Fool's Gold

[jstorm]

Great article on mining scams. Here are highlights:

- American eagles, stars and stripes, the Statue of Liberty, cowboy boots, and gold bars prominently displayed all over the front page are big red flags that say, “Put your running shoes on, folks”.

- Likewise, the more gold that is plastered all over the website, the less there is likely to be in the ground.

- If the company happens to be only OTC listed, run, don’t walk, these companies are not subject to the same oversight as companies listed on larger exchanges. A recent example, Mission Mining, is an OTC listed company operating completely outside the bounds of acceptability and accountability.

- My personal avoid list also includes companies domiciled anywhere near Las Vegas (see Mission above), Scottsdale, and even Miami.

- Be very wary of oddball minerals that purportedly account for a significant economic value in the rock.

- “Proprietary” anything should make you nervous—as in “proprietary assay techniques”, metallurgical processes, or modeling software.

- If anyone ever raises money on projects in the Moapa Formation (see Las Vegas again) or getting gold out of cinder cones, sell everything—we are in a bubble.

Full Article here:
http://ceo.ca/rules-of-thumb-for-junior-mining-speculators-and-a-light-at-the-end-of-the-tunnel