How does a goldsmith "prove" gold and assay it?

Will this gold exploration junior develop into a gold producer?

• i have a Challenge about this questions which i have posed a few times already about roxgold ,ticker rog on the canadian venture exchange . they have posted some very good assay results , and the drilling program is ongoing with 6 drills . i did get some very good answers for my question from underexpl ...... but he said that this is not likely to be a mine for at least 10 years if at all . i have to dissagree with him on that point because there has been 6 new mine in the country they operate in , so maybe underxpl did not realize this information about other new mines in burkina faso , west africa . he thinks i'm pumping this stock , but i'm asking specific questions , if i was pumping it i would make false claims about this gold exploration company , which i have not done . this company reached a market cap of $300 million this month . now a stock doing exploration does not reach a market cap this high unless the market beleives it has a deposit that can become a mine . the drill cores have got lots of visible gold in them , the pictures of the cores are on the web site of roxgold .

• Answer:

  No this will NOT become a mine in the short term. The Roxgold company is content to milk this property for what he can from publishing drilling results....He has said as much in his press releases. This company has no history of turning an exploration "story" into a legitimate mine. IF and I say IF these drilling results are not bogus it wall be 5+ years before any gold is mined....At $2.00 it is already an expensive stock for a potential mine with nothing to show but holes punched into the ground and no revenue. This is a poor investment in my opinion. EDIT (Mines in the area) ***************************** You are either pumping or furthering pump stuff that you are getting from the company itself. You should learn how to do this Investigation yourself!!! Your latest stab is that there are mines in the area....yes there are....HUGE open pit mines complete with Infrastructure to completely process the ore into gold....you are exactly right. Let us look at two players in the area.... 1) High River Gold Mines Ltd [TSX:HRG] here is the history of their development in West Africa from their website ***************************************… The original discovery at Taparko was made in 1980 by the Burkina Faso Government department of geology and mining (BUMIGEB). High River and an associate entered into a joint venture agreement for the Taparko property in August 1993 and were granted an exploration permit in February 1996. The mining resources at Bouroum (held previously by AXMIN Inc.) were later acquired by High River and added to the total mineral resources of the project. Environmental and feasibility studies were undertaken in October 2003. The preliminary result showed a mineable reserve of 7.6 million tonnes at a grade of 2.91 g/t with an annual processing rate of one million tonnes of ore producing 2,600 kilograms of gold and projecting a mine life of 7.6 years. An industrial mining exploitation permit for the Taparko site was granted in August 2004 and the company SOMITA SA "SOCIETE DES MINES DE TAPARKO" was created. The procurement of the equipment and start-up of earthworks and construction began in September 2004 with the official launching of works under the patronage of the Prime Minister of Burkina Faso in February 2005. The exploitation permit for the Bouroum property was received in June 2005. ***************************************… Takes a while to develop a mine from scratch as I told you BUT it is a mine and combined with other properties in Russia they have revenues!!! http://tmx.quotemedia.com/financials.php?qm_page=26597&qm_symbol=HRG they make a net revenue now of about $40million/quarter GUESS WHAT THEIR SHARE PRICE IS:......$1.25/share A producing mine and decent revenues...and they are worth less that ROXGold with nothing but drilling results and a dream. 2) Avocet mining [L.AVM] the London exchange http://www.avocet.co.uk/about.html Here is a European mining outfit exclusively in the same region as Roxgold...Here is a piece from their website ******************* Avocet's gold mining and exploration operations were historically located in South East Asia. In June 2009, Avocet acquired Wega Mining and, through it, operations in Burkina Faso, Guinea and Mali. .... The acquisition of Wega Mining brought Avocet 90% ownership of the Inata gold project in the Bélahouro district of northern Burkina Faso. Inata achieved commercial production following first gold pour on 20 December 2009. Production capacity was subsequently increased and the Inata mine produced approximately 167,000 ounces of gold in 2011. ***************************************… It is another financially viable company...here is its 2012 report http://www.avocet.co.uk/downloads/presentations/presentations_2012/AVM_Investor_Presentation_Annual_Results_Presentation_February_2012.pdf GUESS WHAT ITS SHARE PRICE IS: 193.90p /share about $3.05/share Canadian Conclusion: ************* At $1.65/share....with no development other than a few holes, some drilling results and no revenue ROG...I repeat is an expensive pipedream as I see it.... I am done with this now....anyone buying this after this analysis is simply gambling IMHO