Globex Mining Enterprises Continues to Advance on Multiple Fronts

Exploration work continues at the Bateman Bay property in Quebec, operated by Chibougamau Independent Mines Inc. [CIM] (CBG-TSXV, CLL1-Frankfurt, CMAUF-OTC). This week CIM reported further assay results from a series of drill holes targeting the C-3 copper/gold zone of the property. A total of 3441 meters of drilling has been completed so far in seven drill holes.

The objective during this round is to test for expansion of the copper/gold mineralization which remains open to depth. Promising results from this zone were reported in April, and CIM is now advancing with its focus to expand the resource area.

CIM was originally created as a subsidiary company that was divested to Globex (CA: GMX – $0.37 & US: GLBXF – $0.28 & GER: G1MN – €0.23) shareholders in 2012. Now separately listed and trading, CIM is focused on advancing exploration work at Bateman Bay to outline a copper-gold and silver resource to build value for shareholders. Many of the same personnel from the Globex management team are working with CIM and Globex retains a 3% gross metal royalty on the Bateman Bay property.

Robust intervals of attractive grades continue to be encountered as the assay results from this round are received. One of the highlights from these assay results include a section of 3.06% copper plus 2.96 g/t gold and 13.04 g/t silver across an estimated true with of 10.6 meters in Hole 21. Another high grade interval of 3.02% copper, 0.48 g/t gold and 20.20 g/t silver was reported over an estimated true width of 15.6 meters in Hole 22.

A subsequent news item was released this week with additional assays from this program. These updates included one section closer to surface from Holes 21 and a section further to depth from Hole 22. The presence of attractive copper, gold, silver, and cobalt alteration was confirmed in each of these sections. Combined with the higher grade zones in hand, the results expand the total mineralized sections for each drill hole and will serve to build a larger resource for the project. See drill map at bottom.

Drilling at Bateman Bay indicates that the zone is open to the northwest and southeast at depth as well as to the southeast towards the surface.

Strong Results Improve the Outlook for Resource Expansion

These are considered very attractive results with promising economic potential for the C-3 Zone. As the scope of the exploration has expanded, the Company continues to deliver wide intervals of mineralization. This in turn will contribute to build a larger tonnage of polymetallic resources. The presence of cobalt and silver within the alteration may also contribute attractive by-products to the expanding copper-gold resource.

The drilling work indicates that the resource zone remains open for further expansion, to the southeast and northwest to depth. The zone is also open towards surface to the southeast. Drilling work continues and the Company will present the next batch of assay results as they are received from the lab.

Property Acquisition Deal Reported

Globex also announced a successful property acquisition. The Standard Gold Property was vended to the Company in exchange for 160,000 Globex shares. A number of appealing factors regarding this project build a greater value proposition for shareholders.

The property is located in Quebec in Duverny Township, within the prestigious Abitibi Gold belt. The district is well known for its endowment of mineral resources and is considered a safe, attractive jurisdiction for exploration. The project area is situated in proximity to several other projects controlled by the Company.

The terms of the deal secure 100% ownership of the property for Globex. There are no encumbrances, liabilities, or attached royalty considerations that may impair its value in the future.

The property is considered advanced, with extensive exploration and development work completed by previous operators. The Standard Gold Mine was once in production, operating from 1935 to 1953. Developed infrastructure included a shaft extending to a depth of nearly 400 meters. More recently, sampling and underground drilling work continued. While the active mining phase was focused on higher grade gold vein systems, the potential for a bulk tonnage lower grade gold deposit is also attractive.

Historical exploration records are available from previous work at the project area. A number of high grade gold intervals were achieved from drilling and underground sampling programs. This database includes a section of 2m bearing 22.3 g/t gold and another one of 1.5m with an average of 90.3 g/t gold. Numerous other high grade gold intervals were reported across narrower widths. Additional chip sampling of the underground workings has also contributed towards resource definition. This will provide a head start for the next phase of exploration.

Private Placement Successfully Completed

Globex has also reported in July that it closed a small private placement. A total of $1.24 million was secured by flow through arrangements priced at 45 cents per unit for Quebec residents and 40 cents per unit for non-Quebec residents. The benefit of flow through financing is that it enables investors to capture a significant tax deduction. This increases the overall return on investment and allows a higher issued price for the offering. The deal therefore allows the Company to raise more money with less dilution to existing shareholders.

Following the completion of the transaction, Globex reports 54,247,852 shares issued and outstanding in the capital structure. This remains a very tightly held Company with great shareholder leverage to the potential exploration success from each of its property holdings.


As CIM moves forward with its exploration ambitions further discovery is being achieved. Leverage to several attractive metals is being established in a growing section of the project. This success is contributing to a larger overall resource, while the growing intrinsic value of Bateman Bay will contribute towards a higher share price for CIM.

The acquisition of the Standard Gold Property presents another opportunity to Globex. Globex is currently compiling all available information on the property to determine the potential for further exploration. Most likely, the Company will try to seek an option partner for the property afterwards.

With many promising exploration programs currently underway, Globex requires access to capital to fund this ambitious activity. The successful completion of the flow through financing, which secured $1.24 million, enables Globex to maintain its aggressive pace of work.

The combination of attractive property holdings, a diversified business model, and a clean balance sheet with a well-funded treasury and no debt, has positioned Globex as one of the best junior mining stocks in Canada. As prices of many metals continue to rise, the potential for a new bull market phase is emerging. Historically, smaller exploration companies like Globex have presented one of the best options to participate in a resource bull market. Smallcaps Recommendation: BUY. Advice: BuyPrice Target: $2.87Latest Company Report (pdf)
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