Globex Partners Update Highlighted by Ongoing Resource Discoveries

The complex tasks involved to advance a resource property through the full development cycle demand specialized skills and commitment to arrive at a successful outcome. Even a highly prospective project may not deliver progress if the management team lacks focus or funding. This is why one of the most important variables for a development candidate is the guidance of a competent management team.

While investors tend to focus on the dollar value as a new transaction is reported, the caliber of the partner company itself is often overlooked. Globex Mining Enterprises Inc. (CA: GMX – $1.03 & US: GLBXF – $0.74 & GER: G1MN – €0.65) has achieved many high-profile transactions in recent years, such that there are several resource projects that have been successfully advanced through the skills and commitment of the partner companies. The project generator business model has therefore positioned Globex shareholders to participate in the longer term outlook for success at many projects while securing capital gains through the transaction values as these deals are arranged.

Another batch of project updates were presented by Globex as partner companies advance properties. Royalty partner Cerrado Gold Inc. reported that funds received from the sale of its Monte Do Carmo project in Brazil (approximately C$83 million) will be used in part to complete a feasibility study of the very robust Mont Sorcier Iron Ore Project. Brunswick Exploration has continued to announce new lithium-bearing pegmatite discoveries through an ambitious drilling program underway most of this year. Emperor Metals is encountering encouraging gold intervals and confirming the historic resources of its past-producing mine project. And Cartier Resources has also delivered new gold resource zones through ongoing drilling work within claim groups that Globex holds retained royalties. These successful exploration reports by partner companies hold promise to build further shareholder value for Globex.

Funds Allow Cerrado To Advance The Mont Sorcier Iron/Vanadium Project

Cerrado Gold [CERT-V] holds a 100% interest in the Mont Sorcier Iron Ore and Vanadium project, which has the potential to produce a premium iron ore concentrate over a long mine life at low operating costs and low capital intensity. Furthermore, its high grade and high purity product facilitates the migration of steel producers from blast furnaces to electric arc furnaces, contributing to the decarbonization of the industry and the achievement of SDG goals.

The Mont Sorcier Iron/Vanadium deposit has an Indicated Resource of 678,500,000 tonnes grading 36.4% Fe2O3 and 0.20% V2O5 and an Inferred Resource of 546,600,000 tonnes grading 34.1% Fe2O3 and 0.17% V2O5.

Globex holds a Gross Metal Royalty of 1% on all the iron and other minerals, excluding vanadium, produced at the Mont Sorcier deposit. Moreover, Globex holds 11,000,000 shares of Electric Royalties (ELEC-V) which has a 1% Gross Metal Royalty on vanadium production from the property.

Recent Drilling at New Lithium Targets Provides Additional High Grade Assay Results at Mirage

Brunswick Exploration [BRW-V] has maintained an aggressive pace of activity through the year as exploration continues at its Mirage Lithium project. After initially acquiring the project from Globex through an option deal, Brunswick was so impressed with the early phases of its exploration program that it accelerated the purchase to gain 100% ownership of the property. Subsequent rounds of exploration have confirmed additional lithium discovery zones as new pegmatite dykes have been outlined and proven to be mineralized with enriched lithium content across wide intervals. This winning track record continues, as Brunswick reported another round of attractive assay values from newly targeted pegmatite dykes.

Drilling has focused on the Central Zone of the property. The mineralization of the Central Zone has now been confirmed along more than 1000 meters of strike length. Multiple dykes were encountered in some drill holes, stacked in wide intervals of mineralization starting from just below surface overburden. In some holes the deepest mineralization was encountered more than 300m to depth. Brunswick has now completed more than 12,000m of total drilling this year. The company also announced that it will begin metallurgical studies using sample material. This is an important step along the process towards mine development.

Globex is encouraged by the steady progress by Brunswick to advance the Mirage project. The Company retains a 3% GMR held against the claims that comprise Mirage. The Company anticipates receiving an advance royalty payment of $100,000 per year for the Mirage claims, starting on the fifth anniversary of the transaction. Globex also holds other property and royalty interests in proximity to Mirage that may gain intrinsic value as the project moves further along the value curve.

Emperor Metals Pursues Near-Surface Gold Resources within Proposed Open-Pit Mining Shell at Duquesne West Project

One of the factors that prompted Emperor Metals [AUOZ-C] to acquire the Duquesne West property was the historical gold resources of the project. A large deposit estimated to contain more than 700,000 ounces of gold had been outlined by previous operators. Much of this historical deposit was located near surface, affording the potential for a lower cost open-pit mining plan. Emperor has been focused towards confirming the historical resource zones through recent drilling work, and also to investigate for additional gold mineralization around the established deposit zones that could build the overall resource within a conceptual open pit mine shell.

This week, Emperor reported assay results that successfully addressed both of these objectives. Lower grade gold mineralization was encountered across wide intervals near surface, in proximity to the historical deposit areas. These results were highlighted by an interval of 52.1 meters bearing an average grade of 0.8 g/t. By concentrating on nearby targets, Emperor can add gold ounces to the deposit and reduce the overall strip ratio by converting waste rock into additional mine resources. In addition, this drilling confirmed historical deposit areas. Data from these zones may be included when a compliant updated resource report is presented.

Globex looks forward to further progress by Emperor to expand the resources of the project while advancing towards the ambition for development of an open pit mine. Emperor aspires to complete a resource report in Q1 of 2025. It should be noted that under the terms of the option deal for Duquesne West, should Emperor present a compliant resource report outlining a gold deposit of at least one million ounces in all categories, a payment of an additional 2.5 million Emperor shares will be due to Duparquet Partners, half of which is owned by Globex.

Updates Issued for Other Projects of Interest to Globex Shareholders

Royalty partner Cartier Resources [ECR-V] presented assay results for a series of drill holes completed at its Chimo Gold Project. Globex retains a 3% GMR pertaining to several of the claims comprising this project, along strike to the past-producing Chimo mine. Gold resources have been partially defined within some of these claims. Ongoing exploration work is designed to expand the overall resources for the project area. Recent drilling activity by Cartier included drill holes collared within these Globex royalty claims. While only the resources mined within the royalty claims would generate payments to Globex under an active mining scenario, the advancement of the entirety of the Chimo gold project and the expansion of the overall resource improve the outlook for mine development.

Conclusion

While activity continues at many different projects with the potential to build value for Globex shareholders, most of this work is advancing independently by other partner companies. Each year, the Company achieves several notable transactions to arrange option deals with high-quality partners, or to vend projects outright. This enables the Company to participate in the potential discovery success for these projects without underwriting the expenses to complete the work. Globex currently holds ownership of a suite of 256 property interests, many of which are already optioned to partner companies.

Globex also retains leverage to 106 royalty interests that may generate revenue upon the successful development of a mine. The completion of exploration work to expand resources for these projects enhances the potential for future mining operations to be established. The update this month presented highlights for royalty partners Emperor, Brunswick and Cartier. Each of these companies is focused towards achieving successful development at their respective projects.

Leverage to a large portfolio of resource properties and royalties has provided Globex with the opportunity to prosper from the success of its partners. With so many properties advancing and regular updates highlighting progress towards development, the strength in the market value for the stock should come as no surprise. Smallcaps Recommendation: BUY.