Ximen Mining Corp (CVE:XIM) (OTCQB:XXMMF) (FRA:1XMA) has bolstered its land holding near its Kenville gold mine project in British Columbia by acquiring 25 Crown claims mainly to the south of the property, it said on Thursday.
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.
READ: Ximen Mining completes new mine portal, rail access at historic Kenville gold mine in BC
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.
The Star mine churned out 180 ounces of gold and minor silver and copper from 1,163 tonnes, Ximen told investors, at a calculated gold grade of 4.81 grams per tonne (g/t).
Ximen set out the geology of the area: "This claim group straddles the margin of the Eagle Creek pluton, which hosts the high-grade gold-quartz veins at Ximen's Kenville property.
"On the Star ground, widespread disseminated mineralization occurs over a south-southeast trending zone approximately two kilometres in strike length and one half to one kilometre wide."
To buy 100% interest in the claims, Ximen must pay the vendors C$400,000 over nine years in instalments and carry out C$1 million of work over 10 years in scheduled varying annual increments.
"The payments and work expenditures can be accelerated. The acquisition is subject to a 2.5% net smelter royalty (NSR) royalty in favour of the vendors. This can be reduced to 1.5% by paying C$2 million.
Ximen's Kenville mine in the Nelson camp reportedly produced 65,236 ounces of gold and 27,686 ounces of silver between 1889 and 1956.
Contact the author at giles@proactiveinvestors.com