Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1914-01-08

vice to mine investors in the last
number of the Mining World, from
which the following extracts are
taken:
The risks of investing in any bust
ness enterprise at its inception, or in
its first stages, are greater than they
are in the later stages, when the
undertaking is established and per
| haps earning a profit. This is true
with mining propositions to a greater
degree than with most other CONNER
cial or industrial undertakings.
1t is seldom that mineral deposits
are found which can be determined
to be of sufficient commercial value
to justify a mining operation without !
much expensive labor
If the investor goes into a prospect
mining proposition with his eyes
| open to the risks, which risks he
takes for the chance of the great
gain expected, no blame should be
attached to any one il loss ensues.
| However, because of the great physi-
cal risks in a mining prospect great
business precautions should be taken
The first consideration is the title.
1t hardly seems necessary to men
ton such an elementary matter but
the fact is that mining stock invest
ors often have no knowledge of and
make no inquiry as TO the title under
which the company holds the prop
i erty Mining property in the west
ern United States and in Mexico
may be held under location" or de
: commemorative is, the title is in
process Frequently. companies offer
stock when the title to their prop
critics is in this stage Ordinarily,
this is reasonably safe, but there is
chance of the full title failing to
issue on a technicality or irregular
itx
In the purchase of stock interest
III HlOptilN utib itei1N anu
bond It should, however. be borne in
mind that if the company can raise
enough money to prove up the prop
erty. and to give it measurable
value greater than the contract price,
then the transaction is reasonably
: safe within itself, for even though
the first investors may not be able
to raise the purchase price, there is
! always a market for developed and
J proven mining properties.
Z The chief, and to be expected
! cause Of loss in investment mining
! prospects is the failure TO find valu
J able ore in commercial quantities il
I the property. Generally the limited
! work of the prospector or the owne
! determines this, and the discoveries
J die aborning Other prospects, will
7 little work, hold out much hop,
7 and encouragement The prospecto
= comes to have faith in them. the min
- ing man thinks that they will maxi
good and the engineer makes a favor
X able report on them as prospects. A
Y this stage the proposition is likely t
be offered to the investor. as usuall
, much more money is needed than tn
owner has or can afford TO risk
n Provision of sufficient funds 70
:. the company at this stage viii mo-
however, insure success. The bus
ness must have honest and comp,
tent management and probably ais
technical engineering guidance Tn
company must be financially able /
N carry ont the necessary exploration
z and developments. These success
= factors being all favorable, there
y then reason to expect a profitab
u investment. barring, of course, the &
y herent physical risk OF there not b
y ing enough valuable ore in the pro
= erty to make paying mine.
a Most prospects take much mo-
. money 10 prove than the sansun
y owner or proneter expects or a
y stock buyer Is ted to helirye Las
A - sufficient capital Is the cause
~ many failures. far rarely ear enoul
ORE b. taken from a prospect durb
ana the exploration serted io pay for
ala developments
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