What possesses bashers to INFEST a room ? Good companiesthey wish to accumulate . To separate u from ur cheap stock .
The article below contains snippets of the original .
The Economics of Restarting a Past-producing Mine
Gold is considered by many investors to be a stable market, and over the past summer, the price surged above US$2,000 per ounce. While there are many uncertainties heading into 2021, gold continues to be a bastion of stability in an otherwise unpredictable market.
Mining companies present investors with a viable alternative to direct gold exposure by providing them with additional upside related to new discoveries, production and other aspects of the mining industry as a whole.
Both precious and strategic metals are in high demand within various industries, including jewelry, manufacturing, consumer goods, tech and other heavy industries. Companies such as Kerr Mines (TSX: KER,OTCQB:KERMF) are looking to capitalize on this growing demand through the process of restarting a past-producing mine.
Kerr Mines Inc.(TSX:KER) is an emerging American gold producer advancing the restart of production at its wholly owned, fully permitted Copperstone high-grade gold mine inArizona.Send me an Investor Kit
While the idea of restarting a past-producing mine may seem odd, it provides significant benefits by allowing companies to target proven deposits in safe jurisdictions, leverage existing infrastructure, reuse existing permits and licenses and further develop an existing mine with established output.
It all starts with choosing safe and reliable jurisdictions
Targeting exploration programs in safe and reliable jurisdictions is one of the primary indicators for success in mining projects over the long-term. Maintaining safe working conditions for employees, minimizing impact on the environment and the project’s health should be top priorities.
Positive political and social dynamics in a particular jurisdiction can play a big part in your mining activities. A safe mining jurisdiction like Arizona offers both rich mineral deposits and reliable infrastructure. The Patagonia Mountains hold excellent value for emerging gold mining companies like Kerr Mines or Tarku Resources (TSXV: TKU), who operate nearby.
Leveraging proven deposits and existing infrastructure to cut costs in restarting a past-producing mine
The takeover of existing or nearby deposits can fast-track a mining company’s target objectives. Additionally, it can minimize operating expenses, labor and costs related to exploration, drilling and other testing campaigns
Developed infrastructure is another critical component of restarting a past-producing mine. Reliable infrastructure allows companies to engage in mining-specific targets and specialize in particular areas of prospective mineral deposits and favorable geological trends. This includes utilizing specialized equipment and advanced surveying technologies, which can open numerous opportunities for further research and development into new exploration techniques.
In 2000, the Office of Industrial Technologies of the US The Department of Energy commissioned a study from the National Research Council that revealed innovative designs were incredibly important to in-depth drilling campaigns. The study demonstrated that innovative designs ensured both the short-term and long-term stability of the mine structure, as well as the improvement of existing mining processes. However, the availability of these advanced mining technologies is directly tied to whether the infrastructure enables them.
Bypass bureaucratic hurdles using existing permits and licenses
Finding highly prospective mineral and precious metal deposits can put mining companies in a significant strategic position for capital growth. However, discovery is only one part of the equation. Mining companies must secure the proper permits and licenses to actively engage a developing asset.
In a 2015 global survey of 34 junior and mid-tier mining firms, first-stage exploration companies found slow permit approvals and misaligned permit renewals to be one of the most significant challenges they faced. These permitting processes for exploration activities can be significant obstacles as they are time-consuming, impose costs and can deter investment.
Reusing existing permits and licensing puts companies at a significant advantage in terms of time and money spent on acquisition and can also increase investor visibility for a particular property.
Restarting a past-producing mine often expedites the development process
The three major mining components — exploration, mining and processing — all seek to benefit from the common approaches listed above.
With a reduction in the barrier to entry, companies can shorten the path to mining production and invest more in advanced processing technologies, a popular trend in modern mining. According to the National Academies Press, “Many mineral discoveries since the 1950s can be attributed to geophysical and geochemical technologies developed by government agencies and mining interests.”
With these innovative and more readily available technologies, companies operating on existing mines are favorably positioned to rapidly transition to production, allowing them to bypass competitors that may still be in the exploration stages.
The mining industry, like many heavy industries, is complex and heavily regulated. Successful mining companies must explore, develop, mine and process any metals they discover. Planning around the various obstacles that often occur during the explorative stages is no easy task. Add to that the complexities of obtaining permits and licenses, completing geological surveys, building infrastructure and scaling operations — and it’s clear why past-producing mines are a desirable alternative to developing a brand new mine.
Restarting a past-producing mine: Can they weather economic downturn?
Economic downturn continues to be a significant obstacle in capital-intensive industries. Innovative mining companies are turning to past-producing mines as a way
to overcome the obstacles created by economic downturn.
Kerr Mines is another company that has shown what a seasoned management team can accomplish. The company managed to successfully raise capital through Star Royalties to restart its Copperstone mine project.
“We are proud to announce our partnership transaction with Kerr to advance the restart of Copperstone,” said Alex Pernin, Chief Executive Officer of Star Royalties. “We have structured a mutually beneficial streaming arrangement which should translate to a win-win outcome for both parties’ shareholders. This gold stream will provide for significant, near-term cash flow from a highly prospective deposit in a world-class jurisdiction. We look forward to the successful restart at Copperstone and to its exploration upside under Kerr’s experienced and knowledgeable management team.”
After acquiring the Copperstone gold mine in 2014, Kerr Mines has made significant strides in mining production advancement. In January 2020, the US Bureau of Land Management issued a Decision of Record to increase previously allowed project capacity from 450 tonnes per day to 600 tpd.
Takeaway
Past-producing mines provide mining companies with significant benefits over developing new projects. The availability of existing infrastructure, permits and licenses, and developed mine systems in safe jurisdictions can increase production, reduce operational costs and expedite a company’s path to profitability.