Connected to power and paved road, the Kenville property has mining equipment, offices, mechanic shop, core storage and accommodation on site.
Just days after picking up additional land in one historic southern British Columbia camp, Ximen Mining TSXV:XIM turned its attention to another former mine. A new option agreement would give the company a stake in another company whose chief asset is another option—to acquire the site of B.C.’s first underground lode gold operation.
Located eight kilometres west of the city of Nelson in southeastern B.C.’s Kootenay region, the Kenville gold mine operated intermittently between 1889 and 1954, extracting 181,395 tonnes containing 2,029 kilograms of gold, 861 kilograms of silver, 23.5 tonnes of lead, 15 tonnes of zinc, 1.6 tonnes of copper and 37 kilograms of cadmium, Ximen stated.
An historic, non-43-101 estimate gives Kenville’s 257 level 16,289 gold ounces measured and indicated.
Some 13,000 metres of drilling between 2007 and 2008 targeted previously untested areas southwest of the former mine, the company added. Detailed sampling also took place on the 257 level, which alone of the mine’s seven levels remains accessible. In 2009 an historic, non-43-101 resource for the 257 level used a 1.1 g/t cutoff to estimate:
- - measured: 3,312 tonnes averaging 31.72 g/t gold for 3,377 gold ounces
- - indicated: 21,312 tonnes averaging 18.84 g/t for 12,912 ounces
- - inferred: 522,321 tonnes averaging 23.01 g/t for 356,949 ounces
Further drilling took place between 2009 and 2012, finding at least four new veins with potential strike lengths of over 700 metres, according to historic, non-43-101 reports.
Historic accounts of soil surveys and drilling suggest potential for porphyry-type copper-molybdenum-silver-gold mineralization elsewhere on the property, Ximen stated.
Pending due diligence and TSXV approval, the acquisition would take place by optioning an interest in a company that holds an option to acquire Kenville. According to the terms, Ximen would option a promissory note to the vendor amounting to $780,000 plus interest, another promissory note to the vendor amounting to $1 million plus interest convertible into shares of 0995237 B.C. Ltd, mining equipment located in Alberta, and 5,333,334 shares in 0995237 B.C. Ltd.
“The principal asset of 0995237 is its option to acquire the Kenville gold mine,” Ximen stated.
The combined assets would cost Ximen 1,408,333 shares at a deemed price of $0.80, $1.38 million payable in installments and settling of the vendor’s $270,000 debt to arm’s length third parties.
Last week Ximen announced its acquisition of over 12,900 hectares in B.C.’s historic Greenwood camp. The new turf surrounds the company’s Gold Drop project, now optioned to GGX Gold TSXV:GGX. Last year’s Gold Drop drill program found near-surface, high-grade intervals of gold and silver, along with tellurium.
Ximen’s southern B.C. portfolio also includes the Treasure Mountain property under option to New Destiny Mining TSXV:NED and the Okanagan-region Brett gold project.
Ximen closed private placements of $540,000 in December and $250,000 in February. In March the company arranged a private placement of $405,000 subject to TSXV approval.