Antimony Deposits Represent the ‘Pot of Gold’ For Two Globex Option Partners

It takes more than a great property to create a real opportunity for successful mine development. Even when a prospect holds exceptional mineral resources, the strength of the exploration team is just as crucial as the quality of the project itself. The best junior explorers show their commitment by steadily advancing through each key milestone required before the first tonne of ore can be processed.

Globex Mining Enterprises Inc. (CA: GMX – $1.84 & US: GLBXF – $1.33 & GER: G1MN – €1.10) understands that building long term shareholder value is about more than just acquiring highly prospective properties. Selecting talented partner companies to successfully advance these assets is at least as important. After many years of building partnerships with talented junior explorers there are now so many active projects in the pipeline the odds for a successful outcome are thus much greater.

Antimony Resources and Bryah Resources, for example, are achieving success to outline resources of antimony in New Brunswick. While Cerrado Gold is involved in studies to optimize its high purity magnetite iron deposit such that the case for a mine development can be validated. Each of these partner companies has demonstrated attributes that enable the potential for a successful outcome.

Antimony Resources Interprets Conceptual Deposit of Significant Tonnage at the Bald Hill Project

Option partner Antimony Resources Corp [ATMY-CSE] presented an updated NI43-101 technical report for the Bald Hill antimony project located in New Brunswick. The document highlighted exploration data from historical work by previous operators. It also included recent findings achieved by Antimony Resources. The status of the reported data is not yet sufficient to enable calculation of a compliant resource estimate for the project. However, a conceptual deposit was interpreted with the potential to outline 2.7 million tonnes at a grade between 3-4% antimony (based on stibnite (Sb) content, a primary mineral of antimony).

The potential to define a significant tonnage of stibnite with attractive grades remains the focus for ATMY. It is not known at this stage if the project may prove to be economic. Additional drilling is required, with the confirmation of similar resource zones and upgraded drill density, to enable the calculation of a compliant mineral resource. Antimony Resources is encouraged with the successful progress so far. In September the company announced another exploration program had commenced with about 6000m of total drilling planned. This work will target mineralized extensions to the northwest and southeast of the currently interpreted deposit area. The results of this program may enable the company to complete a maiden resource estimate for Bald Hill.

It should be noted that Globex optioned this project to Antimony Resources less than a year ago. During that short time the company has successfully advanced work from the status of a brown fields prospect to where it may now be on the cusp of achieving a notable deposit with geological confidence to support a compliant resource estimate. Globex is pleased with the ambitious progress so far from its partner as it retains a 3.5% Gross Metals Royalty [GMR] on the project.

Bryah Resources to Embark on Drilling Program to Validate High Grade Gold and Antimony Samples at the Golden Pike Project

Globex shareholders also retain leverage to another attractive antimony project located in New Brunswick. In May of this year the Company optioned the Devil’s Pike gold and antimony project to Bryah Resources Ltd [BYH-ASX]. The property was initially considered highly prospective for base metals and significant exploration was completed by previous operators spanning a work history of more than 100 years. High grade gold showings were encountered in the 1990s. Now dubbed the Golden Pike project, Bryah completed a thorough review of historic data and has rapidly advanced exploration to encompass gold and antimony resource potential.

In October, Bryah reported encountering high grade stibnite in grab samples that assayed up to 57% Sb from large boulders. These results came from the Bond Road area, an antimony-in-soil anomaly extending 320m in length and 150m wide. Prospecting was also underway at the Vail Road Gold Deposit. This area features a historic gold deposit presented by previous operators in 2011 that outlined an Inferred Resource of 270,500 tonnes in two main zones.

Bryah announced this week that a 1000m drilling program has commenced at the project. The work will focus on the gold resource area and is intended to confirm previous results and upgrade the mineral resource estimate to compliance with NI43-101 reporting standards. Thereafter Bryah plans to commence up to 1200m of total drilling targeting the high-grade antimony veins of the Bond Road area of the property.

