JUNIOR EXPLORATION COMPANIES "Canadian juniors are playing for results"...some exerpts from an excellent article by Richard Mills
(complete article available on Stockhouse home page or "google" above title.)
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"Juniors, not majors, own the world's future mines and juniors are the ones most adept
at finding these future mines. They already own, and find more of, what the world's larger mining companies need to replace reserves and grow their asset base."
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note following sections:
....your risk profile
....a thematic approach
....stage and risk
....management
....money and risk management
....conclusion
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just some side-notes:
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#1 "Resource exploration and development is highly speculative and involves inherent risks. While the rewards if an ore body is discovered can be substantial, few properties that are explored are ultimately developed into producuing mines."
(reference Rainy Mountain Royalty Corp .....Management's Interim Discussion and Analysis for the six month period ended October 31, 2011)
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#2 ( a repeat from a post dated 2/15/2011)
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success rates....
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the following is information garnered from paragrahs 5, 6, 7, 8 of an article entitled
"how to profit on the road to failure" google for complete article
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in the early 1990's, the director of a major mining company wanted to compare their exploration successes to their failures. An evaluation of all projects where $1,000,000 or more had been spent on exploration, revealed that out of over 2,000 projects, only 6 or 7 produced a mine.
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success rate 7 / 2000 = 0.35 %
current [2010] exploration technology would probably provide a higher success rate.
In the last 15-20 years, if our exploration expertise has improved by a factor of 40:
success rate 280 / 2000 = 14 % ( 14 mines from 100 projects )
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happy new year to all
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terrible