2 cracks at another Hemlo style deposit near Hemlo...

Jiminex Inc. (JIM)

Oct. 8, 2010… $0.14

Shares... 28.5M
Capex… $4 million

Most of you know how high I am on Hart Gold’s chances to be the next big thing in the Hemlo region. When analyzing these explorers you always have to be on top of your game taking in all new information that becomes available. I have mentioned Jiminex (JIM) briefly in the past being so close to Hemlo and their theory about their Northern Eagle Property 15km west of Hemlo. I have mentioned how most of Hemlo is (90%) below the 500 meter level, how Hemlo’s near surface mineralization is mostly to the West in orientation with the rest of the deposit, how Teck’s property 2.5 km to the west has Hemlo style near surface mineralization much like Hemlo. Teck has pulled some very good intervals, but has never issued an N43-101 for the property. For Teck’s internal purposes, they really don’t need to.

Now I know this is still a long shot, but JIM has identified some very prospective zones for deep drilling this winter on their Northern Eagle Property 50/50 JV with Beaufield (BFD).

They released news least week that make JIM move up the list…

They have identified 2 high priority targets with potential for mineralization from near surface mineralization to greater than 500m along with 2 secondary targets. They have also identified 2 high priority targets at a depth of greater than 500m to greater than 1200 meters which is the limits of the geophysical survey at 1500 meters. These targets seem to be spatially related and structurally controlled.

Geophysical surveys do not always predict mineralization, but they do show you potential zones of mineralization and/or alteration. The Titan 24 survey which they used is state of the art and expensive as the total cost for 14.4 kilometers was $185k. Northern Tiger used a Titan 24 survey this summer and missed, so it is never 100% until you drill. It makes it much easy to target when drilling blind.

The market will slowly wake up to JIM and the potential for discovery near Hemlo and think for its prospects will rise in anticipation of great results and market psychology that they might miss the next big thing. The prudent investor, would wait for results on a property that has never really been drilled to depth, but at current prices, even if they miss, there is great opportunity for a trade before results. It’s just too cheap for the projects they are working on. One other thing about mining stocks, good news is sometimes hard to keep a lid on or a stock gets such highly anticipated that the stock is fairly valued on expected results, so identifying a good story and getting in early mitigates a lot of the risk with these explorers. They all go up on a good story.

I think JIM is still a long shot until they have some results, but I am sure at current prices the community will see this as very positive news indeed and drive JIM higher.


So here you go… 2 cracks at Hemlo.. JIM is deep drilling Titan 24 targets with a $4M capex in a high risk high reward play 15km west of Hemlo, while Hart is a much safer bet clearing ip’s that are now all proving to be associated with high grade gold in disseminated sulphides on surface but with a $70M capex. A much safer bet to get high grade drill results on the first pass, but 20 times the value. 2 completely opposite approaches to finding the next Hemlo.

But both very valid theories.

JIM isn't just banking on the northern Eagle property, although it is the best shot at a major discovery. JIM is very busy this coming year. Checkout the news below.

Happy Investing

News for Northern Eagle property, Snow Lake, and Pickle Lake

http://www.newswire.ca/en/releases/archive/October2010/04/c7644.html

http://www.newswire.ca/en/releases/archive/October2010/05/c8170.html

http://www.newswire.ca/en/releases/archive/October2010/06/c8510.html

Undervalued Near Term Prodcuer

Andean American Gold (AAG)

Oct. 8, 2010.... $1.00

Shares... 101M

Capex... $101 million

Portfolio @ 0.92 +0.08 / 8.7%

Over the course of looking at many companies with projects and different phases of development. I have come across some great companies that are cheap for their resources and outlook going forward, and Andean American Gold (AAG) is no exception.

This one looks like a great for one for the kids' college fund. One strategy to find great investment opportunities is to identify projects that are entering into the next phase from exploration to mine development. If you can identify an explorer that has a project that will be entering production in the near term (12 - 18 months), some good money can be made as historically those companies market caps perform well as they get revalued from and explorer to a developer as production nears.

