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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (11491)	5/17/2006 11:24:25 AM
From: E. Charters	Respond to of 78419

I used to get sucked into ambulance chasing a lot. All kinds of sob stories out there about neglected opportunity and la biggie drill play. You must use iron discipline and stick the knitting. Our ignorance of what is really what would fill universes of encyclopedias. We must therefore hedge the bet and sell half on the double always. I invested heavily in a company of one fellow I met. Was a tech guy and he got into mining. Sounded successful. Got into it with a pac rim copper porph. Now it was 80 million tons to start, and I they tell me they can find high grade gold and a med scale open pit aurum thing. Sure fire. So what happens? They segue into hacking away at the edge of the porphyry and they never did get a drill to the top of the jungle mountain of gold. Seems like logistics, politics were hard. Never did get to the bottom of that. Stock drifted down from 1.50 to 0.25. And everybody sounded experienced as hell, competent as brain surgeons. Of course, this all happens around 96-97 and you know what that time was.. BXM... then there was another case in a risky LA country. Court case.. I was in the bush staking claims when the decision came in. Controversial and dangerous. Now the company has the claims back. Full circle, but less too late. What mistakes were made? Well you have to look at people who are serious about development and have intent and a chance at finding. Hard to figure from 11,000 miles away. Many drill plays are only about 20 million to 80 million away from being any kind of mine. With that sort of economics you need a sure fire mine bet.. a major who is absolutely crazy about the property or the kind of grade that will raise mill money in a heartbeat. But let's look at majors. Dome took 16 years to put the Musslewhite into production. Teck has had the Pogo for ten years. 0.50 ounces per ton and wide. Lots of tons. No mine still. Majors do not build mines at the flutter of an eyelash. Who does? Well 90% of our najor mining companies today started out as juniors. Noranda, Dome, Goldcorp. Where the leverage is, is in juniors. Will they reach the second tier? What kind of money does it take? How many holes? I can sympathize with the followers of open pit low grade HL ops. At least they are near surface. A couple of hundred holes and you can mine it. EC<:-}