Exotic Metals and Rare Earth Elements Contribute to the Upside for Globex

Several progress updates were reported by Globex Mining Enterprises Inc. (CA: GMX – $1.57 & US: GLBXF – $1.13 & GER: G1MN – €0.93) as work continues on multiple fronts, each offering the potential for resource discovery and the creation of more shareholder value.

Some of the projects featured in this update include resource leverage to exotic elements in high demand. While other projects focus on gold and silver resource, which continue to build speculative appeal as the metals march higher in value.

Globex reported a transaction deal involving a property with exploration potential for rare earth elements, beryllium, niobium and tantalum. Another project is advancing with attractive results to outline antimony resources.

Globex Reports New Option Deal

A few days ago, Globex reported an option deal to vend its high quality Virgin Mountain Rare Earth & Beryllium Project, located in northwestern Arizona. The Australian junior explorer, Arizona Mountain Pass Heavy Rare Earths Pty Ltd. [AMP] agreed to pay Globex $800,000 in cash plus $600,000 in AMP shares in regular installments through the 42-month structure of the deal in order to acquire 100% ownership of the property.

Globex also adds a valuable royalty to its portfolio amounting to a 3% GMR held on the project. This begins to pay off for the Company on the seventh anniversary of the transaction, upon which AMP agreed to pay an annual advance royalty of $100,000 in cash to Globex. The royalty is recoupable following the commencement of production.

AMP has also committed to fund at least $2.5 million in exploration activity during the term of the agreement. This ensures an aggressive exploration posture with the potential for resource discovery and the creation of shareholder value as work continues.

Prior to arranging this transaction, Globex embarked on preliminary exploration work at the property, including historical analysis, geological mapping, and surface sampling activity. A review of historical data indicates that rare earth mineralization is hosted within favorable rock structures and localized in pegmatite dikes. Dike structures have also yielded mineralization enriched with beryllium, niobium and tantalum. These exotic metals are similar to rare elements in terms of strategic demand and limited availability from domestic mine sources.

Globex was able to confirm the presence of attractive grades of the various elements and validate the exploration potential for this property to attract AMP as an option partner to advance the project.

Exploration Progress Reported by Transaction Partners

Globex also provided updates on activity reported by two current transaction partners that are independently advancing exploration projects. High-grade gold values were reported by Radisson Mining Resources Inc [RDS-V] as work continues at the O’Brien Gold project. This project was assembled from smaller claim groups including the Kewagama Gold Mine property at the eastern portion of the project. Globex retains a 2% NSR on these claims.

Radisson has achieved several notable gold discoveries within the Kewagama Gold Mine royalty claims as drilling tests deeper extensions of the main system. The latest update included high grade gold intervals highlighted by 15.1g/t over a section of one meter, and 11.20g/t gold within a one meter section in another drill hole of the program.

This successful exploration activity also contributes to the speculative appeal for the Ironwood Project located immediately adjacent to the eastern boundary. Globex controls 100% ownership of the expansive Ironwood Project.

Meanwhile, ambitious exploration is underway in New Brunswick by another active exploration partner, Antimony Resources Corp [ATMY-CSE]. The Bald Hill Antimony Property was vended to ATMC in an option deal reported in September 2024. Antimony Resources embarked on its first phase of exploration at the property. In July, the company reported successful results including high-grade values up to 28.76% stibnite in drill core intervals. Three quarters of the drill holes encountered stibnite, a primary mineral of antimony.

Now, Antimony Resources reported that the second phase of its drilling program has commenced. Roughly 2,850m of drilling is planned, focusing on infilling widely spaced drill holes from the first phase. This work may enable the company to compile a Maiden Resource for the project. Globex is pleased with the results achieved so far and the aggressive pace at which work is continuing.

Attractive Exploration Potential for Newly Acquired Red Star Gold-Silver Project

Globex also highlighted the attributes of the Red Star silver-gold property a few days ago. Located in the mining-friendly jurisdiction of Nevada, the Red Star project comprises 16 claims for a total land position of 133.78 hectares. Globex staked these claims to assemble the property rights surrounding two significant epithermal quartz vein systems.

These veins were established by previous operators based on historic exploration activity. The majority of the property area surrounds the Red Star vein. Red Star extends along strike for more than 2kms within these claims. About two and a half kilometers to the south, another claim block includes roughly 470m of the Double Standard vein.

Smaller scale historical mining targeted both of these vein systems and the property is located within a highly prospective mining district of Nevada. A review of available exploration data extending back more than 100 years prompted Globex to stake this land package.

Thereafter the Company completed fieldwork including geological mapping and surface sampling programs. Assay results from this program reported values up to 11.5g/t gold and 1,171g/t silver. Although these samples are not necessarily representative of the actual resource grade that may be outlined through more extensive exploration, they certainly do confirm the prospective appeal for the project and the presence of attractive mineralization distributed within the vein systems. The property may thus be considered under-explored with discovery potential for high grade epithermal silver-gold mineralization mineralization.

Globex owns 100% of the project and the bullish market activity for both gold and silver add to the attraction for this exploration asset as a potential target for an option deal in the future.

Conclusion

Globex provides shareholders the opportunity to participate in the exploration for mineral resources based on the project generator strategy employed by the Company. This successful approach has delivered significant capital gains through the many transactions achieved in recent years, plus the promise of additional income through retained royalty leverage on advanced projects. The four projects updated this month represent a snapshot of that overall strategy.

Note that the Bald Hill and Virgin Mountain properties featured in this update were acquired by Globex through low-cost staking programs. Management was able to recognize the appeal for these prospects early on and then complete preliminary exploration to validate the exploration potential. Thereafter the Company attracted interest from suitors and negotiated partnership transactions that generate up-front payments while also providing back-end leverage to discovery through the retained royalty leverage. The caliber of these early stage prospects is confirmed as partner companies subsequently complete exploration work commitments and present resource discovery.

Retained royalty leverage may provide further gains in shareholder value, as illustrated by the work advancing on the Kewagama claims of the O’Brien project by Radisson. The discovery of new high grade gold resources adds clout towards the objective for development of a new mine. A positive outcome to process would then generate the payoff of a recurring revenue stream for every ounce of gold mined from these claim groups. This upside potential may yet be realized through the work of partner companies active at the other projects highlighted in this update.

Lastly, the Red Star project represents yet another attractive project acquired through staking that may become the priority for a future option deal. The property gains in speculative appeal as the value of the precious metals continues to run higher.

Globex continues to identify and acquire prospective property holdings to maintain its portfolio of exploration assets. This approach enables full cycle value creation to continue as more than one hundred wholly owned properties are controlled by the Company. Smallcaps Recommendation: BUY.

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