Globe Metals & Mining gains 51% stake in Mount Muambe project in Mozambique

Globe Metals & Mining (ASX: GBE) has reached a significant milestone by meeting the second year obligations under the joint venture agreement with Bala Usokoti Lda, to achieve a 51% interest in the Mount Muambe Project in Mozambique.

Globe now needs to deliver a JORC Resource within the next twelve months to gain a 70% interest in the project. The company expects that its current extensive drilling program will enable a resource to be delivered during the first quarter 2012.

Globe's recent drilling has extended near surface fluorite mineralisation to the north of the main fluorite/rare earth elements (REE) zone by over 300 metres strike length.

The results are beginning to present a clearer geological picture between the fluorite and REE mineralisation in and around the main fluorite/REE zone.

The company expects to receive significant fluorite and REE results for the remaining 27 holes in the main fluorite/REE zone and its southern extension in the coming weeks.

Globe has other strings to its bow including the multi-commodity Kanyika Niobium Project in Malawi, Africa, which will commence production of ferro-niobium in 2014, a key additive in sophisticated steels.

In addition, Globe also has a number of other projects at an earlier stage of development, with the company earning up to an 80% interest in the Machinga Rare Earth Project in southern Malawi.

In April 2011, the company entered into a strategic partnership with East China Minerals Exploration and Development Bureau (ECE), a Chinese State Owned Enterprise with extensive mining operations in China and overseas.

ECE is now the largest shareholder in Globe, and a key partner for Globe’s growth ambitions in Africa.

Originally published at: http://www.proactiveinvestors.com.au/companies/news/22700/globe-metals-mining-gains-51-stake-in-mount-muambe-project-in-mozambique-22700.html