SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Naxos Resources (NAXOF)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Wayland who wrote (10124)3/14/1998 11:20:00 PM
From: Kim W. Brasington  Read Replies (3) of 20681
 
To All:

Some comments are in order regarding how things work in the mining industry. The first step if you wanted to develop a mine would be to find a property that looks like it has geological potential to host a concentration of precious metals. Precious metals are not evenly distributed over the face of the earth. Less than a century ago anything less than .5 ounces/Au per ton was considered uneconomic. Today .02-.1 is considered low yield, .1-.4 is intermediate, and anything above .4 is considered high grade. Times change.

Once you have hit on a property that looks like it has potential, you will want to run some tests (assays) on its surface. If it looks good from grab samples or trenching, then you start a small drill program. If the initial drill program looks good then you can finance a larger one, and if you hit on a large body of precious metals, then you are off to the races. Undiscovered simple deposits are rare in the U.S. or other intensely explored places. With the collapse of the Iron Curtain much of the activity in mining has been in third world countries.

After the intensive drill program is underway, then there will be tighter drilling to prove up reserves. If the deposit is a simple one then a feasibility study can be just a few paces behind the drill program. The stock price often doesn't languish as the drilling is taking place if the results are exciting enough. The bigger a deposit proves to be the more excitement it generates.

Once proven reserves are in hand along with a positive feasibility study, then the company goes with plans in hand to a firm to get capital (often times it can be a lot earlier depending on the circumstances). Once they have a loan, then the mine is developed and earnings and dividends take place. From the first step to earnings can be years.

Herein is a very simple and basic progression of a non-complex ore body.

Regards,

Kim W.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News