Globex Mining Adds Over $3 Million to Treasury While Advancing Projects

Reports of successful drilling work and new mineral discoveries tend to capture the attention of investors that focus on junior exploration companies, and rightly so. The mining industry depends on a healthy pipeline of new deposits to sustain production and replace depleted resources. But the progress to advance a prospect beyond the initial discovery to where it may become a development candidate is often challenging. In fact, most discoveries do not deliver strong enough economic potential to support a profitable mining outlook. It can be a numbers game, and junior explorers usually hold several projects to improve the odds for at least one success story.

Globex Mining Enterprises Inc. (CA: GMX – $1.38 & US: GLBXF – $1.00 & GER: G1MN – €0.86) assembled a portfolio of hundreds of properties. Many of them are already involved in transactions with other partner companies that advance exploration. This approach enables shareholders of Globex to participate in the exploration process with much less risk and higher odds for a successful outcome.

Globex recently presented updates on several advanced properties that are drawing closer to a potential development decision, including one wholly owned asset. The Company also reported the receipt of significant payments for previously completed transactions with royalty partners.

Successful Exploration at Ironwood Gold Project Contributes to Upgraded Resource

Globex employs its project generator strategy to retain leverage for many high-quality active properties, advancing independently through the efforts of partner companies. However, Globex also maintains an inventory of attractive properties for which it controls 100% ownership. The Ironwood Gold Deposit is one such holding, rapidly advancing as a potential gold mine development candidate.

Situated within the consolidated claims group of the Wood / Central Cadillac project, Ironwood is intriguing as a smaller, high grade gold deposit located in the midst of a prolific mining district featuring numerous larger mines and deposits. Several previous operators had completed exploration at this target to establish a promising deposit area. A compliant Resource Report was presented for Ironwood in 2008.

Globex recognized the potential for this prospect and opted to continue with proprietary exploration activity. Nineteen drill holes were completed at Ironwood by Globex in 2024. This work outlined additional gold resources and also suggests that the deposit remains open to further expansion at depth. Combined with previous historical work, 105 drill holes for a total of 31,360m drilling has now been completed at Ironwood.

Globex now presented an updated resource estimate for Ironwood. The report focused on the near surface resources that would provide lower costs for an extraction scenario. The overall estimated gold resources remained about the same. However with the increased drill density for the deposit, 86% of the total gold resources are now upgraded to the Indicated classification of confidence. Management is pleased with this result as it builds a stronger economic case for a development scenario. Globex will now study options to create value from this project, which may include a small scale mining operation utilizing a toll-milling and processing facility, or perhaps forming a JV arrangement with a senior mining company.

Globex Reports Receipt of Significant Cash Payments Related to Previously Arranged Transactions

This week, Agnico-Eagle Mines Limited [AEM-TSX] issued the final payment of $3 million in cash to Globex for the transaction to purchase the Francoeur/Arntfield/Lac Fortune Gold Mines property. This transaction originally involved Yamana Gold Inc, in a purchase agreement valued at $15 million that was announced in June 2021. Globex received a series of scheduled payments on each anniversary of the transaction. Agnico-Eagle subsequently acquired some of the assets held by Yamana and opted to complete the property purchase with this final payment. Globex retains a 2% Gross Metal Royalty (GMR) on the property.

Royalty partner Renforth Resources Inc [RFR-CSE] also issued a payment to Globex, related to Parbec Project in Quebec. Renforth is obligated to pay an annual advance royalty of $50,000 under the terms of the original transaction to acquire the Parbec claims. Renforth recently presented an updated resource report for the Parbec Project that increased the total estimated gold resources by 29% (265,800 ounces Measured & Indicated plus 97,000 ounces Inferred). Globex controls a 3% GMR for Parbec.

Meanwhile, royalty partner Manganese X Energy Corp [MN-TSXV] also issued an annual advance royalty payment to Globex this month, for $20,000 as per the terms of the original option deal to acquire the Battery Hill manganese project in New Brunswick. Manganese X has published a resource report for the project documenting M&I resources of 35.1 million tonnes grading 6.42%Mn plus 25.9 million tonnes Inferred with an average grade of 6.66%Mn. Globex retains a 2% GMR on the property.

Ongoing Exploration Activity from Partner Companies Builds Resource Leverage

The juggernaut of exploration activity underway at the Lac Escale property continues to encounter additional areas of attractive lithium mineralization. Brunswick Exploration Inc [BRW-TSXV] has maintained a torrid pace since acquiring the project from Globex through an option deal in January 2023. The company completed its obligations to secure 100% ownership of the project and has embarked on several drilling programs in succession, each successful in outlining additional resources.

Brunswick reported the discovery of a new lithium-bearing dyke structure, roughly 250m to the northeast of the main deposit. The discovery included an interval of 29.5m bearing an average grade of 1.19% Li2O. A previously reported ‘stacked dyke’ structure was also targeted in recent drilling, encountering new resources zones that extend the deposit 150m further along strike. At least 32 mineralized dykes have now been intersected in drilling.

Globex welcomes this aggressive exploration work by Brunswick as the progress continues to expand the overall lithium deposit area. Lithium remains a critical mineral in high demand for the manufacture of batteries to power electric vehicles. Globex retains a 3% GMR on Lac Escale.

Meanwhile, option partner Emperor Metals Inc [AUOZ-CSE] also reported progress on the exploration front this week. Emperor has interpreted two high-grade gold structures plunging to depth at the Duquesne West project. This potential was identified through a review of historical exploration data and the results of recently completed drilling below the proposed open-pit area. This information can now be incorporated into an updated resource calculation that Emperor aspires to present in the near future. Emperor is obligated to fund exploration and issue scheduled payments as part of the transaction to earn ownership of the property. The expansion of gold resources at Duquesne West also provides a greater value proposition for the royalty leverage held by Globex.

Conclusion

Inflationary pressure has impacted every business sector worldwide, and the mining industry is often amongst the hardest hit during such intervals. Mineral exploration is expensive and there is a lengthy process to advance a project before any revenue or income may be expected. The strength of the Globex business model is based on recruiting other competent companies in partnership transactions. The arrangement of option deals to enable partner companies to earn ownership provides up-front income to Globex and ensures that significant exploration expenses are funded by other players. Globex may then focus its exploration efforts on a few proprietary assets while still retaining leverage to a suite of projects under partnership agreements.

This update features advanced prospects with higher probability for a successful development scenario. The wholly owned Ironwood Gold Deposit is now validated with a NI 43-101 resource report documenting the majority of the gold deposit in the higher confidence Indicated category. This makes it a more appealing and higher value project in terms of development potential.

Similarly, royalty partner Brunswick Exploration has achieved a rapid advancement of the discovery process at Lac Escale in the drive to outline a lithium deposit suitable for mine development. Emperor Metals continues exploration to add ounces to the established Duquesne West gold deposit. Manganese X Energy is also investigating development options for its Battery Hill project and has issued a royalty payment to Globex. So too has royalty partner Renforth Resources for its Parbec gold property with a potential development scenario under consideration. Lastly, the final payment for the Francoeur/Arntfield/Lac Fortune Gold Mines property transaction was issued to Globex and contributed to the lavish treasury of over $30,000,000 controlled by the Company to support the next round of the discovery process. Smallcaps Recommendation: BUY.