Globex Acquires New Properties in High Profile Exploration Districts in Quebec
It appears a new gold rush is building in the James Bay region of northern Quebec. Speculative attention within the district was captured in January when Azimut Exploration Inc. released a batch of assay results from its Elmer property. Azimut had launched a preliminary drill program late last year to test for near surface alteration and quartz veins. Wide intervals of gold alteration were encountered in all seven drill holes of that round. Of note, four of the drill holes yielded gold-bearing intervals spanning more than 100 meters. The results published by Azimut included a highlight result of 3.15 g/t gold across an interval of 102 meters. This is an attractive discovery with the potential to evolve into a significant gold deposit although the true width of the gold bearing formation is unknown at this time.
With the expectations running high for the region following the Azimut discovery, Globex Mining Enterprises Inc. (CA: GMX – $0.39 & US: GLBXF – $0.29 & GER: G1MN – €0.26) made the strategic decision to assemble a package of land holdings along strike from the main discovery zone of the Elmer gold property.
Globex secured a total of 61 cells by staking, for a total property area of nearly 3,220 hectares. This land position is located approximately 16km from the Patwon Prospect discovery zone within the strike of the discovery rock formations.
To the north of this land position, Globex was also able to stake a second, smaller property area. Compromising just three cells, the block covers 152.8 hectares. The geological setting for this small claim block is appealing. Distinct units of mafic and felsic volcanic rock are clustered in proximity to smaller cross trending fault structures. The contact zones of these rock units are highly prospective for gold-bearing alteration. This section is also in line with the Patwon regional strike, and is considered a priority exploration target.
Many of the new claim cells are adjacent to the boundary of the K2 gold project, controlled by Dios Exploration, another junior explorer active in the district. Dios reported last month that it is planning to commence a drilling program as well. Preliminary exploration at K2 has revealed promising anomalies bearing gold, silver, copper and zinc through a program of soil sampling completed at several targets on the property area.
Similar geological features and rock units have been outlined within the Elmer project, extending through the K2 property, and on to the land holdings now controlled by Globex. This highly prospective trend is part of the Opinaca River deformation zone. In total, the newly acquired groups of claims extend through 13 kilometers of some of the most prospective extensions of this evolving discovery district.
Additional Property Holdings Acquired Through Staking in Northern Quebec
Globex was active to acquire additional land holdings elsewhere in the James Bay region. The Company also reported this week that it has staked 19 cells surrounding an area of surface showings where high grade gold and copper has been encountered. These claims are now assembled to form the Tyrone project. Historic exploration records for sampling work in the area has demonstrated numerous higher grade showings of gold and copper, encountered within Tyrone and in close proximity. Globex plans to analyze all available data from this area to develop an exploration plan.
The Tyrone property area is located within the Kakamas claim group held by Azimut. A copper/arsenic/antimony anomaly has been outlined at Kakamas, in the sediments from the basins of lake bottoms. Tyrone represents a potential extension to any subsequent areas of interest that may be defined as Azimut commences exploration at Kakamas.
Further, Globex is building its property leverage with a micro-diamond bearing kimberlite discovery north of Chibougamau. The Company staked 4 cells, covering two previously identified kimberlitic bodies. Diamonds are formed deep in the earth’s crust, but may be carried to surface in kimberlite pipes. The presence of kimberlite on these claims, located about 70 kilometers south of the Renard Diamond mine, is attractive. Historic drilling work intersected several kimberlite pipes within this new claims group. One micro-diamond was encountered by a previous operator.
Globex plans to further review historic records and consider more recent mineralogical data to form an updated exploration model. The strategy will also involve an assessment of the currently optioned Lac Savignac diamond project, also located within this district.
The excitement following a significant gold discovery may often attract speculative interest throughout a district. It is not uncommon for a mineralized system to extend for tens of kilometers and well beyond the property boundary of the original discovery story. This attracts other participants to secure land holdings and raise money to begin exploration. Thereafter the Initial success at one project is frequently followed by related discoveries further along a prospective system.
In this process, property holdings acquired cheaply through staking, become more valuable as the discovery premium builds. The first entrants to an emerging district are positioned to secure optimal land holdings and benefit as the speculative boom progresses. As a Quebec-based property generator, Globex was able to respond quickly to the discovery news in the James Bay region.
Junior mining investors may recall that a speculative gold boom swept the same region in 2004, when a smaller exploration company achieved a breakthrough discovery. Virginia Gold Mines completed a series of drill programs and outlined a high grade gold deposit at its Eleonore project. Goldcorp then acquired Virginia for a premium valuation. Amidst the excitement around this deal, numerous smaller junior explorers became active in this underexplored district. The Eleonore deposit was eventually developed into a producing gold mine that is currently operated by Newmont.
The Company now controls two attractive land positions in this high-profile area. The Opinaca River deformation zone may evolve to become a significant Achean greenstone gold belt, and land holdings may command a premium value. Ideally, Globex may look to vend these holdings outright, or arrange a profitable joint-venture deal to retain a carried interest as work advances. Both Azimut and Dios have already announced further exploration work activity to commence shortly and they would be obvious candidates for a transaction. Other explorers are sure to investigate opportunities in the region.
Meanwhile, the additional staking to secure the Tyrone project and the diamond claims builds further property leverage in Quebec. As a part of its project generator strategy, Globex has amassed nearly 190 property interests today. The Company endeavors to create shareholder value directly through exploration, or sale transactions and partnership opportunities when appropriate. The diversified suite of property holdings has established Globex among the most active junior explorers in Canada. Smallcaps Recommendation: BUY.
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