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ROUYN-NORANDA, Quebec, Jan. 09, 2025 (GLOBE NEWSWIRE) -- GLOBEX MINING ENTERPRISES INC. (GMX – Toronto Stock Exchange, G1MN – Frankfurt, Stuttgart, Berlin, Munich, Tradegate, Lang & Schwarz, LS Exchange, TTMzero, Düsseldorf and Quotrix Düsseldorf Stock Exchanges and GLBXF – OTCQX International in the US). Further to Globex’s note in our December 27, 2024, press release, Lincoln Gold Mining Inc. (LMG-TSXV) have announced that they have closed the previously announced acquisition of the Bell Mountain Project in Churchill County, Nevada from Eros Resources Corp. Lincoln have also stated that they are in discussions with various financial institutions for the capital required to take Bell Mountain to complete construction (click to see Lincoln’s press release here). Globex holds a scaling royalty based on Gold Price in US$ as follows:
| Gold Price (US$) | Globex Gross Metal Royalty on all Mineral Products in % Payable |
| 0 to $500 | 1% |
| > $500 but <$1,200 | 2% |
| >$1,200 | 3% |
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Globex also receives annual advance royalty payments of $20,000. Lincoln expects it will take approximately 8 to 10 months to complete construction once funding has been arranged and then expects to move into the initial gold/silver mineralization placement and leaching process.
Filing PEA on Bell Mountain Project
The Company also reports on the filing of an independent technical report in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) on the Project. The Technical Report, titled “NI 43-101 Technical Report on the Bell Mountain Project, Updated Preliminary Economic Assessment, Churchill County, Nevada, USA” dated January 6, 2025 (effective date of July 23, 2024) (the “PEA”) was completed by John D. Welsh, PE; Douglas W. Willis, CPG; Randall K. Martin, SME-RM; and Carl C. Nesbitt, SME-RM, and is available on SEDAR+ (www.sedarplus.ca) under Lincoln’s issuer profile.
The PEA describes how the process works and how gold is produced in a heap leach operation. The economic base case is considered realistic and shows a robust cash flow. A gold price of $2,200/oz and a silver price of $24.00/oz were chosen for the base case economic evaluation. Up to date capital and operating costs were used.
The following table has been taken from the PEA:
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| Pre-tax | After Tax |
| Internal Rate of Return (1) | 63.2% | 59.6% |
| NPV @ 5% Discount Rate (US$M) | $25.69 | $24.06 |
| Net Cash Flow (US$M) | $29.71 | $27.97 |
| Net Operating Margin (oz Au Eq) | $535.97 | $504.52 |
| Payback Period | ~10 Months | ~11 Months |
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Internal Rate of Return ("IRR") is a metric used in financial analysis to estimate the profitability of potential investments. IRR is a discount rate that makes the net present value ("NPV") of all cash flows equal to zero in a discounted cash flow analysis. IRR calculations rely on the same formula as NPV does. IRR is not the actual dollar value of the project; it is the annual return that makes the NPV equal to zero. Generally speaking, the higher an internal rate of return, the more desirable an investment is to undertake.