Globex owns over 100 props "none of it moose pasture" per their president Jack Stoch, who's presentation I caught and made that booth a 'must visit'. That's over 100 props in Quebec, Ontario and the U.S. PLUS 16 royalty properties. I believe he's run it for about 15 years +/- and he's a boots to the ground geologist. The company is run by 4 geologist and one accountant. After this many years of operations, you'd think they have a big float but in fact they have 23m o/s and under 25 m FD, with NO rollbacks in their history. Now that's pretty amazing. (I asked about bill 14 btw, and he said that (although he's really pissed!) that the vast majority of their Quebec properties are not affected.).
globexmining.com
They've funded themselves with limited financings and royalties income and optioning out properties. Next year they figure they'll bring in $4m from the royalties/optioning. So that's how you do it, plus being smart and cheap. I mean that in the nicest way and a way that we appreciate! They were planning to spin out their Chibougamau Que gold project (which contains 7 former mines I seem to recall) but it got interrupted when the co. that bought an option to look at the books got hit with the market turbulence and backed out, throwing the plans back. They plan on getting this spun out before the end of the year to do their shareholders right. With the GMX stock performance I expect they're pretty impatient about it too.
They have a bright talc/ magnesite project called the Timmins talc magnesite project TTM. Talc isn't viable (ie. if you do a USGS google on talc as I did), you'll get the big broad picture and it's ho hum. However what these guys have is bright talc and that's a different picture altogether. China's reserves of bright talc is declining and exports are being cut, and it is affecting the S/Demand picture in North America. Roskill's presents a much more detailed picture of the bright talc potential for TTM.
globexmining.com
There's potential European interest in TTM. This diversified industrial metals co did an internal study of over 50 minerals and compounds and came up w/ a list of 8 priority ones that they're interested in. Two of the 8 are ...bright talc and magnesite. The pre feasibility results are supposed to come out before PDAC and my impressions from speaking to Jack are that the market won't be disappointed. What the numbers are and if the market gives a whatever, time will tell. Whether they go it alone or involve the European co, who knows. But I do note that of the 41 NRs issued in 2011, this last one for the year addresses the lack of market interest in the co.. Current coverage....zilch. My bet is we'll get some SH coverage after PDAC or maybe SH will refund the money? ha ha.
globexmining.com
Here's one relating to Richmont by the way...
globexmining.com
So you've got Chibougamau as a promised spinout in 2012, and potentially TTM one day. Do we have any experts on refractory gold out there that can comment on GMX's Eco Refractory subsidiary, 90% GMX and 10% DMI? A couple of years ago they got DMI, their partner in the TTM project to adapt their proprietary refractory processes to tackle refractory gold. The result was up to 98% recoveries in an eco friendly process. I'm sure there's a lot of work to do to prove this up on a test and pilot basis, never mind get it commercialized! I couldn't guess at the probability of success and didn't want to ask. But the alternatives (autoclaves) run into the hundreds of millions of dollars and I take it are not eco friendly. Bad. If it ever got commercialized they'd be able to license out this technology for a % and .... Or, even if it didn't make it all the way, well let's just say I think they might be able to issue some pretty interesting NRs on they way to finding out.
I own a diversified basket and as much as I'm REALLY tempted to go nuts, I'm going to exercise discipline. That said I DID make it my largest position after meeting Jack. As a pretty regular guy, that just means I've got maybe 10,000 to trade/sell, that's it. The rest I plan on being in for the long haul because I can see the day that this gives you 3 companies for 1. And a forth one, be it Eco Refractory or another from their stable of properties. After trading in the $6+ range in 2007 I think they see now that a different strategy is called for, that of spinning out subs.
The best news of all is that this thing has barely moved since I got my $1.20s. It closed at $1.26 on Friday for a FD market cap of just $31m.
globexmining.com
31Floors.
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