At our Hematite Lake Iron Property in Northern Quebec, Globex flew a detailed magnetometer survey over the known historical iron deposit (see press release October 15, 2012 from Cleghorn Minerals Ltd.). Under an Option Agreement and extension dated January 31, 2013, Cleghorn Minerals Ltd., subject to financing, will explore these claims. Cleghorn has agreed to refund Globex's expenditures related to the airborne survey and is paying a $25,000 initial good faith payment.
The current market conditions for junior miners have taken a toll on a number of our option partners:
Xmet Inc. did not succeed in raising the funds required to partially buyout Globex's interest in the Duquesne West project. Nonetheless, they continue to make the required quarterly $75,000 interest payments and annual option payments and are advancing the project through drilling, mineralogical test work, trenching, etc. Considering the good work by Xmet and the current market conditions, Globex has extended the buyout period to April 30, 2013. On December 11, 2012, Xmet announced the results of mineralogical test work on mineralization from the Duquesne West property. Of particular importance for future mineral processing are the findings that the gold occurs as free gold and is not associated with arsenic nor is it refractory.
Integra Gold Corp has continued its option on what they have renamed the Donald Property (Globex's Farquharson Property) east of Val D'Or. They acquired the property "in order to expand its exploration and development programs to the east" of their flagship Lamaque gold property. We have not, as yet, received reports of new exploration on the property.
By mutual agreement, Plato Gold Corp. and Globex agreed to terminate Plato's option to explore Globex's Nordeau East and West properties. 100% interest in the properties has reverted to Globex. Plato has reported expenditures of greater than $4.5 M over the previous option periods much of which was spent on drilling and analysis. Plato reported in their September 30, 2012 MD & A the following NI 43-101 compliant mineral resource (the historical estimate referred to below) on the Nordeau West Zone from a report dated March 1, 2009 by John Langton, B.Sc. P.Geo and Alex Horvath, P.Eng. from MRB Associates of Val D'Or, Quebec.
----------------------------------------------------------------------------Indicated Resource 225,342 tonnes grading 4.17 g/t Au (30,212 oz)----------------------------------------------------------------------------Inferred Resource 1,112,321 tonnes grading 4.09 g/t Au (146,315 oz)----------------------------------------------------------------------------
Under National Instrument 43-101, Section 2.4, the regulators require a statement that "a qualified person has not done sufficient work to classify the historical estimate as current mineral resource or mineral reserve and that Globex is not treating the historical estimate as current mineral resources or mineral reserves" every time a historical NI 43-101 resource estimate is quoted even though the company for whom the historical estimate was made, produced the estimate in conformity with NI 43-101 regulations. Therefore in the following pages, despite the repetitiveness, Globex has conformed to this requirement.
The Nordeau East Zone also contains numerous gold bearing drill intersections and historical resources are reported (345,900 tonnes at 6.0 g/t Au). The historical resource estimate was prepared by A. Tremblay of Roche ltee - Groupe Conseil, 1989. "A qualified person has not done sufficient work to classify the historical estimate as current mineral resource or mineral reserve and Globex is not treating the historical estimate as current mineral resources or mineral reserves". Globex will review all the data and will incorporate the new drilling and then decide how to go forward with this project.
