The large Stargate II Anomaly (red) at the Gold Drop Property (see video here).
Today, Ximen Mining Corp. announced that drilling has started on the Gold Drop Property in southern British Columbia to test the Stargate II Target, an “Acoustic Electromagnetic (EM) Anomaly” that was identified by Earth Science Services Corp. of Oshawa, Ontario (ESSCO) with its proprietary Stargate II technology.
What makes this anomaly so impressive is its large size, measuring 1,834 x 1,377 m along with its pipe-like structure extending for more than 4,000 m at depth. The target zone lies at depths between 500 and 800 m. This would be the deepest hole ever drilled on the Gold Drop property (and the deepest ever to be drilled in the entire Greenwood Camp according to my research of public records).
Full size / Plan view of the Stargate II Anomaly, which is centered at the intersection of 3 interpreted major fault conduit structural traces and located along strike and to the north of the C.O.D. Vein trend.
Glenn Galata from ESSCO believes that this anomaly has a good chance of being a large porphyry system. Big miners like Newmont Goldcorp Corp. have recently shown to be interested in gold porphyries.
On top of that, the first round of assays are expected shortly from the recent completion of 60 shallow holes on the C.O.D. and Everest veins at Gold Drop.
Full size / Map showing the location of the Stargate II Anomaly (red) and the C.O.D. Vein (green).
After about 400 m of drilling, a change in the geological environment is expected to come in and it is possible that a porphyry system may gradually show up. Thus, the geologists are going to look for the contact between the granite transitioning into the underlying volcanic rocks.
In contrast to a mesothermal system (oftentimes relatively small dimensions), where an abrupt change of the environment is typical, a porphyry system gradually builds up and therefore could have very large dimensions.
Porphyry systems can be dominated by gold and/or copper. Big mining companies worldwide are looking for very large tonnage porphyries, especially in safe jurisdictions like British Columbia. For example:
In mid-2017, GT Gold Corp. (TSX.V: GTT) started the first-ever drill program on its Tatogga Property in northwestern British Columbia, making multiple high-grade gold intercepts later that year including 13.03 g/t gold over 10.67 m (from 7.01 m), 51.53 g/t gold over 6.95 m (from 122.13 m), 220 g/t gold over 0.54 m (from 109.25 m).
Then, in late 2018, GT Gold announced 430 m of 0.67 g/t gold, 0.41% copper and 0.89 g/t silver (from 467.50 m) “strongly suggesting a very large porphyry Au-Cu-Ag discovery“. Shortly thereafter, the company reported 363 m of 1.02 g/t gold, 0.51% copper and 1.72 g/t silver (from 514.90 m) “confirming a significant porphyry Au-Cu-Ag discovery“. In early 2019, GT Gold announced 1,149.70 m of 0.62 g/t gold, 0.36% copper and 1.17 g/t silver (1.12 g/t gold equivalent; from 11.33 to 1,161 m).
The discovery of this large porphyry at Tatogga resulted in Newmont Goldcorp Corp. (TSX: NGT; market capitalization: $41 billion CAD) investing 17.6 million CAD in a private placement in order to control 9.9% of GT Gold‘s outstanding shares. Currently, GT Gold trades at $0.91 CAD with around 105 million shares issued (market capitalization: $95 million CAD).
“The geological environment at Gold Drop looks similar to Tatogga but the area of interest is several times larger at Gold Drop“, said Glenn Galata of ESSCO in a recent phone call with Rockstone and added: “So if there are reasonable grades of gold in that deep system at Gold Drop, it could be a very large deposit. The model is there and there are so many higher grade, small deposits scattered all over the area around the Gold Drop Property that it is possible that this could be another Tatogga. And I even believe that there could be a higher gold grade at Gold Drop compared to Tatogga because of the signatures we are getting back from the geophysical program which suggests that an elevated level of lower density mineralization volume component is likely to exist. It does not look like that there will be a lot of copper at Gold Drop, rather being gold dominant. The big companies are after big porphyries.“
It remains to be seen if a gold porphyry system can be discovered at Gold Drop with the drill program that just started. In a few weeks from now, we will know better. I am glad to be already invested in Ximen and GGX, so I can lean back relaxed and watch it all unfold now.
In the meantime, the first round(s) of assays from the recently completed drilling at the C.O.D. Vein are expected to be released. As of September 26, a total of 2,486 m have been drilled in 49 holes on the main C.O.D. vein, and an additional 705.20 m drilled in 10 holes on the COD North vein and 1 hole on the Everest vein. The pictures of core from the recent drill program look very promising:
Recently on September 5, Ximen announced that GGX Gold Corp. has completed all payments of shares and cash to earn a 100% interest in the Gold Drop Property located about nine kilometers northeast from Greenwood, British Columbia, in the Greenwood Gold Mining district. The final payment to Ximen Mining Corp. consisted of 600,000 common shares with a value of $150,000 and a $100,000 cash payment. Ximen will retain a 2.5% net smelter return royalty (the “NSR Royalty”) which GGX Gold may buy down 1% of the NSR Royalty by paying $1,000,000. Upon completion of the option requirements by GGX Gold, Ximen will have a right for nine months thereafter to elect to form a joint venture by paying GGX Gold an amount of money equal to 30% of the total amount expended on the property by GGX Gold. If Ximen exercises this joint-venture right, GGX Gold and Ximen will enter into a joint venture for the exploration and development of the property.
Full size / The Stargate II Anomaly (red) at the Gold Drop Property within the Greenwood Camp.
See Video onYouTube: https://youtu.be/gV5CtMsSiHU
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: 39,962,564
Canadian Symbol (TSX.V): XIM
Current Price: $0.435 CAD (10/01/2019)
Market Capitalization: $17 Million CAD
German Symbol / WKN (Tradegate): 1XMA / A2JBKL
Current Price: €0.314 EUR (10/02/2019)
Market Capitalization: €13 Million EUR
Report #15: "Ximen targets first gold bar pour this year from bulk sampling at Kenville"
Report #14: "All Eyes on Gold Drop and Stargate II: Deep drilling to test for a large gold deposit near Greenwood in British Columbia"
Report #13: "Ximen is pressing ahead aggressively with its goal of becoming a gold producer: Mining plan now revealed"
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., GGX Gold Corp., 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. Note that Ximen Mining Corp. pays Zimtu Capital Corp. to provide this report and other investor awareness services.
Stephan Bogner (Dipl. Kfm.)
8260 Stein am Rhein, Switzerland