Globex has received a cash payment of $100,000 in addition to more than 30 million shares of its partner company. Payments of cash and shares are due on the anniversary of the option deal each year for the 4-year term of the agreement. The Company also retains a 2% GMR on the first 20,000oz of gold produced and a 3% GMR on all subsequent production.

Cerrado Gold Updates On Feasibility Study For Mont Sorcier Project

Meanwhile, another project with leverage to an exotic element is also being advanced by a royalty partner. Cerrado Gold Inc. [CERT-V] provided an update on the parameters being considered as part of an ongoing feasibility study currently underway for the Mont Sorcier high purity magnetite iron project located in Quebec.

Cerrado stated that the production rate envisioned for the project has been increased by 60% from the 5 million tonnes per annum target presented in the PEA study. Under the revised guidelines, initial mine production of 4 million tonnes per annum is planned with mining to be scaled up to the 8 million tonne range by the third year of mining operations. A mine life spanning 20 years remains the baseline assumption for the project despite the increased production objectives considered in the study.

Cerrado is also continuing progress to define the overall resources for the project. Nearly 18,000m of additional drilling results will be added to the database for the deposit. Some assays from recent exploration work are still pending. Nonetheless, the company is in the later stages to complete the study and targets Q2 of 2026 to report the document. An ESIA is also in progress with a target for completion by the final quarter of next year. Cerrado remains confident that mine development at Mont Sorcier could commence by mid-2028 if all required permits and necessary financing is in hand. Globex retains a 1% GMR on the project.

Reverse Takeover by Electro Mining and Metals Improves Option Agreement

Late 2024, Globex signed an option agreement with Electro Metals and Mining Inc. [private] as regards to Globex’s 100% owned Magusi-Fabie Mines property, consisting of 154 claims and 1 mining lease located in Hebecourt, Duparquet, Duprat and Montbray Townships, Quebec, 55 km northwest of Rouyn Noranda.

Last week, Electro Metals and Mining announced that it will reverse takeover BWR Exploration [BWR-V]. As a result of that transaction, Globex renegotiated the option agreement closed in 2024.

To earn 100% interest, Electro now must make cash payments aggregating $5 million by January 15, 2029, including $150,000 due April 30. 2026, and commit to issuing an additional 3 million shares. Work commitments include $750,000 by June 30, 2026 and cumulative expenditures totaling $13.5 million by June 30, 2029. Once in production, the project is subject to a $1 million production bonus, 3% Gross Metal Royalty, and a $250,000 per year Advance Royalty. 1.0% of the 3% GMR (33.3% of the total GMR Royalty) can be repurchased for $2 million and Electro will retain a Right of First Refusal to repurchase the remaining GMR.

Conclusion

Like most of the partner updates that are highlighted by Globex, the three companies featured in this update are providing the potential to create value for Globex shareholders. Option deals reported earlier this year involving Antimony Resources and Bryah included cash and share payments to Globex up front, and then at intervals throughout the term of the agreements. These payments generate revenues that enhance the corporate liquidity to fund future acquisitions.

Partner companies are obligated to fund exploration commitments that may advance the properties and build the resource leverage. This often increases the market value of the successful partners and may add value to the portfolio of shares held by Globex in these companies. Lastly, the royalty leverage provides the potential for steady income stream payable on production from these projects if they are successfully developed into producing mines.

The update from Cerrado provides an illustration of this value from the royalty interest. Cerrado has upgraded their proposed mining plan to increase the production targets by 60% from the original base case scenario. Globex would then be the recipient of even higher income from the royalty due and payable on a larger production volume. The Company also retains leverage to royalties held on many other advanced projects that may be approaching a development decision in the years ahead.

This week’s project updates also include exposure to exotic and critical metals that are in high demand or limited supply. Once again, the strategy of acquiring a diversified portfolio of exploration assets is proving its value, supported by successful exploration from active partner companies. The strong performance of Globex shares this year reflects the positive results achieved across many independent projects. Smallcaps Recommendation: BUY.

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