Ximen Mining Corp (CVE:XIM) (OTCMKTS:XXMMF) reported that its partner GGX Gold Corp (CVE:GGX) (OTCMKTS:GGXXF) had posted results on Thursday from the first ten holes of the flagship Gold Drop property in the famous Greenwood Mining Camp in British Columbia.
The assays showed potential economic mineralization in the COD vein, said GGX.
Gold Drop is a high-grade, near-surface asset, which was mined intermittently from 1919 to the 1980s, with previous production coming in at 7,572 tonnes at an average grade of 5.2 grammes per tonne (g/t) of gold and 93.4 g/t of silver, with the majority of output pre-dating 1942.
In a statement today, GGX said significant assay results had been received in five of the ten holes.
Highlight assays included an intercept of 0.38 metres (m) from around 28m depth at 145 grams per ton (g/t) gold, 1,430 g/t silver and greater than 500 parts per million (ppm) tellurium. Also encountered was 0.54m from 15m depth with 10.6 g/t gold and 51.1 g/t silver.
"The results confirm the presence of potentially economic mineralization in the COD vein at the Gold Drop property," reported Ximen.
Gold Drop 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.
Early in September this year, GGX said it had made a final option payment to Ximen Mining and now owned 100% of Gold Drop.
Ximen retains a 2.5% net smelter return royalty (NSR royalty) which GGX Gold can buy back 1% of (the NSR) by paying C$1 million.
For nine months after the option requirements were met by GGX Gold, Ximen retains a right to form a joint venture by paying GGX Gold an amount of money equal to 30% of the total amount expended on the property by GGX Gold. If Ximen exercises this, GGX Gold and Ximen will enter into a joint venture for the exploration and development of the property.
In a separate statement late on Wednesday, Ximen said the Toronto Venture Exchange had accepted documentation filed for the second tranche of the firm's private placement announced last month, namely the issue of 833,500 shares at C$0.30 each, plus warrants exercisable at $0.45 each, with one placee..
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