Ximen Mining reports "107 g/t gold and 880 g/t silver over 6.90 meters"
Extremely high-grade gold, silver and tellurium in drill core from the Gold Drop Project.
Another record-breaking drill hit for Ximen Mining Corp. as the company today announced that its option partner drilled, again, extremely high grades at the Gold Drop Project in the historic Greenwood Mining Camp of southern British Columbia, Canada.
According to the news, hole COD18-70 intersected near-surface high-grade gold, silver and tellurium in the southern extension of the COD quartz vein:
“107.5 g/t Au and 880 g/t Ag over 6.90 m incl. 541 g/t Au and 4532 g/t Ag and >500 g/t Te from 23.30 m to 24.15 m“
A week earlier, the following assays from hole COD18-67 were reported:
“129.1 g/t Au and 1154.9 g/t Ag over 7.28 m incl. 232.1 g/t Au, 2001.1 g/t Ag and >500 g/t Te from 24.50 m to 27.63 m”
Ximen’s option partner, GGX Gold Corp., explained the significance of both holes as follows:
"Although drill holes COD18-67 and COD18-70 were not drilled perpendicular to the strike of the COD vein, they still show the exceptional high-grade nature of the vein, possibly being, or leading to, a “motherlode”-style feeder system. As the Company continues reminding of the old saying “we drill for structure and we drift for grade”, both holes indicate how potential drifting may encounter the vein in case a potential production decision can be made in the future. Drilling along veins at slight angles helps in locating possible “ore shoots” and gaining a structural understanding of its vertical and horizontal orientations/extensions for targeted follow-up drilling."
Full size / “Again the COD Vein on the Gold Drop Project has delivered drill results that are some of the highest grade intersections ever drilled over the last 100 years in the Greenwood Gold Mining Camp.” (Chris Anderson, CEO of Ximen Mining Corp.). See Ximen’s January 21, 2019 News Release for Qualified Person’s review of technical information. Note that true widths cannot be accurately determined from the information available, thus the core lengths are reported.
According to British Columbia‘s Ministry of Energy, Mines and Petroleum Resources, the historical production from the 26 principal mines in the Greenwood Mining Camp was around 32 million tonnes of ore consisting of approximately 1.23 million ounces of gold, 5.9 million ounces of silver, 270,945 tonnes of copper, 966 tonnes of lead, and 329 tonnes of zinc. In the more than 100 years of historic exploration and production in the Greenwood Mining Camp (a 400 km2 area), the reported gold-silver-tellurium drill results from Ximen/GGX are among the highest ever recorded, for which reason the interpretation was made that the COD Vein could be something special; possibly being, or leading to, a “motherlode“ feeder system.
The NI 43-101 Technical Report on the Gold Drop Property (January 2014) explains why such an outstanding discovery could have been made recently:
“The Gold Drop property covers geologically prospective ground in the well mineralized Greenwood District, and hosts 8 or more known gold-bearing veins or vein systems. On the adjoining Dentonia property, significant historic production has come from similar veins. There has been little effective modern exploration on the Gold Drop property, and in the author’s opinion, the property is unique in this respect. Good opportunities remain untested on this property while most properties in the area that host showings of similar quality have been more thoroughly explored.“
The near-by Dentonia Vein averages about 1 m in width, historically producing approximately 125,000 tonnes at an average grade of 10.8 g/t gold and 64.6 g/t silver (Minfile 082ESE055).
Last year, drilling at Gold Drop started in February/March, so another drill program may start again shortly. With only about 400 m of the potential 1,500 m strike length (based on soil and rock sampling) now being drilled off, the COD Vein remains open at depth, to the south, and to the north where gold showings are present some 100 m away, as the video demonstrates:
Freshly cut drill core from the COD Vein (hole COD18-70):
Full size / “In mining and geology, an ore shoot is a long seam of mineral or metal bearing rock that can be profitable to extract. The term may have originated in the 17th and 18th centuries when various theories existed on the origins of ore deposits, including some that suggested they grew like trees. Tabular or sheet-like deposits of metalliferous ores often contain areas of enhanced metal content that are larger in one dimension than another. A structure may contain multiple ore shoots. A “vein,” “lode” or other mineral-bearing structure could be 5 to 20 feet (2 to 6 m) thick, steeply inclined within the host rock, persisting for hundreds or thousands of feet horizontally and vertically. Such a structure could contain an area of enhanced metal content extending 100 feet (30 m) horizontally and 500 feet (152 m) vertically. This would be termed an “ore shoot.” The existence of the ore shoot could be recognized visually in a tunnel or “drift” excavated along the structure, or by the assaying of rock samples cut from the walls and roof of the tunnel.” (Source)
What makes today‘s assays from hole COD18-70 so impressive, again, is that the high-grade quartz vein intersection is near-surface (18 to 24 m vertical depth). This interception occurs near the earlier announced high-grade intersections of COD18-45 (“50.1 g/t gold and 375 g/t silver over 2.05 m“), COD18-46 (“54.9 g/t gold and 379 g/t silver over 1.47 m“) and COD18-67 (“129.1 g/t gold and 1,154.9 g/t silver over 7.28 m“) indicating a so-called ore shoot, possibly being, or leading to, a “motherlode”-style feeder system.
