RE: Paterson AZY6 Sep 2021 09:38
There is an element of Gold blindness here!
Yes you can find a good sized deposit, jump up and down, shout "gold" and feel really happy......BUT.
You need to look at the whole picture. A 100% owned (by a prospector) deposit is going to need a very large pile of cash to prove up along with another pile of cash to put in the infrastructure to be able to mine. You need a good strong management (with experience in developing a mine along with the requisite financing credentials) to move along the path to get the yellow stuff out of the ground. Oh, and a lot of time to get through all the regulatory and environmental hurdles.
Finding it is good, very good. But the capacity to get it out of the ground is the really tricky bit - a good JV partner with deep pockets, the imperative of needing fresh ore for their on site plant and the will to move quickly ahead of normal practice will add value.
You can ride the peaks and troughs during the discovery phase (you need to know if/when to jump ship!), but a long term term investor has to look at the whole picture to gain real rewards.