Globe Metals & Mining (ASX: GBE) has yet again extended the rare earth elements strike zone at the evolving Mount Muambe project in Mozambique.
The strike has now been extended to over 600 metres south of main fluorite / rare earth element zone, with the latest drilling highlights including:
Southern extension drilling; 12 metres at 17.1% fluorite from 1 metre, including 4 metres at 26.8% fluorite; and 14 metres at 0.7% TREO with 336ppm Dy2O3 from 13 metres.
Infill drilling on the Main Zone delivered; 5 metres at 50.0% fluorite from 8 metres; and 18 metres at 40.9% fluorite from 15 metres, including 14 metres at 48.4% fluorite.
Globe Metals said that the new fluorite results and additional infill drilling from the 2011 drilling program have further strengthened the company's confidence in a significant zone of contiguous fluorite mineralisation at the project's main zone.
The impact from the recent results is that they continue to support a model of fluorite dominantly hosted in sheets of fenite above a larger carbonatite body containing both light rare earth oxide and heavy rare earth oxide enriched mineralisation.
News flow pending; JORC Resource
The progress at the project during 2011 has positioned Globe Metals to be able to deliver a fluorite JORC Resource in the March quarter of 2012.
There are also drilling results pending within weeks, as the 2011 reverse circulation program for 9400 metres still has over 4000 metres of assays to be announced.
Globe Metals: $39.2 million cash bounty
Globe Metals is in an enviable position of having $39.2 million cash in the bank at the end of 2011, with the well funded company announcing a share buy back just last week.
Globe's cash position equates to a cash backing of $0.18 per share, and what will be of interest to investors is the company's shares last changed hands at $0.175.
Subject to approval of ASIC, ASX and FIRB, (shareholders approval not required), the on-market buy-back is for up to 10.08 million shares, which represents around 5% of the issued capital, at no more than $0.23 per share.
Mark Sumich, managing director, commented at the time: "Globe's current share price does not reflect its intrinsic value, let alone its cash backing.
"Accordingly, given our strong cash position and the relatively small amount of cash required to undertake the buy back, the board considers this to be a very appropriate use of our funds."