Vancouver, British Columbia--(Newsfile Corp. - June 26, 2020) - Ximen Mining (TSXV: XIM) (OTCQB: XXMMF) (FSE: 1XMA) has acquired net smelter royalties in the Greenwood Ming Camp, in southern British Columbia. Ximen purchased two NSR's from arm's length parties on the Golden Crown property owned by Golden Dawn Minerals Inc.
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The first is a 3% NSR on a group of 11 mineral tenures that make up part of the property, with the second is a separate 3% NSR on 2 other mineral claims in the property. Ximen also purchased a NSR of 3% on the May Mac mine property, covering one mineral claim and two mining leases, as well as an existing royalty consisting of $5 per ton on material processed in the May Mac mill.
Ximen paid 1 million shares, subject to TSX Venture Exchange approval, to arm's length vendors, who have entered into a voting trust agreement to vote the shares in favour of Ximen management.
The Golden Crown property to which these royalties apply includes a mineral resource that was disclosed by Golden Dawn in 2017 and filed on Sedar. It included 163,000 tonnes indicated with 11.09 grams per tonne gold and 0.56% copper, along with 42,000 tonnes inferred with 9.04 grams per tonne gold and 0.43 percent copper. The Golden Crown mineral resources were included in a Preliminary Economic Assessment for mine development and processing at the Greenwood mill, which is also located on the Golden Crown property.
The May Mac mill was constructed in 1980 as a 100 ton per day gravity-flotation mill to process material from the May Mac mine. Both the mine and the mill have existing permits that can be amended for future use. The May Mac mine has been worked intermittently since the original Crown Grant was staked in 1887.
Initially, two tunnels separated by 23 meters vertically were driven and a small tonnage was produced from a sub-meter wide quartz vein carrying gold. In 1905 the No. 3 level was driven between the No. 1 and 2 adits for a short distance. Between 1962 and 1983, the 4, 5, 6 and 7 levels were developed at successively lower elevations above the first three levels on the Upper Skomac vein, and mining and milling took place.
Total production from the mine is estimated at 4,228 tonnes, grading 5.35 grams per tonne gold and 908 grams per tonne silver. The initial production of 37.3 tonnes was from the first two mine levels and records indicate a relatively high grade in gold of 9.37 ounces per ton. Production thereafter was from the Upper Skomac vein, which contains polymetallic silver, gold, lead zinc and copper mineralization.
Data for lead and zinc are incomplete but 49,462 kilograms lead and 26,243 kilograms zinc were reportedly produced up to 1977, giving average calculated grades of 2.0% lead and 1.1% zinc. Production of 894 kilograms copper in 1983 is also recorded. Management cautions that numbers pertaining to May Mac are historic and cannot be replied upon.
Golden Dawn Minerals Inc. optioned the property and between 2010 and 2012 compiled data, conducted surface geochemical and geophysical surveys and drilled 9 holes. In 2015, a second campaign of surface drilling was done that confirmed the known vein structures in the mine and discovered a lower zone of polymetallic silver-gold mineralization. In 2016 and 2017, a total of 3,833 metres was drilled from underground in 31 holes that confirmed the presence of polymetallic silver-gold mineralization in the upper Skomac and parallel veins above and below the end of the No. 7 Level. Additional surface drilling was done in 2016 and 2017 which showed that the vein system extends at least 215 meters beyond the termination of the No. 7 drift.
Based on all the information available, Golden Dawn proposed an exploration target for the May Mac consisting of between 150,000 and 250,000 tonnes with a grade range of 100 to 200 grams per tonne silver, 1 to 2 grams per tonne gold, 1 to 2% lead and 1 to 2% zinc.
Ximen has assembled a large land package comprising 19,582 hectares in the Nelson-Ymir-Salmo area, including the Kenville gold mine. Ximen Mining Corp. also owns 100% interests in 3 other precious metal projects located in southern BC., the Amelia Gold Mine and The Brett Epithermal Gold Project, and the Treasure Mountain Silver Project adjacent to the past producing Huldra Silver Mine.
Currently, the Treasure Mountain Silver Project is under an option agreement, with the option partner making annual staged cash and stocks payments as well as funding the development of the project. Ximen recently divested its interests in the Gold Drop Property in southern British Columbia to GGX Gold Corp, retaining a 2.5% NSR and a meaningful share position.
For more information, please visit the company's website, www.XimenMiningCorp.com, contact Christopher Anderson, President and CEO, at 604-488-3900. For Investor Relations, contact Sophy Cesar, at 604-488-3900 or by email at ir@XimenMiningCorp.com.
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