Globex acquires second New Brunswick mining project

TORONTO (miningweekly.com) – North American project developer and royalty firm Globex Mining Enterprises has acquired a second project in the Eastern Canadian province of New Brunswick, giving it an advanced-stage undertaking with a previously defined compliant inferred resource statement.

Under the terms of the purchase agreement with Rockport Mining, a subsidiary of Tri-Star Resources, Globex paid Tri-Star 350 000 shares and would provide a 1% net smelter royalty, which would kick in after the property had produced 600 000 oz of gold. The property was also subject to a 2% underlying royalty. All the royalties could be purchased for C$500 000 per half per cent.

A 2011 National Instrument 43-101 technical report on the Golden Pike property, which had been renamed the Devil's Pike gold property, had reported an inferred mineral resource of 214 800 t grading 9.60 g/t gold, containing 66 300 oz of gold, or 214 800 t grading 13.48 g/t gold (uncut), totalling 93 100 oz of gold.

The inferred resource was based on 100 diamond drill holes with a total length of 16 185.5 m, a cutoff grade of 5 g/t and a minimum thickness of 2 m, a long-term gold price of $1 200/oz of gold and a C$/US$ exchange rate of 1:1.

The report also stated that there was significant potential for exploration upside to the Devil’s Pike property, outlining that, in addition to the inferred resource, the potential tonnage and grade of the mineralisation located along strike in both directions from the existing known resource, which were targets for further exploration, could be 150 000 t to 350 000 t, grading between 7 g/t and 10 g/t gold.

The Devil's Pike gold property was located in the Parish of Springfield, Kings County and Wickham Parish, Queens County, in south central New Brunswick. The property comprised 119 claims totalling 1 904 ha and included the ‘Main’ and ‘Parallel’ gold zones.

The ‘north mineralised trend’ also hosted favourable geology and exploration results, but it still had to undergo sufficient exploration work to estimate an exploration target.

Between 2011 and 2012, a further 24 holes and one hole extension were drilled by Rockport, which had merged with Portage on November 2, 2010.

Globex stated that it was particularly happy to have acquired such an advanced project with excellent exploration potential in New Brunswick, which was rated as one of the best exploration jurisdictions in the world. This acquisition was Globex’s second in the province, the first being Globex's Woodstock-area manganese asset.