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TTM - Timmins Talc-Magnesite Deposit
Property Description and Location On December 31, 2012, the property consisted of 29 mining claims, totalling 57 claim units and covering approximately 912 hectares, in Adams and Deloro townships, Ontario Canada. The property also includes approximately 551 hectares of “severed” or surface-rights–only mining patents, all of which are located in the south half of Deloro Township, Porcupine Mining District, 13 km southeast of the City of Timmins, Ontario. The mineral rights are held 100% by Globex Mining Inc. Certain claims in Deloro Township are in the process of being taken to lease. Globex acquired the original 19 claims in Deloro Township by purchase in 2000 and staked or bought outright the remaining mining claims since that time. Project ownership is shared with joint venture partner Drinkard Metalox Inc. (DMI) who holds a 10% in the project while Globex Mining Enterprises holds 90% interest in the project. Vehicular access to the claim group is provided by road from the City of Timmins via Pine Street South and subsequently Naybob Road to kilometer post 10, at which point the Mount Joy River Road is followed eastward from there for 3km to the Wishbone power line and then northward for 3km along a series of seasonal trails to the centre of the property. Geological Setting The area is underlain by Archean intrusive and extrusive units and sediments including large masses of altered ultramafic lithologies and at least one east-west diabase dyke. Strikes are generally east-west, dips near vertical or steeply to the north or south. The magnesite-talc-quartz rock unit is exposed on surface as large areas of outcrop 3 to 6 metre above a sand plain floor. History Work in the 1940’s by Porcupine Southgate ML included the completion of 29 diamond drill holes totaling 8,108 metres of diamond drilling which focused on gold exploration. Subsequently, in 1962 Canadian Magnesite Mines Ltd carried out surface sampling and 1,209 metres of diamond drilling in 8 holes in an effort to delineate a resource of refractory magnesia mineralization. This company completed various studies and in 1974, Canadian Magnesite Mines Ltd prepared a positive preliminary feasibility study on the property with a proposed production rate of 50,000 tpy for the MgO and 16,400 tpy for the talc (ref. Preliminary. Feasibility Study prepared for Canadian Magnesite Mines Ltd on the magnesite/talc property, Timmins, Ontario, by Scrivener Engineering Ltd, Toronto, Ontario, 1974). The property was then acquired by Pamourex and then re-staked by Royal Oak Mines Ltd in 1984-85. The latter carried out limited further diamond drilling (8 holes, totaling 591 metres) and in-situ blasting for bulk sampling (15,000 tons) purposes in the area referred to as the Pamour Pit with the objective to complete further technical and market studies aimed at the eventual production of MgO and magnesium metal. However, control of Pamour was subsequently sold to an Australian company and the property subsequently optioned to Magnesium Refractories Ltd. who worked the Pamourex/Royal Oak Mines property from 1989 to 1994. Magnesium Refractories carried out numerous economic studies and mineral processing, engineering and financial studies including a Prefeasibility Study in 1991 with the objective of developing a magnesite-talc operation to produce magnesium oxide (MgO) and high quality talc from a deposit estimated to host a global resource of 110Mt grading 54% magnesite (MgCo3), 28% talc, 16% qtz and 3% iron oxides (ref: Magnesium Refractories Ltd, Pre-Feasibility Report, R.A. Elliot, April,1991). This resource estimate is non NI 43-101 compliant and as such, the validity of this estimate cannot be relied upon. In 1999, Pentland Firth Ventures, completed 2 shallow close spaced diamond drill holes totaling 151 metres on the “Deloro Magnesite Deposit” where they report intersecting “magnesite altered ultramafic intrusive rock”. Subsequent to Royal Oak Mines Inc. going into receivership, Globex purchased the Deloro Magnesite Property in 2000. Test work by previous owners of the property attempted to produce magnesium refractories by conventional processes available at that time. For the most part, this test work showed that magnesium products could be generated from this deposit, albeit with elevated iron contents that are not necessarily desirable under all market conditions. Exploration In 2000, Globex initiated a small drill program consisting of 2 shallow holes totaling 163 metres on the western end of the Timmins Magnesite deposit. A similar 2 hole drill program totaling 179 metres was then undertaken in 2001 with the purpose of continuing the confirmation of metallurgical testing of those results from the previous operators as part of Globex’s initial scoping study on the deposit. The stratigraphic drilling by both Pentland Firth and Globex substantially extended the magnesite mineralization to over 250 metres west of the Pamour Pit. In 2007, preliminary laboratory work by Drinkard Metalox Inc (DMI) indicated that the intersected magnesite mineralization could produce high quality magnesia and magnesia by-products, using hydrometallurgical techniques. In 2008, Globex drilled an additional 17 angled holes totalling 2,127 metres on three drill fences spaced at 100 metres in the main magnesite zone to; a) better detail the volcanic stratigraphy and its spatial relationship to the magnesite/talc mineralization, b) expand and detail the rock geochemical database and petrographic studies and c) gather sufficient lithological distribution data to support an adequate 3D model for geological solid and grade block modelling. Metallurgical bench scale test work continued at DMI and preliminary engineering studies were initiated. Research studies into talc recovery continued to progress in 2008. In 2009 and 2010, Globex carried out geological mapping on the Deloro portion of the claim block in conjunction with induced polarization and resistivity survey work as well as a ground magnetometer survey. Other aspects of the on-going metallurgy/process engineering study consisted of continuing base line studies regarding environmental/community/First Nations issues. Micon International Ltd. completed a NI 43-101 compliant initial mineral resources estimate (Ref. Globex internal report by Micon International Ltd, R. Pressacco, D. Hall and P. Ling, February 24, 2010) on the A Zone as detailed below. The following was calculated using diamond drilling information from surface down to 100 metres. At the time of this appraisal, the A Zone was known to be open to depth and along strike in addition to other known magnesite zones on the property. The following resource tonnages and grades from the Micon NI 43-101 report are all within a limited portion of the A Zone: Mineral Resource Estimate
