Ximen Mining Corp (TSX-V:XIM, OTCQB:XXMMF) told investors that it has been advised by the Ministry of Energy, Mines and Low Carbon Innovation (EMLI) that a draft permit for the proposed mine development and underground drilling at the Kenville Gold Mine project at Nelson in southeastern British Columbia will be made available within 30 days.
The company said it will then review the permit conditions and accept the draft or request revisions. Once accepted by both parties, the permit will be issued. Concurrently, an environmental discharge permit is expected to be issued.
Ximen noted that other permits for the mine, including a magazine permit and a water licence for the use of groundwater, are incidental but necessary for operations to begin. These permits result from the company working closely with the ministries since the permitting process was initiated, it added.
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"With the Development Permit near at hand and US$5 million funding arranged for development, as well as the additional financial support of a mid-tier gold producer, 2022 should mark the start-up of the Kenville Gold Mine," the company’s CEO Christopher Anderson said in a statement. "The Kenville Gold Mine will have an extremely small environmental footprint while creating the opportunity for many high paying, impactful and meaningful jobs for the area and the community."
Ximen said it is now taking further steps to prepare for the start of operations. Work has progressed on the electrical installations at the portal. These include a 600-volt line connecting the local grid power to the mine powerhouse, installation of housed switchgear and connections to pump stations, a 75 HP fan for mine ventilation, and the mine air compressor.
It said materials required for the start of mine development have also been ordered, including rolled steel arches for the new portal, ground support materials including rock bolts, rebar, swellex, screen and strap, and parts for maintaining underground drills.
“The company is readying itself to be able to start work immediately after the permits are issued,” Ximen said.
The Kenville Gold Mine was the first recorded underground mine in British Columbia, having started production in 1890 and mined into the 1950s. The historical production records show 65,381 ounces of gold produced from 158,842 tonnes milled, for a recovered grade of 12.8 grams per tonne (0.37 ounce per ton) gold.
Surrounding and extending from the Kenville mine, Ximen noted that it currently controls 20,749 hectares of mineral properties along a 33-kilometre stretch of fertile ground covering 25 historic past-producing mines and 30 mineral occurrences in the Nelson mining camp.
It said it will be exploring this package to extend the Kenville deposit and/or discover new resources. In addition, a drill permit is in place for the California mine property, and an application has been made for the area covering the Star and Venus properties.
As previously announced on February 10, 2021, Ximen said it has negotiated a term sheet with a Swiss-based metals trading firm for US$5 million in the form of a secured gold loan for the planned development of a 1200-metre decline and extraction of a 10,000-tonne bulk sample at the Kenville Gold Mine property.
The secured gold loan is subject to the issuance of the permits as well as the completion of a C$1.5 million equity financing. The company said it is strategically planning to fulfill this requirement by evaluating market conditions and the project
As well as the Kenville Gold Mine, Ximen has two other gold projects: the Gold Drop Project and the Brett Epithermal Gold Project. Ximen also owns the Treasure Mountain Silver Project, adjacent to the past-producing Huldra Silver mine.
Contact the author at stephen.gunnion@proactiveinvestors.com