Ximen Mining Corp. (CVE:XIM) (OTCMKTS:XXMMF) said Tuesday it has initiated talks with Golden Dawn Minerals Inc about toll milling material from its Kenville Gold Mine project in Nelson, British Columbia (BC).
The Kenville Gold mine project is nearing start-up of its new decline development and is anticipated to generate gold feed material in the coming year, Ximen added, hence it has started talking to Golden Dawn about utilizing its mill facility at Greenwood, BC.
READ: Ximen Mining's partner at Treasure Mountain silver project kicks off drilling at Lucky Todd prospect
The Golden Dawn mill is a 200 tonne per day gravity and flotation process plant that has been on care and maintenance since 2009.
Ximen said it believes that material from Kenville mine could be trucked 150 kilometers from Nelson to the Greenwood plant and processed using the current configuration.
In a statement, the company said: “It could be a win-win situation, because Ximen would forgo the cost and time associated with permitting a new mill, while re-starting the existing mill would benefit Golden Dawn with it's plan to eventually bring its own projects into production.”
The company recently acquired control of the Kenville Gold mine near Nelson which comes with surface and underground rights buildings and equipment as well as a permit for the construction of an underground decline
Ximen also owns 100% interest in three of its precious metal projects located in southern BC - two gold projects, The Amelia Gold Mine and The Brett Epithermal Gold Project, and the Treasure Mountain Silver Project, which is adjacent to the past producing Huldra Silver Mine, and is currently under option agreements.
The Treasure Mountain option partners are making annual staged cash and stocks payments as well as funding the development of the project.
Contact the author at [email protected]