Note: Additional information is available in the press release dated March 2, 2010 and in the complete report which was filed on www.Sedar.com on the same date. The resource is open both along strike to the west and east where it is exposed on surface as well as to depth. A micro-pilot plant study was completed at DMI to confirm engineering criteria for the production of high-grade magnesia. This program used tailings material generated from the pilot plant talc flotation study. In 2011: a) Jacobs Minerals Canada Inc. was retained to design and engineer a preliminary plant layout that would treat the primary material and produce high-grade talc and magnesia. Mineral industry consultants Micon International Ltd, were originally tasked to deliver a Pre-Feasibility study (PFS) in 2011, but were subsequently directed by Globex to convert the PFS study into a Preliminary Economic Assessment (PEA). b) Contractor Blue Heron Environmental continued with their base line environmental studies while Golder Associates Ltd was retained to study waste stream storage requirements and to issue a conceptual pit slope design. c) Globex increased the size of the project by staking an additional 448 hectares thereby more than doubling the original property size by an expansion to the west and south of the original property perimeter. Globex also presented an application to the provincial government to bring part of the property claims group in Deloro Township to lease. In 2012. The newly acquired western claims in Deloro and Adams townships were examined by completing preliminary exploration work. This consisted of line cutting, carrying out 29.7 kilometers of a combined ground magnetometer and VLF-EM survey by Larder Geophysics that was subsequently followed by geological mapping using Globex personnel. Metallurgical Consideration: An alternative talc processing method of the carbonate ore continued to be investigated. This work was primarily completed by year-end, with only some follow-up magnesite beneficiation tests left to be completed. Globex as part of its provincial leasing application in Deloro Township bought by outright sale from the City of Timmins, 12 “surface-rights-only” (SRO) patents totalling about 166.9 hectares (412.49 acres), thereby increasing the area of severed SRO mining patents to about 551 hectares. Micon international Ltd. completed a preliminary economic assessment of the Timmins talc-magnesite deposit. This PEA, as detailed in a press release dated March 2, 2012, indicates a positive after-tax NPV of $258 M at a discount rate of 8%, an after-tax internal rate of return (IRR) of approximately 20% and a payback period of 5.8 years on the discount cash flow. This technical report is posted on SEDAR (www.sedar.com). The results of the PEA support the conclusion that further work is justified on the project, with an ultimate objective of completing a Feasibility Study. The additional work includes completing an additional infill-drilling program to update the known resource calculation. To that end, a proposed 6,900m diamond drilling campaign was initiated in December using Timmins based Major Drilling crews. By year-end, 16 boreholes totalling some 2,523 metres had been completed. The conceptual flow sheet has been the subject of comprehensive bench-scale testing by Globex and DMI. The company contemplates the production of a talc concentrate using conventional flotation technologies. Preliminary testing of the talc flotation concentrate reveals that a commercial grade product can be generated with no impurity issues. The tailings generated from the talc flotation stage will be subjected to a hydrometallurgical process, which will produce a high-grade final product. In this hydrometallurgical process, the iron content of the feedstock is put into solution and is subsequently removed as a ferruginous precipitate that will be stored in a suitable containment area. In this manner the background iron content of the deposit does not pose the same barrier to the production of a commercial grade refractory product as was experienced by previous owners of the property. Exploration and Development Globex owns a large open pittable magnesite-talc-quartz deposit situated only 13 km from the major mining centre, Timmins, Ontario that offers exceptional infrastructure for mining: roads, electrical power, natural gas, skilled labour and railway shipping service. Testing to date shows, it will be possible to produce both a commercial grade talc product with no impurity issues and a high-grade magnesia product as well. During 2013, currently Globex is looking to; a) complete the infill drill program, b) finalization of the talc plant design and talc variability testing and c) seek the approval to build a small-scale commercial talc plant. April 16, 2012 : A Preliminary Economic Assessment for the Timmins Talc-Magnesite Deposit, Timmins, Ontario CANADA Prepared by B. Terrence Hennessey, P.Geo., J. Spooner, P.Geo., C. Jacobs, C.Eng., MIMMM, D. Anderson, MMSA, T. Hayes, P.Eng., D.Hall, P.Eng., L. Castro, P.Eng., K. Bocking, P.Eng.
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