success rate Gold junior a tantalizing takeover target?
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IMO, the above is an interesting/must read Stockhouse Column article dated 1/25/2012 by Marc Davis
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note the following exerpt:
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"Caspiche’s appeal is underscored by the fact that fewer and fewer world-class gold deposits (at least five million ounces in size) are being found.
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The current success rate is about one per year,....... regardless of how many companies are hunting for them and the approximately US$4 billion per year that is being spent on this increasingly challenging quest.
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In spite of bullion’s spot price having increased six-fold since its lows nearly a decade ago, the world’s deep-pocketed, big-league gold miners have found themselves scrambling to replenish dwindling inventories. So they’re aggressively targeting takeover candidates that own undeveloped multi-million ounce discoveries, rather than merely relying on organic growth."
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just a side-note:
with a success rate of about one world-class gold deposit per year, small wonder that capital share dilution occurs on the myriad of junior xploration companies.
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sacre bleu,
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T