Duquesne-Ottoman Property - Gold
Destor & Duparquet Townships, Quebec (NTS 32D/06)
Updated December 2016
Property Description and Location
The Duquesne West (and Ottoman) Property is comprised of 60 claims totalling 929 ha located 32 km northwest of the mining town of Rouyn-Noranda and 10 km east of the town of Duparquet in Duparquet Township, northwestern Quebec. The property is readily accessed by vehicle along gravel roads originating from Highway 393 roughly 4.5 km west of Highway 101. A series of ATV trails and various drill roads provide further access throughout most of the property. The Property is held 100% by Duparquet Assets Ltd. (‘DAL’), a company owned 50% by Globex and 50% by Jack Stoch Geoconsultant Services Limited (‘GJSL’) a company owned by Jack Stoch, President & CEO and Director of Globex.
In 2010, Globex, GJSL and DAL optioned the Duquesne West and Ottoman Properties to Duquesne-Ottoman Mines Inc., a wholly owned subsidiary of Toronto based Xmet Inc. (“Xmet”). The agreement allowed Xmet to earn a 75% interest in the Properties prior to May 31, 2017 subject to; a) combined cash and dividend payments totalling $8.81M; b) total exploration expenditures of $10M and c); the issuance of 2 million Xmet shares.
In 2013, Globex announced the termination of the option agreement as market conditions prevented Xmet from getting financing.
The reader is referred to Globex’s 2011 Annual Information Form (AIF) filed on SEDAR (www.sedar.com) and on Globex’s website (www.globexmining.com) for further details regarding the regional, local and property geological setting of the Property. The property is also located 4 km east and along strike from the past producing Beattie and Dorchester mines which respectively produced 8.4Mt @ 3.5 gpt Au and 1.2Mt @ 9.3 gpt Au (ref. MRNF report ET 2005-01, M. Legault, J. Goutier, G. Beaudoin, M. Aucoin, 2005) and 3.5 km west of the past producing high grade Duquesne Mine which produced 199,912 t @ 10.3 gpt Au (ref.: MRNF report ET 2005-01).
Public documents show exploration at the Duquesne West property began around 1927. During the 1930's and 1940's, a total of 53 drill holes and 6,750 m of drilling were completed by various companies. From 1973-1982, extensive shallow diamond drilling and geophysical surveys were conducted on the property. In 1983, Claremont Mines Limited sank a 25 m shaft and extracted a 385 t bulk sample from the Shaft Zone.
Exploration and Development
In 1987, Globex acquired 50% interest in the Duquesne West Property and carried out various ground geophysical surveys and geological mapping work. The property was optioned to Noranda Exploration in 1990. Noranda conducted mapping, trenching and completed 13 drill holes totalling 3,708 m. In 1994, Globex carried out an initial drilling program on the property completing 7 drill holes (440 m). The property was then optioned to Santa Fe Canadian Mining Ltd. who carried out further exploration until 1997, including 57 drill holes totaling 26,429 m. Santa Fe also completed an IP survey which identified a new deep anomaly between the Shaft Zone and the Fox Zone. The deepest drill hole to test this anomaly returned 28.46 gpt Au/3.25 m. A non NI 43-101 compliant “preliminary inventory” was estimated at the time, describing 1.3 Mt grading 7.8 gpt Au. This estimate cannot be relied upon, as this estimate was not undertaken by a Qualified Person under NI 43-101 standards.
In 2002, Kinross Gold Corporation optioned the property and undertook geochemical, geophysical and geological surveys which culminated in the completion of 14 drill holes totaling 5,300 m and the discovery of the LIZ and the NIP Zones. Drill intercept highlights from this work include; 6.9 gpt Au/11.2 m (hole DQ-02-02: LIZ Zone), 5.5 gpt Au/11.4 m (hole DQ-02-10: LIZ Zone) and 9.9 gpt Au/3.5 m (hole DQ-02-09: NIP Zone). In 2003, Reddick Consulting Inc. (RCI) completed a report which estimated a mineral resource for Kinross Gold Corp. on the Shaft, South Shaft, Fox and LIZ zones. This report was presented to Globex (as optionor) as part of the obligations of the option agreement. The report indicated a total of approximately 665,000 t grading 11.4 gpt Au (uncut). This resource estimate was not completed for Globex and a Qualified Person has not reviewed the mineral resource for Globex. Kinross terminated its option in 2003.
