viewXimen Mining Corp

Ximen Mining poised to be British Columbia's next significant gold producer


The company has an acquisition option on the former Kenville gold mine, which produced 65,236 ounces of gold, and 27,686 ounces of silver intermittently between 1889 and 1956

Ximen Mining Corp -

Quick facts: Ximen Mining Corp


Price: 0.19 CAD

Market Cap: $14.68 m
  • A solid mining company with strong ties to the region
  • Kenville metallurgical test work has been very promising
  • Safe mining jurisdiction

What Ximen Mining does: 

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

The company has an acquisition option on the former Kenville gold mine, which produced 65,236 ounces of gold, and 27,686 ounces of silver intermittently between 1889 and 1956.

Ximen has been expanding its footprint in the area via several claim groups near Kenville and last June reported that its total land package in the Nelson-Ymir-Salmo area since first acquiring Kenville in early 2019 stood at 19,582 hectares.

Kenville was formerly known as the Granite-Poorman mine and lies 7 kilometres (km) west of the town of Nelson in the West Kootenay region. Ximen wants to exploit the vein structures to bring it back to life and establish a high-grade, 20-year, producing gold mine, while concurrently exploring the limits of the reserve.

Another of Ximen's key assets is the Brett epithermal gold project, which the company has controlled 20,025 hectares of since 2013, and where previous drilling has thrown up 168 grams per ton (g/t) of gold over 1.3 metres (m) and where visible gold is common.

In May last year, the group received approval for a surface drilling program to extend the known bonanza grade zones and test for lower-grade targets that could be amenable to a bulk mining scenario.

Ximen wants to extend the current mine at Brett by up to 200 metres and also aims to explore the Main Zone to the northwest where significant gold intercepts were intersected in surface drill holes. An application for underground exploration is still under review.

Ximen also owns the Treasure Mountain silver project, which is adjacent to the past-producing Huldra Silver mine. It is currently optioned to New Destiny Mining Corp (CVE:NED) for staged cash and stock payments. Treasure Mountain boasts multiple mineralization types, including polymetallic veins, gold-bearing quartz veins, and porphyry and porphyry-related mineralization.

Ximen's portfolio also boasts the historic Cariboo-Amelia gold mine in Camp McKinney. 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.

In 2019, Ximen sold its Gold Drop Property in the Greenwood Camp option to GGX Gold Corp (CVE:GGX). 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.

How is it doing:

Ximen has continued to focus on expansion at Kenville in the first few months of 2021 but has also expanded elsewhere in British Columbia.

On February 12, Ximen released analytical results from prospecting samples collected at its properties near the Kenville gold mine at Nelson in British Columbia (BC). The company said the rock samples tested were collected last season on claims surrounding the company's mine. Approximately one week was spent examining the main showings in the Nelson area, and a total of 18 rock chip grab samples were collected.

Results were obtained for nine samples to date, four of which returned significant gold results, with two also significant in copper and silver. The highest value was obtained from the Venus showing at 9.04 grams per tonne (g/t) gold, 72.8 g/t silver, and 1.27% copper.

Results for the remaining nine samples are pending. In the meantime, Ximen will apply for permits for exploration on the properties surrounding the Kenville mine. Planned activities will include geological and geochemical surveys, ground geophysics, trenching, and surface diamond drilling.

On January 28, Ximen announced that it has bolstered its landholding near the Kenville gold mine by acquiring 25 Crown claims mainly to the south of the property. The new claims, which cover more than 360 hectares, are collectively known as the Star properties, and Ximen believes they have excellent potential to host a large-tonnage, low-grade gold deposit.

The new ground also includes the historic Eureka and Star mines. Production at the Eureka operation was 617 ounces gold, 36,161 ounces silver, 350,910 pounds of copper and minor lead from 8,995 tonnes of material mined.

In another expansion, on February 3, Ximen said it had acquired the Running Wolf gold property, 20 kilometers west of Cranbrook in the Fort Steele Mining Division in southern British Columbia. 

The company said the property covers ten mineral claims covering 860 hectares. Under the purchase agreement, it will pay a total of C$30,000, split among the vendors and issue 200,000 shares, also to be split among the vendors. The Running Wolf property adjoins Ximen's Quartz Mountain property of 58 claims covering 2,361 hectares, which was acquired in 2020. 

The company said the Running Wolf is a “significant addition” to its holdings in the Cranbrook gold belt, a zone that extends south-westward from the Northern Hughes Range, crossing the Rocky Mountain trench, into the western part of the Purcell Mountains, adding that future work will focus on expanding the areas of known gold mineralization and related fault/shear structures, and exploration for additional lode or disseminated gold deposits.

Then on the financing front, on February 10, the firm said it has signed an indicative term sheet with an arm’s-length Swiss-based metals trading company to provide US$5 million of financing in the form of a secured gold loan for the planned development of a 1,200-meters decline and extraction of a 10,000-tonne bulk sample at Kenville. 

The company said the contemplated loan will have a maturity date fixed at 330 days following the date of the advance to Ximen. It will be repayable on maturity by crediting a metals account designated by the lender by a specific number of ounces of gold, to be calculated at a discount to the spot price, with the number of ounces subject to adjustment on the closing date, depending on the then-current LBMA AM closing gold price. The loan is also to be secured by a first ranking general security agreement over the company's assets. 

Ximen noted that the loan transaction is forecast to close by April 30, subject to due diligence investigations being completed. The company added that once relevant permits and financing are secured for Kenville, it will be able to proceed immediately with mine development having acquired the necessary underground mining equipment.

Inflection points:

  • Kenville mine progress
  • More exploration results from the portfolio
  • Closure of secured gold loan

What the boss says:

"This non-dilutive financing is an important milestone as we continue moving forward on the development of the Kenville Gold Mine towards production. Following months of discussions, we are extremely pleased to have come to terms with a sophisticated firm that understands our industry and is providing us with the final stepping stone to satisfy our cash flow requirements," Ximen president and chief executive Christopher R. Anderson said in February's term sheet announcement statement.

Contact the author at jon.hopkins@proactiveinvestors.com

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