• Sat. May 28th, 2022

Here Is What To Look For When Evaluating A Junior Mining Company

During the last year, precious metal prices have been climbing higher and this a trend that we have been closely following.

Canadian junior miners have been a beneficiary of rising precious metal prices and this is a vertical that we are highly focused on. When it comes to analyzing these types of companies, selectivity is key, and we recommend conducting thorough analysis on the assets that have been acquired by the company in question.

The management team is one of the first items that we conduct due diligence on when analyzing a Canadian junior miner. Specifically, we want to make sure that a certified geologist is part of the team and is analyzing these properties that are being acquired. Another important trait is related to the geologist being registered under the National Instrument (NI) 43-101, which is a Canadian mineral resource classification scheme that is used to disclose information about mineral properties.  

While analyzing Canadian junior miners, we noticed a trend with the properties that were being acquired. The properties that have been acquired tend to be located adjacent or near the site of a major discovery. The reason why this is significant is because there could be veins under the ground that extend onto the property that is located near the site of a major discovery.

Once we noticed the trend with property acquisitions, we conducted analysis on the companies that were selling the properties. On numerous occasions, the company that is selling the property is the company that owns the land where there was a discovery. We would like to assume that a company would not sell a property that is located near a major discovery if they have not conducted analysis on it.

We would not be surprised if the company that made the finding already extracted the vast majority of the resources that were located under the ground. This scenario makes it even more important to have a certified geologist on staff and believe that our readers need to be aware of this.

When it comes to the Canadian junior mining market, we conduct significant due diligence on each company. If you are interested in learning more about this industry, please send an email to support@onthebids.com to be added to our distribution list and stay up to date with the Canadian junior mining market.

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