Replies to post #40369 on DD Support Board and Research Team

[janice shell]

I suppose there're a few, but they don't get pumped. Nobody really notices them, except for a few people willing to wait till they get their business up and running and move to an exchange.

[Buckey]

Yeah I shorted a freaken mining stock ten years ago after a cab driver told me to get in. Bastads found a mine one guy I know worth 50 million now. Another had a lambo so big he couldn't park it. My bad

[1manband]

is there a single legit penny stock mining Co out there???

Yes. Many thousands of them worldwide. But I can't think of a single one that is a US company that is non-SEC reporting traded just on the Pink Sheets, for instance. And you are certainly not going to find many legitimate junior exploration companies with active boards on I-Hub.

Unlike most other types of penny stocks, junior exploration companies actually serve a very important and useful purpose. Most of the new deposits discovered worldwide are found by junior exploration companies. Majors and other producers are largely dependent upon juniors to find the deposits they require to exploit in the future. These days, almost all the basic exploration worldwide is performed by junior exploration companies, both public and private.

But mineral exploration has a lot of drawbacks. It is slow, expensive and has a very high rate of failure. 99.9+% of properties turn out to be worthless. In most years, you can pretty much count on two hands the number of new commercial mines that open worldwide. Even if you do beat the odds and find a commercial and economic deposit, the average time from discovery to the opening of a mine is almost 20 years. Yes, 20 years. For those reasons, legitimate exploration companies do not appeal to the typical I-Hub member. Most of the "exploration" companies discussed on I-Hub are fraudulent. Many of them claim their operations accomplish in days or weeks what a legitimate exploration company may accomplish in years.

I think it is fairly easy for these companies to scam people for a couple of reasons. First, so many investors have little knowledge about mining and exploration, so they are easy to fool. I am constantly amazed by the lack of basic knowledge about the industry by most of the posters on I-Hub. Second, people are blinded by precious metals. So many people think a flake of gold or silver automatically means vast riches. Nothing could be further from the truth. Gold is not rare - economic gold is. They definitely have an easy job of mining for suckers, and it shows.

[Psychic Bull]

Galway Resources, which recently sold a major holding and split into two new companies (Galway Gold & Galway Metals); turned out to be a very legitimate purchase for me. It traded as low as a nickel and I bought in at around forty cents and ended up with $2.05 in cash and shares in the new companies. It was not overnight that I saw this return, but Galway proved to be a company focused on developing a mineral resource with an eye towards investors.