Being a Globex Mining (TSX: GMX – $0.45 & OTCQX: GLBXF – $0.37 & Fra: G1MN – €0.30) shareholder is a lot of fun. There is never a dull moment, as either the Company itself is advancing one of its properties, or an option partner is.
A couple of days ago, for example, Renforth Resources (CSE – RFR) discovered new gold zones away from its existing mineral resource at its Parbec property.
The Parbec Gold Property consists of 11 cells totalling 229 hectares in Malartic Township, Quebec. It is located 6 km northwest of the large Canadian Malartic open pit gold mine (Agnico Eagle Mines Limited and Yamana Gold Inc.) and adjoining the former East Amphi Gold Mine, all located on or near the world famous gold localizing Cadillac fault.
The property has been subjected to several drill programs by previous owners, which have indicated a historical series of gold zones. In addition, a 580 metre ramp (see image below) was excavated to allow bulk sampling of one of the areas of gold mineralization. All this work led to an initial resource estimate, which was updated by Renforth in March 2016.
Total Au (g)
Total Au (oz)
March 2016 Parbec Resource Estimate (0.5 g/t Au Cut-off). Source: Company press release.
Renforth may earn a 100% interest in Globex’s Parbec Gold Property for:
• $550,000 in cash payments over 4 years ($175,000 received);
• 2 million shares of Renforth over 4 years (1.25 million shares received, which today are worth close to $100,000); and
• $4 million in exploration expenditures over 4 years.
In addition, should Renforth earn a 100% interest in the property, Globex will retain a sliding scale Gross Metal Royalty (GMR) of up to 2%.
• 1% GMR at a gold spot price of US$1,000.00/oz or less
• 1.5% GMR at a gold spot price greater than US$1,000.00/oz but less than US$1,200.00/oz
• 2% GMR at a gold spot price equal to or greater than US$1,200.00/oz.
During a recent prospecting and trenching program at Parbec, field geologists found an area of approximately 70m by 170m of high ground surrounded by swamp and open water. This area was found to host several historic undocumented trenches and a small pit, the “Island Trenches”.
Grab samples from the pit area returned attractive values of 9.60 g/t Au and 3.69 g/t Au, one sample from a nearby trench returned 2.12 g/t Au. Due to these positive assay results the Island Trenches will be the focus of additional work later in the program.
In addition to these findings, visually similar material was also discovered at “Deerfly Ridge”, located 300m northeast of the Island Trenches (see map below for exact location of the new discoveries). Grab samples from this area are being analyzed.
It is great to see that although the focus of the current prospecting and trenching program at Parbec is the unexplored portions on the property, the geologists are finding mineralized material. This indicates that the current resource could most likely be expanded.
Moreover, Renforth has sufficient funds to continue to develop the Parbec property as it recently raised over $600,000 in a private placement.
Excellent Exploration Activities at Montalembert
In other news, Enforcer Gold (TSX-V: VEIN) continues to encounter spectacular free gold on the surface of the Montalembert Gold Project.
Enforcer commenced its initial induced polarization (“IP”) geophysical survey early June. Preliminary IP results from surveying to the north of the Galena and No. 2 veins indicate that both structures continue for a considerable distance in this direction.
Enforcer personnel are ground truthing the IP anomalies by exposing and channel sampling outcrops, with current priority given to Galena and No. 2 vein extensions. Shearing, quartz veining and quartz-feldspar porphyry have now been exposed for an additional 60 m and 75 m (200 ft to 250 ft) north along the Galena and No. 2 veins, respectively. On the No. 2 vein extension, an impressive 15 cm (6 inches) wide occurrence of visible gold was discovered (see video).
Trenching to further expose the mineralized structures continues and systematic channel sampling is underway. The presence of other anomalies outside of the known mineralized areas also highlight the potential for new discoveries. Moreover, the southern part of the Galena and No. 2 vein is yet to be surveyed.
These early results are very encouraging for Enforcer, which recently commenced the drilling stage of its field program.
Enforcer can earn a 100% interest in the property over a 4 year period by paying Globex $2.6 million, issuing 8.5 million shares of common stock and by undertaking $15 million in work. Globex retains a 3.5% Gross Metal Royalty on all production from the property.
To date, Renforth has delivered a maiden resource based on only a portion of the Parbec project. Recent discoveries determined however that gold is hosted on previously unexplored areas of the property.
Thanks to these discoveries, and the geologist’s ongoing field observations, Renforth is encouraged that it may significantly expand the current resource.
The solid outlook at Parbec is excellent news for Globex, as Renforth will be inclined to pay the next option payment early next year.
|Smallcaps.us Advice: Buy||Price Target: $1.21||Latest Company Report (pdf)|
|For important disclosures, please read our disclaimer.|