Junior Mining Companies
Junior Mining Companies
Happy New Year! One of my new year resolutions is to help my friends find more GOLD on their mining claims. It appears that the spot price of GOLD has made a bottom and we are looking for substantial gains in the coming months. This will have a positive effect on you miners who are truly serious about GOLD mining. I only know of two ways to get GOLD out of the ground. Either you dig for it, or you get someone else to do the digging for you. Most of us don't want the expense of hiring a crew to dig. There is a way to get someone else to do your digging and pay you to do it. Please hear me out, this may not work for all of you, but it will work for some. There are well over 2000 junior mining companies and many are dying to get their hands on a good GOLD property. If your claim has any of the following features, this may be an opportunity to get someone else to do the digging and pay you for the privilege. Here is what will get these guys panting at your door... 1. A vein or zone 3 or more feet thick that assays 0.25 opt GOLD or higher across the outcrop. (true thickness) The vein or zone could be lower grade if the GOLD mineralization is widespread. 2. The vein or zone traceable on the surface for say a few hundred feet or more. If the vein disappears under alluvial cover so much the better. Sometimes it’s what they can't see that excites them. 3. A nearby old mine with past production history certainly helps, mines often occur in clusters and this feature sweetens the pot.
These junior companies usually offer a lease with option to purchase if they are interested in your claim(s). You may expect to see a down payment of say $10,000 down or more depending on the size and ore-grade of your property. Another payment will come 6 months to a year down the line. These annual payments are often escalated and lead to the final buyout years down the line. It's in your best interest to ask for a small, say 1-2 % NSR or royalty to keep you in the money for years down the line in the event the property turns into a mine. Ensure any contract include the following: an allowance for you to continue exploring your claim as long as you don't hamper their exploration activities, an agreement that all data obtained while its in their possession be provided to you if the junior company drops the lease option, and an area of interest clause to include any claims located within one mile of the original claim(s) be signed over.
And that my friend is how you get someone else to do your digging while paying you for the privilege.
Know that once a property is picked up and subsequently dropped by a junior company it is not soiled for life! You submit your data package to another company and here is why: We all see things with different eyes, even if we are in the same field. I know of a property that was worked and dropped by 6 different companies before a guy with a different approach got lucky and hit.