New Drilling Program at Globex’s Francoeur/Arntfield Gold Property Targets High Profile Target
The ongoing exploration effort at the Francoeur/Arntfield Gold Mines property was aggressively advanced through 2018 as Globex Mining Enterprises Inc. (CA: GMX – $0.33 & US: GLBXF – $0.25 & GER: G1MN – €0.21) continued to encounter high grade gold zones. Drilling programs targeting a structural corridor trending along an east to west axis have consistently intercepted robust gold veins. This appears to be part of a well-defined regional system that has been encountered at many other properties in this district and contributed to the large number of gold mines developed in proximity.
As the project geologists expanded the area of interest beyond the primary structural zone, surface sampling and trenching work encountered a new gold target area. This area has evolved into the 450 Zone and holds promise to become another distinct gold deposit on the property.
Following the initial discovery at the 450 Zone, where attractive gold values were encountered in an area near the edge of the property boundary, Globex completed a transaction to acquire additional property claims, expanding the project area to include the suspected extension of the gold deposit area. The Company also completed a geophysical program including a part of the new claim group, to better interpret the geology of this section before commencing the next round of work.
New High Profile Target Area
It appears that these strategic decisions are going to pay off. This week Globex reported the definition of new target areas based on the interpretation of the recently completed induced polarization survey. While prior exploration work had achieved success targeting the primary structural corridor including the newly discovered South Gold Zone, the 450 Zone may be related in part to a new cross-trending system that has been identified, extending along a northeast-southwest axis. Of greater interest, the geophysical anomalies related to this system indicate that where this cross trend intersects the normal regional trend, it shifts to a parallel orientation and displaces it.
The fact that early gold showings from the 450 Zone appear to confirm this geophysical interpretation builds further confidence that the intersection of the two structural targets may indeed lead to a highly mineralized section. Globex is characteristically following up on this potential immediately, with another drill program scheduled to commence later this month.
A series of about 10 drill holes will be completed at the target area, for perhaps 1000 to 1500 meters of total drilling work. In addition, to better define the alignment of the cross-trending system, the plan is to orient two drill holes in a face to face pattern. This ensures that drilling is not inadvertently targeted down-dip of a major structure, as at least one of the face to face holes must cut across the structure.
By completing drill holes aligned from the opposite sides of a target more information on the direction of dip and true thickness of the structure can be established. This will contribute to more effective alignment for subsequent drilling rounds. It also provides a measure of confidence if indeed the drilling work outlines a wide interval of very high-grade gold.
Final Payment Installment Received From Renforth Resources
One other significant news event was updated this week, regarding the transaction to vend the Parbec gold property in Quebec to exploration junior Renforth Resources. Parbec is located in proximity to the large Malartic gold mine, a high-profile open pit mine currently in production. Similarities in mineralization, plus the potential for extension of the Malartic gold-bearing structures to continue to Parbec, have made this property more attractive for exploration. Renforth is currently engaged in drilling to follow up on this potential.
The final payment of $200,000 in cash plus a certificate for 250,000 shares of Renforth has now been received by Globex, completing the cash and share portion of the property transaction. This installment was in addition to another allotment of 2,500,000 Renforth shares, plus a retained 1% Net Smelter Royalty on Renforth’s New Alger Gold Mine Property, which was negotiated as part of a work extension of the option granted to Renforth for the Parbec property.
The receipt of another royalty fits in well with the corporate strategy that Globex has in place to hold a portfolio of royalties for mineral properties. This strategy has already paid off with the ongoing royalty income generated by the Middle Tennessee Mines Property currently in operation by Nyrstar NV.
With the final payment for the Parbec property now in hand, Globex shareholders will continue to hold leverage to the ongoing potential resource discovery of this project through the significant ownership of common shares of Renforth Resources that were received in addition to the cash payments.
Successful exploration activity often comes down to the patience to collect and analyze data, the knowledge and intuition to determine priority target areas to focus activity, and the aggressive pace of follow up thereafter to provide the best opportunity to achieve a discovery. Not every property has the potential to yield a resource discovery but for the best projects a competent exploration team advancing with the appropriate strategy can make the difference.
Globex shareholders may therefore gain confidence from the active exploration program underway at the Francoeur/Arntfield Gold Mines project. Recall that when the project was first acquired by the Company in 2016, management indicated that the priority would be towards additional discovery and the search for new gold deposit areas. Several rounds of work have followed and a series of high-grade gold intervals have been reported from the property. That is indeed encouraging, but perhaps the best is yet to come.
Meanwhile, the Company continues to build shareholder value. The project generator strategy is also paying off as demonstrated by the news regarding Renforth Resources and the Parbec Property. Parbec is evolving into a significant gold project through the effective exploration work completed by Renforth, and Globex is a beneficiary of this process through its retained share ownership that has been received as part of the JV transaction.
With its large high-quality portfolio of resource property holdings, the active exploration programs underway at several projects and the current income stream derived from ownership of royalties, Globex is providing shareholders with a dynamic platform for value creation. Smallcaps recommendation: BUY.
|Smallcaps.us Advice: Buy||Price Target: $2.87||Latest Company Report (pdf)|
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