Globex Mining starts prefeasibility drilling at Timmins talc-magnesite property

Globex Mining (TSE:GMX) (OTCQX:GLBXF) says it has started prefeasibility study drilling at its Timmins talc magnesite property in Timmins, Ontario. 

The company said Monday that two drills are moving onto the site today, with the campaign to consist of around 46 drill holes, or 7,000 metres. 

The majority of holes in the program will be infill, in order to elevate the first 20 years of potential resource to mineable reserve. 

The preliminary economic assessment report, released in March of this year, was based on an initial 20-year period of mining 500,000 tonnes of ore per year, with total projected sales of $2.6 billion and an after-tax internal rate of return of 20%. 

To advance the project to prefeasibility study stage, Globex is now completing infill and geotechnical drilling to upgrade the first 20-year resource to a 20-year reserve, which will be reported in a new NI 43-101 report. 

The company has also undertaken a series of larger scale tests to further improve recovery costs and product purity, it said. 

Globex is aiming to become a major supplier of "high quality" talc and magnesia to the North American market. 

The Timmins project was acquired in 2000 by Globex, who now holds a 90% stake, with the remainder held by Drinkard Metalox. The property is situated in the south half of Deloro Township, Porcupine Mining District, 13 kilometres southeast of Timmins.              

The PEA report was based on an initial mineral resource report on the project from March 2010, which included 12.73 million indicated tonnes at a grade of 52.1 percent magnesite and 35.4 percent talc in the A Zone Core, with 18.78 million inferred tonnes at a grade of 53.1 percent magnesite and 31.7 percent talc.

The optimized open pit shell contains a mineral resource sufficient to support a 60-year mine life, with the PEA only considering the first 20 years of this period. Total operating costs were estimated at $986.5 million for the 20-year mining period or an average of $98.65 per tonne processed.

Globex Mining has a portfolio of exploration properties in Quebec and Ontario.              

Last week, the company said it received conditional approval from the TSX Venture Exchange to list its subsidiary Chibougamau Independent Mines (CIM) on the exchange as it completes the proposed spin-out.

With the approval now in hand, CIM will begin the $10 million private placement financing it announced in October. All the funds will be used for the ten, 100 per cent-owned, advanced properties in the Chibougamau area.