Tuesday, May 10, 2011

Is Jiminex Inc. ready to start a rally?

Jiminex Inc. (TSXV:JIM) released a news release concerning their Misehkow River property in the Pickle Lake district on May 4, 2011. Pickle Lake is a well known name for anyone following gold. There has been muli-millions of ounces mined from this area and now with this hit of visual gold in the core samples retrieved from Hole #3, it would appear that the potential is high for yet another discovery.

The core samples were prepared and sent to the lab, with a request for a rush on the results, which everyone is trying to patiently wait for.

The host rock seems to closely resemble some that gold was discovered in at some nearby properties. This of course leads to the speculation that this could possibly be a significant discovery.

This is not the only highly prospective property that JIM holds. They also have the Northern Eagle property which is a mere 15 km's west of Barrick Gold's huge Hemlo deposit. Barrick has stated that on their property, they have been drilling to try and expand their own resources even further and have had success doing so. The area they have been drilling is towards JIM's property leading us to the conclusion that Northern Eagle could quite possibly be on trend with Barrick Gold's deposit. Jiminex has been actively drilling on the Northern Eagle property to try and determine if this is in fact true.
The Northern Eagle Gold Property is located in the world-class Hemlo gold mining area of Northwestern Ontario, Canada. Jiminex Inc. management believes that this property represents a high potential deep exploration gold target and is the best regional target area in which to discover a new Hemlo-type gold deposit. The Property is located but a few kilometres west of the Hemlo mega-ounce gold deposit which has current resources and production totalling roughly 21.3 million ounces of gold. It is important to note that approximately 90% of the Hemlo gold deposit is positioned greater than 500 metres (1,640 feet) below surface. In spite of this fact, much less than 5 percent of the historical exploration diamond drilling on the Northern Eagle Gold Property has tested below this depth, even though the geology as relating to rock types, structures, alteration and trace elements very closely resembles that occurring at the Hemlo deposit.

The World-Class Hemlo gold deposit is the exploration target and deposit model for the Northern Eagle Gold Property exploration and is located about 15 km to the east. The Hemlo gold deposit was discovered in 1981 after years of largely unsuccessful exploration attributed to the lack of a surface exposure and any distinct geophysical response. Tom Muir of the Ontario Geological Survey has proposed that the Hemlo gold deposit is “ an atypical, mesozonal-orogenic, disseminated-replacement-stockwork deposit, broadly synchronous with D2 [second stage deformation] and “middle” stage granitoid plutonism, prior to or synchronous with peak regional metamorphism, and involving magmatic ± metamorphic fluids”.
Total production from the three mines on this deposit (David Bell, Golden Giant and Williams Mines) to December 31, 2008 is 626 669 kg (20,147,393 ounces) of gold and reserves/resources are stated to be 35 119 kg (1,129,048 ounces) for an overall total of 661 788 kg (21,276,441 ounces) of gold. Grades and tonnages vary with open pit versus underground operations and within the different locations of underground operations.

The Hemlo gold deposit varies from 5 to 50 metres in thickness extending for approximately 3 000 metres in length to about 2 000 metres deep and dipping at 60 to 70o to the northeast. The ore zone gets thicker moving from the east to the west with a general decrease in average grade. The deposit plunges moderately to the west and is rarely exposed on surface. About 90% of the ore is below 500 vertical metres deep.

The predominant gold emplacement controls appear to be the restraining bend in the Hemlo greenstone belt, a competency contrast at a major rock contact and a permeable fragmental unit. Barite is associated with the deposit and is believed to be a product of the mineralizing hydrothermal system.

The deposit has a West Segment which exhibits many, lower-grade, irregularly mineralized zones with fracture-controlled or disseminated gold mineralization and a Main Segment consisting of two main tabular zones with mainly disseminated mineralization. The Main Segment contains most of the ore. The Hemlo deposit is enveloped by an inner potassic-feldspar alteration zone grading out into a sericitic alteration zone, both combined having dimensions of about 4 kilometres long and up to 400 metres wide.

