Drilling Commenced at Globex Ironwood Gold Property

The winter months often provide the optimum window for ambitious exploration programs to commence in Quebec. Drilling targets located in proximity to all-weather roads are more easily accessed once the ground surface freezes. With a frenzy of exploration activity in progress and steady news flow, the winter months are frequently the most speculative for the entire junior mining sector. This week Globex Mining Enterprises Inc. (CA: GMX – $1.10 & US: GLBXF – $0.79 & GER: G1MN – €0.71) provided an update on ongoing activity for three projects that may advance as work continues.

Globex is commencing a drill program on its Ironwood Gold project for which the Company maintains 100% ownership in its vast portfolio of property holdings. The planned drilling work may provide the Company with greater confidence towards the decision for potential mine development. Option partner Emperor Metals Inc. is navigating a similar process at its Duquesne West gold project, where encouraging metallurgical testing results support the potential for a future mine development decision. Rounding out the update, O3 Mining is moving forward with a drilling program that will include targets within claims where Globex retains royalty leverage.

Each of the three projects outlined in this update represents just a small sample of the many properties currently advancing for which Globex maintains leverage if a successful outcome is achieved. This diversified portfolio of assets, combined with the independent efforts of partner companies, amounts to an impressive roster of projects that provide the foundation to build future value for Globex shareholders.

Drilling Set to Commence at Wholly Owned Ironwood Gold Project

Globex announced that drilling rigs have been mobilized to its Ironwood gold property in Cadillac Township, Quebec. A small, high-grade gold deposit was outlined within the property. In 2008 a technical report was filed, documenting an inferred gold resource of 243,200 tonnes with an average grade of 17.26 g/t gold and 2.61 g/t silver.

The Company has just commenced a program for a total of 3000m of drilling within 17 drill holes. Two drilling rigs will be operating during this phase. The program will target the previously identified gold deposit, with the objective of confirming the resources and upgrading the category of confidence to Measured and Indicated for some of this deposit. Globex also aspires to complete exploration drilling to test for a potential extension to beyond the established gold deposit.

Some preliminary metallurgical testing has been completed for the Ironwood gold deposit. Favorable results were reported, with up to 97% gold recovery using cyanidation processing. Bulk concentrate testing in flotation cells achieved 86% gold recovery. More extensive testing will be required to establish optimum processing performance in consideration of a potential mining scenario for this resource.

Positive Metallurgical Testing Results Build Economic Case for Duquesne West Gold Property

While much of the work completed by optioning partner Emperor Metals [AUOZ-C] to advance the Duquesne West project has focused on exploration activity, the company presented an update this month on the results of metallurgical testing. Samples were selected from 87 drill core intervals to assemble five sample composites. The sample composites included replacement-style disseminated gold and lower-grade Quartz-Feldspar Porphyry (QFP) mineralization.

Testing was completed by SGS Laboratories using a primary gravity circuit and conventional Carbon-In-Leach processing technology. The replacement style mineralization performed well in the test program. Weighted average gold extraction ranged from 90 to 100% of the samples. The QFP sample material achieved 76% extraction but this lower efficiency may be correlated to the nugget effect due to variances of coarse gold content. Overall average recovery of 90% was achieved during the program. Another encouraging aspect revealed in the testing is that minimal consumption of reagents and cyanide was observed, with only minor impairment from deleterious elements within the mineralization. This also projects to more attractive economics for a conventional recovery circuit.

Following this first round of metallurgical testing, Emperor may advance with confidence to define additional near-surface mineralization within the proposed open-pit mine shell for the project. The positive test results suggest that even lower grade mineralization may perform satisfactorily using conventional processing technology to recover gold. This in turn reduces the strip ratio for a potential mining scenario as more of the extracted material could be economically processed instead of accounting as waste rock. Recovery of more gold with lower waste rock extraction adds to the value proposition of the overall deposit.

O3 Commences Drilling Within Claims That Globex Holds Retained Royalty Leverage

This week O3 Mining [OIII-V] announced that it has commenced drilling at its Kinebik Project in Quebec. The company plans to drill a total of 8000m with two rigs in operation. Kinebik is a larger property, assembled from several claim groups straddling more than 55 kilometers along strike of the prolific Casa Berardi trend.

The drilling program announced by O3 will largely focus on targets within the Cameron and Florence areas of the project. Globex sold 156 claims to O3 in 2023 for total consideration of cash and O3 shares valued at $2 million. Much of the property area of the too be drilled areas is comprised of the claims involved in that transaction. Globex retains a 2.5% Gross Metals Royalty (GMR) on 104 claims, with a 1% GMR held on the remainder.

Numerous gold bearing drill intersections and surface gold showings have been encountered within the claims purchased from Globex. The claim groups also include targets in close proximity to established gold zones on adjacent claims and therefore are highly prospective for additional gold discovery potential along strike. As O3 continues its exploration activity within the overall property area any significant gold resource discovery achieved will advance the prospect for a new mine development. This in turn builds the value proposition for Globex shareholders as a successful mine development would generate royalty revenue payable to Globex for any resources extracted within the claims acquired in the transaction.

Conclusion

Regular updates are presented by Globex, featuring progress achieved at numerous active projects. These updates usually involve highlighting the work underway through option and royalty partners. Engaging partnerships with competent third-party companies is a core strategy for Globex that enables much more progress to be achieved across a wide spectrum of properties than any one company could hope to manage in-house.

However, this time, Globex was also able to provide an update for its own proprietary exploration plans to advance a wholly owned gold property. The work at the Ironwood gold project may serve to make this project more attractive to a potential partner and a deal may be subsequently announced thereafter. Globex is lavishly funded due to the successful execution of its Project Generator/Property Bank strategy for many years. The Company certainly has the luxury to retain full ownership and leverage this gold project with the ambition to advance the deposit through to production independently.

Meanwhile, the successful exploration completed at Duquesne West by option partner Emperor Metals is well documented. With significant gold resource leverage already established, Emperor is now moving ahead with complimentary studies and testing as part of the drive towards a decision for potential mine development. The encouraging metallurgical test results presented by Emperor will support this potential. Similarly, significant drilling planned by royalty partner O3 Mining through the winter may advance the Kinebik Project towards mine development including claims purchased from Globex last year.

With so many active projects advancing along the value curve, Globex shareholders are able to participate in the success achieved by partner companies. Progress by Emperor and O3 to advance their respective properties builds greater value for Globex shareholders. Globex is also moving ahead with its own exploration ambitions, providing another channel for shareholder value creation. Smallcaps Recommendation: BUY.