A new underground mine scoop loader awaits deployment at Kenville Gold Mine. (Source: Ximen Mining Corp.)
The gold bull is back! At least according to Adam Hamilton, who cut right to the chase in his June 21, 2019 article “Gold Bull Breaking Out!”:
“Gold finally surged to new bull-market highs this week! Several years after its last bull high, gold punched through vexing resistance after the Fed continued capitulating on ever normalizing. This huge milestone changes everything for gold and its miners’ stocks, unleashing new-high psychology fueling self-feeding buying. With speculators not yet all-in and investors wildly underdeployed, gold has room to power much higher.”
And Rockstone’s favorite gold stock at the moment, Ximen Mining Corp., achieved a huge milestone on June 20, 2019 in an announcement that has the potential to change everything as the explorer is pressing ahead aggressively with its goal of becoming a gold producer in southern British Columbia, Canada:
Ximen has entered into an agreement for a drawdown equity financing facility with Alumina Partners (Ontario) Ltd., an affiliate of New York-based private equity firm Alumina Partners LLC. The investment agreement will provide Ximen with up to $8 million over a 24 month period, structured to provide the company with relatively quick access to private placement financing as and when required, at its sole discretion.
”Alumina is excited to support Ximen as they move to systematically expand their precious metals holdings in the highly favourable mining jurisdiction of British Columbia,” said Adi Nahmani, managing member of Alumina. “As the gradual sector rotation back toward precious metals continues to gain traction, we anticipate the strong management team at Ximen being able to translate their substantial asset base into the real revenue streams of a production-stage company.”
Speaking of confidence, Ximen today made another milestone announcement, unleashing its plans to open the Kenville Gold Mine in Nelson, BC in an effort to create substantial shareholder value along the way.
Since initiating coverage in late 2018, Ximen’s share price gained 88%. As investors like Alumina are now realizing the vast potential that Ximen offers, the time has come to hit the bull’s eye.
Ximen Mining Corp. today released its underground mine plan to re-open the past producing Kenville Gold Mine with historical records showing 65,381 ounces of gold produced from 158,842 tonnes milled (recovered grade of 12.8 g/t gold) intermittently between 1890 and the 1950s:
“The first step is to drive a new underground decline with rubber tired trackless equipment that will facilitate both lateral and vertical development. This will provide access to the center of a series of vein intercepts from the 2009-12 surface drilling. The new decline will be driven to a target of 524 metres. Underground drilling will then be done to outline areas of potentially mineable material, starting as the decline is advanced. About 4500 metres of underground drilling is expected to be required to outline sufficient material for a bulk sample of 10,000 tonnes. The project is estimated to take 6 months from the start of the new decline.”
In 2007-2008, 13,000 m of drilling was completed that targeted previously un-tested areas southwest of the historic mine, and detailed sampling was conducted within the mine on the 257 Level. Based on this work and historical information, mineral resources were estimated (non-compliant with NI 43-101; see Ximen April 8, 2019 News Release).
After that historic resource estimate was made, an additional 14,106 m of surface diamond drilling was completed between 2009 and 2012, which intersected a new vein system in the areas south and west of the existing mine. Several holes intersected multiple, stacked quartz veins, and at least 4 new veins were identified. The system has potential dimensions of over 700 by 250 metres, which remains open in multiple directions. The newly discovered areas of veining are the target of the current mine development plan.
Full size / Note that there are numerous additional drill intercepts great[er] than 5 grams per ton. Abbreviations: g/t = grams per tonne; oz/ton = ounces per short ton. Note: The above table is based on information provided by previous operators that is considered historical. Although it is known that the drill programs were directed by experienced personnel and a quality control program was employed to monitor assay results, a qualified person has not verified the previous results on behalf of Ximen Mining Corp. Ximen believes the results are representative of the undeveloped mineralization at the Kenville property. See Ximen’s July 2, 2019 News Release for Qualified Person’s review of technical information.
As the Kenville Mine Project is a narrow, multi-vein, high-grade gold deposit, the following table shows diluted gold grades to a 2 m width of some highlight drill intercepts from the 2009-2012 drill program (historic; non-compliant with NI 43-101).
The first 7 holes in the table (KE09-10 to AK08-15) average a diluted grade of 23.81 g/t gold over a 2 m width. Assuming the same average grade within the proposed 10,000 tonnes bulk sample, some 7,655 ounces of gold would be present with a current in-situ value of $10.7 million USD (at a gold price of $1,400 USD/ounce). Note that it’s unknown at this time at which width Ximen plans to extract the bulk sample and that further dilution with no appreciable gold grades could be added, whereas average gold grades could also turn out lower. For such reasons, about 4,500 m of underground drilling is planned to closely define the mineable blocks of material for a proposed 10,000 tonnes bulk sample including determination of grades and potential mining widths.
