Globex Mining (
) Wednesday issued a comprehensive update on its corporate activities for its shareholders.
The Quebec-based company seeks to create shareholder value by acquiring mineral properties, enhancing them and either exploring, optioning or joint venturing them, developing them to production, or in some cases selling projects outright.
The company said that it had cash, negotiable securities and shares in other companies valued in total at $3.4 million.
In addition, as announced on May 23, the company agreed to raise an additional $3.2 million principally at $1.30 per share, in order to explore a number of projects in Quebec and Ontario.
"The state of the junior exploration sector is in disarray. Shareholders and investors are deeply concerned about their investments, the markets, metal prices, the economy, the banking system - pretty much everything," Globex Mining's president and CEO Jack Stoch said, commenting on the current market environment.
At its Timmins, Ontario talc/magnesite project, Globex said it will do infill drilling in order to raise the resource classification to reserve as required for completion of the prefeasibility study.
Detailed analyses, both chemical and mineralogical, will be carried out to better define the mineral zonation of the ore to allow for more directed mining.
In March, the company unveiled a preliminary economic assessment for the project, which showed the project will generate
$2.58 billion in gross revenue over the initial 20-year period with an after-tax internal rate of return of approximately 20 percent and a net present value of $258 million at an 8 percent discount rate.
Capital costs for the talc/magnesite project are estimated at $335 million over six years.
Permitting continues at the mine site of the potential open pit with the various testing, permit applications and other negotiations ongoing.
As part of moving the talc/magnesite project forward, Globex has hired David Hall as project manager. Hall is a mineral process engineer who has over 27 years experience in mineral process engineering as well as a broad exposure to base metals, precious metals and industrial minerals.
At the company's Turner Falls Rare Earth Property in Quebec, Globex has completed mapping, geophysics, sampling and analysis of samples from the property which has led to the identification of at least 6 large areas of high-grade rare earth mineralization as well as yttrium, zirconium, hafnium and niobium.
Globex has defined an initial drill program of 8 strategically located drill holes in order to confirm the width, depth, dip and mineralogy of the zones. The program will be helicopter-supported in order to eliminate the need to cut an access road at this point in time.
Globex has also been actively acquiring properties.
Amongst its latest acquisitions in Quebec, Globex staked the Guyenne gold and base metal property; the Tiblemont gold claims
including the Blair gold showing; the Fecteau Lake gold and base metal property; the Dollier gold property south of Chibougamau
and the Lake Jaune gold property beside and on strike with
Corporation's Monster Lake gold property.
"Globex, like most junior exploration companies, has seen downward pressure on our stock price, both from the flow-through funds continuously selling into the market due to redemptions, and from the overall atmosphere of fear dominating the market.
"In this atmosphere we have a choice: Batten down the hatches and weather the storm or forge ahead despite the obstacles.
"We view inaction as negative for our shareholders. Delays for our talc/magnesite project would mean loss of important personnel already engaged for the project and eventually delayed production. Priority exploration targets would not be explored."
"All in all we have been very busy and expect the current pace to continue. We hope shareholders will agree that moving diligently forward is the correct path to follow."
The company has a diversified portfolio of mid-stage exploration and development properties containing precious metals, base metals, specialty metals and industrial minerals and compounds.
A full update on all of Globex's properties can be found at