Jiminex Inc. (TSXV:JIM) has released news of significant preliminary results on May 4, 2011, concerning their Misehkow River property where they are currently drilling. According to the report, there is visible mineralization in the cores, which were sent to the lab in Thunder Bay, Ontario with a rush requested on the results from these core samples. This is probably some of the best news the company has had in some time, and of course we must remember this visible mineralization does not tell us the actual grade. I will say it can be generally quite good when the mineralization is visible to the naked eye. The Misehkow River property is situated in the Pickle Lake district, which is well known from other major discoveries in the area. This property in addition to their Northern Eagle property, located in the Hemlo area, plus the 2 properties in the Snow Lake region of Northern Manitoba all lead us to see potential for a huge upside if they can only produce the goods. In my opinion Jiminex has as good of a chance as most any of the other companies in these respective areas. I will say that this is at this point, very much a speculative investment, and as such each person needs to due their own due diligence and to consult a licensed advisor if they feel that appropriate. Probably one of the higher risks I might mention with this company is the fact that they do have certain bodies that have helped to finance the company during the time of the recent global recession. This has left these bodies as reporting insiders, which they are strictly from the point that they control greater than 10% of the share float. This can lead to problems for those who may be inclined to trade the stock as opposed to investing in it. As was pointed out by one reader, that this can have a seemingly negative effect on the share price, it is fair to also say that although it can seem this way at times, this investment body also has a plan for exiting their position from the company, as they tend to do financings but do not usually invest in companies as you or I would. One other thing of importance to note is that as I have mentioned , that this investment firm although considered an insider has no actual inside knowledge of the company, so therefore is only acting upon their plan or strategy to exit the company. For those who have a risk tolerance suitable for this type of company, I suggest that you go to the company website and do your due diligence. The company website is at www.jiminex.com . Also any required filings may be found at www.sedar.com .
The week was generally not an up week for the markets, as we saw most of the markets down nearly everyday. Many are calling it the beginning of the summer doldrums, but I personally think that any of the junior sector companies could still see significant movement, considering that it would appear there is destined to be shortfalls in supplies of several metals, minerals, and of course the constant race by technology companies to be at the forefront of their space. In the tech sector this has turned into quite a struggle between some of the companies as they try to surpass their competitors in the field of faster computing. I will touch on this topic more on Mondays post. I hope everyone has a great weekend and look forward to bringing more info your way next week.
For disclosure purposes I have received no compensation of any kind for this post. I own shares in Jiminex.
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