The next step is to drive a new underground access to allow both lateral and vertical development, putting it in the center of a series of veins identified by historic surface drilling. Assuming an average rate of 50 tonnes/day, a 10,000 tonnes bulk sample could be extracted in 200 days, during which time processing at a suitable facility is needed.
One of the most important keys for any exploration company with an intention to do bulk sampling and to enter into commercial production thereafter: Access to a suitable processing plant.
Full size / The Greenwood Processing Plant from Golden Dawn Minerals Inc.
The Greenwood Processing and Tailings Facility is located near Greenwood in southern British Columbia, a 2 hour drive from the Kenville Gold Mine Project. This lightly used plant, which includes a permitted 400,000 tonnes tailings pond, was built in 2007 and used in 2008 for 9 months. It’s a modern processing facility with a throughput capacity of 212 t/day (72,000 t/year), upgradable to 424 t/day with the addition of a second primary grinding mill and modifications to existing rougher flotation circuit. The mill‘s conventional processing can produce a gold gravity concentrate and copper-gold flotation concentrate, both marketable to smelters for immediate cash-flow generation.
The previous owner of the Kenville Mine Property, who did not have access to a processing facility, completed a metallurgical scoping study in 2009 demonstrating that standard flotation technique recovered 98% of the feed gold into a concentrate of 155 g/t gold, 355 g/t silver, 12% lead and 2.5% copper. By combining the gravity and flotation techniques, the result was a 93% gold recovery with an average concentrate grade of 200 g/t gold, 18% lead and 3.3% copper. As such, the Greenwood Mill appears as a suitable site for processing material from Kenville.
The planned method of mining at Kenville could be such that every tonne mined is almost pure vein material (e.g. with a targeted dilution of less than 20%). By doing so, Ximen could be trucking vein material with minimal dilution, greatly reducing the tonnage needed to be trucked and milled.
On April 14, 2019, the owner of the Greenwood Processing Facility, Golden Dawn Minerals Inc. (TSX.V GOM), announced that Chris Anderson has been appointed as the company’s Interim CEO and Director. Mr. Anderson also serves as President and CEO of Ximen Mining Corp.
Full size / The Greenwood Processing and Tailings Facility from Golden Dawn Minerals Inc.
On April 15, 2019, Ximen announced the addition of Lloyd Penner to the Ximen team. Previously, Mr. Penner worked as mine manager for several projects and was also instrumental in discovering new high-grade vein systems in previously unexplored areas of the Kenville Mine Property. He knows Kenville very well, lives in Nelson, and thus is believed to be the perfect match for Ximen “focusing on assisting the company with its future plans and aspirations towards developing its mining activities on its various assets”, as Ximen noted.
“Mr. Penner brings many years of experience and knowledge to the Company, as a large part of his 30 plus-year career has been spent in the exploration, development, and mining of western Canadian gold deposits, from the coastal mountains of British Columbia to the gold camps of northern Canada and as far as west Africa. His well-rounded skill set includes planning, project organization, surface infrastructure setup, and conventional underground mining. His mining career began developing the high grade, narrow veins of the Bridge River Valley of British Columbia in 1986. Notable projects to-date include the position of mine manager of the QR Mine in the British Columbia interior – a 1,000- tonne per day cyanide operation with multiple underground and open pit mines operating. Other projects include late stage exploration properties such as Selkirk Metals’ Ruddock Creek property, Imperial Metals’ Red Chris property, and Avion Gold’s production gold mine in Mali. His background includes more than eight years of management in development, exploration, and production in both Africa and British Columbia. Mr. Penner also has experience working in custom test mining and exploration management of a narrow vein gold project in British Columbia. He is familiar with current mining, government agencies, and environmental regulations in British Columbia, and holds current UG certifications. Mr. Penner’s knowledge and experience with the Kenville Gold Mine (having spent several years assessing it) and with other high grade vein properties like it makes him an integral component in the success of this venture as well should the company complete on the opportunity to acquire the Kenville Gold Mine.”
The Kenville Mine Property is located 8 km west of Nelson in British Columbia, is accessible by paved road and is connected to the power grid. Existing infrastructure includes mining equipment, offices, mechanic shop, core storage and accommodation.
Gold-Stock Decisive Breakout!
