Globex Mining Acquires Attractive Gold Property While Option Partners Report Strong Progress

Yet another new all-time high was established for gold this week. There are encouraging signs that the breakout may be sustained to much higher price levels, which of course is attracting additional investor interest. Globex Mining Enterprises Inc. (CA: GMX – $1.38 & US: GLBXF – $0.99 & GER: G1MN – €0.85) is exceptionally positioned to benefit substantially from this gold bull market as the majority of its property holdings offer the potential for gold resource discovery.

Many of the royalty interests held by Globex are leveraged to gold production and the implied value of these royalties marches higher along with gold. It is therefore encouraging that Globex reported a new transaction this week to consolidate 100% ownership in the Blackcliff Gold Property.

Strategic and exotic metals also remain strong. Globex management shrewdly assembled property holdings with diversified leverage to many metals that were perhaps not particularly appealing in years past, but are now very much in favor. Antimony is one such important metal that is in focus and Globex recently arranged two separate option deals for promising antimony exploration prospects.

Globex Consolidates 100% Ownership of Blackcliff Gold Mine Property

This week, Globex reported that it has purchased the remaining 50% interest in the Blackcliff Gold Mine Property. A total of $142,000 was paid to Altai Resources Inc, to consolidate ownership of the project which consists of six claims covering 127.6 hectares. The project is strategically located in a prolific mining camp of Quebec, in close proximity to the Canadian Malartic gold mine operated by Agnico-Eagle Mines Ltd. Globex also controls ownership of the nearby Central Cadillac – Wood – Ironwood Gold Mines property within this district.

The deposit was initially discovered in 1944 and previous operators completed shallow drilling programs. At least 14 vein structures have been outlined on the property. A historical resource of more than 135,000 ounces of gold with an average grade of 6.89g/t gold was estimated based on this work, although it was not confirmed in compliance with NI43-101 reporting standards.

Now that Globex controls 100% of Blackcliff, the Company plans to advance exploration to test for additional resources along the fold structure and further to depth. Alternatively, Globex may decide to option the project to the right partner. The current strength of gold prices and the proximity to other active exploration projects make this project attractive as a potential target for new gold discovery.

High-Grade Assay Results Reported at Bald Hill Antimony Property

In July, option-partner Antimony Resources Corp [ATMY-CSE] reported a batch of assay results for its recently completed drilling at the Bald Hill Antimony property, located in New Brunswick. Highlights from this update included high-grade stibnite values encountered within drill core samples. Stibnite is a primary mineral of antimony. An interval of 14.5m bearing an average of 1.1% Sb was reported in one drill hole, and a 3m section bearing 14.91% Sb in another. Antimony Resources completed sixteen drill holes during this program for a total of 3150m of drilling.

This promising start continued as another series of assay results for six more drill holes was presented a few days ago. Once again, high grade stibnite was encountered over significant widths of drill core. The best results included a 4.95m interval with an average grade of 5.25% Sb, while a section of 1.5m was mineralized with 7.21% Sb as encountered in another drill hole.

Over 400m of strike length has now been tested and mineralization has been confirmed down to a depth of 400m below surface. This provides the potential for definition of a significant deposit area.

More than 1,500 drill core samples have been submitted for assaying. Additional results will be reported as they are received.

Globex is pleased with the results of this work, and shareholders should be delighted. Under the terms of the option agreement completed with Antimony Resources earlier this year, Globex shall be paid $2 million in cash plus 1.1 million shares of the company in staged payments. Expect regular updates as Antimony Resources has committed to fund a minimum of $5 million in exploration activity during the next 4 years. Globex also retains a 3.5% GMR on the project.

Attractive Gold and Antimony Exploration Potential Confirmed

In other news, Bryah Resources Limited [BYH-ASX] completed their due diligence related to a transaction with Globex optioning the Devil’s Pike gold/antimony property, located in New Brunswick. The review included data from previously completed sampling and prospecting programs, geophysical surveys and historical drilling activity. The process confirmed the attractive exploration potential for the project featuring high-grade antimony showings exposed at vein outcrops and drill core.

A technical report filed for the property in 2011 also established gold resources within the project boundary. An Inferred Resource amounting to 214,800 tonnes with an average grade of 9.6g/t gold was reported. Globex subsequently completed channel sampling and exploration drilling of a gold-antimony target in 2016. Bryah plans to follow up on the work of previous operators, commencing exploration drilling prior to the end of this year. Under the terms of the option transaction, Bryah is committed to funding at least $3 million in exploration activity during the next four years.

Globex has received initial cash payments of $100,000 plus 30,245,676 shares of Bryah representing a minority ownership position in its partner. Additional payments in cash and shares will be due on the anniversary of the transaction during the full term of the agreement. Globex retains a 2% GMR on the first 20,000 ounces of gold that may be produced from the project, and a 3% GMR on all subsequent production.

Conclusion

Globex is a beneficiary to the progress achieved by partner companies that are actively advancing exploration across many individual projects. The roster of option deals arranged along the way has generated millions of dollars in payments of cash and shares to Globex, while the retained royalty leverage holds the promises of lucrative income streams thereafter if partner companies successfully establish producing mines. It should also be noted that Globex maintains proprietary exploration ambitions to advance wholly owned properties with the same objectives.

Taken in context, the featured updates this week highlight some of this potential. Consolidating ownership of the Blackcliff Gold property enables Globex the option to focus on advancing another high-grade gold deposit with the potential to arrange an option deal for the asset in the future. Meanwhile the two antimony projects that were included in option deals earlier this year are now the focus of exploration paid for by partner companies with tremendous potential for new discoveries. The minority ownership position held by Globex in Bryah is yet another avenue to build shareholder value if the Devil’s Pike project advances through to development.

Lastly, the very real prospect for a sustained bull market in resources in the months ahead provides a tailwind for Globex. Consider that antimony was not widely sought after just a few years ago, but now the discovery potential of the Globex assets commands multi-million dollar transactions values. Similar market action was underway for lithium, manganese and vanadium and other basic resource prospects in recent years, each contributing to attractive transactions involving Globex property holdings. Therefore, outlook remains very encouraging as this trend continues. Smallcaps Recommendation: BUY.

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