The Canadian Mining Journal, is Canada’s first mining publication.
E. G. Thompson has worked in the exploration industry for over 50 years and been associated with a number of successful mining companies.
With both the senior and junior mining/exploration companies facing a plethora of problems, grassroots exploration is undergoing a dramatic decline as the industry comes off its recent highs.
Most of the senior companies have had massive cost overruns on their projects due to a combination of inflation , permitting , environmental and social costs and delays and difficult engineering supervision in their attempts to develop large projects in remote areas of the world.
Virtually no major mining project performed to specification and the financial markets have downgraded these companies. Lower metal prices, especially for gold, and many governments raising taxes, have exacerbated the situation.
This negative publicity has not been lost on the investor who understandably says “If the majors can’t perform, why should I risk my money on juniors?”