Since initiating coverage on Ximen Mining Corp. last December, its share price has increased by 140% backed by a strong newsflow and appreciating gold-silver prices. With a current market capitalization of $24 million CAD, the company’s shares gained 13% in Canada yesterday following news about its Treasure Mountain Silver & Base Metal Property located in southern British Columbia, Canada.

Its option partner has received the second batch of assays from surface rock grab sampling in the southeastern part of the property, including “Up to 1.45% zinc, 122 g/t silver, 0.87 g/t gold, 57 g/t tellurium and 12.3 g/t indium”.

Full size / See Ximen’s January 31, 2019 News Release for Qualified Person’s review of technical information. 

As previously announced, the first batch of assays from grab sampling in the east-northeastern part included “11.3 & 8.81 grams per tonne (g/t) gold“.

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There are several reasons why the Treasure Mountain Silver & Base Metal Property (approximately 9,500 hectares) is attractive, among others:

A) Location: A 3 hour drive from Vancouver and a few hours drive from Ximen’s other projects (Brett and Gold Drop) in southern British Columbia.

B) Location: Within the Intermontane Tectonic Belt, which hosts numerous porphyry copper-(gold) deposits, including the active Copper Mountain Mine from Copper Mountain Mining Corp. (current market capitalization: $164 million CAD).

C) Location: Approximately 37 km southwest of Westhaven Ventures Inc.‘s Shovelnose Gold Property, where 8.95 g/t gold and 65.47 g/t silver over 46.2 m core length was drilled recently. Westhaven enjoys a current market capitalization of $73 million CAD.

D) Location: Partially surrounding Nicola Mining Inc.‘s historic Treasure Mountain Silver-Lead-Zinc Mine hosting polymetallic veins. For a short period in 2011-2012 (when precious and base metals prices entered into a bear market), Nicola did some stope mining and estimates to have stockpiled 8,000 tonnes of material. The average grades, to date, of Nicola‘s 43 samples over the mined width are 911 g/t silver, 5.62% zinc, 3.35% manganese and 6.75% lead. Nicola also states on its website:

“Currently, no value has been assigned to stockpiled material as the material requires further processing at the Company’s Mill facility, once complete, prior to being shipped to a smelter for payment. There are currently no other identified options for processing the material prior to shipment to a smelter.“

According to the B.C. Ministry of Energy and Mines MINFILE database, Ximen’s 100% owned Treasure Mountain Silver & Base Metal Property hosts 7 known gold, silver, lead, zinc and/or copper occurrences in various parts of the property. These include gold-quartz vein, polymetallic vein and porphyry-type occurrences. Some of these mineral occurrences have associated historic underground workings.

Ximen‘s option partner, New Destiny Mining Corp. (TSX.V: NED), may earn in a 100% interest in the property by making certain staged cash and share payments of common shares in NED to Ximen over a 4 year period equal to a total of $400,000 in cash or stock payments. NED will also be required to spend $750,000 in exploration over the term 4 year period (ending in late 2020). Under terms of the agreement for each year’s payment, NED will make the decision as to pay Ximen either cash or equivalent value stock calculated by the 60-day volume weighted average price of common shares, with a minimum of $10,000 cash paid out per payment. Ximen will retain a 2.5% NSR (“Net Smelter Return“ Royalty), whereas NED may buy down 1% of the NSR by paying $1 million leaving Ximen with 1.5%.

Once NED has earned 100% interest in the property, Ximen will have a right for 9 months thereafter to elect to form a joint venture with NED by paying to NED the amount of money equal to 30% of the total amount expended on the property by NED. If Ximen exercises this joint venture right, Ximen and NED will enter into a joint venture for the exploration and development of the property. In other words: NED 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 in the property by paying 30% of the exploration costs which NED spent. A similar agreement has been made between Ximen and GGX Gold Corp. for its Gold Drop Project.

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According to Ximen‘s news, some highlights of reported historic work at the Treasure Mountain Silver & Base Metal Property include (as per British Columbia MINFILE and Mineral Assessment Report Records):

• “Rainy (Cedarflat) occurrence (north-central region): 2011 grab samples from rock piles near an adit were reported to return 6.5, 7.4 and 11.9% zinc.

Spokane (northeast region near Jim Kelly creek): A sample reported in 1913 of 4.11 g/t gold over 0.9 meters across the zone.

John Bull (northeast region near Jim Kelly creek): A channel sample reported in 1937 of 9.6 g/t gold over 0.18 meters across a quartz vein.

Railroad creek area copper showing (east region north of Railroad creek): Two 2011 grab samples from rock piles near adits were reported to exceed 1% copper and up to 76.4 g/t silver.

Rio Grande (southeast region): A 1.5 meter chip sample across a shear zone was reported in 1929 to return 1.2% zinc.“

Cautionary Note: Readers are warned that historical records referred to above have been examined but not verified by a Qualified Person. Further work is required to verify that historical records referred to above are accurate. The historical information is relevant only as an indication that some mineralization occurs on the property, and no resources, reserve or estimate is inferred. A qualified person has not done sufficient work to classify the historical information as current mineral resources or mineral reserves; and neither Rockstone Research, Ximen Mining Corp., New Destiny Mining Corp. nor Zimtu Capital Corp. is treating the historical information as current mineral resources or mineral reserves. 

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‘.“

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Technical Perspective

Link to updated chart (15 min. delayed): 

Company Details

Ximen Mining Corp.
888 Dunsmuir Street – Suite 888
Vancouver, BC, Canada V6C 3K4
Phone: +1 604 488 3900 

Shares Issued & Outstanding: 30,931,025


Canadian Symbol (TSX.V): XIM
Current Price: $0.78 CAD (01/31/2019)
Market Capitalization: $24 Million CAD


German Symbol / WKN (Frankfurt): 1XMA / A2JBKL
Current Price: €0.501 EUR (01/31/2019)
Market Capitalization: €16 Million EUR


Rockstone Research
Stephan Bogner (Dipl. Kfm.)
8260 Stein am Rhein, Switzerland
Phone: +41-44-5862323

Previous Coverage

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.comPlease 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 New Destiny Mining Corp., GGX Gold Corp. or any other mentioned company. Ximen Mining Corp. has paid Zimtu Capital Corp. to provide this report and other investor awareness services. 

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Name: Ximen Mining Corp.
Canada Symbol: XIM
Germany Symbol / WKN: 1XMA / A2JBKL
Shares Issued & Outstanding: 30,931,025
Phone: +1 604 488 3900

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