Globex Partners Continue to Advance Projects
With recent strength in both gold and capital markets, plenty of option & royalty partners of Globex Mining Enterprises (TSX:GMX – $0.55 & OTCQX:GLBXF – $0.41 & Fra:G1MN – €0.37), are again advancing their projects.
This is obviously excellent news for the North America focused exploration and development project generator, as it will generate cash payments, royalty income when projects are taken into production, and it may also increase the value of the shares that Globex holds from those partners.
Chalice Gold Mines Limited (TSX-V: CXN), for example, has commenced a 2,000 metre diamond drill program at its East Cadillac Gold Project in Quebec, Canada. Drilling will target potential extensions of the company’s Nordeau West gold deposit to test shallow gold targets.
The drill program forms part of an expanded exploration program at the East Cadillac Project over the upcoming Spring/Summer field season that will see exploration activities ramp up on several fronts.
A compilation and interpretation of historical exploration data across the project is well advanced and project-wide field activities are expected to commence in mid-April, including an airborne geophysical survey and an expanded surface sampling program
Chalice’s East Cadillac Gold Project encompasses a contiguous ~16km strike length of the gold localizing Larder Lake-Cadillac fault, is adjacent to the former producing Chimo gold mine, lies at the eastern end of the prolific Archaean Abitibi greenstone belt, and is ~35km east of the >20Moz Val d’Or gold camp.
Chalice has an option to earn a 100% interest in the Nordeau property from Globex Mining in exchange for $590,000 in option payments ($120,000 received to date), undertaking $2,500,000 in exploration over 4 years and reserving for Globex a 3% Gross Metal Royalty.
Interestingly, a mineral resource estimate was recently published by Chalice for the Nordeau West gold deposit one of two deposits on the Globex claims. The resource estimate was prepared using a database incorporating 121 surface diamond drill holes (41,278m) drilled between 1981 and 2008.
The estimate includes indicated mineral resources of 225,000t @ 4.17g/t Au for 30,200oz Au and an inferred mineral resource of 1,112,000t @ 4.09g/t Au for 146,300oz Au.
Contained Ounces Au
The mineral resource estimate as reported by Chalice Gold Mines Limited for its Nordeau West gold deposit. Source: Company press release.
Also Tres-Or Resources Ltd. (TSX-V: TRS) has initiated its first drill program at the Fontana Gold Project, 60 km north of Val-d’Or, Quebec. The expected 3-hole 750 metre drill program is now underway to confirm significant gold mineralization reported in historical drilling.
Tres-Or has been granted an option to acquire Globex’ interest in the Fontana Gold Project, being a 75% interest in 16 claims and a 100% interest in a further 6 claims. Globex retains a 3% Gross Metals Royalty on all claims and the 75% interest in the 16 claims optioned by Globex is also subject to a 15% Net Profits Interest (NPI).
In order to exercise the option, Tres-Or is required to pay Globex $300,000 (of which $25,000 was previously paid as a non-refundable deposit) and is also required to purchase the NPI from Globex for a total of $1,200,000.
According to Quebec government reports describing the historic work carried out on the Fontana property, gold mineralization was discovered in veins in the Fontana Fault in the 1930’s. Considerable work consisting of stripping, test pits, bulk testing and drilling has occurred on the Fontana Gold Project in subsequent decades of the 1940s, the 1980s, and 1990s. In addition, more than 300 holes were drilled over the years and a 90 m shaft sunk.
The property hosts significant gold mineralization, including intersections of up to 8.14 grams per tonne gold (g/t Au) over 28.96 m near the intersection of the Bunkhouse and Hooper zones (152.7 to 181.7 m; true thickness unknown at this time).
Chibougamau Receives $150,000 Option Payment
Chibougamau Independent Mines Inc. (TSX-V: CBG), a company that was spun out of Globex a couple of years ago, received $150,000 earlier this week from Vanadium One Energy Corp. (TSX-V : VONE) pursuant to the option agreement for the Mont Sorcier project.
Mont Sorcier is a Vanadium-Iron-Titanium project located in Roy Township, Quebec, 18 km east of the Town of Chibougamau. The property is made up of 57 cells and covers two strataform, sub-vertical magmatic separation type magnetite/titanium/ vanadium deposits associated with gabbroic and anorthositic rocks of the Lac Doré complex, termed the North and South Zones. The North Zone is 2.4 km long by up to 137 m wide and the South Zone is 2.1 km long by up to 61 m wide. Both zones are open to depth.
The Mont Sorcier zones have undergone several stages of drilling and metallurgical test work. Historical drilling also encountered gold and silver mineralization.
In order to earn a 100% interest in the property, Vanadium, in addition to the cash payment of $150,000, had to issue to Chibougamau 2,750,000 common shares (at today’s stock price worth about $412,500) and conduct a minimum of $1 million in exploration work within 24 months following the signing of the agreement. Moreover, Chibougamau retains a 2% Gross Metal Royalty on all mineral production from the property with Globex retaining a 1% Gross Metal Royalty.
In addition to its option & royalty partners, Globex itself is also very actively advancing its projects. A couple of days ago, the Company started drilling at the Fabie Bay-Magusi River mines property on a priority geophysical target.
The Magusi River and Fabie Bay mines are massive sulphide deposits, within a large property comprised of 184 claims and 1 mining concession totalling 7,151 ha in Quebec. The massive sulphide deposits contain significant percentages of copper, zinc, gold and silver and Globex is currently in discussions with a third party to option and put the Magusi deposit into production.
In addition, Globex is conducting an airborne survey on its Ontario Lake Property. This property consists of 38 cells totaling 2,202 ha (5,441 acres) located in Côte-de-Beaupré Township, approximately 90 km Northeast of Quebec City.
The Ontario Lake property has had little or no exploration undertaken on it, although it includes an area with massive, granular, black ilmenite which is reported in historical literature as averaging 38.97% Fe and 37.1% TiO2. Titanium dioxide (TiO2) is in high demand by paint and varnish manufacturers as well as the plastics and paper industries to name a few.
Once the snow is gone, a program of mapping, prospecting and possibly a gravity survey will be undertaken. Depending upon results, stripping, channel sampling and diamond drilling will be done.
We understand that the Company is also actively trying to option more properties. Buy recommendation.
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