Exploration Progress Reported by Partner Companies Builds Value for Globex Shareholders

Steady activity by partner companies has provided notable progress that is of benefit to Globex Mining Enterprises Inc. (CA: GMX – $0.92 & US: GLBXF – $0.67 & GER: G1MN – €0.61) shareholders. Existing option and royalty partners are independently advancing their properties and completing exploration work. Payments of cash and shares of partner companies have been received, bolstering the financial resources of the Company. Moreover, Globex has been successful in expanding its portfolio of attractive properties.

While the summer months are often somewhat unremarkable for the junior exploration sector as a whole, Globex highlighted several important updates of interest. Royalty partners Brunswick Exploration Inc. and Infini Resources Limited reported progress for their ongoing exploration ambitions, while option partner Emperor Metals Inc. is in the midst of a significant drilling program to expand the gold resources of its flagship project. Meanwhile, Globex engaged in a transaction with IAMGOLD Corporation to swap two projects in order to acquire two new properties and adding additional royalty interests to its portfolio of assets.

Additional Fieldwork Completed at Lac Escale Highlights Potential for New Resource Zones

Ongoing exploration work at Lac Escale continues to build the magnitude of the lithium discovery established by royalty partner Brunswick Exploration Inc [BRW-V]. A spring prospecting program was completed further along strike to the southwest of the main resource zones. Surface sampling and a till survey encountered several encouraging boulders and rock fragments bearing the lithium mineral spodumene. Based on the size and angularity of these rocks it can be inferred that the source outcrop of these samples is nearby. Brunswick geologists believe significant lithium mineralization remains to be discovered.

Brunswick has also announced a summer drilling program, in which up to 5000m of total drilling is planned. This work will follow up on the impressive previous drilling completed at the project, amounting to 71 drill holes spanning more than 12,000m of drilling. Nine spodumene-bearing dykes have been encountered so far at Lac Escale. Resource zones measuring from 8m to 20m in width have been reported so far.

Globex vended this project to Brunswick in 2023. The Company is certainly pleased with the rapidly expanding lithium deposit presented so far, and the encouraging potential for additional discovery as work programs continue. Globex retains a 3% Gross Metal Royalty on the property.

Emperor Metals Shifts Focus for Duquesne West Gold Property Exploration Further Along Strike

Option partner Emperor Metals [AUOZ-C] has been committed to the expansion of gold resources since the acquisition of the Duquesne West Gold Property from Duparquet Assets Ltd, a private company jointly held by Globex and Geoconseils Jack Stoch Ltd. (owned by the current CEO and President of Globex).

Emperor issued a progress update this month for the current drilling program active at Duquesne West. A total of 8000m of drilling work is planned, of which 2500m of drilling has been completed so far. This work concentrated within the conceptual open-pit mine shell that the company defined for the majority of the existing gold resources of the project.

Emperor geologists believe that a similar productive gold deposit area continues along strike to the west of the main deposit. The company will now focus its efforts for the remaining 5500m of drilling targeting eastern extensions between the open-pit model and the boundary of the property area. A previously completed IP survey has outlined priority target areas that will be tested in this phase. Multiple high-grade gold intercepts from previous drilling work provide further confirmation for the potential of additional resource zones to be outlined through this shift of the exploration focus.

Globex owns 50% of Duparquet Assets Ltd and is therefore the beneficiary of half of the option payments of cash and shares from this transaction. Further successful exploration by Emperor may generate direct benefits to Globex shareholders. If Emperor outlines at least one million ounces of gold resources for the project, a bonus payment of 1,250,000 Emperor shares is payable to Globex. The Company also controls half of the retained 3% GMR for the property.

Globex Acquires Two Attractive Gold Properties in Quebec

Earlier this month Globex announced an asset swap for resource properties with IAMGOLD Corporation [IAG-NYSE, IMG-TSX]. The Company exchanged its interests in the Rich Lake and Lac a l’Eau Jaune projects to acquire the Eldrich Gold Mine and Porcupine West Gold properties in the Abitibi West area of Quebec. No cash or shares were issued by either participant. A Net Smelter Royalty of 1% was retained by both participants for each of the projects. Including these two new royalties retained by Globex (for the Rich Lake and Lac a l’Eau Jaune properties), there are now 105 royalty interests in the portfolio.

