Strategic Minerals'exploration underway at Austrian Lithium Project following Cape Lambert investment

Global Strategic Metals have announced the commencement of drilling on Zone 2 at the Wolfsberg Lithium Project, Austria.

The Wolfsberg Lithium Project, is a near term production asset that is considered to be of potential strategic igrain flaker oat roller grain crushermportance to European manufacturers for Lithium, Silica, Feldspar and Mica.

It is pegmatite hosted and has a measured JORC resource of 3.7 million tonnes grading 1.5% Li2O, an indicated JORC resource of 3.2 million tonnes at a grade of 1.5% Li2O and an inferred JORC resource of 10.0 million tonnes at a grade of 1.6% Li2O.

At Zone 2 the Company has an initial exploration target of 8 to 12 million tonnes with a grade of 1.5% to 2% Li2O1.

“Whilst Zone 1, on the northern flank of the anticline, has been subject to extensive exploration, development and trial mining, very limited exploration work has been undertaken on Zone 2, on the southern flank of the anticline,” said Non-Executive Chairman, Mr Tony Sage.

The present drill campaign commenced at the end of June and will comprise six drill holes totalling up to 1,500 metres of core drilling.

The drill programme is anticipated to conclude in October; however the cores will be assayed on an ongoing hole-by-hole basis. The goal of the drilling is to intersect the rock layers hosting the mineralised pegmatites, delineate the geometry of the pegmatites and determine their lithium grade.

The first hole of the current drill campaign has intersected mineralised pegmatite at a depth of 45 metres.

As announced on 29 June 2012, Cape Lambert Resources invested A$1.961 million in the Company to acquire a 19.81% interest. This was via a placement, whereby CFE acquired 28,019,365 GSZ shares at A$0.07 each.

Contemporaneously, the Company announced a restructure of its board and operational activities and that Exchange Minerals had agreed to capitalise.