Globex Advances Through Ambitious Exploration Activity Funded by Partner Companies
With dozens of successful transactions completed in recent years, Globex Mining Enterprises Inc. (CA: GMX – $0.79 & US: GLBXF – $0.58 & GER: G1MN – €0.52) and its shareholders benefit from the steady news flow from by active partners. One such transaction was an option deal announced in January of this year, enabling Brunswick Exploration Inc. [BRW] the opportunity to explore for lithium resources at the Lac Escale (Mirage) property in Quebec.
This week, Brunswick announced that its first drilling program at the Lac Escale project is now underway. This comes on the heels of Brunswick’s announcement that it will pause its activities at other properties located in Ontario, Manitoba and Saskatchewan in order to focus its efforts at Lac Escale. The decision was prompted by the discovery of large outcrop clusters up to 80 meters wide, where the lithium mineral spodumene was encountered. A new target area was identified through fieldwork to follow up on a train of large mineralized boulders within the property area. The outcrops are interpreted as surface showings of pegmatite dykes.
Work is now underway to investigate the continuity and widths of six pegmatite dykes that have been identified on the property. This aggressive focus on behalf of Brunswick is ideal for the potential to outline a lithium deposit. The drill program will include 26 holes with at least 5000m of total drilling. The main dyke field has been outlined across a wide surface area spanning 2,700 by 850 meters. In total, lithium mineralization on the project has been observed over a total distance of 8.7 kilometres. Globex retains a 3% GMR on the property, of which 1% may be repurchased by Brunswick for $1 million.
Excellon Reports Further Progress at the Silver City Project
The expansive Silver City property package encompasses most of a historic silver-producing district located Saxony, Germany. Excellon Resources [EXN] assembled this land position of 340 square kilometers to consolidate numerous historic mining centers. About half of this land position was secured with the acquisition of the Braunsdorf project from Globex. Despite a lengthy mining history spanning hundreds of years, Excellon is now the first company to advance comprehensive exploration for the entire district as a whole.
Excellon has tested many areas of this enormous property, during which it successfully encountered higher grade silver and base metals mineralization. The company has now completed more than 13,000m of drilling work just within the claims group acquired from Globex.
Four key target areas have been identified where most of the pending exploration work will be focused. The Peter Vein and Braunsdorf targets are historic mine centers, while the Reichenbach and Grauer Wolf targets are considered new discovery zones. Work in 2022 around the Grauer Wolf target has confirmed mineralization for 300m along strike, and down to a vertical depth of 300m. Drilling work was highlighted by a section of 482 g/t silver over an interval of 0.4m of core. Combined with enriched values of lead and zinc, the silver-equivalent grade of this section was 768gtEQ. Exploration continues and the new discovery zones presented by Excellon add to the value of the project.
Excellon believes this is an opportune time to be exploring for minerals in Europe. The European framework for minerals investment is rapidly changing to support domestic supply security and the new “Saxon Raw Materials Strategy” was recently published supporting the importance of promoting a local mining industry. Excellon will continue to assess the market for a spin-out of the project. Priorities with a spin-out are to raise sufficient capital to adequately fund the next exploration campaign and a valuation that justifies return on historical exploration capital.
The objective for this ambitious exploration work is for Excellon to outline resources sufficient to resume mining within the district. This would also be a successful result for Globex shareholders. The Company retains a 3% GMR for precious metals, and a 2.5% GMR for all other metals within the Braunsdorf claims group of the project. Excellon may opt to repurchase 1% of the royalty for a cash price of $1.5 million.
Attractive Gold Intercepts Reported from Maiden Drilling Program at Duquesne West Property
In October 2022, Emperor Metals [AUOZ] announced an acquisition deal for the Duquesne West gold property in Quebec. The purchase price for this project was noteworthy. Emperor agreed to pay $10 million in cash plus at least 15 million shares to secure the project, structured over a five year term. This premium asset value was partly driven by the advanced status of the project, with complaint gold resources amounting to more than 850,000 ounces defined by a previous operator. The resources are likely to increase further as Emperor also committed to fund at least $12 million in aggressive exploration activity.
This week, Emperor reported the first batch of assay results for its maiden drilling program at the project. Activity has been focused around the main gold-bearing structural trend. Wide intervals of gold mineralization were encountered during this phase. The assay results included a section with an average of 5.6g/t gold across 11.7m of core in Hole DQ23-01. A wider mineralized interval spanning more than 25m was encountered in DQ23-02, with an average of 1.69g/t gold. The extensive mineralization observed from this drill hole prompted Emperor to revisit the pad and extend drilling further to depth.
These results should be considered a good start and only partial assays from two drill holes have been received so far. A total of six drill holes have been completed, representing approximately 5500m of the 8000m of drilling planned during this program. Duquesne West is a high-profile exploration asset straddling the prolific Porcupine-Destor Break structural zone. The prospect to uncover significant additional gold resources is exceptional as work continues.
Also worth noting is that the Duquesne West property is bounded on the west and east by First Mining Gold’s Pitt and Duquesne Mine properties on which First Mining reported 2,691,000 tonnes grading 2.67 g/t Au and 11,330,000 tonnes grading 2.24 g\t Au respectively.
Globex retains 50% ownership of a 3% GMR on this project.
Each month, it seems that another partner company is reporting a discovery breakthrough achieved within a property vended by Globex. As noted, most of these projects involve retained royalty leverage held in perpetuity. Successful advancement of these projects, funded by partner companies, thereby builds the longer term value prospects for Globex shareholders.
The large portfolio of property holdings controlled by Globex is most effectively managed by establishing partners to advance work independently. Updates presented this month clearly demonstrate the appeal of this strategy. Brunswick has rapidly advanced work at Lac Escale to commence a significant drilling program. The prospective quality of this project is illustrated by the decision by Brunswick to entirely focus its efforts at Lac Escale. Meanwhile, Excellon has demonstrated a similar commitment as it has focused most of its exploration activity within the package of land holdings secured through a transaction with Globex. So too with Emperor Metals, agreeing to a premium transaction value and the subsequent commitment for at least $12 million in exploration work over a five year term at Duquesne West.
While many partners are advancing work, Globex itself is in excellent shape, as it maintains one of the largest asset portfolios in the junior mining sector. The suite of property and royalty holdings currently comprised of 235 packages. The Company also has a lavishly funded treasury of over $25 million and no debt. In addition, it has been in business for over 35 years, and it still has only 55 million shares outstanding without a single reverse stock split. With so many active projects currently advancing, the speculative upside for this Company remains exceptional. Smallcaps Recommendation: BUY.
|Smallcaps.us Advice: Buy
|Price Target: $2.87
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