Junior Mining Stocks

I am currently doing a research on how to properly speculate on "Junior Mining Companies" which are abundant here in the Philippine Mining Industry. I came across an article written by Mr. Scott Wright, a mining expert and a contributor on the book entitled "Junior Mining Investor: 14 Natural Resource Experts Show You How to Invest Profitably in Emerging Gold, Silver, Platinum, Base Metals, and Uranium Mining and Exploration Stocks". His article is entitled "Junior Gold Stocks". In this article he outlined 5 key points where every investor who would like to speculate should focus on which are: (1) History/management, (2) exploration, (3) resources, (4) geopolitics and (5) financing/funding.

Mr. Wright also classified Junior Mining Companies into four categories namely: (1) Strong Juniors, who are on the verge of becoming gold producers and have completed advanced studies on their gold projects and are about to or have started construction of a gold mine, (2) Mid-tier Juniors, or companies that have resources that went through preliminary positive technical studies and has a defined drilling program to advance its project(s). Within the next 12 to 24 months these companies expects to make an economic viability decision on its flagship project, (3) nano-juniors, or companies that could be just getting started in the resource development game and has land holdings that are "promising" with very early testing showing encouraging results, and lastly (4) the Dot Juniors, named after the dot com bubble that happened are companies that are trend chasers, a serial promoter or a schemer. It typically spends more money on marketing, promotion and salaries than it does on exploration. And its sole purpose is to exploit the gold bull and shamelessly suck in some of the capital that junior mining stocks command. The dot-junior has no desire to ever become a miner yet can be stealthily disguised with a pretty website and fancy "market speak". According to him, one should focus on the Strong Juniors and the Mid-tier Juniors when investing and become especially beware of the Dot-juniors.

I believe that this information is relevant especially right now that the speculative stocks are in play and junior mining stocks are among them. You can find the original articles here and here. I hope this tidbit helps would be speculators out there ;-)