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
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
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