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Promising Results from Shallow & Deep Drilling at Gold Drop

Stephan Bogner Stephan Bogner, Rockstone Research
1 Comment| October 24, 2019

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Full size / Photo of drill core from the Stargate II Anomaly showing pencil magnet deflected by magnetite disseminated in greenstone with epidote alteration.

Shallow and deep drilling at Gold Drop produce highly promising results and findings

Ximen Mining Corp. announced yesterday, and on October 10, the first rounds of assays from shallow drilling by GGX Gold Corp. at the Gold Drop Property in the Greenwood Camp of southern British Columbia, Canada. The high-grade gold, silver and tellurium intercepts “continue to confirm the presence of potentially economic mineralization in the COD Vein”, the company stated yesterday.

Today, in a follow-up news release, Ximen published an initial progress report on the first deep drill hole to test the Stargate II Anomaly, a large geophysical target at the Gold Drop Property. As of October 19, the hole had reached a depth of 658 m and mineralization was intersected successfully, most notably magnetite starting at 479 m and continuing intermittently to at least 577 m. The published drill core pictures look highly promising. Note that drilling has not stopped and is ongoing to greater depths as the findings to date indicate great potential for more mineralization to be encountered.

Full size / Drill core from the Stargate II Anomaly showing magnetite occurring in veinlets.

Seeing long intervals of magnetite mineralization in drill core is very encouraging, because “magnetite can be a significant host mineral for gold“ and “magnetite-rich systems are also potential targets for Au exploration and extraction“.

According to today‘s news: “The origin of the magnetite mineralization is unknown at this time. It is too abundant to be an original accessory mineral in the host rocks and its occurrence in veinlets suggests a hydrothermal genesis. Also, patches of epidote-calcite-garnet alteration up to 10 centimeters in length occur throughout the hole, possibly indicative of a skarn-type deposit.“

A research paper (2017) on economic geology noted: “Skarn ores from the giant Beiya Au deposit (323 t Au at 2.47 g/t), southwest China, contain abundant nanometer- to micronsized gold hosted by magnetite.“

According to “The Association of Gold and Magnetite“ (2011): “Gold bearing magnetite may be found in massive deposits where the gold is often invisible to the naked eye with the gold often being disseminated throughout the entire deposit of magnetite.“

The Stargate II Target is a large, deep geophysical anomaly, interpreted as a pipe-like structure that measures 1834 x 1377 m, extending for more than 4000 m at depth. It occurs in proximity to the shallow COD and Everest veins, where 60 short holes were completed recently (assays from 18 holes announced yesterday and on October 10, which continue to demonstrate high-grade gold, silver and tellurium near surface.

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.

Today‘s news noted that as of October 19, the hole testing the Stargate II Anomaly reached a depth of 658 m. Magnetite mineralization was intersected at approximately 479 meters depth and continues intermittently to at least 577 m depth (crews are continuing to log). The magnetite is disseminated and occurs in millimeter-scale veinlets. Its appearance at 479 m closely corresponds to the predicted start of the modeled anomalous zone (the start of the zone was predicted at 441 m depth by ESSCO) so it appears the magnetite mineralization is the source of the Stargate II geophysical anomaly.

Some geologists say it is not uncommon to find gold encapsulated in oxides and silicates without any sulfides at all (source). Moreover, magnetite is an attractive PIM (Porphyry Indicator Mineral) candidate (source).

According to “Gold – Distribution of Gold in Porphyry Copper Deposits“ (USGS, 1992): “Magnetite in veinlets makes up more than 1 percent by volume of most porphyry copper-gold orebodies... Magnetite forms stable assemblages with any of the minerals that characterize potassic or feldspar-stable alteration: chalcopyrite, biotite, anhydrite, K-feldspar, chlorite, or actinolite. Excluded from this general rule are magnetite-rich skarn orebodies and relict magnetite in replacement orebodies in mafic igneous rocks... The converse of this rule – that magnetite in porphyry copper orebodies is positively correlated with gold content – has numerous exceptions... Despite these exceptions, magnetite content is positively correlated with gold grade in the deposits included in this study.... Magnetite content is plotted ... versus gold in figure 4... The median magnetite content is 2.6 percent.“

Above figure indicates the more magnetite the higher the gold grade in 26 porphyry copper deposits studied by USGS in 1992.

The cylindrical-shaped Stargate II Anomaly measures 1834 x 1377 m in diameter, interpreted to be extending vertically for >4000 m at depth. See video here.

