KAT Exploration Inc (KATX)

[ShortonCash]

Selecting Junior Mining Companies

For a discussion as to why investors should own precious metal bullion and some well selected junior mining companies see the article here.
Be attractively priced for the resources discovered or likely to be discovered

Seems to be other schools of thought as to the various criteria...cores seem to on this list.....

http://mfajuniormining.marketforceanalysis.com/

There is always risk associated with mining exploration, development and production. But by applying appropriate due diligence a large amount of risk can be eliminated or mitigated. In selecting junior mining companies that will likely offer the best appreciation there are various criteria I have defined. The junior mining company must:

• Have (or have the potential to have) multi-million ounce deposits (“elephant” hunters)
• Have experienced management
• Have skilled geologists
• Be attractively priced for the resources discovered or likely to be discovered
• Have low or no debt
• Have sufficient cash to operate or high probability can raise sufficient cash
• Operate in a low political risk country that is mining friendly

Once the above criteria are satisfied then the major remaining risk is geological. That is to say what is the risk to be able to find, expand or produce resources profitably? In order to rationalize and assess the risk the companies are ranked by risk category.