Globex Consolidates Ownership of New Marlon/Silidor Gold Mines Project
Frequent reports of successful exploration activity characterize the story for Globex Mining Enterprises Inc. (CA: GMX – $0.44 & US: GLBXF – $0.29 & GER: G1MN – €0.24). Investors may be forgiven for overlooking the progress behind the scenes that contributes to establish the impressive portfolio of property holdings for this Canadian junior explorer. Management has been adept to outline core areas of operations and select attractive properties to build leverage. Geologists in the field are often able to acquire prospective land inexpensively through staking. Thereafter, an effective trading strategy enables the Company to expand holdings, often securing a net capital gain in the process. This acquisition strategy has provided the opportunity for Globex to assemble high value projects in the most prospective districts.
The New Marlon/Silidor Gold Mines project serves as a case study. Globex began assembling the property holdings of this package back in 2006 with the acquisition of claims comprising a portion of the New Marlon Gold Mine property. A key piece was added in 2014 with the addition of the claim which included the formerly producing Silidor gold mine.
The final puzzle piece has now been added to consolidate the entire project area. This week Globex reported the acquisition of the interlocking claim for the southern half of the New Marlon property. The combined property area for this project has been increased to a total of 239 hectares. The property is located within the important Rouyn-Noranda mining district of Quebec, just 5km from the city of Rouyn-Noranda. Several other historic mine workings are located in close proximity to the project, a testament to the endowment of mineral resources in the area.
Encouraging Historical Data Outlines Potential
Globex plans to compile all geological information for the consolidated project before moving forward. The New Marlon Gold Mine area will probably be the initial priority. Established in 1947, the mine produced 98,140 tonnes of mineralization averaging 6.14 g/t gold. Globex has obtained some of the historical data from diamond drilling on the property. A geological report is also available with results of extensive sampling of outcrops, most of which targeted resource zones proximal to the old mine workings.
Operations were halted at New Marlon in 1949 due to the low gold price regime at that time. With the current spot gold price regime challenging all-time highs, the economic outlook has now significantly improved for this project.
The Silidor Gold Mine was last in operation during the 1990s. Roughly $56 million was invested by previous operators to develop this project, including exploration. Nearly 3 million tonnes of ore was extracted from the mine with an average grade of 5.08 g/t gold.
Historical resources for the Silidor Gold Mine amounting to 4.78 million tonnes of mineralization were estimated by previous operators for the project. This is not compliant with current reporting standards and must be confirmed through subsequent exploration. However, it does suggest a significant mineral resource may remain at this project in addition to the discovery potential.
AeroMag Survey Completed for Francoeur/Arntfield/Lac Fortune Gold Mines Property
Globex also provided an update on the previously reported geophysical surveying that had commenced at the Francoeur/Arntfield/Lac Fortune Gold Mines (FALF) Property last month. The survey was completed with the flight plan maintaining 25-meter spacing between each pass. The high resolution program required a total of 2000km of linear flight to collect the data.
Management is extremely pleased with the quality and results of the survey. Interpretation of the data has provided greater clarity and insight towards definition of the subsurface geology. Displacement of vein structures along faults zones, concealed under layers of overburden, are illuminated through this technology. This will enable precise drill target selection for subsequent rounds of exploration. The value of this image generated from the program may not be obvious to the average investor. However, an experienced geologist sees a wealth of additional information presented that yields additional clues on where to look.
Globex has already achieved an exceptional success rate on its near surface drilling work so far at FALF. The survey results build confidence for this trend to continue as drilling extends to deeper intervals. Fieldwork is now underway at the property. Sampling, mapping and prospecting will continue while the next round of drilling is planned.
The Company has decided that it will launch similar aeromag geophysical surveys for several other project areas. One was recently completed at the Laguerre-Knutson gold mine property located near Larder Lake, Ontario. The Napping Dwarf gold project and the Blackcliff Gold Mine property (held in JV with Altai Resources Inc.) have also advanced with this technology. Other projects are scheduled for surveys during the next couple of months.
Globex has demonstrated the proficiency to assemble large properties through the patient accumulation of smaller claims packages groups as they become available. Bigger is not always better. However, if there is evidence that prospective resource zones may extend laterally beyond the boundary of a project, there is great value to securing the additional holdings. In some of the most productive mining districts the competition for property ownership can drive acquisition costs higher. Shrewd management will play their cards close and await opportunities to act when a bargain may be at hand. It should be noted that Globex invested 15 years to complete the process of consolidating the New Marlon/Silidor Gold Mines project.
The previous operators of these individual claims groups did not have the opportunity to advance systematic exploration for the entire area. Potential attractive new resource zones may have been overlooked in the past. Globex has proven on numerous occasions that it can achieve important discoveries at historic mine projects. The benefit of exploration and mining data from previous work programs will provide a head start.
One new technology that is sure to assist in future exploration outcomes is the Aeromag surveying that Globex has now embraced. The program is effective, precise and easily deployed to achieve greater efficiency in selecting exploration targets. Globex will be completing advanced surveys for several of the projects in its inventory in the coming months.
As the fall and winter exploration seasons are now in planning, it may not be long before the first important discovery breakthrough is achieved with the assistance of this technology. The combination of successful transactions to build a large portfolio of projects, plus the effective exploration strategy, defines Globex as one of the most active junior explorers in Canada. Smallcaps Recommendation: BUY.
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