Ximen partner hits mineralization at Gold Drop, stock up 11%
Ximen Mining (TSXV: XIM) and option partner GGX Gold (TSXV: GGX) on Friday provided an update on the last drill hole at the Gold Drop property located in the Greenwood mining camp of southern British Columbia.
Shares of Ximen Mining surged by more than 11% during Friday’s session. The Vancouver-based miner has a market capitalization of approximately C$15.5 million.
In July, an airborne audio magnetotelluric (AMT) geophysical anomaly was identified on the Gold Drop property, interpreted as a pipe-like structure that measures 1,834 by 1,377 metres in width.
The last hole drilled in 2019 tested this geophysical feature and was competed to a depth of 718.8 metres on October 21. This hole was one of three holes proposed to test the feature (the other two holes will be permitted in 2020).
The hole intersected calc-silicate alteration and disseminated magnetite mineralization starting at 479 metres depth. The magnetite mineralization continues to a depth of 714.8 metres, for a total mineralized interval of over 235 metres.
The first appearance of strong magnetite mineralization at 479 metres closely corresponds to the predicted start of the modeled anomalous zone, so it appears the magnetite mineralization is the source of the geophysical anomaly.
The origin of the magnetite mineralization remains unexplained, said GGX, but its style of occurrence and association with calc-silicate alteration suggest a hydrothermal genesis, possibly sourced from an underlying intrusion.
Magnetite is commonly associated with skarn-type copper-gold deposits that are formed by replacement of limestone, an important deposit type in the Greenwood camp, with the largest being the Phoenix and Motherlode deposits.