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What Does It Take To Interest a Big Mining Company?


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Many people dream of finding a big discovery, a gold mine that could make them rich. The problem these days is regulations and lawsuits have driven the cost of mining so high you need a really big find to make a go of it. Remote sites with a lack of infrastructure face even bigger hurdles. I was told ten years ago in Alaska that we needed at least a couple million ounces in the ground to be a mine these days.

This new article at http://finance.yahoo.com/blogs/daily-ticker/gold-industry--needs-to-get-its-act-together---randgold-ceo-142651501.html I found interesting due to this quote:

"In the accompanying interview, Bristow discusses the outlook for finding properties that meet its new standard of at least 3 million ounces of gold reserves at an assumed price of $1,000 per ounce and internal rate of return of at least 20%."

Now this is hard rock mining by the big boys but it highlights still the hurdles miners face these days trying to bring a profitable enterprise to market.

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With gold prices as low as they are, and regulatory requirements what they are, a property needs to hold some real commercial sized potential, but I think 3 million ounces, while a mighty fine goal, is very wishful thinking. Interest at this moment is at a low ebb, mostly because of low gold prices. But you can get a company interested in deposits smaller than a million ounces - it just needs to have potential.

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