GLOBEX MINING ENTERPRISES INC. (GMX –
Toronto Stock Exchange, G1MN – Frankfurt, Stuttgart, Berlin,
Munich, Tradegate, Lang & Schwarz
Stock Exchanges and GLBXF – OTCQX
International in the US) is pleased to provide an update
to shareholders in times that are, to state it mildly, difficult.
Globex has had to adjust at every level due to
reduced revenue, government shutdowns of field work in Quebec and
Cape Breton, Nova Scotia, permitting delays in Ontario, ordered
closure of all offices in Rouyn-Noranda including Globex’s office
and restrictions on travel. Access to the Town of Rouyn-Noranda is
restricted to essential material and personnel by roadblocks due to
the high number of Coronavirus cases.
Globex has made necessary adjustments to carry
on business effectively. We have upgraded our VPN system and
staff is working from home writing reports, designing 3D models of
a number of our orebodies, drawing maps, updating our website data,
reviewing and planning fieldwork, etc.
In addition, we have staked a number of new
assets and purchased a number of properties and royalties. We
have also focused on identifying potential clients for a number of
our assets and have approached them to see if option or purchase
deals can be done.
We expect that doing deals will be difficult as
many exploration companies have limited funds and are loath to
spend any of it in the current investment climate. Globex,
being contrarian, views these times as a period of opportunity and
is acting. We have the advantage of funds on hand, both hard
cash and flow through, no debt, 100% ownership of most of our
almost 200 assets (one-half of which are gold properties) and a
team of dedicated and skilled staff. On the negative side of
the equation, our revenue not surprisingly is down. As I stated
above, companies are loath to make property investment decisions
currently. In addition, the price of zinc has tumbled below
ninety cents per pound, for the time being, curtailing our royalty
stream from the Mid-Tennessee Zinc Mines although zinc prices seem
to be slowly rising.
While it is difficult to complete deals, Globex
has vended a number of small royalties to Electric Royalties Ltd
(“Electric Royalties”), an emerging royalty company focused on the
entire suite of metals associated with the electric vehicle and
battery revolution including cobalt, copper, nickel, tin, graphite,
lithium and manganese. We have agreed to sell our 2% GMR’s on
the Chubb and Bouvier Lithium exploration properties, 2% of our 3%
Gross Metal Royalty on the Battery Hill Manganese project, 0.5% of
our 1% Gross Metal Royalty on the Authier Lithium project and 2%
GMR on adjoining claims to the east and west, and Globex’s 1% Gross
Metal Royalty on the Mont Sorcier Iron Vanadium deposit but only on
Vanadium production. In exchange, Globex will receive
$500,000 ($25,000 received) and 3,000,000 shares of Electric
Royalties in addition to certain contingent payments upon certain
milestones. The transaction is expected to close in Q2 of 2020 and
despite the difficult market conditions, things are progressing
well.
On the acquisition front for a goodly number of
years, we have wanted to acquire three claims which prevented us
from continuing to extend significant gold intersections along
strike of the Maufort Mega Shear at the west end of our large
Tiblemont/Tavernier gold/copper/zinc property (see map on the
Globex website). At the boundary of the north end of the
newly acquired claims, we intersected gold values such as 19.6 g/t
Au over 1.5 m, 2.46 g/t Au over 1 m, 3.91 g/t Au over 1 m, 23.6 g/t
Au over 1 m, 7.5 g/t Au over 1.5 m, 5.9 g/t Au over 4 m, 9.7 g/t Au
over 1 m and 4.29 g/t Au over 1 m. Beyond the south boundary
of the newly acquired cells, historical drill holes report up to
15.8 g/t Au over 3 m, 6.34 g/t Au over 6.8 m and 5.9 g/t Au over
3.8 m as well as a historical non NI 43-101 compliant resource of
87,000 t grading 5.8 g/t Au (Source Sigeom: Maufort Resources
1985). We believe that the newly acquired claims may have
exceptional potential. In addition to acquiring the claims,
we also purchased an underlying 2% NSR attached to the
property. The only remaining encumbrance is a 1% NSR, 0.5% of
which we can purchase at any time for $100,000 and a first right of
refusal on the remaining 0.5% NSR.
At the east end of the 23 km long
Tiblemont/Tavernier property, we recently acquired by staking 27
cells covering a number of mineralized occurrences, including drill
hole MM-10-03 which returned 6.57 g/t Au over 1 m, 2.21 g/t Au over
1 m as well as other gold values over a 27 m wide shear zone, 3.37
g/t Au in a grab sample toward the south side of the claim block
and the Jolin showing with gold values of 4.9 g/t, 2.8 g/t Ag, 4.84
% Zn and 0.19% Cu reported.
We have also staked a number of other properties
including:
- Several platinum/palladium showings
with up to 8.03 g/t Pd and 5.15 g/t Pt in grab samples.
- Several rare earth showings
southwest of our Turner Falls rare earth property with TREO
reported of up to 2.3% plus ZrO2.
- A series of gold showings and drill
hole intersections west of Rouyn-Noranda with grab samples running
up to 2.73 g/t Au and a drill hole returning 4.2 g/t Au over 1
m.
- A series of cells in the area of
the Casa Berardi Gold Mine.
- A high-grade silica
zone.
- A gold property south of Timmins,
Ontario with reported gold values and a shaft.
- The Vermont Zinc property (Zn, Ag)
which has a historical noncompliant resource of 193,782 t grading
58.62 g/t Ag and 3.41% Zn as well as lead and gold (GM50246 in
Sigeom – Montbay Township Property, Report of Diamond Drilling,
Geology and Downhole Pulse EM and Induced Polarization Surveys, D.
Robertson, Feb. 1990, Finneth Exploration Inc.
