Globex Enters Exciting Uranium Market
Among the many attributes of Globex Mining Enterprises Inc. (CA: GMX – $1.12 & US: GLBXF – $0.96 & GER: G1MN – €0.79) that attract investor interest, it is the exceptional internal diversification to various resources that is unique within the junior mining sector. The commitment to build an enormous portfolio of property and royalty assets has positioned the Company with leverage to an astonishing variety of resources. The strong performance of the Company is directly tied to the foresight of the management to acquire specific properties for some of the most urgently needed resources today.
As a result, Globex secured many exciting projects during the past years when the sector was drifting in bear market territory. High caliber properties were acquired then for bargain valuations. Note that some of the most successful transactions recently completed by Globex have involved battery metals. These resources are currently in very high demand to supply raw materials for fabrication of Electric Vehicles (EV). Battery metals were not even on the radar screen in years past. Other successful deals have been completed with projects that have leverage to lithium, manganese, and iron ore. Again, these were not considered priority resources until recently.
So investors should take note then when Globex is active on the acquisition front, given its proven successful track record. This week, Globex reported yet another exciting property acquisition. The Company has staked a package of 66 claims covering 3,590 hectares located in Des Herbiers Township in Quebec. Numerous occurrences of low to moderate grade uranium are documented within the property area. An extensive historical exploration record has established the merit of this project for the potential to host a uranium resource. Globex secured 100% ownership of the Des Herbier claims with no underlying royalties or third party agreements in place.
Significant Previous Exploration Work Outlines Several Attractive Uranium Targets
Uranium is another metal that only recently emerged from a lengthy bear market cycle. During that time, many promising exploration prospects with leverage to uranium were gradually abandoned by the former owners under difficult conditions despite highly attractive potential. This opportunity to secure control of a large section of historical uranium showings represents just the latest example of the Globex approach. The Des Herbiers project provides attractive leverage as the uranium market pivots to more bullish conditions. The U3O8 price is now trending higher and recently traded above $47.
Historical exploration work has been completed within the Des Herbiers property area intermittently since 1967. Surface field work including sampling of outcrops and trenching programs revealed mineralized showings. More importantly, previous operators of this project completed more than 400 drill holes amounting to 57,663m of total drilling. Wide intervals of mineralization were reported from this work to establish several deposit zones. Subintervals of high grade uranium enrichment have also been reported.
A compliant resource report was filed in 2011 for the most advanced uranium deposit area, the Double S Zone. Here, an Indicated resource containing more than 6.8 million pounds of uranium was documented. Another 16.3 million pounds of uranium was outlined in the Inferred classification. The average grade of the Double S Zone is presented as 0.014% U3O8.
Published uranium resources amounting to millions of pounds at a slightly lower grade were also presented at the Middle Zone and TJ Zone. Several other sections bearing uranium have been reported elsewhere on the property where more work is required to support a compliant defined resource. These represent high-priority exploration targets in addition to the potential for expansion of the previously established deposit zones.
Starr Peak Mining Reports Additional High Grade Exploration Results
Earlier this month, JV partner Starr Peak Mining Ltd provided another round of assay results from the ongoing drilling program at the NewMetal project. A previous operator of the project extracted more than 10 million tons of polymetallic mineralization from the workings of the Normetal Mine. That production included high grade copper and zinc content, along with gold and silver values. Starr Peak consolidated a larger property area around the historic mine. An integral portion of the property was acquired in a deal with Globex. As a result, the Company retains a 2.5% GMR on this portion. Globex is further leveraged to the success of its partner as it received 1.2 million shares of Starr Peak plus a cash payment in the deal.
Starr Peak has indeed delivered notable exploration success at the property so far. Attractive new resource zones of VMS style mineralization have been outlined beyond the historical deposit zones.
The most recent batch of assay results included more high-grade copper mineralization. The mineral content has been expressed on a zinc-equivalent (ZnEq) basis to calculate the value of all minerals based on relative price assumptions. The deposit area has been classified into two main zones, delineated by depth. The Upper Zone extends from surface down to a depth of 400 meters. The Deep Zone continues below 400 meters.
Featured in this news, two intervals spanning more than 9m of core were reported with ZnEq of 5.09% and 6.16% from drilling in the Upper Zone. Intercepts from four drill holes targeting the Deep Zone were also reported. Again notable sections included an interval of 13.45m bearing 6.65% ZnEq. Another wide interval of more than 9m was mineralized with an average of 1.46%ZnEq. Even higher grade subintervals were also documented in sections.
The ability to recognize attractive, undervalued properties has been the hallmark of success for Globex. Acquisition of the Des Herbiers uranium claims is an illustration of that core competency. Millions of dollars in exploration work funded by previous operators of this property established substantial uranium resources. Globex secured 100% ownership of these claims at the lowest possible cost through staking.
Uranium is considered a strategic asset as the world shifts to non-carbon energy sources. Prominent investment funds are now active, or being structured to provide leverage to this high potential for uranium. Of note, Kazakh uranium miner Kazatoprom is setting up a $500 million uranium investment fund. Sprott Asset Management’s new uranium fund provides another investment option. Ongoing demand from existing nuclear power plants along with rising investment demand will support higher uranium prices in the years ahead.
The ambitious exploration program underway by JV partner Starr Peak is generating positive results at the NewMetal project. High grade VMS intervals continue to be reported from work at the NewMetal project. Starr Peak has expanded on the scale of its fully funded exploration work. This is building shareholder value for Globex, through the minority ownership of its partner and also the royalty interest retained on the project.
The market has embraced the ongoing successful execution of the Globex business model. During the last several quarters the stock has tripled in value. This exceptional performance is warranted by the superb portfolio of property and royalty interests. A promising roster of ongoing JV partnerships is funding advancement at several projects. As 2021 winds down, Globex has emerged materially stronger than when the year commenced. Shareholders may look forward with confidence to the future. Globex continues to build leverage to high quality properties and a wide range of resources to build further value in the years ahead. Smallcaps Recommendation: BUY.