Underground tunnel construction will start shortly
Ximen Mining Corp. today made the astonishing announcement to produce the first bullion this year.
Today it was announced that bulk samples will be taken during the construction of the new underground tunnel in the previously producing Kenville gold mine, as several gold veins are already at the beginning of the tunnel.
These high-grade veins can be mined immediately on site and probably be poured in the Greenwood processing plant to Gold Dor bars, which then sell to a smelting plant. The first cash flow is therefore imminent and one can expect that enough gold ore will be mined during the tunnel construction, so that continuous revenue is generated.
The total cost of production should be under $ 800 CAD per ounce, so the current gold price of $ 1,861 CAD would yield substantial profit margins in excess of $ 1,000 CAD / ounce. This would mean that part of the costs of tunneling would be self-financing, so that fewer capital increases would be necessary.
To be on the safe side, Ximen has nonetheless recently taken a strong financial partner to the side, who has pledged to provide up to $ 8 million over the next 2 years (if and when Ximen deems it necessary). Thanks to these positive framework conditions, the step to becoming a gold producer should be a mere formality. During this beginning phase, the company can create abundant shareholder value, as the financial partner knows and provides its funds exclusively against Ximen shares.
There can not be a better position for Ximen. In addition, the gold price - as in the best of times - makes big leaps and is probably only at the beginning of a strong upward trend.
Full version / satellite image of the Kenville Mine Area with historical mine level locations, the planned access tunnel, and drill hole grades in mining targets.
Full Version / Planning Map shows historic mine works, hole contents and new tunnels.
As it became known today, the construction of the new access tunnel will start shortly, with a total length of 506 meters. The two maps show that the Eagle gold veins are already reached after about 200 m gallery construction. From this time, gold veins can be mined to the end of the tunnel (ie about 300 m of ore). This in turn means that after the first 200m of gallery construction is completed, continuous cash flow can be expected.
The underground wells (short holes) that occur just prior to mining are only intended to show the way the veins are mined by accurately determining gold grades.
As the two maps impressively illustrate, there are numerous points along this tunnel where drilling between 5 and more than 60 g / t gold has been detected. As an example of expected gold grades before the end of the tunnel , Ximen mentioned 2 holes:
• Drill hole TRK95-05:
82.15 g / t gold m over 0.26 m, which would mean an average gold grade of 10.68 g / t gold with a mining width of 2 m .
• Drill hole AK08-20:
37.60 g / t gold over 0.22 m, which would still yield a sizable 4.14 g / t gold over a width of 2 m .
These degradation grades between 4 and 11 g / t gold are degradable over a great length of 300 m, from which many ounces of gold can be produced. It is important to understand that the average contents over a width of 2 m are only conservative calculations , since the rock is gold-bearing in addition to the drilled widths, so that much higher gold contents are to be expected. Kenville mine manager, Lloyd Penner, said in an interview that he expects average mining levels of about 16 g / t gold.
Full version / Today details have been published about the gallery construction, which will have a width of 3.5 m and a height of 4 m, so that an area of 2 m width and 2.20 m height can be dismantled. At the same time, this tunnel will act as access and removal tunnel, generating revenue after a short time.
At the end of the access tunnel (after approx. 506 m), further high-grade gold veins are expected for immediate mining: the Flat Vein Gold Prospect and the Kenville South Gold Prospect . At the end of the tunnel, there will be immediate access to large-scale and extremely high-grade gold zones, which will then be mined over a wide area.
As an example of the expected gold grades after the end of the tunnel (after 506 m), Ximen mentioned 7 holes (see table below), all of which have an average grade of 13 g / t gold over a width of 2 m , ie twice as much gold as in the first Stollen section (300 m ore).
full version
The two maps shown above also show that the size of the gold zones after the end of the tunnel can be reduced much wider (instead of just along the veins). Here is obviously so much high-grade gold ore, which can be mined for many years.
As can be seen on the map, the Kenville Gold Mine is located in southern British Columbia, Canada, near the border with Washington, USA, in which part of the Republic Graben, above all Kinross Gold Corp. (TSX: K; current market capitalization: $ 7 billion CAD) with underground gold mines was active (recently the Buckhorn Gold Mine was closed, exhausted).
The Kenville Gold Mine is a 2-hour drive from the Greenwood processing plant ("GOM Mill"), which is easily accessible by lorry over a highway. The facility is owned by Golden Dawn Minerals Inc. (TSX.V: GOM) , which is currently undertaking a $ 3 million financing to enable the company to start up its already licensed processing facility.
This under-utilized facility, which also includes an already approved tailings pond, was built in 2007 and was in operation for just 9 months the following year. It is a modern processing plant with a capacity of 212 t / day (72,000 t / year), which can be expanded to 424 t / day with the addition of only a second rock mill and modifications to the existing flotation cycle. As the latest Rockstone report on Kenville showed , the Kenville ore is ideal for the Greenwood processing plant to produce gold Dor bars.
On April 14, 2019, the owner of Greenwood's processing plant, Golden Dawn Minerals Inc., announced that Chris Anderson was appointed interim CEO and Director. Mr Anderson is also the President and CEO of Ximen ...