Andean American Gold certainly falls into this category, AAG is working on developing the Invicta project in Peru. This is a near term project that is currently negotiating final financing and going into building a mine at Invicta and be in production within 12 months. The project has robust economics, an initial 5 year mine life, with annual free cash flow of $65M, and a NPV of $265M discounted at 8%. Considering that AAG is negotiating financing to construct the mine, have hired staff and made a public announcement that they are changing focus from exploration to development, the Invicta project looks like it will go ahead in Peru. At around a $100M market cap currently, based on the economics of the 5 year project, AAG.V is undervalued considerably and should trade closer to $2. AAG.V anticipates commissioning The Invicta Project in the 4th quarter of 2011. These econmics ingore the continuing soaring price of metals and at today's prices looks even better.

What bodes well for the AAG and its Invicta soon to be mine is that it is based on only the Proven and Probable category which is 7.8M tonnes at 2.14 g/t au, 18.76 g/t ag, 0.52% cu, 0.38% Pb, and 0.3% Zn. The total resource is indicates much more and drilling will continue while the mine is in production to upgrade inferred resource as well as include new recent high grade discoveries. Even with the lower grade inferred resource it averages $69 / ton rock which is still much higher than the projected $28/tonne operating cost. This all indicates that the Invicta Project will be in production for much longer than the initial 5 year mine plan. Especially with the new high grade discoveries on the property. AAG.V looks like a steal for the Invicta Project alone.

Total Resource at the Invicta Project is outlined below including 1M oz's of gold, 10M oz's silver, 200M lbs copper.

Structure	Tonnes	Density	Gold	Silver	Copper	Lead	Zinc	Gold
			(g/t)	(g/t)	(%)	(%)	(%)	(oz)
Measured	868000	2.77	2.71	31.26	0.69	0.73	0.61	75724
Indicated	9866735	2.73	1.99	14.74	0.40	0.28	0.27	632336
Inferred	14224661	2.75	0.67	11.20	0.36	0.24	0.15	306913

AAG.V also has a 60% interest in the Sinchao Property. This is a lottery ticket. The Sinchao Project in Peru is potentially going to be a monster. It has a very good profile and also ties into my investment theme of buying value. Sinchao Metals Corp (SMZ) owns the other 40% of this monster project. At $20M market cap is probably better upside to this massive low grade project.

Currently inferred resources are measured at 217M tonnes grading 0.47% Cu, 0.49 g/t Au, and 12.1 g/t Ag. That is 2.45B lbs of Copper, 3.73M oz's of Gold and 92M oz's of Silver. At current metal prices is $62 per ton. The Sinchao Project is another one of those low grade projects whose economics are starting to look very good.

Not only that but recent geological interpretations have indicated that the Sinchao property could have an additional resources of...

Epithermal Zone

400 - 600M tonnes @ 0.3 - 0.5 g/t Au, 0.4% - 0.6% Cu, 6 - 8 g/t Ag

• 3.85M oz - 9.64M oz Gold
• 3.2B lb - 7.2B lbs Copper
• 77M oz - 154M oz Silver

Rock that has a potential to be worth $45 - $69 per tonne at today's prices.

Skarn Zone

400 - 600M tonnes @ 0.2 - 0.3 g/t Au, 0.1% - 0.3% Cu, 4 - 6 g/t Ag

• 2.57M oz - 5.78M oz Gold
• 800M lbs - 3.6B lbs Copper
• 51M oz - 115M oz Silver

Rock that is potentially worth between $18 - $38 per ton.

Hydrothermal Breccia Zone

700M - 1B tonnes @ 0.2 - 0.4 g/t Au, 0.2% - 0.4% Cu, 10 - 12 g/t Ag

• 4.5M oz - 12.9M oz's Gold
• 2.8B lb - 8B lb Copper
• 225M oz - 386M oz Silver

Rock that is worth $29 - $53 per tonne.


The Sinchao project is a project that could an absolute monster and certainly has potential to become a major mine for years to come at current metals prices. As Gold, Silver, Copper all continue to extend their multiyear rallies, the Sinchao property cannot be ignored going forward.