Below excerpts from Adam Hamilton of ZealLLC.com on June 28, 2019:
“The gold miners’ stocks just blasted higher to a major decisive breakout this week! Driven by gold’s own huge bull-market breakout, the gold stocks surged well above vexing years-old upper resistance. The resulting new multi-year highs are a game changer, starting to shift long-apathetic sector sentiment back towards bullish...
Since late 2016, GDX has largely been trapped in a giant consolidation basing trend running from $21 support to $25 resistance. $25 had proven a graveyard in the sky for gold stocks since November 2016, and needed to be overcome to change bearish psychology. GDX‘s $25.05 close last Thursday on that new secular gold high was right there. But $25 resistance had to be broken decisively to impress traders...
Last Friday and this Monday it was becoming evident that new-high psychology was taking root in gold. That is a powerful force motivating speculators and investors to buy. GDX $25 finally being materially surpassed has long been the key to unleashing this self-reinforcing sentiment in gold stocks...
‘The higher gold stocks climb, the more traders will want to buy them to ride that momentum. The more capital they deploy, the more gold stocks will rally. This normal virtuous circle of improving psychology and buying will become even more exaggerated as GDX $25 is surpassed. Seeing the highest gold-stock levels in several years will work wonders to improve sector sentiment, unleashing widespread bullishness. This gold-stock upleg‘s potential gains are massive spanning such a major upside breakout. Remember speculators and investors love chasing winners, so the higher gold stocks rally the more attractive they‘ll look.‘ Nothing drives trader interest and thus capital inflows like major new highs. And GDX was right on the verge of entering that excitement-fueling zone decisively over $25 as markets opened for trading this week.
This Monday gold surged another 1.4% higher to a dazzling $1419 close! That new 6.1-year high was fueled by sheer momentum, there was little gold-moving news that day. Gold‘s new-high psychology was already feeding on itself. And that enthusiasm spilled into gold stocks, with traders bidding GDX another 3.8% higher to $26.17. That was the long-awaited decisive $25 breakout, with GDX blasting 4.7% beyond!
The importance of gold stocks powering through to new 2.7-year highs cannot be overstated. Major new highs act like magnets attracting traders‘ attention, interest, and capital. They prove that the long-ignored gold stocks are in bull-market-rallying mode again, portending massive gains to come. They also garner media coverage, which greatly increases the number of traders looking to ride the breakout momentum...“
Tweet by Marin Katusa / Katusa Research on June 25, 2019: “The Chart that every #gold investor needs to pay attention to right now. It’s the weighting of gold stocks in the S&P 500. Crazy that sliding from 0.30% to 0.07% sent the gold market into the worst bear market in history. IF it goes back to the 30yr avg of 0.23% - blast off.”
Link to updated chart (15 min. delayed): http://schrts.co/nVvegNqV
Ximen Mining Corp.
888 Dunsmuir Street – Suite 888
Vancouver, BC, Canada V6C 3K4
Phone: +1 604 488 3900
Shares Issued & Outstanding: 38,008,700
Canadian Symbol (TSX.V): XIM
Current Price: $0.61 CAD (06/28/2019)
Market Capitalization: $23 Million CAD
German Symbol / WKN (Tradegate): 1XMA / A2JBKL
Current Price: €0.41 EUR (07/01/2019)
Market Capitalization: €16 Million EUR
Report #12: "Ximen frees Kenville Gold Mine from royalty burden, making it more attractive for development"
Report #11: "The Beauty of High-Grade Gold (and Silver!): Ximen Cuts to the Chase, Expands Work Efforts on Multiple Properties in Southern British Columbia"
Report #10: “Ximen Mining: Paving the road(s) to success“
Report #9: “Ximen takes a shot at history, focuses on acquiring the Kenville Gold Mine“
Report #8: “Industry inquiries persuade Ximen‘s partner to re-assay drill core for tellurium“
Report #7: “Ximen Hires B.C. Mining Expert Dr. Mathew Ball“
Report #6: “Location is Key for Ximen‘s Treasure Mountain Project in Southern British Columbia“
Report #5: “The Unprecedented Gold-Silver-Tellurium Strikes in the Historic Greenwood Mining Camp Continue“
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., Golden Dawn Minerals Inc. and Zimtu Capital Corp. and is being paid by Zimtu Capital Corp. for the preparation, publication and distribution of this report, whereas Zimtu Capital also holds a long position in Ximen Mining Corp. and Golden Dawn Minerals Inc. Ximen Mining Corp. has paid Zimtu Capital Corp. to provide this report and other investor awareness services.
Stephan Bogner (Dipl. Kfm.)
8260 Stein am Rhein, Switzerland