 5.34 million tonnes at 1.51% Li2O with a cut-off grade of 0.43% Li2O. Considering only the higher grade eastern half for the economic assessment, the Inferred mineral resource is 2.09 million tonnes at 1.85% Li2O with the same cut-off grade. The mineral resource estimates were based on a polygonal wireframe method.

Drill core sample showing spodumene rich zone in the main pegmatite sill, Moblan West



SCOPING STUDY

The preliminary assessment for the Moblan West project, envisioned mining at a rate of 135,000 tonnes per year and the capital cost for mining and processing was estimated at C$22 million. Results of the study determined a net present value of almost C$21 million at a discount rate of 8% per year, for a 10-year operation and an internal rate of return of 26.28%.

As part of the preliminary assessment, an initial analysis was undertaken of potential markets for spodumene, and sodium and potassium feldspar concentrates. Tantalum, rubidium and cesium concentrates, garnet, mica and silica may also be recoverable from the Moblan property, although these were not considered in the preliminary assessment.


FURTHER STEPS

The Moblan West pegmatite project is well-placed due to the proximity of a rail line which provides access to potential markets, principally in North America and Europe. The results of the preliminary economic analysis support undertaking a more detailed pre-feasibility study for this deposit, which would include, among other steps:

* An infill drilling program first defining a regular 50-meter spacing grid along strike with paired drill holes to penetrate deeper extensions down dip, to be followed by drilling on 25-meter spacing.

* Preparation of an updated mineral resource estimate in light of the additional drilling in order to bring the present Inferred resources to a higher confidence category.

* Preparation of composites from split-core assay rejects and mini-bulk samples for metallurgical process development and preparation, of product samples for chemical and mineralogical evaluation, and glass and ceramic melt and firing trials.

*

A detailed world market study for spodumene and feldspars, with emphasis on North America and the European Union, and selected significant customers and/or distributors in Asia.


Further work will be also carried out in the Moblan East area.

Detailed mapping of the whole property is also planned for reconnaissance of additional pegmatite bodies.

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