The Eldrich Gold Mine property comprises 8 claims spanning more than 235 hectares. Located near the mining center of Rouyn-Noranda, the project includes a historic mine development that produced nearly 250,000 ounces of gold as reported by previous operators during separate intervals of mine operations. Historical resources of nearly 40,000 ounces of gold remain from previously defined deposit areas. In addition, historical drilling work encountered multiple high-grade gold intervals along strike to the north of the mine deposits. Future exploration programs may follow up on these past results to outline new gold resources for the project.

The Porcupine West Gold property was assembled from 89 claims spanning an area of more than 4700 hectares. The property encompasses more than 14kms of the prolific Porcupine-Destor Break, an important structural corridor hosting many significant gold deposits. Historical exploration work at the project included 355 drill holes for more than 52,000m of total drilling. Gold has been encountered at many areas along strike, including the advanced Nemrod Zone and the Structure 71 Zone. A historical resource of more than 195,300 t grading 5.2g/t gold was calculated by a previous operator at Structure 71. Globex considers the potential from these zones and other established resource areas to be exceptional for future discovery.

Large Uranium Target Areas Outlined at Des Herbiers Property

Also in the news is Infini Resources [I88.XA], which has completed a geophysical study incorporating available airborne, magnetic and radiometric surveys along with satellite data for the Des Herbiers uranium project. The lithostructural interpretation created through this process is helpful to define new exploration targets. Infini aspires to follow up on the historical work of previous operators. Fourteen targets were defined to focus future efforts. Of these, two high-priority targets have been identified based on radiometric anomalies located along strike from established uranium resource zones.

The Des Herbiers property features a near surface uranium deposit with a compliant inferred resource of 162Mt based on a cutoff grade of 123ppm U3O8. Infini is planning an exploration program to expand this resource and advance the property further along the value curve towards a potential development decision. Globex vended the project to Infini for $300,000 in cash plus 1,672,427 Infini shares. The Company retains a 3% GMR on this property.

In unrelated news, Globex also reported that Maple Gold Mines Ltd has issued a cash payment of $75,000 plus 981,693 shares to the Company as part of the option terms for a previous transaction to end the Eagle Gold Mine property.

Good/bad news has been reported by Infinico as regards the Dalhousie nickel property option, in Quebec. Exploration uncovered numerous occurrences of lithium bearing minerals but due to financial constraints Infinico had to withdraw from the option. We understand that Globex has already been approached by other companies interested in the lithium exploration potential.

Conclusion

A typical junior explorer may efficiently advance one or two projects. Funding and work commitments are significant, and the process often takes many years before a successful resolution can be expected. Even the most active and ambitious juniors may face delays and downtime along the way.

Contrast this reality with the benefits of the Globex business model, whereby proficient partnership transactions are achieved to vend exploration assets such that many attractive projects may advance independently. Globex is not required to commit to ongoing funding to contribute to this progress but shareholders remain leveraged to a successful outcome. Option payments from previous deals are received by Globex on a regular basis. New transactions are frequently reported.

Meanwhile, the extensive portfolio of royalty interests includes several advanced projects that are either generating recurring revenue streams or on the brink of development to become producing assets. At Lac Escale and Duquesne West, ongoing drilling work improves the potential for successful development prospects to emerge. New exploration is expected to commence shortly at Des Herbiers in pursuit of additional uranium discovery. The acquisition of the expansive Eldrich Gold Mine and Porcupine West Gold projects secures exceptional discovery prospects located within prolific gold districts that may become the focus of high-value transactions in the future. Each of these updates, plus the ongoing receipt of cash and share payments from previous deals, builds further shareholder value for Globex Mining. Smallcaps Recommendation: BUY.

Smallcaps.us Advice: Buy	Price Target: $2.87	Latest Company Report (pdf)
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