So to recap... Andean American Gold looks to be a no brainer buy going forward. With plans to be in production next year and robust project economics, as well as a lottery ticket exposure to the absolutely mammoth potential and value of the Sinchao deposit, Andean American Gold is a solid buy going forward and will move up in valuation no matter what price gold goes over the short term b/c it is cheap and they are moving forward with their mine.

Another positive development of note is that an insider bought 20,000 shares for indirect ownership at .92 cents which speaks volumes of the confidence in AAG.V going forward.

If you want just a pure play on the giant Sinchao deposit, SMZ.V is the way to go at $20M market cap. Before the collapse, this was another company that was trading 300 - 400% higher and at .25 looks like a great investment. These low grade deposits are going to be eventual mines and as more of the market realizes that the world has seen the last of cheap anything and prices are not coming down anywhere near historic levels. Projects like Sinchao, Whistler, Pebble become very attractive feasible mines for years to come. The high grade stuff is nice, but it never lasts and mines that survive for decades, make oodles off the low grade ore.

Review AAG.V feasibility study...

http://www.andeanamerican.com/PROJECTS/Invicta/Feasibility-Study/default.aspx


Happy Investing

Looking for the next 10M oz deposit...

Northern Superior Resources (SUP.V)

Oct. 8, 2010... $0.46

Shares out.... 127M

Capex... $58 million

Listed in portfolio @ 0.37 +0.09 / 24%

SUP is a company everyone should be seriously looking at. It's been in on my public page on stockhouse for awhile.

You know I follow Rainy River and when I saw that they signed the option agreement for the TPK property, it raised my eyebrows because of the steep price they paid for a 51% interest in the property that has seen no drilling whatsoever. In this business, you have to follow the money. They have agreed to spend $9.4M in exploration over 3 years. They paid SUP $300,000 up front and $1.3 million on January 5th 2011 as well as subscribing to (3) 500k private placements for a total $3.1M to SUP. This project didn't come cheap to Rainy River, but since the Rainy River deposit is entering into development phase, you gotta keep the exploration team busy and certainly looks like they found a massive project in the TPK Property.

Another company you might want to follow the money on is OX.V Orex Exploration. They are heavily involved with Osisko on their project in Eastern Canada. There is a ton of shares out on OX though. It. might be one that goes .10 to .20 or .30 if current exploration is successful. OSK certainly likes it.

SUP capex is currently $60M so its not cheap but I thought I would mention it before it breaks out over 50 cents. I keep delaying talking about some of these companies waiting for a consolidation in POG, but if I wait for that I might be waiting awhile... I am also resigned to the fact that even if POG comes down, a lot of these explorers corrections will be short and sweet this winter and TPK property exploration is gearing up and SUP.V clearly broke out today.

Here are some highlights of the Sept. 16th news release regarding exploration at TPK.

• Boulder prospecting yields numerous large mineralized boulders including two grading 42 g/t gold and 48 g/t gold
• 76 of 99 reverse circulation drill holes completed to define gold‐in‐till anomalies
• Prospecting indicates system may be a set of shear zones, similar to the Larder Lake‐Cadillac Break (Val d’Or – Malartic districts)

Companies that have similar projects that are Shear Zone are PEM, GCU, OSK. I just threw OSK in there to show you the potential of these giant low grade gold zones.

Anyway, because the TPK property is almost entirely devoid of bedrock TPK is focusing on boulder prospecting and rc till drilling within a strong 7 x 7 km gold grain in till anomaly identified. They are planning on follow up diamond drilling this October. They have 3 preliminary targets ready to be drilled. Two of the targets mentioned in the last news release...

• Target 2 appears to be associated with a 0.7 x 3 kilometre, high‐level porphyry stock at the contact between metasediments and a quartz monzonite batholith. The contact area has a steep metamorphic gradient similar to that found at the Eleonore gold deposit in Quebec. The porphyry is siliceous, extensively fractured and contains fluorite and spessartine garnet alteration. Three days of prospecting produced 41 visually interesting boulders, of which 33 (80%) were found to be anomalous in gold. Fourteen boulders (34%) yielded >0.3 g/t gold and one measuring 1.0 metres yielded 42 g/t.

