Globex Mining Reports Success at Each Stage of the Transaction Pipeline

Globex Mining Enterprises Inc. (CA: GMX – $0.95 & US: GLBXF – $0.69 & GER: G1MN – €0.62) and some of its royalty partners have recently reported some exciting progress. Globex announced the acquisition of a new precious metals prospect located in Arizona. The Company also reported that it has received a royalty payment due from ongoing mining activity at the Fayolle gold property. Meanwhile, an update was presented from an active option partner, with promising exploration highlighted at the Duquesne West Gold Project in Quebec.

A steady flow of noteworthy transactions has defined the success of Globex in recent years. These deals often involve significant payments of cash and shares to Globex and retained royalty leverage that builds the future value proposition for the Company. However it is the foresight to assemble the portfolio of property interests prior to these deals that enables this successful track record to continue.

Late February, Globex reported the acquisition of a new property asset, located in Nevada, United States. Now, Globex added the Salt Spring project, which is located in Arizona, to its portfolio by staking. This large property spans an area of more than 200 hectares, and includes no fewer than 14 historical mine workings and 15 exploration prospects. The Company carried out preliminary fieldwork and identified high grade gold-copper stockwork mineralization in surface samples from the new property area.

In addition, Globex reported that it had received another quarterly royalty payment from IAMGOLD Corporation [IAG-NYSE, IMG-TSX]. This is based on ongoing gold and silver production achieved from an open-pit mine at the Fayolle Property in Quebec. The quarterly payment of $238,794.88 issued by IAMGOLD under this royalty is the largest installment so far from the project. Globex retains a 2% NSR on all production from the Fayolle property.

Extended Strike Length of Mineralization Improves Outlook at Duquesne West Gold Project

Option partner Emperor Metals [AUOZ-C] has presented an update on the Duquesne West Gold Project. Several rounds of successful drilling work have been completed by Emperor, delivering new gold intersections in proximity to the historical deposit areas of the property. Emperor is now focused in order to outline a larger resource of higher-grade gold encountered further to depth. Attractive drill core intervals achieved during 2023 included a section of 15.8 g/t gold across 10.8 meters. Several wide intervals bearing lower grade gold values were also reported closer to surface.

This work has now expanded the strike length of continuous mineralization a further 1.2km to the east of the main gold zone. Emperor is investigating the intriguing potential to define a large deposit of lower grade gold resources that may be suitable for bulk tonnage extraction from surface. A conceptual open pit mine shell has been interpreted up to 800m in width and 1.8 km in length.

Previous operators of the property were focused towards higher grade gold zones, often hosted within structural targets to depth. Near surface, lower grade mineralization was ignored. Emperor inherited an inventory of drill core from historic drilling work and as much as 70% of the core intervals were not submitted for sampling. The company is now investigating this potential and over 3000m of historical core has been submitted for assay. This approach may enable a much larger total gold endowment to be confirmed within the open pit zone.

Emperor remains fully funded to advance the next phase of drilling work. A program of 5000m of diamond drilling is expected to commence during this quarter. Globex holds 50% ownership of a subsidiary company in partnership with Emperor, and therefore retains leverage to half of subsequent option payments and a 1.5% NSR for the project.

Conclusion

Successful exploration and development progress to achieve mining operations is the ultimate objective for the junior mining sector. Significant challenges along this path must be addressed by aspiring participants to reach the desired outcome.

Globex applies a project generator strategy to improve its odds. Partnerships are arranged with competent third-party companies to advance multiple high-quality exploration prospects. This enhances the potential that some of these projects may indeed advance all the way to mine development. The expenses and challenges to navigate the process are borne by the partners, but Globex shareholders benefit through transaction payments and potential royalty leverage along the way.

In this latest activity update, Globex has reported success at each stage of the transaction pipeline. The most recent acquisition of a large prospective exploration prospect in Arizona will provide an attractive opportunity for a future transaction partner. Ongoing ambitious exploration reported by an existing option partner at the Duquesne West Gold Project provides a promising window for development of a large gold mine with the potential for a lucrative royalty revenue stream thereafter. And the active mining that is currently underway at the Fayolle project is now generating a steady flow of revenue to Globex based on the operations of a partner company.

Globex is the beneficiary of a lavish treasury due to the inflow of many payments received from previous transaction partners. Staking is the most cost-effective means to prudently acquire new property holdings and maintain this pipeline of future shareholder value. Globex has again demonstrated its prowess to identify and secure exceptional assets in order to advance the business model. Smallcaps Recommendation: BUY.

Smallcaps.us Advice: Buy	Price Target: $2.87	Latest Company Report (pdf)
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