Globex Mining Enterprises Inc said its optionee Excellon Resources Inc has filed an updated independent technical report for the Silver City project, formerly known as the Bräunsdorf exploration license, in Saxony, Germany.
The company said, per Excellon, that independent consulting firm MSA Group Pty Ltd had concluded that the proposed work program was appropriate for the Silver City project.
“Globex is pleased with the outlined extensive program as proposed by Excellon,” the company said.
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The proposed program includes step-out diamond drilling at Bräunsdorf to assess the extent and nature of mineralization below workings of the historical Neue Hoffnung Gottes Mine; step-out diamond drilling at Grauer Wolf and Reichenbach to confirm the continuity of the known mineralization along the strike and towards depth; and step-out diamond drilling at Grosvoigtsberg to confirm continuity of the known mineralization along the strike and towards depth, particularly in the areas where rich ore shoots were documented during historical mining.
It also proposes an airborne magnetic survey in selected areas to complement the dataset that was obtained during the earlier surveys; further structural analysis to improve understanding of the controls on mineralization and the implications for exploration targeting; and archive work, digitizing and georeferencing historical mine plans.
Per the option agreement, Globex retains a 3% gross metal royalty on recovered precious metals and 2.5% gross metal royalty on all other metals at the project, which can be reduced to 2% and 1.5% respectively with a US$1.5 million payment.
The remaining option terms to be met by Excellon are paying C$200,000 and issuing common shares of Excellon with a value equivalent to C$625,000 based on the five-day volume weighted average price on or before September 23.
Excellon has also agreed to make a one-time C$300,000 payment upon the release of a maiden resource on the Bräunsdorf license and a one-time payment of C$700,000 upon the achievement of commercial production from the license, Globex said.
Based in Quebec, Globex has a diversified North American portfolio of mid-stage exploration, development and royalty properties containing precious metals, base metals, specialty metals and minerals, and industrial minerals and compounds.
Contact the author Emily Jarvie at emily.jarvie@proactiveinvestors.com
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