In late 2003, Queenston Mining Inc. optioned the property and drilled a 15 hole, 9,783 m drill program focussed principally on the LIZ Zone. Several holes intersected significant gold values including 4.2 gpt Au/8.0 m including 6.1 gpt Au/4.5 m (hole DQ-03-15: LIZ Zone) and 4.5 gpt Au/13.6 m, including 6.1 gpt Au/9.1 m (hole DQ-03-16: LIZ Zone). Queenston subsequently returned the property.
In 2006, Diadem Resources Ltd. took an option to earn 50% interest in the property, completing 20 drill holes totalling 12,245 m, increasing the size of the LIZ Zone and testing the NIP and Pitt zone. Results of the better drill intercepts from this program can be found in Globex’s 2011 Annual Information Form.
In 2010, Xmet optioned the Duquesne West-Ottoman Fault Property. Xmet initiated its own diamond drill program with the objective of upgrading resources in future estimates. Xmet also completed a property wide helicopter-borne EM/magnetometer survey and in-hole IP surveys. Drilling continued into 2011 to eventually comprise 33 holes totalling 13,206 m. Significant results from the 2010/2011 drilling are presented in an Xmet press release dated April 28th, 2011 and summarized in Globex’s 2011 Annual Information Form.
In 2011, Xmet commissioned Watts, Griffis & McOuat Limited (“WGM”) to prepare a mineral resource estimate. The 2011 Inferred mineral resource estimate is described in a press release issued by Xmet Inc. dated September 8th, 2011 and a Technical Report dated October 20th, 2011. Both documents are filed by Xmet on SEDAR (www.sedar.com). The WGM Mineral Resource estimate used a cut-off grade of 3.0 g/t Au over a 2.5m minimum horizontal width. This resource estimate was not completed for Globex and a Qualified Person has not reviewed the mineral resource for Globex. WGM’s estimate was calculated for 8 gold zones having an average width of 5.71 m for a total of 4,171,000 t grading 5.42 gpt Au (6.36 gpt Au uncut) containing 727,000 oz Au (853,000 oz uncut). Approximately half of the inferred resources are contained in the LIZ and Fox zones.
Also in 2011, Xmet completed channel sampling on the Shaft Zone which confirmed continuity and grade of the mineralization at surface with significant assays returning 3.18 gpt Au/4.2 m and 12.25 gpt Au/1.3 m. Detailed drilling along a strike length of 150 m at 25 m grid spacing and to a depth of 100 m (8,592 m) was also undertaken at the Shaft zone. Highlights include 11.66 gpt Au (uncut)/5.1 m (hole DO-11-38), 7.84 gpt Au/2.75 m (hole DO-11-41), 5.18 gpt Au/4.55 m (hole DO-11-46), 4.0 gpt Au/11.7 m (hole DO-11-51), 3.65 gpt Au/4.0 m (hole DO-11-54), 3.4 gpt Au/4.35 m (hole DO-11-60) and 4.4 gpt Au/4.9 m (hole DO-11-61) (ref.: Xmet press releases, dated December 13, 2011, January 11, & January 17, 2012).
Xmet continued drilling in 2012 at the Fox Zone returning a best gold intercepts of 12.4 gpt Au/4.5 m (6.88 gpt Au/4.5 m cut to 30.0 gpt Au) (hole DQ-04-23w: Fox Zone), 3.2 gpt Au/2.9 m (hole DQ-12-72: Fox Zone) and 2.96 gpt Au/3.5 m (hole DO-11-67: Stringer Zone). (ref. Xmet press release Nov. 7, 2012) Mineralogical Geomet studies were also completed in 2012 on drill core from the Duquesne West deposit, confirming the gold mineralization to be free milling, non-refractory and not associated with arsenic (ref. Xmet press release April 26, 2012).
Globex considers the Duquesne West property to be a significant exploration project based on the continued growth of its mineral resource through several option periods and the relatively high grade nature of the recorded resources which compare favourably against current gold prices. Globex and GJSL continue to promote this project in 2015 to suitable exploration partners.
Oct 20, 2011 Globex announced the termination of the Xmet option and the return of all 100% interest (50% Globex) to the optionors.
Technical Report and Mineral Resource Estimate Update for the Duquesne-Ottoman Property, Quebec, Canada for Xmet Inc.Prepared by David Power-Fardy, M.Sc, P.Geo., Senior Geologist and Kurt Breede, P.Eng., Senior Resource Engineer