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Dajin could be an elephant

0 Comments| October 31, 2007

I’m going with my theory that the best junior mining companies to invest in are ones that have not entered their promotional stage. This is also the period during which most of the ground work is done for an upcoming promotional program. I recently discovered Northern Shield Resources (TSX: V.NRN, Bullboards) and Platinex (TSX: V.PTX, Bullboards) to be such plays. Once I featured them in my blogs they tripled and doubled in price.

The next stock I have found that matches similar criteria will also do the same. This company is called Dajin Resources (TSX: V.DJI, Bullboards), and here is its story. In the summer of 2007, Dajin carried out an extensive soil sampling program on the Oxide and Jackpot deposits that produced very encouraging results. In the fall of 2007, based on the results of the sampling program and historical data, Dajin initiated a 15-hole 3,000 meter drill program.

As the company was moving the drill onto the targets (steep terrain), the drill rig bumped a large zinc outcrop and a large blue streak of mineralization was uncovered. The geologist looked at the mineralization and decided that it appeared to be a good place to start  the drill program. I believe four drill holes were completed in the vicinity of this outcrop.

Here is the first picture of the outcrop. Notice the blue streak of mineralization that is visible.

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Once the company did drill the outcrop here is what the core samples looked like:

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This photo shows what I believe is a huge zinc core that could run up to 15-20% zinc, and it is believed to be near surface and 30 meters in length.

Click to enlarge

More core samples: Slide 23

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This core samples shows more visible mineralization.

To see these pictures and more, view the PowerPoint presentation, available on their website:

Overall, DJI fits the category of my under-promoted, undervalued and ignored plays. I think it is just starting to highlight what the company has been quietly accumulating for the past little while.  I think that with the recent drill success it has had, the fact it is very close to roadways and TECK COMINCO’s (TSX: T.TCK, Bullboards) mine only 40 kms away, DJI will get some huge attention once the markets see the drill core. This area is known for huge grades but some of these pictures look like they could be elephants.

Have a look, go to their website and decide if you like it. The company is excellent at answering their phones and speaking with potential investors.

High2 is currently long V.DJI and V.NRN, but has no position in any of the other companies mentioned in this article.

This article was written by a member of the Stockhouse community.

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