Tim,
If I may jump in for a moment. There are several ways to prove a property as viable. All of which include the basics.
Find the mineralization
define the mineralization
map it
determine content, specific locations and chemistry
determine chemistry
determine extraction
determine scaleability
perform feasibilities
OR
turn it over to someone who knows what the hell they are doing.
Statement of Dr. Roshan B. Bhappu
March 6, 1998
The Evolution of Precious Metal mineral development in the free world.
The evolution of the Precious Metal mining industry has historically responded to the price cycles of the respective metal. The Exploration for new deposits is on-going, and mining companies look for similar and new geologic environments to develop prospects for economic development. The precious metal market is a volatile business and responds to world economic demands. The current downturn of the gold market has changed the business climate for numerous companies. Many companies who, in early 1997, were exploring for gold and other precious metal deposits, have announced massive layoffs and/or a shutdown of existing operations. All this change is in response to the world economy as reflected in the downturn in the price of gold, industrial production and the demand for other metals, i.e. the Asian market.
Forward thinking mining companies know that, to survive in the metal mining business you must be looking at developing deposits that are more insulated from the likes of the current downturn in the gold and other metal markets. They will explore in new geographic areas, look for new geologic environments in the U.S. and free world, and evaluate new technologies for reducing operating costs which will recover economic values from grades that are lower than what some industry "experts" would admit could be possible. Some companies may take a more negative approach and shut down marginal operations, waiting for the price to rebound.
I have seen the precious and base metal market go through numerous cycles during the last 40 years. The successful companies today do not wait for someone else to identify new geologic environments, develop a technology or cost reducing process. I have worked on many projects and assisted with the development of new technologies in the metal mining industry during this period. As near as 25 years ago, I presented a paper that projected the mining and economic recovery of one (1) gram per ton (0.029 oz. per ton) gold in the next decade. Many professionals in the industry scoffed at this projection, however, I was instrumental in the development of a new technology that allowed this to occur. The successful mining companies of today continue to be forward thinking and conduct research and development (R&D) on existing and new geologic environments. Many of these companies are large producers and, as a result, there is little information in the public about their successes and failures. I have provided a summary table (Exhibit 1) which outlines many of the developments in the precious metal industry during the past 30+ years. The companies I have identified are some of those that will survive the economic fluctuations of the metal price cycles.
The Black Rock Property of International Precious Metals represents a property that may have a chance for success. Precious metals are present in a new geologic environment. We have seen them via a number of testing programs and are now recognizing that a mineral potential may be identified in the near future. Significant work has been completed to date, however, there is significant research that still needs to be completed before this prospect can be held up as a viable project. The future development of this property will only be because this company is allowed to continue to evaluate this potential.
Also attached to this Exhibit is a copy of a paper I published on these matters and my resume. |
