Hi Eric, A very good treatise on D.D. However I would like to add a little, you said "Follow the bigger players in your area play because they will often have a trickle effect on your stock when they have results." More often than not, the bigger players ie: Barrick and Placer and the other big boys usually come in to a play AFTER the junior has found the basics, at least enough to interest the major. I think that one of the tricks in identifying a "good" play with a junior is to wait for at least some drill results and study them, and also note if the deposit is open, and in how many directions, what is the grade and width and depth? Are there majors interested? Did management change, and if so are they an improvement over the old management? And most importantly, in a bear market like this one, do they have good financing already tied up, because if they don't, then they may have a good property, but no money to do anything, and many for lack of money, end up losing their properties because they cannot make their option commitments and they end up as shells. Any junior that does not have financing secured right now, is going to have an almost insurmountable problem. The only way they can bail out of a problem like that is, if they have some gold already proven, and they can sell part to a major if they're interested. Even then, the major will make sure he gets the best deal possible, and the junior will end up with only a fraction of the property left, or the major could buy him out at firesale prices.
Enjoyed your points and hope that others can contribute to this also. Especially tips dealing with juniors in this kind of market. It's a mean market right now. I think everyone will benefit from more input.
Cheers
Shirley O |
