Globex Resources’ Kewagama Royalty: A High-Impact Gold Play at a Critical Inflection Point

The gold sector is entering a period of renewed dynamism, driven by escalating geopolitical tensions, inflationary pressures, and a resurgent demand for safe-haven assets. Nowhere is this clearer than in Quebec’s prolific Cadillac Break geological corridor, where Globex Mining Enterprises Inc. (GXM.TO) has positioned itself to profit handsomely through its 2% Net Smelter Royalty (NSR) on the Kewagama Gold Mine—a project now yielding some of the highest-grade gold intersections in recent memory.

The Geological Catalyst: Visible Gold and High-Grade Discoveries

The Kewagama Gold Mine, operated by partner Radisson Mining Resources Inc., has delivered a series of jaw-dropping assay results in 2025, with visible gold now confirmed in core samples. Recent drilling highlights include:
- Hole OB-24-358: 8.36 grams per tonne (g/t) gold over 15 meters, including a blistering 56.0 g/t Au over 1 meter.
- Visible Gold: Radisson’s May 2025 press release confirmed visual free gold in drill holes OB-24-363 and OB-24-361, with drilling extending to 2 kilometers depth—a sign of potential at depth.

This isn’t just “another” gold deposit. The Kewagama zone sits within the Cadillac Break, a geological belt responsible for over 100 million ounces of gold production in Quebec. The presence of visible gold—often a hallmark of coarse, high-value gold—suggests the potential for bulk-tonnage mining and rapid resource expansion.

De-Risked Exploration: A Royalty-Backed Safety Net

Globex’s NSR model is a masterstroke of risk mitigation. Unlike pure exploration plays, Globex doesn’t need to fund drilling, manage operational risks, or wait years for permitting. Instead, it benefits directly from production revenue once the mine is in operation—without bearing the costs of construction or commodity price swings.

The project’s metallurgical validation further reduces uncertainty. Recent tests show gold recoveries of 86%–96% using methods compatible with the nearby Doyon-Westwood mill, pointing to low-cost toll-milling opportunities. With Radisson’s 2025 drill program expanded to 40,000 meters (up 45% from initial plans), the project is accelerating toward resource definition—and Globex’s royalty will grow in tandem.

Market Timing: Gold’s Safe-Haven Rally and Commodity Cycles

The stars are aligning for gold. The Federal Reserve’s pause on rate hikes, ongoing dollar weakness, and geopolitical instability in the Middle East and Asia are all tailwinds for gold prices. Consider this:
- Gold’s Safe-Haven Role: Since 2020, gold has surged by 35% during periods of geopolitical conflict (Bloomberg data).
- Inflation Hedge: With core PCE inflation at 3.6% (as of Q1 2025), gold remains a critical portfolio diversifier.

Globex’s stock has historically tracked gold prices but with asymmetric upside when its royalty assets deliver catalysts. Today, the company is positioned to outperform if gold climbs above $2,500/oz—a level many analysts see as achievable in 2025.

The Imminent Catalysts: Assays, Drilling, and a Resource Upgrade

Three near-term catalysts could ignite Globex’s valuation:
1. Assay Results from Expanded Drilling: The 40,000-meter program will deliver data on deeper targets where visible gold has been logged. Results from Trend #3 and the East O’Brien area (where visible gold was found) could redefine the project’s scale.
2. Metallurgical Validation at Scale: If the Doyon-Westwood mill’s processing efficiency holds, production costs could fall below $500/oz, making the project a cash machine.
3. Adjacent Property Upside: Globex’s 1% NSR on the New Alger Gold Mine adds further leverage, with that project also undergoing active drilling.

Why Act Now?

Globex is a pure-play royalty vehicle with minimal execution risk. Its Kewagama stake offers exposure to high-grade gold in one of North America’s top jurisdictions, while its NSR structure ensures it captures value without balance sheet dilution. With gold prices primed for a breakout and drilling accelerating, the window to buy into this leveraged opportunity is narrowing.

Investors seeking gold exposure without the volatility of miners or ETFs should consider GXM.TO. The combination of geological fireworks at Kewagama and macro tailwinds for gold makes this a rare, high-conviction call for 2025.

Action Item: With assay results expected in Q3 2025 and gold’s technical chart pointing higher, now is the time to establish a position in Globex Mining Enterprises.

Disclosures: This article is for informational purposes only. Always consult with a financial advisor before making investment decisions.