Danger Signals

Some danger signals are outright obvious. The old saw that if something seems to be too good to be true, it probably is, and will likely be reliable until the end of time. There are other signs that a play is more promotion than prospect, and some are listed further below. Doubtless other red flags will be identified by generations to come, because con artists can be very original.

Any declaration that samples demand a "proprietary" analytical method: this is nonsense.

Unusual emphasis on sample security or "chain of custody" before analysis: the management doth protest too much.

Any failure to split core and retain half for independent checks: the destruction of evidence.

"Verifications" by independent consultants that are no verification at all: for example, when a consultant acknowledges that samples contain precious metals, but does not verify actual grades.

Reserve or resource estimates based on surface sampling or trenches, with little or no evidence from drill holes at depth: no responsible geologist would suggest it is possible to do that.

Reserve or resource estimates based on very widely spaced drill holes or limited drill information: nature reserves the right to spring a surprise on anyone who digs a large hole in the ground.

Suggestions that a deposit is so large that entering into production could substantially affect the market for that metal or "put the big producers out of business:" that is invariably pure hype.

Dark mutterings of a "conspiracy" to prevent technological progress or to keep the project out of production; similarly, mentions of a "conspiracy" by short-sellers in the market: conspiracy theories are standard among pseudo-scientists.

Large cash payments made to buy the property, often from management itself: other people's money, paid up front, on a speculative venture.

Poorly documented land tenure: if the company takes poor care of its property holdings, the property itself cannot mean much to management.

Finally, if you have any doubt, ask for an outside opinion. Instead of learning these and other lessons the hard way with your hard-earned money, look for the advice of mining professionals and respected mining analysts, or government geologists and mining organizations. You must learn to do your own diligence personally.

Gold Mines Africa Feasibility: is it worth it? Back - Rock and Geological Sampling Analcite Composition, Crystallization & Structure Derivation of a Chemical Formula from the Analysis of a Mineral Typical Exploration Drilling Pattern Halite - List of Minerals Arranged According to Elements Reference on Sphalerite Activation Plutonic, Coarse-grained Rocks Mining Equipment China Deposits of Diamond Pipes Approximate capacities for wet grinding Mills Correction Factors in Example Calculation for Ball Mill Sizing