Excerpts from “Gold-Rich Porphyry Deposits“ (Richard H. Sillitoe, 2000):

Vertically extensive (1->2 km) porphyry stocks of grossly cylindrical form are the focus of most gold-rich porphyry deposits and contain all or parts of the ore... Their diameters range from 1 km.“

Hydrothermal magnetite, averaging 3 to 10 vol percent in many K silicate zones, occurs in veinlets with or without quartz, in irregular clots, and as disseminated grains and grain aggregates... Magnetite-only veinlets may be considered as M type, whereas those containing quartz are essentially A type... All but three deposits in Table 1 are estimated to contain ≥3 vol percent magnetite, a quantity exceeding that present in all but a very few gold-poor K silicate alteration zones.“

“Several gold-rich porphyry deposits generate prominent bulls-eye aeromagnetic anomalies... as well as clearly defined ground magnetic highs..., because of the abundance of hydrothermal magnetite in K silicate zones.“

“...[W]here prospects are dominated by K silicate alteration, limited sulfide oxidation is advantageous, implying that systems in tropical environments (western Pacific region, Southeast Asia, northern Andes, central America) or glaciated regions (British Columbia, Alaska, southern Andes) possess the greatest potential.“

Full size / “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.“

Full size / Approximate location of the first hole at Stargate II Anomaly, centered at the intersection of 3 interpreted major fault conduit structural traces. (See on GoogleMaps)

Bottom Line

As the drill core thus far recovered from the Stargate Target is being logged and further investigations will be carried out, including geochemical analyses of the core and petrographic studies, Rockstone is looking forward to the assays, i.e. how much gold may be present in this large anomaly, potentially being an extensive gold ± copper porphyry and/or skarn deposit. Average grades of around 1 g/t gold over significant intercepts are the target (see here).

While all eyes are on the deep Stargate Target at the moment, the shallow COD Vein should not be underestimated as 60 holes were recently completed and the results thus far announced from 18 holes “continue to confirm the presence of potentially economic mineralization“, as Ximen stated. The high-grade gold, silver and tellurium nature of this narrow but near-surface quartz vein was tested above, below and along strike of the best drill intercepts from 2018 and thus have expanded the vein significantly (see recent drill results in the tables to the right and below strike length estimated at ~1,500 m). Assays from 42 more holes at the COD and Everest veins are pending and expected shortly.

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Recently on October 7, Ximen reported to initiate work with Golden Dawn Minerals Inc. (TSX.V: GOM) to do metallurgical test work on material from Ximen‘s Kenville Gold Mine Project in Nelson, BC. In the coming year, the Kenville Gold Mine is expected to produce gold bearing material from planned mine development and bulk sampling. Ximen is therefore working with Golden Dawn Minerals now to collect a sample for metallurgical testing to evaluate the possibility of custom milling at Golden Dawn‘s mill facility at Greenwood, BC. Note that Golden Dawn‘s processing facility is located just a few km from the Gold Drop Property and that Ximen‘s President and CEO, Chris Anderson, also serves as CEO of Golden Dawn.


Ximen retains a 2.5% net smelter return royalty on the Gold Drop Property and for 9 months after the option requirements were met by GGX Gold, Ximen retains a right to elect to form a joint venture by paying GGX an amount of money equal to 30% of the total amount expended on the property by GGX. If Ximen exercises this right, GGX and Ximen will enter into a joint venture for the exploration and development of the property.


Technical Perspective

Link to updated chart (15 min. delayed):

Company Details

Ximen Mining Corp.
888 Dunsmuir Street – Suite 888
Vancouver, BC, Canada V6C 3K4
Phone: +1 604 488 3900

Shares Issued & Outstanding: 42,817,201


Canadian Symbol (TSX.V): XIM
Current Price: $0.37 CAD (10/23/2019)
Market Capitalization: $16 Million CAD


German Symbol / WKN (Tradegate): 1XMA / A2JBKL
Current Price: €0.25 EUR (10/23/2019)
Market Capitalization: €11 Million EUR

Previous Coverage

Report #16: "The Drill is Turning to Uncover the Stargate II Anomaly: A Large Gold Pipe?"

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 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., Golden Dawn Minerals Inc. 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.

Rockstone Research
Stephan Bogner (Dipl. Kfm.)
8260 Stein am Rhein, Switzerland
Phone: +41-44-5862323

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