• Target 3 is associated with a 200 metre wide shear zone in the quartz monzonite batholith. The initial boulder prospecting yielded 12 visually interesting boulders of which 11 (92 percent) yielded anomalous gold assays. Six boulders (50%) yielded >2 g/t gold and one measuring 1.5 metres yielded 48 g/t. Due to the very positive results of the preliminary boulder sampling, a professional prospecting team has been contracted to conduct a broader and more intensive boulder search. New sheared, altered and mineralized boulders are being located daily and many additional samples have been submitted for assay.

So to quote SUP's news release the model is a giant low grade shear zone system that could extend up to 7km and first initial targets are very wide zones. What is even more interesting is the high grade boulders from the recent exploration program. If they can trace those boulders close to the source, a pocket of high grade in this potentially massive low grade system will excite the market.


Straight from the news release the model is this...

The TPK gold‐in‐till anomaly occurs immediately adjacent to a major, potentially shear‐spreading bend in the regional‐scale Stull‐Wunnummin Fault. This setting, in combination with the extensive shear deformation observed in the porphyry and quartz monzonite, suggests the presence of an array of gold‐bearing splay shears similar to those associated with the major bend in the Larder Lake‐Cadillac Fault in the Malartic‐Val d’Or gold district where the main gold deposits, including West Malartic (Osisko), Camflo, Goldex and Sigma, are closely associated with sheared porphyries. In addition, the strong correlation between gold and arsenic at TPK closely matches that at Eleonore, Casa Berardi, Hemlo, Musselwhite and many other gold deposits in the Canadian Shield.

To quote Rainy River...

“The initial prospecting results and further definition of the gold‐in‐till anomalies are encouraging and merit additional exploration activity,” commented Raymond Threlkeld, President and CEO of Rainy River Resources. “We are anxious to begin core drilling which is the next phase of exploration on this highly prospective project.”

To quote SUP's Dr. T.F. Morris, President and CEO of Northern Superior...

“The positive results from this phase of boulder prospecting continues to support our assertion regarding the tremendous potential of the TPK project for significant gold mineralization over a large area. The distribution of boulders with anomalous gold assays, coupled with results from the current phase of prospecting and reverse circulation drilling, will greatly refine drill target selection to better direct and maximize efficiencies for our diamond drill program slated to commence in October.”

Get into SUP before they even sink a diamond bit into this huge project. This is another company that has very little downside risk and in all likelihood will get swallowed up by Rainy River if exploration this coming year confirms their theory.

RR gives you great exposure to this project going forward as well.

A little hint that SUP may start another massive climb up. Short positions of 480k shares (a small amount to begin with) were removed.

4 million oz's of GOLD for $5.50 an oz!

Rye Patch Gold Corp. RPM.V

Share price Oct. 7/10: $0.245

Shares outstanding: 91.1 million

Capex: $22.4 million

Added to portfolio @ .175 +0.07 / +40%

I alerted subscribers to Rye Patch Gold RPM.V @ .20 on Wed. Sept. 22 nd the day it broke out after announcement of an aggressive drill program to actively pursue 2 targets with 6,000 meters of diamond drilling and another 2 targets with 6,000 m on their RC rig. RPM.V hit a high of .29 two days later but I think it is much more than just a trade. There are so many reasons why RPM.V fits into my portfolio of prospective stocks.

It is extremely undervalued with 4M oz’s and a current capex of $22 million. It definitely fits into my value category as a neglected low grade project with grades running from .41 g/t in the inferred category to .69 g/t in the measured. At Wilco alone they have 2.84 million oz’s in all resource categories and now have an exciting high grade discovery on the property that is being aggressively drilled by diamond bit.

