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Ximen Mining Corp

Ximen Mining excited about potential production from Kenville gold mine as it eyes further exploration drilling

Snapshot

The mine in British Columbia previously produced over 2,000 kilograms of gold and 861 kilograms of silver during nearly 60 years of production

Panning for gold

Quick facts: Ximen Mining Corp

Price: $0.35

Market: TSX-V
Market Cap: $12.08 m
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  • Advancing assets in optimal geopolitical locations

  • Preparing for drilling at historic Kenville mine

  • Experienced management

What Ximen Mining does:

Ximen Mining Corp (CVE:XIM) (OTCMKTS:XXMMF) is a precious metals explorer with assets in southern British Columbia.

The main operational focus currently is the Kenville Gold Mine - on which it has an acquisition option - which previously produced over 2,000 kilograms of gold and 861 kilograms of silver during nearly 60 years of production between 1888 and 1954. Kenville was formerly known as the Granite-Poorman mine and lies 7km west of the town of Nelson in the West Kootenay region of BC.

The group's primary precious metals project is the Brett epithermal gold property, where it has controlled 20,025 hectares since 2013, and where previous drilling has thrown up 168 grams per ton (g/t) of gold over 1.3 meters (m) and where visible gold is common. Between 1995 and 1996, 291 tonnes of surface trench samples graded at 28 g/t gold and 64 g/t silver.  This year, Ximen applied for underground permitting to conduct drilling at Brett.

The firm has also acquired certain Crown-granted mineral properties covering the historic Cariboo-Amelia gold mine in Camp McKinney, adding to its significant holdings. The mine was British Columbia’s first dividend-paying lode gold mine and recovery included 81,602 ounces of gold, 32,439 ounces of silver, 113,302 pounds of lead and 198,140 pounds of zinc.

The group also owns the Treasure Mountain silver project, which is adjacent to the past-producing Huldra Silver mine. Located within the New Westminster and Similkameen Mining Divisions in southern British Columbia, Ximen has the Treasure Mountain Silver Project optioned to New Destiny Mining Corp. (TSX.V:NED) for staged cash and stock payments.

Ximen recently sold its Gold Drop Property option to GGX Gold Corp (CVE:GGX). GGX said on September 3 that it had paid Ximen a final payment of 600,000 shares valued at C$150,000 and a C$100,000 in cash, which along with meeting the required exploration expenditures completed its obligations to earn a 100% interest in Gold Drop.

The property lies in one of the most prolific mining camps in Canada - the Greenwood camp -which has generated 1.4 million ounces of gold, 10 million ounces silver and 0.7 billion pounds of copper.

Ximen still holds onto a 2.5% net smelter return royalty (NSR) on the property which GGX can buy down 1% of by paying C$1 million.

Upon completion of the option requirements, Ximen will have the right for nine months to form a joint venture by paying GGX an amount of money equal to 30% of the total amount expended on the property. If it exercises this, then GGX and Ximen will enter into a joint venture for the exploration and development of the property.

How is it doing:

Newsflow has been coming pretty thick and fast in recent weeks. At the historic mine Kenville gold mine, Ximen aims to kick off a diamond drill program this year.

The previous Kenville mine workings have an estimated plus 360,000 troy ounces and previous drill programs provided evidence of the extension of the high‐grade vein structures to substantially higher quantities of gold on the adjacent claims.

Currently, Ximen is busy with government meetings, environmental work and site preparation at Kenville. It is focused on updating permits for underground operations, which will allow it to start building an exploration decline at the mine and begin the planned diamond drill program.

The property already has a resource of around 350,000 ounces from 2008/2009 and drilling after that discovered a new vein set to the south, which Ximen is interested in targeting with drilling and potentially taking a bulk sample in due course.

Last month, the group made its first drawdown of C$250,000 on a previously announced equity financing with New York-based private-equity firm Alumina Partners, which will provide up to C$8 million over two years to finance exploration, including at the Brett epithermal gold project. Ximen can draw down C$500,000 at a time.

Meanwhile, on August 14, the firm said that its option partner on the Treasure Mountain silver property, New Destiny Mining was set to start drilling following encouraging recent sample results. New Destiny is making annual staged cash and stocks payments as well as funding project development.

In initial rock chip sampling at Treasure Mountain, assays ranged from up to 1.6% copper, 0.87 g/t)gold and 109 g/t silver on one sample at the Superior (Lucky Todd) prospect, while at the Railroad prospect, results ranged up to 1.06% copper and 264 g/t silver in one sample, and 0.95 g/t gold, 0.9% zinc and 0.4% lead in another.

What the boss says:

In July this year, Ximen chief executive Chris Anderson outlined this year's drilling plans for the Kenville gold project, but also looked further ahead to its potential.

"The main thing that I'm excited about is finally being able to get to a position actually do some production and as a junior moving from exploration to production, that's what I'm really excited about. That's a challenge right? That's really what's got me excited to maybe put the company in a position where we don't have to go to the market anymore for any more financing so we're self-supportive. That's our objective of what we're trying to do here."

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Watch

Ximen Mining preparing for summer drill program at Kenville Gold Mine in...

Ximen Mining (CVE:XIM) President and CEO Chris Anderson sat down with Steve Darling from Proactive Investors Vancouver to share news the company is embarking on their summer drilling program at the historic Kenville Gold Mine. Anderson talked about how much they plan on drilling and the...

on 4/7/19

5 min read