Anatomy of an exploration play:
There is order to the chaotic world of minerals and mineral plays; there is also a checklist to make sure that you can separate the real plays from the short term opportunists that have an interest in only separating you from your money…
Preliminary list
1. is this a new company that is trying to ride a wave of sector utopia or are they experienced in their field
2. is the share structure verifiable
3. are the backgrounds of the principles held in high esteem, and experienced in the mining field
4. what is the financial situation and if they need financing is it conventional or creative with nondisclosures of the terms
5. what is the infrastructure in and around the property.
Time line of ultra high risk play. (3 to 4 months)
1. announces letter of intent to mineral acquisition
2. announces purchase of acquisition
3. announces permit to explore from government agency
4. announces grab samples
5. announces independent geology firm to handle NI43-101
6. announces drilling has begun
7. announces first results from assay office.
Time line of an exploration play ( 1 to 2 years minimum )
1. acceptance of drill results to show that something is available and worth working towards feasibility study
2. further grid mapping, aeromagnetic mapping, drilling, assay calculations to NI 43-101 standards..
3. completion of feasibility study.
Timeline to return on investment ( 1 month to 2 years )
1. sale of property or decision to become tier two mining company
Footnote: There are over 5,000 exploration plays in the U.S. and Canada. 90% of those companies will never become mines, most will sell the property at a loss to another mineral exploration play that will separate more shareholders from their money, and on and on and on.
There is no substitute for conducting your own research
