The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1920-08-05

become a source of profit There is
the chance for profits during the de-
velopment period from the enhanced
price of the stock as the prospect de-
velopment progresses. and, Of course,
always the expectation that sooner or
later the prospect will be a mine. and
then the stock will have an intrinsic
value many times greater than the
price paid. Mining stocks are often
bought solely on the chance that the
price will rise or be raised. and that
the holders can unload at a profit
This is a speculation, and is in the
same class as speculation in stocks
or with the markets.
Causes of Failure Of Mining
Investment.
The chief cause of loss of invest
ments in mining prospects is the fail
ure to find valuable ore in commercial
quantities Not one in a hundred of
the discoveries Of outcrops or mineral
indications which attract the prospec-
tor finally develops into a mine. Cen
orally, the limited work of the pros
pector or of the owner determines this,
and the discoveries" die a-borning.
OFTEN a little work will give hope and
announcement and some definite facts
as to the mineral conditions. The
prospector comes to have faith in his
property. the mining man thinks that
it will make good. and the engineer
makes a favorable report on it as a
prospect At this state the proposition
is likely to be offered to the investor,
either in the form of an interest or as
stock in a company, as usually much
more money is needed than the owner
has or can afford to risk.
Provision of sufficient funds for the
company at this stage will not how
ever insure success. The business
must have honest and competent man
agement and probably, also. technical
engineering guidance. The company
must be financially able to carry out
the necessary explorations and devel-
opments. These essential factors for
success being all favorable, there is
reason to expect a profitable invest
ment. barring. of course, the inherent
risk of there not being enough
ore in the property to make
a paying mine.
Mining Should Be Regarded as a
Specialized Business.
II should hardly be necessary to
caution a business man as to the wis
dom and necessity of skilled, compe-
tent management Yet many mining
particularly those engaged
in making mines from prospects. are
woefully mismanaged chiefly for the
reason that many persons do not rec
ognize the fact that mining in nearly
all its phases is an intricate. special
lied form of business activity, requir-
ing special experience and technical
training. as we'll as a high order of
business ability and energy.
Most prospects require much more
money TO prove than the sanguine own
er or promoter expects or the stock
buyer is led to believe. Lack of suffi-
cient capital is the cause of many fail
ures. for rarely can enough ore be
taken from prospect to pay for its
All of the rich mines now operating
were once prospects, in most cases not
many years ago. and each year many
prospects are developed into mines,
making many individuals and the COM
munity wealthy. Those who are pre-
pared to take the money risks involved,
who will use hard common sense and
good business judgment and who will
study the business. will find as much
interest and profit in investing in min
ing prospects as in most other business
ctivities-especially if they are per-
sistent.