Globex Mining Enterprises (GMX-T) has optioned the Russian Kid gold deposit, 56 km from Rouyn-Noranda to Dasserat Resources.
To acquire the property, Dasserat must make $21,000 in option payments, issue Globex 800,000 shares and spend at least $4 million on the property over 4 years.
Globex retains a 2% royalty on all gold sold at less than US$330 per oz., increasing to 3% at realized prices exceeding US$330 per oz. Globex also has a 2.5% royalty on all other metals recovered. Globex will also receive the greater of a 5% gross profit interest or 5% net metal royalty from any metal extracted from any bulk sample collected by Dasserat.
Failing the start of production by the end of 2007, Dasserat must pay Globex an advance net metal royalty of $30,000 per year.
Globex acquired the property last May. A feasibility study completed in early 1984 pegged resources at 1.1 million tons grading 0.247 oz. per ton. Of that, 62,365 tons running 0.16 oz. are classified as proven; another 370,507 tons carrying 0.2 oz. are in the probable category. A geologic resource totalling 200,000 tons is indicated in the Talus Vein.
The resource figure is based on about 70,000 ft. of surface diamond drilling, underground drilling, underground channel sampling and bulk sampling. Globex says that the estimate may not be in line with Canadian standards under National Instrument 43-101.
Gold mineralization at Russian Kid is accessible via drifts, raises and an existing ramp reaching to a vertical depth of 425 ft.
The deposit comprises a series of narrow quartz-pyrite veins or quartz with semi-massive pyrite bands in diorite. The zone has been traced along some 4,000 ft. of strike length and to a maximum depth of 1,600 ft.
Widely spaced drill holes testing beneath existing underground workings (at the 675-to-1,000-ft. level) returned between 0.1 and 0.6 oz. gold over intervals from 3.5-5.6 ft. A vertical drill hole to the 1,564-ft. level cut up to 0.58 oz. over short widths.
Gold recovery rates are pegged at around 94-96%.
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