Finance
should consider a company ’ s reserves . These are typically evaluated through feasibility studies , which verify the worth of a mining deposit . A feasibility study generally takes the estimated size and grade of the deposit and balances it against the costs and difficulties of extracting it all . If the deposit will earn more money on the market than it costs to dig up , then it is feasible .
The next question to consider is what kind of person are you ? Are you willing to take a risk and throw money at a chance to make a lot of money or would you prefer a more certain option ? These questions will help you answer what types of investments and stocks you should invest in .
Risks Like most things in life , investing in mining stocks includes a certain amount of risk . If a mining major has a lot of deposits being staked and mined , the contents of any single deposit aren ’ t likely to alter the stock value too much . For a junior , however ,
‘ If a mining major has a lot of deposits being staked and mined , the contents of any single deposit aren ’ t likely to alter the stock value too much . For a junior , however , the company lives or dies on the results of its feasibility studies ’
34 N ovember 2014