- A number of claims with lithium
intersections in drill holes.
Note: Grab samples are selective by nature
and are unlikely to be representative of average grades.
These acquisitions are in addition to the
acquiring of 100% interest in the Lac Fortune Gold Mine announced
on March 4, 2020, of the large package of cells on strike with
Azimut’s gold discovery in the James Bay area, of cells within
Azimut’s Kukamas exploration project with high grade gold and
copper on surface and of the H1-H2 kimberlite property, all
announced in a press release dated February 12, 2020.
Our partners have also been making progress.
At our Bell Mountain royalty project in Nevada,
Eros Resources Corp. has announced that the Bureau
of Land Management has provided a Finding of No Significant Impact
(FONSI) on the Environmental Assessment. The FONSI is a key
step in advancing the Bell Mountain Gold Project toward
production.
Nippon Dragon Resources Inc.
has been working underground at Globex’s Rocmec 1 gold mine royalty
property although they have temporarily stopped work due to
restrictions imposed by the Coronavirus outbreak. Work has
included dewatering the ramp, accessing level 45 and 100 metres of
the McDowell vein structure, developing the first 30 linear metres
of an ore block, etc.
O3 Mining Inc. have been
working on Globex’s Nordeau East and Nordeau West royalty
properties as reported in a O3 press release on April 9,
2020. Particularly noteworthy, are the following drill
results:
North Contact: |
3.1 g/t Au over 7.0 m including 4.6 g/t Au over 2.9 m and 5.3 g/t
Au over 1.5 m |
|
|
Nordeau West : |
10.2 g/t Au over 0.5 m |
|
10.1 g/t Au over 0.6 m |
|
|
Nordeau East : |
29.7 g/t Au over 0.5 m |
|
8.3 g/t Au over 1.3 m |
|
3.6 g/t Au over 1.4 m |
Renforth Resources Inc.
announced drill results on our New Alger Gold Mine royalty property
including 1.46 g/t Au over 6.3 m at a vertical depth of 410 m in
hole REN-20-40 (deepest hole to date), 32.33 g/t Au over 0.4 m,
0.71 g/t Au over 17.4 m including 1.21 g/t Au over 6.9 m in hole
REN-20-39, 3.25 g/t Au over 4.0 m in hole REN-20-38 (See Renforth
press release dated April 15, 2020).
Excellon Resources Inc. have
been working on our Bräunsdorf (Silver City) project and have
sought permission to drill up to fifteen holes on various priority
targets. The dossier was well received by the authorities, is
advancing well and final approval to drill is expected shortly.
Vanadium One Iron Corp. on
February 27, 2020 announced results of its Preliminary Economic
Assessment of the Mont Sorcier iron/vanadium deposit. The
deposit is expected to produce a life of mine average concentrate
grading 65% iron and 0.6% V2O5 with the concentrate selling at an
average, over the life of project, $140.79 per tonne based upon a
Platt’s 65% grade iron concentrate range of $92.00 to $104.00 USD
(average used $92.00/t) and a vanadium price premium per tonne of
concentrate of $0.00 to $30.00 USD per tonne (average used $15.00
/t). Net Present 8% After Tax Value is reported as $1.699 billion
Canadian with a pre tax IRR of 41.5%, and a 37-year mine life with
a 3-year payback. Production of concentrate is expected to
average 4.8 million tonnes per year. (Please see the Vanadium One
press release for much more detail.) On April 15, 2020, Vanadium
One reported the assay results of seven additional drill holes as
well as additional Davis Tube test results. Results are
positive.
Lastly, two actions initiated by governments,
will have a positive effect on our efforts in both the short and
long term. First, the federal government has initiated a
salary subsidy program for Canadian companies that have seen a drop
of at least 15% in their revenue. Globex unlike most
exploration companies generates revenue. Due to this fact, we
expect to receive up to 75% of the salaries of our employees for
the next 12 weeks from the federal government likely totaling over
$130,000. This program may potentially be extended. The
Quebec government, while ordering all none essential offices to
close and all field exploration to cease, last week announced that
tax and assessment requirements on exploration properties have been
deferred for 12 months. This is especially meaningful for
Globex as the bulk of our nearly 200 projects are located in Quebec
thus saving Globex hundreds of thousands of dollars and allowing us
to focus on upgrading high priority assets rather than undertaking
general property maintenance in 2020 and into 2021.
Overall, despite these difficult times, we
continue to make progress by acquiring projects, maintaining and
advancing assets, controlling expenditures and endeavoring to
generate income.
This press release was written by Jack Stoch,
Geo., President and CEO of Globex in his capacity as a Qualified
Person (Q.P.) under NI 43-101.
We Seek Safe Harbour. |
Foreign Private Issuer 12g3 – 2(b) |
|
CUSIP Number 379900 50 9LEI 529900XYUKGG3LF9PY95 |
For further information, contact: |
Jack Stoch, P.Geo., Acc.Dir.President & CEOGlobex Mining
Enterprises Inc.86, 14th StreetRouyn-Noranda, Quebec Canada
J9X 2J1 |
Tel.: 819.797.5242Fax: 819.797.1470
info@globexmining.com www.globexmining.com |
Forward Looking Statements:
Except for historical information, this news release may contain
certain “forward looking statements”. These statements may
involve a number of known and unknown risks and uncertainties and
other factors that may cause the actual results, level of activity
and performance to be materially different from the expectations
and projections of Globex Mining Enterprises Inc. (“Globex”).
No assurance can be given that any events anticipated by the
forward-looking information will transpire or occur, or if any of
them do so, what benefits Globex will derive therefrom. A
more detailed discussion of the risks is available in the “Annual
Information Form” filed by Globex on SEDAR at www.sedar.com
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