This high grade discovery has become even more prospective than previously thought as original high grade results from the 2 discovery holes were upgraded from…

· 6.1 meters grading 11.67 g/t au and

· 7.6 meters grading 2.11 g/t au

to

· 15.1 meters grading 54.2 g/t au including a 1.5 meter section at 504 g/t of au and

· 13.7 meters grading 7.3 g/t au...

An increase in my simple grammeter rating scale, from 71 and 16 to 818 and 100, which is a material difference.

They doubled the high grade zone width, as well as significantly increased the assay results using a different method. The reason the difference is b/c there is a lot of course, free gold in the high grade zone which results in much lower than normal results using a rc rig and fire assay methods. Using metallic screening, captures the free gold better, so with the diamond rig they will get an accurate picture. RC drilling is great for defining large shallow low grade targets, but is not recommended for high grade drilling. The high grade zone is 100m x 200m and is open along strike to the wsw.

If RPM.V can continue to expand this zone and can add a high grade component to Wilco, the market will start getting excited about RPM.V.

When you look at RPM.V, be careful not to overlook the low grade nature. This is Nevada and the gold giants make their money off the giant low grade halo's for years, This is where the long term sustainability of a Nevada mine lies, or any mine for that fact. Not the high grade... but the low grade. High grade pockets are great mine starters that help payback period, but once all the infrastructure is in place. A mine can stay in business for a very long time at 0.5g/t gold. RPM.V has discovered a very significant high grade zone but have backed out all the course high grade gold out of the results as they are selling this as a giant low grade project. They are partners with Newmont and with Kinross being a major shareholder so you know that Wilco has very good potential if the majors are sniffing around.

A lot of good things happening at RPM.V and lots of news to come over the fall and winter. Rye Patch has close to 4M oz's of gold and gold equivalent in all categories so is very cheap pointing to great value as well as drilling 12,000 meters this fall on 4 different targets. You are currently paying $5.50 an ounce of gold with significant expansion. Wilco is easily a 3 – 4 million oz deposit, if not more.

RPM.V remains a strong buy.

Happy Investing

Kaminak extends strike of Latte by 50% to 600 meters more great results!

Last week I sent out an alert to my subscribers that Kaminak may be about to release some great results as they issued close to 2 million worth of options to directors, management, and employees at $3.45. Companies rarely do this when the stock price is near an all time high unless they think that the share price will rise significantly over the short term and want to reward everyone involved for their hard work.

Kaminak released more impressive results from the Latte Zone today. In further defining the zone they have discovered that Latte is divided into 2 zones. One near surface low grade zone that will be amenable to open pit and a second high grade feeder structure underneath this zone.

The Upper Latte continues to impress with intersections of...

• 81 meters of 1.39 g/t gold
• 58 meters of 1.83 g/t gold
• 93 meters of 1.10 g/t gold

Not only are these intersections excellent, but the have extended the strike of Latte 50% to 600m with results that seem to be increasing in grade and length to the west. In addition this new zone represents possibly a high grade feeder zone. Both zones are open in all directions along strike for 600m and continue at depth. The last 2 holes released on the lower Latte were 9 meters grading 5.55 g/t au and 5 meters grading 8.15 g/t au.

Kaminak is now finished drilling for the season and awaiting the results of the rest of the holes which will be released over the next 2 months.

"Drilling has confirmed a high-grade zone is present at Latte," stated Rob Carpenter, Kaminak's President & CEO. "Both the upper and lower zones begin at surface and can be traced for at least 600m along trend while remaining open at depth. Furthermore, the most westerly holes of the upper zone appear to have the widest mineralized intervals to date suggesting the system may be larger than currently known."

Looks like my alert about Kaminak had merit as this news is very good, and makes Kaminak' Coffee property more and more like a massive widespread gold system. Kaminak's coffee discovery may be much bigger than Underworlds Golden Saddle Discovery. From the widespread geochemical gold in soil anomalies all over the property and subsequent discovery, it is almost certain that Kaminak is on to something huge at coffee.

http://www.marketwire.com/press-release/Kaminak-Continues-to-Intersect-Wide-Intervals-of-Gold-Mineralization-at-Latte-TSX-VENTURE-KAM-1329355.htm