Globe Metals & Mining (ASX: GBE) has entered into a new joint venture in a highly prospective titanium-vanadium-iron (Ti-V-Fe) project at Memba in Nampula Province, Mozambique.
The JV agreement with Mihandzu Minerais SA allows Globe to earn up to 80% interest in the Memba licence over five years through staged expenditure on exploration programs, with an option to purchase an additional 10% after five years.
The Memba project will add to Globe's portfolio of early stage projects in Africa which include the Machinga REE Project in southern Malawi, and the Mt Muambe Flourite/HREE Project in Mozambique, where a recent drilling program returned strong rare earth oxides.
The company's recent due diligence program revealed very high grades of titanium with additional vanadium from rock-chip samples averaging 47% titanium dioxide (TiO2) and 0.38% vanadium oxide (V2O5). Vanadium is a potentially valuable by-product.
The mineralised horizon is almost pure ilmenite with the mineralised zone ranging in thickness from 6-20 metres, having a strike length of more than 10 kilometres.
Also, a separate high-grade magnetite zone has been identified with two samples averaging 66.8% iron.
Mark Sumich, Globe’s managing director, said “the company is excited to be involved in this project, and it suits our exploration model perfectly: we are already operating in Mozambique, the potential upside on the project is enormous and the initial ‘look and see’ phase 1 exploration spend is negligible.”
The company said additional potential for magnetite mineralisation warrants further investigation, whilst the potential for vanadium is also significant.
In year one Globe will spend US$200,000 on exploration to earn 20%, then in year two it must spend an additional US$500,000 on exploration to earn 51%.
In year three the company can earn 75% if it defines and reports a JORC Resource. In the fifth year the company can earn 80% if it issues a Feasibility Study within 24 months of the end of Year three.
Finally, any time after year five if can earn 90% as it has an option to purchase a further 10% interest in the Tenement for a mutually agreed amount.
In April 2011, the company entered into a strategic partnership with ECE, a Chinese State Owned Enterprise with extensive mining operations in China and overseas.
ECE is now the largest shareholder in Globe, and a key partner for Globe’s growth ambitions in Africa.
Globe is currently making solid progress at its Mount Muambe project in Mozambique with the main fluorite and rare earth elements (NYSEMKT:REE) zone drilling nearing completion.