Globex Mining Delivers Promising Start to 2025 Thanks to High-Value Transactions

The winter months are considered to be the most speculative window for junior exploration companies active in Quebec. This is due to favorable circumstances for field operations along with heightened investment interest towards the sector overall. Active junior mining companies often issue exploration results and positive news during this time frame.

Shareholders of Globex Mining Enterprises Inc. (CA: GMX – $1.33 & US: GLBXF – $0.93 & GER: G1MN – €0.86) should be encouraged with the progress and milestones achieved in the field. Among these, are exceptional high-grade gold intervals reported from the Ironwood Gold Zone. This zone was discovered by Globex on the wholly owned Central Cadillac Mine / Wood Gold Mine project. Globex is now advancing the project having just completed a 19-hole drill program. In other news, option partner Emperor Metals issued Globex a $500,000 option payment relating to the previously reported Duquesne West Property transaction. And an entirely new option deal was closed as Electro Metals agreed to purchase the Magusi-Fabie Mines polymetallic project north of Rouyn-Noranda, Quebec. Finally, Lincoln Gold Mining has acquired the Bell Mountain Gold Project in Nevada, on which Globex has a scaling Gross Metal Royalty.

Impressive Gold Values Reported at Ironwood

Globex remains active with exploration work at the Central Cadillac Mine / Wood Gold Mine project in Quebec. A program comprising 19 drill holes was recently completed. Globex aspires to confirm historic results and define the extent of resource zones on the periphery. A flurry of news is now being presented as assay results from this drilling are received from the laboratory.

Globex reported four batches of assay results from this work, highlighted by an outstanding interval spanning more than 23m true width with an average grade of 23.82g/t gold from the center of the mineralized zone. Assays results from the western and eastern boundary areas also showed attractive gold grades within core intervals from each drill hole, including sections of high-grade gold values over minable widths. It would be worthwhile for investors to review the recently released 4 press releases documenting the high-grade intersections.

These results build drill density for the deposit area including higher grade showings within the historically defined Ironwood Gold Zone. Globex has gained insight towards the economic potential and appropriate mining methods that may be considered for a future development option. The Company may proceed independently or perhaps the progress may attract potential transaction partners in this high-profile mining district.

Cash Payment Received from Option Partner Emperor Metals

Globex also reported that Duparquet Assets Ltd has received the current installment payment due from Emperor Metals [AUOZ-C] relating to the terms of the option deal for the Duquesne West project. This is the second anniversary option payment for the transaction, comprised of $500,000 in cash. A payment of Emperor Metals shares valued at $300,000 is also expected shortly. Globex controls 50% ownership of Duparquet Assets, and the retained Gross Metal Royalty held on the property.

Meanwhile, Emperor has been active to fulfill its exploration commitments as structured under the option agreement. Several rounds of drilling work have been completed at the property. Exploration is focused towards outlining a deposit close to surface. This would provide the best potential for economic extraction through an open-pit mining scenario. This week, Emperor announced another round of assay results that moves the company closer to that objective. Wide zones of multi-gram gold values have been encountered. One highlight core length spanning 39.3m was mineralized with an average grade of 4.1g/t gold. An enriched subinterval bearing 7.2g/t gold was identified within 21.7m of this zone. Additional assay results are pending, including drill core samples selected from historic drilling by previous operators.

Overall, the work has successfully outlined additional gold values in sections of the deposit which had been previously overlooked. Historic work focused mainly on high-grade targets amenable to underground mining. A deposit suitable for open pit mining is being established. Higher grade gold values serve to increase the average grade of the deposit area and therefore improve the potential economics for a future development prospect. Emperor expects to issue a Mineral Resource Estimate based on this work later this quarter.

Globex Reports Option Deal Achieved for Magusi-Fabie Mines Project and Provides Updates for Other Properties

Moreover, Globex closed yet another option deal, vending the Magusi-Fabie Mines property to Electro Metals and Mining Inc [private]. Electro agreed to pay Globex a total of $3.5 million in cash over a 4-year term, including an initial payment of $100,000 cash plus 4 million shares due by January 31, 2025. In addition, Electro shall issue 2 million shares to Globex at the 4th anniversary of the transaction. Electro also commits to undertaking at least $8,350,000 in exploration expenditures during the term of the agreement. If the project advances through to commercial production a bonus payment of $1 million shall be paid to Globex, adjusted for inflation.

A compliant resource report has documented Indicated and Inferred resources within the previously established Magusi River Copper-Zinc-Silver deposit, providing a head start for potential expansion. Following the completion of the option deal, Globex will retain royalty leverage to the project through a 3% GMR that may be reduced to 2% by Electro with a payment of $2 million in cash. In addition, advance royalty payments of $200,000 per year will be due starting on the sixth anniversary of the transaction.

Lincoln Gold Advances the Bell Mountain Gold Project

Lincoln Gold Mining Inc. [LMG-V] acquired the Bell Mountain Gold Project in Churchill County, Nevada from Eros Resources Corp.

Lincoln is proceeding with discussions with various financial institutions for the capital required to take Bell Mountain through construction and into startup. The Company expects it will take approximately eight to ten months to complete construction once funding has been arranged and then move into the initial gold/silver mineralization placement and leaching process.

Globex retains a sliding scale Gross Metal Royalty (GMR) on the project which at current metal prices is 3% GMR.

Conclusion

An impressive roster of option and royalty partners has established the foundation for shareholder value. Globex retains leverage to 115 properties that have been sold or optioned to partner companies, or for which it retains royalty leverage.

The Company also remains active with projects that remain 100% owned, many of which are advanced with historic resources defined by previous operators. Globex has achieved exceptionally positive exploration results at the wholly owned Central Cadillac Mine / Wood Gold Mine project. Some outstanding intervals were reported, upgrading the stature of the high-grade Ironwood gold zone. Located in proximity to the prolific gold localizing Cadillac Break structural trend, the project has become a much more attractive development prospect as a result of this work.

The announcement of yet another high-value option deal, vending the Magusi-Fabie Mines Project to Electro Metals, represents further validation of the project generator strategy that Globex has advanced so successfully. Globex shareholders may now envision the receipt of additional payments of cash and shares in the years ahead, strengthening the financial position for the Company.

This follows the news that the latest installment payment from Emperor Metals for the Duquesne West project has been issued. Emperor Metals is delivering successful exploration progress that contributes towards its ambition to achieve mine development at the property.

With an extremely promising start to 2025 in hand, Globex is superbly positioned to prosper in this optimum window for the sector as numerous projects advance independently through the activity of partner companies. This week shares of Globex achieved a new 52wk high following the string of positive news results. Shareholders expect similar success to continue in the months ahead. Smallcaps Recommendation: BUY.

Smallcaps.us Advice: Buy	Price Target: $2.87	Latest Company Report (pdf)
For important disclosures, please read our disclaimer.