Due Diligence for Junior Gold Investors
- If a company covers its website with pictures of American flags, stars and stripes and gold bars, that is a warning sign that the company might be flaky.
- A company website should include drill hole maps, cross-sections and complete assays. If all you are getting are drill highlights, avoid it. Either the company is incompetent or hiding something.
- Companies only listed on the OTC might be ones to avoid.
- Companies that focus on their proprietary techniques for mining or processing minerals could be compensating for a lack of resource. In the past some people claiming they could pull otherwise undetectable gold out of volcanic cinder cones were flat out scamming.
- If the economics of the deposit relies on some oddball mineral credits like cadmium, there may be a problem with the underlying profitability of the deposit.
- If a project has had its name changed many times or a company has jumped from one hot sector to the next, that is generally a bad sign.