Globex Options Virgin Mountain Rare Earth & Beryllium Project in Arizona

THE DEAL:
Under the agreement with Arizona Mountain Pass, Globex will receive $800,000 in cash payments and $600,000 in shares over a 42-month period in exchange for 100% interest in the property subject to:

1. A 3% Gross Metal/Mineral Royalty subject to a 1% GMR buydown for US$ 1,000,000 adjusted annually based on the U.S. Consumer Price Index from the Effective Date.
2. Commencing on the seventh anniversary of the Effective Date, until commercial production, an annual advance royalty of U.S.$100,000 recoupable from first production.
3. $2,500,000 CDN of exploration expenditures
4.  Within a 10-mile radius from the current claim boundaries any mining claims, leases, permits or other mineral interests acquired by or on behalf of Arizona Mountain Pass, shall be deemed to form part of the property and shall be subject to the terms and conditions of the agreement.

History:
The Virgin Mountain rare earth & beryllium property, consisting of 23 unpatented lode claims totalling 192.28 hectares, (475.1 acres) located in the Arizona portion of the Virgin Mountain Range, about 120 km northeast of Las Vegas, Nevada. It is easily accessible from Las Vegas via highway 15 toward the northeast until the village of Mesquite, NV, from here a 16 km long gravel road leads to the project area.

Past exploration activities for uranium and later for rare earth elements (REE) initiated in the 1940’s and ended in 1991. Numerous small exploration pits, one collapsed adit, 2 collapsed shafts and a number of old access roads resulted from these exploration efforts. During that time several companies conducted exploration work, including American Smelting and Refining Company (ASARCO), which sank a 25 m deep shaft and finally the Blandsell Mining Company, abandoning the area in 1991. In the 1950’s and 1960’s the Virgin Mountains Be-bearing pegmatites had been explored intensely for beryllium but never came into production. (source: US government files)

Geology and New Work undertaken by Globex:
Globex compiled historical work and carried out prospecting, geological mapping and collected a total of 25 rock samples for analysis.

The Virgin Mountains represent a northeast trending range, consisting of a core of Precambrian (1.7-1.8 billion years) metamorphic and intrusive rocks, flanked by Paleozoic to Cenozoic sedimentary rocks. Rocks occurring in, or in the vicinity to the property area include felsic migmatite, ortho- & paragneiss, basic & ultrabasic metamorphics, schist and pegmatites. Meta-igneous and meta-sedimentary rocks exhibit intense shear deformation and evidence of high temperature/high pressure and possibly ultra-high-pressure metamorphism.

Rare Earth (REE) ± U & Th mineralization is hosted in migmate-gneiss and interlayered thin schist layers, locally also in pegmatite dikes. Beryllium (Be) ± Nb & Ta mineralization is hosted exclusively in pegmatite dikes unrelated to the REE mineralization.

REE mineralization is always associated to anomalous or elevated radioactivity and principal ore minerals are the phosphate minerals xenotime and monazite. Within the project area numerous linear REE target zones had been defined.

The principal REE mineralization, named herein the Hummingbird Zone, could be followed-up over a distance of     250 m. It is contained in steeply dipping parallel and en-echelon mineralized zones along a 30-40 m wide corridor trending in average 65° NE. Strong faulting, shearing and brecciation can be observed in some of the mineralized structures, mostly concordant to foliation of the metamorphic wall rock, chiefly felsic migmatite-gneiss. Globex confirmed minimum high-grade widths (with assays) between 0.9 m and at least 1.45 m, however widths of radioactive anomalies related to REE mineralization may approach 5 to over 10 m width (full widths not yet sampled). Globex collected 7 channel samples from outcrops of this principal REE structural trend. The Hummingbird Zone is open to the east (300 m additional length possible), where it is concealed by rather shallow fluvial sand and gravel. Lateral extension for about 300 m to the west is possible as well, where most of the structure is hidden under shallow overburden and slope scree.

All 7 channel samples collected from the Hummingbird structure returned high grades of light (LREE) and heavy (HREE) rare earth elements ± thorium and uranium. Total Rare Earth oxide contents (TREO) vary between 0.328% and 1.24%. Uranium could represent a by-product of the REE mineralization; higher grades below the oxidation level can be expected.

The Hummingbird Zone stands out with enrichment of the (more valuable) heavy rare earth elements against most other worldwide REE deposits/occurrences (except similar Wolverine deposit in Australia). These elements include the high-value HREE gadolinium, terbium, dysprosium, holmium, erbium, lutetium (and even thulium). Furthermore, mineralization contains abundant yttrium (lower value), ytterbium and the valuable LREE neodymium. Terbium is the most valuable HREE, assays returned up to 96 g/t (0.01%) Tb2O3.

The deposit type of the HREE-dominated mineralization at the Hummingbird Zone, Virgin Mountain Project is not yet well understood, could however represent a combination of pre-metamorphic enrichment in protolith rocks and hydrothermal processes.

Pegmatites, up to 6 m thick, highly enriched in beryllium occur within the Globex claim block over a strike length of about 2.5 km. Be-pegmatites are composed of feldspar (microcline, albite, plagioclase), muscovite, locally garnet, in places minor tourmaline, beryl and/or chrysoberyl. In addition to beryllium these pegmatites carry locally also minor amounts of the critical metals niobium & tantalum. In the 1950’s and 1960’s BeO grades had been analysed from 135 rock samples (bulk, channel and grab), grades ranged widely between 0.02% and 2.98%, corresponding to Be values between 0.072 and 10.736 kg/t. Globex collected four samples from these pegmatites, they returned between 0.325 and 7.577 kg/t beryllium.