Globex Mining Enterprises Inc (TSX:GMX) (OTCMKTS:GLBXF) has said it is pleased by news that the Rocmec 1 gold property in Quebec is set for production again and generating royalty revenue.
The company holds a 5% net metal royalty on the first 25,000 ounces of gold produced from Romec 1 and a 3% net metal royalty on all subsequent gold production from the property, which is owned by Nippon Dragon Resources Inc.
READ: Globex Mining Enterprises starts new exploration program at Francoeur/Arntfield gold property in Quebec
Globex noted that, in a press release issued today, Nippon Dragon said that an updated plan had been submitted to the MERN (Quebec government) to reflect the progress of reclamation work on the project this summer.
Nippon Dragon said: "The objective is the development of the McDowell and Talus veins. The portal is being opened and dewatering is about to start. The underground development work will be conducted in phases. Phase 1 will focus on level 45 while phase 2 will focus on level 90."
"The work is expected to extent over a 20 month period. Development plans for subsequent phases are currently ongoing and the goal is to implement each phase in a manner that the phases will overlap each other, thereby avoiding downtime," it added.
Nippon Dragon said it would use its exclusive and patented thermal fragmentation mining method and conventional mining methods as warranted, and the site will be also be used as a showcase for the technology.
Rocmec 1 lies in the Dasserat township around 35km west of Rouyn-Noranda on the shores of the Labyrinthe Lake in Quebec.
To date, Nippon Dragon has invested around $33 million in rehabilitating the property, surface and underground infrastructure, diamond drilling, equipment and drifting.
A 2010 NI 43-101 report, by SGS, using a cut-off grade of 3 grammes per tonne (g/t) gold, reported a higher confidence measured and indicated mineral resource of 570,300 tonnes grading 6.52 g/t gold for 119 500 ounces and 1,512,400 tonnes of lower confidence inferred at 7.4 g/t gold for 359, 600 ounces.
Shares nudged up 1.32% in Toronto to stand at C$0.38.
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