Globex and Several of Its Partners Advance Properties
Globex Mining Enterprises (TSX: GMX – $0.53 & OTCQX: GLBXF – $0.43 & Fra: G1MN – €0.34), a project generator (Property Bank) that owns a well-diversified portfolio of North American mid-stage exploration, development and royalty properties, has commenced excavating of three 100 metre long trenches at its Francoeur/Arntfield gold property in Quebec, Canada.
An area of 100 m by 70 m was first cleared in preparation for the trenching (see image slider below). This area starts at drill hole FS-16-35 which returned 1.19 gpt (grams per tonne) Au over a true width of 40.19 m (132 ft) and goes eastward for a distance of 70 m (230 ft). The impressive near-surface gold zone was drilled in late 2016 by Globex. This type of low-grade mineralization was not identified nor sampled in previous exploration on the property.
| From (metres) | To (metres) | Length (metres) | True Width (metres) | True Width (foot) | Au Grade (gpt) |
| 37.0 | 111.0 | 74.0 | 40.19 | 132 | 1.19 | Francoeur/Arntfield results for drill hole FS-16-35. Source: Company press release. |
The next phase will be to power wash the newly exposed bedrock, map the geology in detail, and sample all newly exposed rock, which will then be assayed for precious metals.
Interestingly, two samples from an old trench, found approximately 170 m further to the east than the area where the current trenching is ongoing, returned assays of 13.06 gpt Au and 1.68 gpt Au. Even further to the east, grab samples from various outcrops were for the most part anomalous in gold with individual assays of up to 4.08 gpt Au.
The goal of Globex in the current program is to confirm the wide zone of gold mineralization encountered in hole FS-16-35 and extend the mineralization to the east, thereby supporting the concept of an open pittable, large tonnage, low grade gold exploration model target.
This is contrary to work conducted by previous owners of the property. Historical exploration and mining focused on narrow high grade gold shears and veins which could be mined by traditional underground mining methods. Consequently, when in the past core from drilling or trenching was assayed, wide zones of lower grade gold values such as 2.40 gpt Au over 39.32 m, 1.71 gpt Au over 8.38 m and 1.71 gpt Au over 17.98 m were defined but ignored as uneconomic. Believe it or not!
Ongoing work elsewhere on the Francoeur/Arntfield property includes prospecting, surface sampling, mapping, compilation and structural interpretation. In addition, about 230 core samples from old drill holes have been submitted for assay. These holes were drilled by the property’s former owner Richmont Mines. Sampling from the drill core was restricted to quartz veins or heavy pyrite mineralization, again with goal to discover new high-grade gold zones.
Contrary to Richmont, during analysis of the drill core Globex will mostly focus on amassing data from within the first 100 m of surfacwith the goal to outline a near-surface, low grade, large tonnage gold deposit similar to other such targets and mines currently in the Abitibi.
Renewed Revenue Stream from Mid Tennessee Mine
A few weeks ago we reported that Belgium based Nyrstar NV (OTC – NYRSY) had brought its Mid Tennessee zinc mine back into operation. Now Globex has received its first royalty of US$150,272 (CDN$198,808) for the production of zinc during the months of May and June.
The mine was shut down in 2015 due to low zinc prices. Because the metal price has significantly recovered since, Nyrstar restarted mining and processing operations.
Globex is entitled to a 1.4% royalty when LME zinc prices are at or over US$1.10 per lb, and a 1% royalty when the zinc price is between US$0.90 and US$1.09 per lb.
It is expected that Globex’ royalty from Mid Tennessee will continue to rise as Nyrstar is rapidly increasing the mine’s production to full capacity and because most projections estimate a further price increase for zinc over the next several years.
Mid Tennessee is scheduled to reach full production capacity of 50kt per annum of zinc concentrate by November 2017. At full capacity, Globex anticipates receiving royalty payments from Nyrstar of over $1.5 million per year.
