Globex Reports Exceptional Gold Values in Quebec and Significant Cash Infusion

The decision to focus most of the activity within the Province of Quebec represents a critical distinction towards the successful progress for Globex Mining Enterprises Inc. (CA: GMX – $1.12 & US: GLBXF – $0.79 & GER: G1MN – €0.72). The resource endowment of Quebec has attracted the interest of many significant explorers and mining companies that are active in several established mineral districts.

Lavishly funded exploration activity, achieving high-profile discoveries at so many individual projects, has created the excitement to sustain a speculative appeal for the companies with leverage to these districts. This has been a contributing factor to enable Globex to complete several lucrative transactions in recent years, powering the rise in market value for the Company along the way.

Successful Drilling at Ironwood Gold Deposit Achieves Attractive Gold Grades

The high-grade Ironwood gold deposit is hosted within the Central Cadillac-Wood Gold Mines project, which is wholly-owned by Globex. Several gold zones have been established on the property through historical exploration work. These gold deposits are located within a larger trend extending through the adjacent O’Brien gold project that is currently being advanced by Radisson Mining Resources Inc. In addition to its focus at Ironwood, Globex retains royalty leverage at O’Brien, comprising a 1% NSR on New Alger claims and a 2% NSR for the Kewagama gold deposit claims.

Globex understands the strategic value of advanced gold deposits in this prolific mining region. The Ironwood gold deposit hosts Inferred Resources of 243,000 tonnes with an average grade of 17.26 g/t gold, as presented in a technical report for the project in 2008. A significant exploration program was launched earlier this year to upgrade this deposit. Last week Globex reported assay results for the first four drill holes of an infill drilling program at the Ironwood gold deposit, highlighted by a section of more than 11m bearing an average of 16.63 g/t gold.

A few days after the initial release, Globex followed up with assay results for an exploration target. Geologists interpreted that tectonic forces related to a fold structure had led to deformation of an oxide iron formation. A zone of enriched gold mineralization has been encountered at the nose of this structure. Three shallow drill holes tested the upper elevations of this target. Several high-grade gold intervals were reported from this zone, including a section of 5.8m bearing an average of 30.26g/t gold. The results seem to indicate that the mineralized area widens to depth.

Nineteen drill holes have been completed as of this week. More results can be expected in the next few days.

Agnico Eagle to Acquire O3

A couple of days ago, Agnico Eagle [AEM-V] announced some excellent news for Globex shareholders as it has offered to acquire all of the outstanding common shares of O3 Mining [OIII-V] at $1.67 cash per common share. As Globex owns close to 600,000 shares of O3 Mining, it stands to receive almost $1 million.

Bankable Feasibility Study in Preparation for Mont Sorcier Iron Deposit

The completion of a Bankable Feasibility Study (BFS) is considered a major milestone along the path for the potential development of a mine. The process investigates important economic variables to determine the likely performance of mining operations. Among the relevant factors considered, size and grade of the deposit, life of mine estimates, metallurgical performance, and projected ranges for metals prices all play a role in the study. Expected capital development costs and ongoing sustaining costs during operations are also modeled.

A positive outcome from a BFS, with the likelihood for an attractive return on the invested capital during a reasonable time frame, is usually considered a necessity to secure project financing.

Cerrado Gold Inc. [CERT-V] has been advancing its flagship Mont Sorcier Iron deposit with a stated commitment towards establishing a mine. The company completed several rounds of drilling to establish an Inferred Resource of 546.6 Mt. Conventional processing of sample material suggests the potential to deliver production of concentrates in the range of 67% iron content with less than 2.5% combined silica and alumina. This is considered favorable to sustain profitable operations, as presented in a Preliminary Economic Assessment (PEA) that was completed in 2022. A mine life of at least 21 years was highlighted in the PEA, with the potential for future expansion.

Globex retains a 1% GMR that would be payable on the any iron production from Mont Sorcier. Chibougamau Independent Mines Inc controls a 2% GMR on all mineral production. These partner companies are therefore leveraged to a successful outcome for mine development to commence. They look forward to the completion of the BFS and the prospect that Cerrado may move ahead with development.

Additional High Grade Gold Values Reported by Royalty Partner Cartier Resources

Recent exploration work continues to deliver promising results at the Chimo Gold Mine area of the East Cadillac property. This project was assembled by Cartier Resources [ECR-V], including several groups of claims for which Globex retains royalty leverage. Cartier has identified a structural gold trend extending more than 8km along strike through the Chimo Gold Mine area with several gold deposits and showings established.

Cartier reported a series of assay results for drill core extracted within the Nordeau West claims. The VG10 and VG10 South Zones were targeted in this work, yielding high grade gold values within narrow vein intervals. These results included an exceptional interval of half a meter of core bearing 173.6g/t gold. Ongoing exploration progress and successful expansion of the gold resources for the project contribute towards the longer term potential for mine development. This in turn builds the intrinsic value of the underlying royalty leverage for the project. Globex retains a 3% GMR on the Nordeau West claims, along with Nordeau East and Bateman claim groups at the project.

Conclusion

Royalty leverage represents a valuable component of the longer term value proposition for Globex shareholders. The Company retains royalties on more than 100 properties, many of which are actively advancing independently through the efforts of third-party partners. Globex has already realized significant revenues in previous quarters due to payments related to royalty leverage. The prospect for several other advanced projects to be developed into producing mines may deliver attractive revenue streams in the future.

The pending BFS for Mont Sorcier, for example, may provide the catalyst to develop a significant mining operation that could provide a long term revenue stream to Globex. Successful exploration reported by Cartier to advance the East Cadillac Project also represents progress towards a longer term potential development candidate.

In addition to royalties, Globex often also receives shares and warrants of royalty partners. In the case of O3 Mining, this resulted in attractive Christmas present for the Company and its shareholders.

Meanwhile, Globex is also active with its own exploration ambitions at the wholly-owned Central Cadillac – Wood Gold Mines project. High grade gold values encountered at the Ironwood Gold deposit across attractive widths of drill core contribute to build the magnitude of resources for the property. Located within a prolific trend of advanced deposits and developed mines, the Ironwood Gold deposit may become attractive for development. Alternately, it may evolve into an acquisition target of interest to other project developers active in this region. The progress reported by Globex to further define the Ironwood deposit zone while also achieving new gold discovery success enhances that value proposition.

Globex is ideally positioned to prosper into the new year with a superb portfolio of property interests and retained royalties. The current roster of active partnerships and ongoing progress at several wholly-owned projects promises a steady flow of news and the potential growth of market value for the Company. Smallcaps Recommendation: BUY.

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