Globex Mining Enterprises Inc gave an update on positive developments at two of its royalty assets in eastern Canada.
At the Battery Hill manganese asset in New Brunswick, project owners Manganese X recently released a preliminary economic assessment (PEA) outlining strong economics, including a 25% internal rate of return and after-tax net present value of $486 million at a 10% discount rate.
Globex noted that the PEA uses a base case market price of $2,900 per ton for battery-grade high-purity manganese sulphate, which is well below the long-term forecast price of $4,200 per ton estimated by CPM Group.
READ: Globex Mining Enterprises partner Maple Gold says Phase 1 drilling is complete at the Eagle gold project in Quebec
Globex retains a 1% gross metal royalty (including manganese compounds) on the project and a large shareholding in Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF), which has a 2% gross metal royalty on the project.
More good news flowed in from Globex’s Joutel Eagle property in Quebec, which is currently under option to Orford Mining (TSX-V:ORM) Corporation. Orford reported confirmation of the location of the historical South Gold mineralization system.
Drill results from the zone showed grades of up to 10.8 grams per ton (g/t) gold over 0.84 metres, which is higher than those reported historically from the system in a nearby hole that reported up to 5.5g/t gold over 1.43 metres, Globex said.
Globex optioned the Joutel Eagle property to Orford in November 2021.
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