Jack Stoch has very rare abilities and geological and business background that has enabled Globex to have a very successful approach of discovering and acquiring a vast amount of diversified valuable properties and developing them for licensing or partnership.

Just around the corner from celebrating its 60th anniversary, junior acquisition and exploration company Globex Mining Enterprises has been making exceptional business for itself and the international community by fashioning an intelligent, experienced approach to the precious minerals market. Globex owns all of its 85 properties and therefore keeps its revenues more than buoyant by not having to pay out option disbursements as is the case with most juniors. In a very candid and informative interview with metalsnews.com recently, President and CEO Jack Stoch waxed poetically about what it takes to maintain the type of operation he’s been so successful at for all these years.

Jack Stoch in Field Studying Drill Core

A geologist by trade, Stoch also has extensive experience in business and at one time he was said to be the largest private mineral holder in Quebec. From there he took his expertise to Globex where, for the past 22 years he’s expanded Globex’s exploration portfolio dynamically.

“We function like a regular exploration company but also acquires projects, explore them raising their value, making the value evident, and then we vend off the projects to other companies,” said Stoch. “They pay us in cash and in shares plus a continuing royalty on any mineral production. We end up not diluting our shareholders and subsequently let other people take the highest risk. That has resulted in the company, listed on the Toronto Stock Exchange for 22 years, having only 18.3 million shares issued with no rollbacks.”

There is no obstacle on the periodic table to large for Stoch and company, although 55 of their 85 projects are principally gold with 10 others having gold as a by product, Globex covers a full span of elements including copper, zinc, uranium, gold, silver, molybdenum, rare earths, magnesium, talc, nickel, platinum, and palladium to name a few. “You pretty much name the periodic table, and we have it,” he quipped.

At the end of the day for Stoch, it’s not the materials themselves that run the game for Globex. “We don’t really look at the elements, per se, as the important thing. Nor do we look at the final product as being the mineral that is being produced. We look at the final product as being the dollar that you receive, because $1.00 from gold or $1.00 from rare earth or $1.00 from nickel it's the same bloody dollar. That's what is important.”

With $4 million in the bank, its apparent that fiscal responsibility mixed with a healthy dose of frugal expenditure have secured Globex as a model company against the unforgiving backdrop of the current mayhem-ridden market.

Globex Core Storage Area

“We have no debt,” noted Stoch. “We own all our own properties, our office building, all our vehicles, all our exploration equipment. We can hunker down in bad times and use our knowledge and money to acquire assets very cheaply. We don’t have a huge burn rate compared to other companies because we own everything. We're not going to lose a property because we have to pay somebody annual fees like many other companies. Other companies pay us to keep their projects.”

A gleaming example of Globex’s ability to invest and stay on top of their game is evidenced not only in its unique philosophy, but also in its largest project to date. In a 75/25 joint venture with North Carolina based Drinkard Metalox, Globex reaps the majority of the split using their partner’s patented, environmentally-friendly hydrometallurgical processes at the open pittable magnetite-talc deposit located 13 kilometers south of Timmins, Ontario. This deposit, which is devoid of significant impurities, is projected to contain over 100 million tons of mineralization. Globex expects to produce large quantities of magnesium oxide and talc at very competitive prices and hopes to capture a major position in the North American market.

Claim Staking

“We're open on how we're going to approach it, said Stoch, who estimates he’ll spend roughly $1 million this year on the project. “Whether avoiding the market altogether with a project off-take agreement, or bringing on an investor through KPMG Corporate Finance, which last year did $51 billion in deals, we’re confident we can capture a large part of the magnesium and the talc markets because of the high product purity and low cost. Because talc is a byproduct that we have to separate in any case and it has a brightness of at least 89 and has no asbestos fiber, we can definitely sell it.”

An example of Globex’s revenue stream based from joint ventures and the succeeding yearly payments from those ventures in exchange for the right to earn interest in its properties, is the Russian Kid Gold Mine. Despite its small scale production, this particular gold deposit has a good grade with approximately 2.5 million tons grading a quarter ounce. Utilizing a Russian technology known as thermal fracturing in their small underground operation, the company will be able to take out just the quartz breccia material, thus high-grading it and pass it through the mill. Again, Stoch’s business acumen exhibits his sui generis philosophy of economy.

“It's interesting,” he posited. “We have a 5 percent gross overriding royalty on the first 25,000 ounces of gold, and a 3 percent gross overriding royalty on all other production. Now, gross overriding royalty is something we've invented. It means that we get it off the top. The concentrate goes to the refinery, and when it comes time for them to pay, they put 5 percent of the gold in our account and 95 percent in the other company's account. The other company pays 100 percent of the cost of mining and milling, insurance, management, everything else. We pay nothing.”

By outsourcing its work, Globex ensures the brunt of any potential risk is absorbed elsewhere, and thus the 18.3 million shares are not diluted. It’s a revolutionary yet extremely necessary philosophy to maintaining Globex’s security, especially in these rigorous times. Stoch added, “We have another company working on a gold deposit of ours called Nordeau, just east of Val d'Or. Recently, we got a check from them for $125,000.00 and in addition received 500,000 of their shares. They spent $2 million on the project so far outlining a gold deposit and intend to spend more.

“So, we have revenue streams coming in, and we're a pretty frugal management on top of it, we take care of our money. Nobody's being exorbitantly paid and we work long hours as required.”

The ability to have cash on demand for Globex allows them the flexibility to spend on geophysics and focus on drilling, which, according to Stoch is where they put most of their exploration money. He mentions this summer his team will be busy with some massive sulphide zones of copper, zinc, silver and gold.

Gyro Survey

Globex operates out of politically secure places such as Ontario or Quebec, where the $0.47-to-the-dollar refund from the Quebec Government is incentive enough for any junior to make its business there. Globex and its team of highly skilled professionals guarantees its principal projects aren’t purely “moose pasture” by also taking into consideration historical resource calculations on top of 43-101 defined reserves. Every property has a tangible reason to be in Globex’s portfolio, whether it be surface showings, values in drill holes, drill ready anomalies, resources or reserves, etc.

When it comes to acquiring properties, “you have to let your gut lead you”, Stoch mused. “A lot of people use their brains, and if your brain is functioning properly, your gut is going to tell you what to do. The worst deal I ever made in my life was when my brain was telling me, ‘This makes sense, blah, blah, blah,’ and my stomach was going, "Get out of this room as fast as you can.’”

Stoch’s team of ten, long-term dedicated staffers who live and work in the Rouyn-Noranda area, are all specialists when it comes to taking that same gut feeling and producing a top-notch, high-yielding project.

“They’re all hands-on, intense folks who know the business and know exploration. They've been in the field a long time. They know geology and other specialties. They also know finance and corporate governance. I have a tremendous team, so I wasn't being facetious. The team management is excellent.

In direct conjunction with Stoch’s vested interest in his company’s 18.3 million shares, of which he and his wife and CFO Dianne own about 14.8 percent excluding options, the crucial asset this renaissance geologist-cum-president has is sheer exposure.

“We're on the Toronto Stock Exchange, OTCQX International in the U.S., and five exchanges in Europe, including the Frankfurt Exchange. So, there's a reason to come along for the ride with us, because we're in this for the long term and actively seeking revenue. We're not looking to flip, we're looking to build the company.

For more information visit www.globexmining.com 

Globex Mining Enterprises Inc.
86-14th Street
Rouyn-Noranda, Quebec J9X 2J1
Canada
Telephone :	(819) 797-5242
Fax :	(819) 797-1470
info@globexmining.com