Ximen Mining reveals GGX Gold has started drill testing large Gold Drop anomaly

Ximen Mining Corp (CVE:XIM) told investors on Wednesday that GGX Gold Corp (CVE:GGX) (OTCMKTS:GGXXF) had kicked off drilling to test a large, deep geophysical anomaly at the Gold Drop property in the Greenwood Mining Camp in British Columbia.

GGX said in a statement that a drill is now set-up on the first of three sites.

Early in September this year, GGX said it had made a final option payment to Ximen Mining and now owned 100% of Gold Drop.

READ: Ximen Mining wins exploration permit for its Providence claim

Ximen retains a 2.5% net smelter return royalty (NSR royalty) which GGX Gold may buy down 1% of by paying C$1 million.

For nine months after the option requirements were met by GGX Gold, Ximen retains a right to elect to form a joint venture by paying GGX Gold an amount of money equal to 30% of the total amount expended on the property by GGX Gold.

If Ximen exercises this, GGX Gold and Ximen will enter into a joint venture for the exploration and development of the property.

At Gold Drop, the airborne audio magnetotelluric (AMT) geophysical anomaly named Stargate II was identified by Earth Science Services Corporation of Oshawa, Ontario (ESSCO).

It is interpreted as a pipe-like structure that measures 1,834 by 1,377 metres, with a target zone at depths between 500 and 800 metres.

Three holes planned

GGX said three drill holes are planned to test this anomaly at different directions from separate locations, with the target a porphyry-type copper-gold deposit.

As of September 26, GGX said, a total of 2,486 metres have been drilled in 49 holes on the main C.O.D. vein at the project, and an additional 705.2 metres drilled in 10 holes on the COD North vein and one hole on the Everest vein.

Assay results are pending from this drilling, the company added.

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Story by ProactiveInvestors