A motherlode is a principal vein of a property or region/district/camp, and also colloquially refers to something valuable or in great abundance.
An ore shoot is a large and usually rich aggregation of minerals in a vein, with grades typically increasing substantially compared to other areas of the vein. Some ore shoots form in proximity to considerable breccia, or an increase in open space by faulting. In today’s news from Ximen/GGX it was also noted that within hole COD18-69 (“5.76 g/t gold and 67.9 g/t silver over 7.46 m“) some quartz breccia was observed locally in the drill core. The pictures of the core from COD18-70 also show indications of fractured quartz intercepts, which is also a sign for favorable “ore shoot“ conditions (but making drilling somewhat difficult, sometimes resulting in core loss). In general, ore shoots can be so richly mineralized and large that these make up a considerable portion of the total metals found in a vein or deposit. For example: “The Hyde-Macraes Shear Zone in southern New Zealand contains the ... Macraes gold deposit... Approximately 50% of [its total] resource is hosted by 5 major ore shoots...”
Strong Exploration And Mining Team
Ximen’s team member, Alex Mcpherson, worked underground at the Dentonia Mine and thus knows the area well, and how such veins are mined. He has worked on many notable projects across Canada and the United States. In British Columbia, he was also sinking shafts for Bralorne Gold Mines. He has decades of experience in mining and mineral exploration, has done extensive underground work including drifting, stoping, sinking shafts, driving raises, timbering, blasting and much more for a variety of private and public companies.
Ximen also has Peter Cooper on board. He has been involved in 3 successful new gold mine start-ups and has overseen projects from the exploration stage right up to production. He played a significant role in the exploration, pre-production and development of Kinross Gold Corp.‘s Buckhorn Gold Mine located in northern Washington State, close to the Gold Drop Project. For many years, he served as Chief Geologist and then Manager of Operations at Kinross‘ Kettle River Mill, where the ore of the Buckhorn Gold Mine was processed. With the recent closure of Kinross‘ Buckhorn Gold Mine (depleted), the Kettle River Mill (capacity: 1,800 tonnes/day) is currently on care and maintenance, hence Kinross could be looking for replacement feedstock to keep this large mill alive.
According to the NI 43-101 Technical Report on the Gold Drop Property (January 2014):
”Since custom milling opportunities exist in the district, the property does not necessarily need to support a stand-alone mine/mill operation to be viable. Even a small or modest tonnage of high grade ore could potentially be profitable to extract, given the excellent infrastructure of the region and the property itself.”
Option Agreement Favorable For Both Ximen And GGX
Since July 2016, the Gold Drop Project is under option agreement to GGX Gold Corp. which company may acquire a 100% interest by making staged cash and share payments to Ximen over a 4 year period equal to $400,000 in cash ($100,000 each year) and $600,000 in shares ($150,000 each year, subject to a minimum of 250,000 shares each year). This is in addition to the 1 million shares already issued to Ximen after TSX-V approval. GGX must also make work expenditures of at least $1 million until 2020 (minimum of $150,000 each year). Ximen will retain a 2.5% NSR (Net Smelter Royalty), of which GGX may buy back 1% by paying $1 million to Ximen.
