Globex Releases Positive PEA Results for Timmins Talc – Magnesite Project

by NationTalk on March 2, 2012393 Views

Highlights – First 20 – Year Mining Period
Total sales (gross) $2,578,000,000
Preproduction expenditures $268,400,000
Sustaining capital $64,900,000
After tax IRR 20%
Talc production 2,470,000 tonnes
Magnesia production 2,381,000 tonnes
Mine life 60+ years

Rouyn-Noranda, Quebec, Canada. GLOBEX MINING ENTERPRISES INC. (GMX – Toronto Stock Exchange, G1M – Frankfurt, Stuttgart, Berlin, Munich, Xetra Stock Exchanges and GLBXF – International OTCQX) is pleased to announce the completion of a positive National Instrument (“NI”) 43-101 Preliminary Economic Assessment (“PEA”) of our large Timmins Talc-Magnesite (“TTM”) project located 13km south of Timmins, Ontario, Canada. The results of the PEA support completing a feasibility study including a program of infill drilling to upgrade the known resource to reserve status. Technical studies to permit production at the mine site have been underway for over a year. Our team of consultants and senior staff in collaboration with Jacobs Minerals Canada Inc. (“Jacobs”) and Micon International Limited (“Micon”) produced the PEA.Jacobs have generated an engineering study outlining the flow sheet for the production of high quality talc and magnesia, including equipment data sheets and pricing to ± 25% accuracy, as well as estimates for consumables such as electricity, gas, labour, and parts and supplies. The objective was to establish the overall capital and operating costs of an envisioned 500,000 tonne per year plant to produce high brightness talc and magnesium oxide (magnesia). It should be noted that the magnesia leach and decomposition process has not yet been demonstrated at the scale of the proposed commercial production plant. Globex will follow an orderly process of development in the anticipated scale up exercise to producing magnesia.

Micon, utilizing Jacobs’ engineering study and Micon’s 2010 NI 43-101 compliant Mineral Resource Estimate, constructed a conceptual open pit mining model assuming contract mining, crushing and haulage to a nearby processing plant. Mining and transport costs of run-of-mine (“ROM”) material and waste as well as crushing have been quoted by independent local contractors. Preliminary processing costs were calculated by Jacobs. Recoveries, sale prices, etc., were determined by independent consultants. The optimized open pit shell contains a mineral resource sufficient to support a 60-year mine life. However, the PEA considers only the first 20 years of this period.

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