Artisanal gold miners?Does anyone here know the typical end result? That is, when exploration companies acquire a property that “comes with” locals who’ve been mining it, how exactly do the two groups co-exist? Don’t get me wrong – in FDR’s situation, I can’t see how it is anything but a big net positive. But I’m wondering what resolution to expect in our case.
I briefly owned a junior explorer about 10 years ago whose Burkina Faso property had lots of historical and ongoing surface mining. Supposedly it was life-changing amounts of gold the amateurs were extracting. The broker helping with financing told me, “these people are buying motorcycles for themselves… that’s like you or me buying a house for cash!” Talking his book maybe, but it makes me think about the possibilities for FDR’s artisanal miners.
Will we invite them to keep working around the drill sites? Or would that interfere with the drilling? Presumably some of the first holes will be sunk straight down through the hearts of these guys’ main workings? If our drills are to be 50% manned by locals, will we be hiring from amongst these very miners? Will the others be kept out of our drillers’ hair by being paid some cash to dig in other potentially prime areas of our big property?
How often does private security end up needing to eject nuisance artisanal miners from properties? It would be a shame, for more than one reason, if it had to come to that. Or is this all up to the property vendor to decide? He seems to have worked with them happily for decades. Ideally, FDR has indirectly inherited the services of a big pool of hard-workers whose interests naturally align very closely with us shareholders.
Thoughts, anyone?