Once GGX has obtained a 100% interest in the project after 4 years (in 2020), Ximen will have a right (for 9 months thereafter) to elect to form a joint venture with GGX by paying to the GGX the amount of money equal to 30% of the total amount expended on the property by GGX. If Ximen exercises this joint venture right, Ximen and GGX will enter into a joint venture for the exploration and development of the property. In other words: GGX is doing all the work, financing/dilution (i.e. taking the risk), and if the project becomes a success, it is Ximen who then has the decision power to get back 30% interest by paying 30% of the costs that GGX spent. Ximen also owns 2 other projects in British Columbia: The Brett Epithermal Gold Project and the Treasure Mountain Silver Project (the latter currently under option agreement). For such reasons, I am a shareholder of Ximen (and considering the continuation of good news from the Gold Drop Project, I may initiate a share position in GGX soon as well).
With currently around 30 million shares issued and outstanding, Ximen has a tightly held share structure with less risk of future dilution as it receives annual cash payments from its optionees. According to CanadianInsider.com, Ximen‘s CEO, Christopher R. Anderson, increased his holdings from less than 3 million shares to more than 4.3 million shares last year. As per December 28, 2018, he also held 1.2 million warrants and 0.8 million options, thus, if all exercised, controlling around 6.3 million Ximen shares. According to Ximen‘s website, insider ownership / major shareholders account for 40% of the company (as of September 2018). In other words: Management and insiders have serious “skin in the game“, i.e. they put their money where their mouth is.
Positive Gold Price Outlook
According to the recent Bloomberg article Goldman Predicts Gold Prices to Climb to Highest Since 2013 (January 10, 2019):
“Goldman Sachs Group Inc. is leading a pack of bullish voices cheering for gold. The bank’s analysts... raised their price forecast for gold, predicting that over 12 months the metal will climb to $1,425 an ounce -- a level not seen in more than five years. Bullion has benefited as rising geopolitical tensions fuel central bank purchases, while fears of a recession helped boost demand from investors seeking ‘defensive assets,‘ they said... Speculative interest in gold signals investors are not only closing bearish bets but are also adding to bullish positions... ‘We expect the safe-haven bid, and to a lesser extent, gold’s inflation hedge properties, to remain key drivers of the metal’s price in 2019, complemented by a resurgence of physical demand,‘ Cantor Fitzgerald analysts led by Mike Kozak said in a report. Gold and silver are ‘looking good in 2019,‘ underlining a potentially positive indicators that ‘should drive a bullish case‘ for both metals ‘and as a result, the related equities as well‘.“
Link to updated chart (15 min. delayed): http://schrts.co/DHtSzK
Shares Issued & Outstanding: 30,128,525
Canadian Symbol (TSX.V): XIMCurrent Price: $0.50 CAD (01/18/2019)Market Capitalization: $15 Million CAD
German Symbol / WKN (Frankfurt): 1XMA / A2JBKLCurrent Price: €0.321 EUR (01/18/2019)Market Capitalization: €10 Million EUR
Report #4: “Record-Breaking Gold Hit in Southern British Columbia“
Report #3: “Strong drill results and appreciating precious metals prices may herald golden times for Ximen Mining“
Report #2: “Ximen Mining reveals striking drill core observations ahead of assays“
Report #1: “Ximen Mining: Hunting for Multi-Million Ounces in British Columbia“
Disclaimer: This report contains forward-looking information or forward-looking statements (collectively "forward-looking information") within the meaning of applicable securities laws. Forward-looking information is typically identified by words such as: "believe", "expect", "anticipate", "intend", "estimate", "potentially" and similar expressions, or are those, which, by their nature, refer to future events. Rockstone Research, Ximen Mining Corp. and Zimtu Capital Corp. caution investors that any forward-looking information provided herein is not a guarantee of future results or performance, and that actual results may differ materially from those in forward-looking information as a result of various factors. The reader is referred to the Ximen Mining Corp.´s and Zimtu Capital Corp.´s public filings for a more complete discussion of such risk factors and their potential effects which may be accessed through the Ximen Mining Corp.´s and Zimtu Capital Corp.´s profile on SEDAR at www.sedar.com. Please read the full disclaimer within the full research report as a PDF (here) as fundamental risks and conflicts of interest exist. The author, Stephan Bogner, holds a long position in Ximen Mining Corp. and Zimtu Capital Corp. and is being paid by Zimtu Capital Corp. for the preparation, publication and distribution of this report, which company holds a long position in Ximen Mining Corp. The author currently does not hold any equity positions or other kind of interest in GGX Gold Corp. Ximen Mining Corp. has paid Zimtu Capital Corp. to provide this report and other investor awareness services.
Disclosure: I am/we are long XXMMF.