Rock ‘n‘ roll in Canada’s next gold mine

Ximen Mining: Professional final spurt to the ultra-high-grade underground mine

There isn’t much left to get the Kenville Gold Mine back into operation and fundamentally re-evaluate the stock.

Budding gold producer Ximen Mining Corp. thrilled again with positive news that ran on the ticker today, as well as with a positive share price development. Yesterday the share rose by 12% and the consolidation of the last few weeks has probably come to an end, so a new upward trend can be expected. From the current rate of 0.3726 EUR, the way should now be free up to the 0.50 mark, especially thanks to today’s news.

According to a press release, Ximen is making great strides towards the recommissioning of its high-grade Kenville gold mine at Nelson Mining Camp in British Columbia. The following sentence from the news makes the heart of every shareholder beat faster:

“When everything is installed, we will be ready to start breaking rock.”
(When everything is installed we will be ready to crush / mine rock / ore.)

Until then, and the first gold ore can be mined, not much is missing!

As Ximen announced today, the excavations at the mine entrance to the 257 tunnel have already been successfully completed. The former wooden beams of the mine entrance are currently being replaced with steel in order to ensure safe and long-term mine operation. As the new photos from the news show, this work is almost finished, after which only the steel safety tube (“culvert”) has to be installed in the mine entrance (this is already on site and only needs to be installed).

The mine entrance to the 257 tunnel

The new steel girders in the mine entrance are already installed.

The great progress towards the long-term reopening of the 257 tunnel is clear.

Once the new mine entrance is completed, immediate access to the existing 257 adit will be available to extract the high grade gold resources that were drilled in 2009. Overall lie there 373,238 ounces of gold ready to be mined, which at the current gold price have a sales value of $ 947 million CAD to have:

With average 22.9 g / t gold this is an exceptionally high grade resource that enables extremely high profit margins. This has become very rare worldwide, as most underground mines have much lower gold grades. In addition, there is the great advantage that Ximen already has access to a modern processing plant, so that no new plant has to be built and financed, which is costly and time-consuming.

With only 66 million shares in the market Ximen succeeded in the feat of maintaining an extremely tight share structure as a prospective gold producer, especially because no processing plant of its own has to be built and financed, which is costly and time-consuming (see here).

New, additional tunnel construction

The 373,238 ounces of gold that can be mined with the 257 adit are by no means all that is in Kenville. With the construction of a new, additional adit, Ximen intends to mine further gold deposits in other parts of the Kenville deposit and apparently produce from 2 adits simultaneously. However, the construction of the new tunnel still has to be approved by the mining authority.

As announced in the news today, the mining authority has asked the company to submit further documents related to environmental management. The news says that Ximen has this “final steps for approval” currently done and the required documents ready in the next 2 weeks. What is important to understand is that no complaint were made by the authority and that the approval is only a matter of form.

The professionalism that Ximen has shown for weeks is impressive and should soon teach the last (few) doubters wrong. As soon as the first ore is mined and processed into gold bars, the leap to gold producer is complete and organic growth can begin.

A fundamental revaluation of the stock is imminent, because it can be expected that some institutional investors in North America are already “warming up” on the sidelines in order to finally be allowed to enter and probably cause a fireworks display in the market (it is well known that so many large Institutional law may only invest in manufacturing companies).

Video about the Kenville gold mine

See Rockstone Research website, Technical Perspective

Company details

Ximen Mining Corp.
888 Dunsmuir Street – Suite 888
Vancouver, BC, Canada V6C 3K4

Shares in the market: 65,874,684

Canada Symbol (TSX.V): XIM
Current Price: $ 0.56 CAD (9/2/2020)
Market Personal-Financial.comization: $ 37M CAD

Germany code / WKN (Tradegate): 1XMA / A2JBKL
Current Price: € 0.3726 EUR (09/03/2020)
Market capitalization: € 24 million

Rockstone Research
Stephan Bogner (Dipl. Kfm.)
8260 Stein am Rhein, Switzerland

Disclaimer: Please read the full disclaimer in the full research report as a PDF on the Rockstone Research website, as fundamental risks and conflicts of interest prevail. The author, Stephan Bogner, is employed by Zimtu Corp. paid, with part of the author’s duties being to research and write about companies that Zimtu is invested in. While the author may not have been paid and hired directly by the company being analyzed, the author’s employer, Zimtu, would benefit from stock price increases at Ximen Mining Corp. benefit. In addition, the author owns stocks of Ximen Mining Corp. and Zimtu Corp., and would therefore benefit from stock price increases as well. Ximen Mining Corp. pays Zimtu Corp. or the author for the creation and distribution of reports and company news.

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