Positive Exploration Updates Issued by Globex Transaction Partners Highlight Advancement of Properties
Junior exploration companies often schedule drilling programs during winter months. This leads to an uptick in news flow in the final weeks of spring as companies report results and assay data. So far this month, several royalty partners have issued positive exploration updates that are of interest to Globex Mining Enterprises Inc. (CA: GMX – $1.20 & US: GLBXF – $0.94 & GER: G1MN – €0.91) shareholders.
This week, Globex provided an update on the exploration progress achieved by its partner Orford Mining Corporation [ORM] at the Joutel-Eagle property. Orford commenced a winter drilling program at Joutel-Eagle shortly after the transaction with Globex was announced.
One of the objectives of this program was to confirm a gold zone indicated through historical drilling at the property but where no reliable data was available. Orford originally reported positive assay results from drill hole 22-JE-002 last month and then resubmitted drill core for a wider mineralized interval. Orford now reported a revised group of assay results for 22-JE-002, along with full results from 22-JE-003.
The promising results included wide intervals of gold encountered in both drill holes. This serves to confirm the expected mineralization of the historical “South Gold” area identified by a previous operator of the property. An average of 1.11g/t gold was encountered across 20.64m in JE-003. This was higher than the average grade of 1.03g/t previously reported in historical drilling work. Orford also highlighted a high-grade subinterval of 14.7g/t gold across 0.64m within the recent results.
Meanwhile the width of gold mineralization confirmed in JE-002 was also increased from the originally interpreted section after additional core lengths were assayed. An average of 1.24g/t gold was reported across an interval of more than 28m. This was part of a larger mineralized zone spanning 46.98m where an average of 0.97g/t gold was reported. The South Gold target has been validated through this successful confirmation of gold values. This target area remains open along strike and to depth.
Under the terms of the transaction with Globex, Orford is required to fund at least $2,775,000 in exploration work at Joutel-Eagle to earn 100% ownership, along with cash and share payments. Globex retains a 3.5% GMR on the property holdings. This promising start to the exploration ambitions of its partner builds a value proposition for Globex shareholders. The successful delineation of a large gold resource would open the prospect of a mine development program, which in turn would create a revenue stream of royalty income for all production from the mine.
One interesting aspect to this property is that Globex reported it had acquired by staking the Mistaouac NE project. This land package comprises a group of 18 cells spanning 1006 hectares. This new land package is immediately adjacent to the Joutel Eagle property optioned to Orford. Mistaouac is also on strike within the Eagle-Telbel Trend. The property was staked to cover open land holdings where untested airborne electromagnetic and magnetic anomalies have been interpreted. Globex has assembled historic geologic data for this land package. The Company plans to complete a program of preliminary field work on the property in the months ahead. Concurrent with further exploration success by its partner Orford, any promising results achieved by Globex at Mistaouac may create the potential for a subsequent transaction to be announced.
High Grade Polymetallic Interval Reported at NewMetal Project
The NewMetal Project in Quebec has also been the focus of aggressive exploration, which commenced almost immediately after Starr Peak Mining Ltd [STE] acquired the property in August 2020 from Globex. The project featured the past-producing Normetal and Normetmar mines within the property boundary. Historic polymetallic resource zones were also identified by previous operators of the property. However, it is the prospect of enriched resource zones extending further to depth at the Normetmar Zone that has captured the interest of Starr Peak. Another batch of assay results was released this week that validates this potential.
Starr Peak announced a high-grade interval spanning 5.9m with an average grade of 9.49% Zinc equivalent (ZnEQ). Within this section, an interval of more than three meters carried an average 17.17% ZnEQ content. The results came from the Deep Zone of the emerging deposit, in Drill Hole STE-22-92-W3. This drill hole was completed as a Wedge Hole, following a similar high grade interval reported in May from the same target area of the deposit. It was also notable in that an estimated 15% of the interval was mineralized with chalcopyrite, a mineral of copper. The high copper content contributed to the enriched ZnEQ grade.
Two drills remain active on the property as work continues. A third drill was recently retired as the planned drilling at the Rousseau and Turgeon Lake properties has now been completed. Assay results for these targets are pending, in addition to other drill core samples submitted from the ongoing Normetmar zone exploration. Globex retains a 2.5% GMR on the Normetmar Zone and the Company continues to own over 1 million shares of Starr Peak that were paid as part of the property transaction.
Labyrinth Exploration Program Continues to Deliver Attractive Assay Results
This month another Globex transaction partner reported exploration results, as Labyrinth Resources [LRL] continues work at the Labyrinth Gold Project. More than 4,300m of drilling has now been completed at the JORC delineated deposit. Infrastructure and mine workings remain intact and underground drilling stations have been established to allow more efficient exploration of nearby resource zones. This represents the first active underground exploration at the Labyrinth Gold Mine in more than a decade. Data from this ongoing exploration work will be compiled to support a compliant NI43-101 JORC resource report on deposit.
Inspection of drill core has confirmed that targeted gold structures were successfully intersected in the drilling so far. Assay results for 8 drill holes are pending for drilling completed from underground drilling stations. Thereafter a round of at least 3000m of drilling from surface will commence. This portion of the program will target potential gold zone extensions at least 400m further to depth. This deeper drilling must be completed from surface to enable an optimum angle of the drill to these targets.
Globex is pleased with the rapid progress of exploration now underway. The Company retains a 5% GMR on the first 25,000 ounces of gold produced at Labyrinth, with a 3% GMR applied to all production thereafter.
Excellon Resources Extends Exploration License
Finally, Excellon Resources [EXN] mentioned that it extended its Bräunsdorf exploration license in Saxony, Germany. The project is located within a large, high-grade epithermal system and has a long history of mining dating back to the 12th century, with no modern-day exploration for precious metals.
Excellon is earning into a 100% interest in the Bräunsdorf License pursuant to an option agreement with Globex. The remaining components of consideration under the Option Agreement are:
• Paying C$200,000 and issuing common shares of Excellon with a value equivalent to C$625,000 on or before September 23, 2022; and
• Granting Globex a gross metals royalty on the Bräunsdorf License equal to 3% of precious metals and 2.5% of other metals.
Moreover, Excellon has also agreed to make a one-time C$300,000 payment upon the release of a maiden resource on the Bräunsdorf License and a one-time payment of C$700,000 upon the achievement of commercial production from the Bräunsdorf License.
Each of the updates issued by transaction partners have highlighted successful exploration to advance the properties. Globex investors may applaud this activity as the work funded by its partners increases that potential that productive mining may commence. The Company retains lucrative royalty leverage on each of these properties, and many others that are also moving forward independently. The additional minority ownership position controlled by Globex through shares received in transactions represent further leverage to a successful outcome at these projects.
Perhaps the most bullish aspect to this news flow is that these active partners are just a small portion of the roster of partnerships in play. No fewer than 54 companies are currently partnered with Globex, through option deals and royalty interests. Several of the projects involved are considered advanced mine development candidates. Globex is also engaged to explore and advance wholly owned properties. New transactions are regularly reported to maintain the pipeline of opportunities. The diversified business model continues to create strong shareholder value. Smallcaps Recommendation: BUY.
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