The main and lower ore zones of the Hemlo deposit are associated with a tight to isoclinal fold in the Moose Lake porphyry and occur at the geological contacts between the porphyry and metasedimentary rocks. Barite is associated with both ore zones and forms part of the barite ore. Both the main and lower ore zones of the Hemlo deposit have feldspathic ore, sericitic ore and several minor types. The ore is variably enriched in molybdenum (as molybdenite), gold (in the native state), arsenic (as realgar), mercury (as cinnabar), antimony (both native and as stibnite), barium (as barite and barium-rich microcline), vanadium (as green vanadium-rich mica) and minor biotite. The ore normally contains 3 to 35 percent pyrite and molybdenite. The molybdenite imparts a bluish color to the ore and is a good indicator of the presence of gold. The feldspathic ore is typically of higher grade.

If that does not seem to be quite enough for interesting properties, then let's look at the 2 properties Jiminex holds in the Snow Lake district in Northern Manitoba.

The 55 square kilometre Parres Properties cover, in part, about 4 kilometres of favorable copper-zinc-gold-silver massive sulphide and gold mine rock stratigraphy located between the past-producing Stall and Rod Mines to the west and the Osborne Mine to the east.

The newly discovered Lalor Lake copper-zinc-gold-silver volcanic massive sulphide deposit is located about 20 kilometres to the southwest hosted in rocks similar to those occurring on the Parres Properties The past-producing Britannia Gold Mine (formerly the Nor-Acme Gold Mine) is located about 15 km southwest in a similar geological environment to that occurring on the Parres Properties.

In early October 2009 HudBay reported indicated and inferred resources for the Lalor deposit which have a combined total of approximately 17.3 million tonnes grading roughly 9% zinc and 0.6% copper. HudBay have also reported associated gold zones and a higher grade copper-gold zone (13.35 g/t gold, 5.33% copper and 0.35% zinc over 34.5 metres at a depth of about 1275 metres) making Lalor Lake possibly also a gold discovery as well. Additionally, HudBay plans to immediately begin a $85 million production ramp from their Chisel Lake North mine to the Lalor deposit. Nine past-producing HudBay mines in the immediate Snow Lake region have had past production and resources totalling roughly 25 million tonnes with grades ranging from 0.1 to 10.9% zinc and 0.2 to 6.4% copper. HudBay reports five diamond drills working on Lalor suggesting that this deposit may eventually exceed the production and reserve tonnage total of all the local base metal mines discovered and operated since the early 1950’s. In December 2009 and February 2010, HudBay Minerals reported favourable results on their continuing exploration of the new deep copper-gold zone discovered in September 2009.

The Lalor Lake deposit is a significant deep discovery with the mineralization being located deeper than 800 metres below the surface. The Parres Property was extensively explored from 1960’s to 1980’s by ground geophysical surveys, geological mapping and by diamond drilling. Most of this geophysical surveying didn’t test below about 200 metres of depth and all of the historical drilling didn’t test below 100 metres of depth from the surface. Therefore, the Parres Property is essentially untested below 100 metres of depth, and is highly prospective below this depth, for Lalor and other similar massive sulfide copper-zinc deposits (Chisel, Anderson, Stall-Rod, Osborne Mines etc.) and for Lalor Lake deposit and Britannia Mine-types of gold mineralization.

In February 2010, the Parres and Parres Two properties were flown with a mega versatile time domain electromagnetic (Mega VTEM35) and high sensitivity cesium magnetic, state-of-the-art airborne geophysical system which can detect conductive geological zones such as copper-zinc sulfide mineralized rock to depths of 500 to 600 metres, or even deeper depending on the geological characteristics of the survey region. The airborne survey data has been interpreted by the company’s geophysical consultants, Condor Consulting Inc., Lakeview, Colorado, and 12 diamond drill holes totalling 2,200 metres are recommended. Diamond drilling began October 17, 2010. The following is a link to a map showing the Parres and Parres two properties,http://www.jiminex.com/docs/parres%20rg%20feb23-10.pdf.

For a company with their market cap and with the share structure they have, it is easy to visualize the potential this small company holds. For those interested in Jiminex, I urge as always to do your own due diligence. An excellent place to start would be Jiminex's website at www.jiminex.com.

For disclosure purposes I have received no compensation of any kind for this post. I currently own shares in JIM. 

1 comment:

  1. In India there is a lot of gold mining places do exist ang many of them are under taken by the governmwnt..