Enforcer Gold Channel Sample Returns 3,310 gpt Gold at Montalembert
After Globex found some exceptional high-grade channel samples at the Galena Vein that assayed 510.79 gpt Au over 1 meter and 118.79 gpt Au over 1 meter, Enforcer Gold (TSX-V: VEIN) has now discovered even more spectacular channel samples at the northern extension of the No. 2 Vein on the property optioned from Globex in Montalembert township, located in Quebec.
Enforcer so far has received results for two channels. MCH225702, which cut through visible gold in quartz, and assayed 3,310 gpt gold over 1.0 m (96.65 oz/ton over 3.28 ft). The second channel, MCH225703, was collected ~20 m to the north and returned 1.93 gpt gold over 1.0 m.
Steve Roebuck, the President and CEO of Enforcer Gold, commented, “We are very encouraged by the early results that demonstrate the continuity of the No. 2 shear zone to the north of the historical exposure limit and to find high-grade pockets of mineralization along the 189m length of the vein that is currently exposed. Diamond drilling has begun at Montalembert and this structure will be fully tested in the weeks ahead.”
Enforcer Gold has committed over $2.2 million to fund its 2017 exploration program which includes; data compilation, ground and airborne geophysics, stripping of overburden, mapping, prospecting, channel sampling, RC and diamond drilling.
Prior to the ongoing 2017 field program, the No. 2 Vein was exposed over a strike length of 89 m. Enforcer increased the exposure of the vein by an additional 100 m for an overall current length of 189 m.
Initial channel sampling on the No. 2 vein was limited to higher outcrop exposure while lower sections of the trenched area were being washed and drained. The water-filled areas have now been fully exposed and sampled. More assay results will be released shortly.
Enforcer can earn a 100% interest in the property over a 4 year period by paying Globex $2.6 million, issuing 8.5 million shares of common stock and by undertaking $15 million in work. Globex retains a 3.5% Gross Metal Royalty on all production from the property with a royalty of 6% on the first 150,000 oz of gold production
In other news, Renforth Resources (CSE: RFR), which already options the Parbec Gold property from Globex, has now also acquired three claims of the Pershing property from the latter. Globex’s three claims comprise the Matchi-Manitou property.
Previous drilling on the Matchi-Manitou property revealed 7.85 gpt over 1.19 m (0.28 oz/ton over 3.90 ft) and 10.50 gpt over 0.73 m (0.37 oz/ton over 2.40 ft) in drill holes.
The gold bearing 2,244 Ha (~5,500 acre) Pershing property (39 claims in total), bridges the distance between Renforth’s Denain Property and Monarque’s Croinor deposit, contiguous to both. Gold mineralization is present in association with a series of iron formation units, shear zones and hydrothermally altered zones.
Renforth has recently raised just over $600,000 in capital to advance its projects. Globex retains a 2% Gross Metal Royalty on its Pershing claims.
Finally, despite solid initial drill results, RJK Explorations Ltd. (TSX-V: RJX.A) has terminated its option of Globex’s Maude Lake property in Ontario due to projected budget constraints. RJK will provide Globex with records of all the work undertaken to date.
When an option partner of Globex is not able to make all the cash and share payments, or if it is not able to do all the work on the property that it is required to do, then the property is returned to Globex.
So although it is a setback that RJK is discontinuing the advancement of Maude Lake, Globex is again taking possession of the property with more work conducted on it, more assessment credits and $250,000 richer. Consequently, it may be logical that when Globex options Maude Lake the next time it is at higher terms, as the knowledge on the property has increased.
Conclusion
We very much look forward to the initial results from the trenching at Globex’ Francoeur/Arntfield gold property. This is a very attractive project with lots of potential. In fact, we feel that Francoeur/Arntfield alone justifies Globex current market valuation of $27 million.
Next to the properties that Globex advances itself, it has dozens of option and royalty partners from which it regularly receives payments.
This is the true beauty of Globex. It has a steady revenue stream from option and royalty partners, which it can use to advance some of its own projects without causing dilution to its shareholders. Recommendation BUY.
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