Page 69 - Introduction to investing in Gold

The Beginner's Guide to Investing in Gold
They may be too small. Similarly, if they are a large firm, they may only be interested in a huge deposit.
There are a lot of things to consider.
Although I don’t like to generalise, if you put all these factors together, as a basic rule of thumb, I’d suggest you look for:
1.A deposit that’s over 400,000 ounces of gold (open in at least one direction).
2.A grade of 1 g/t or more if it’s an open pit, and 5g/t+ if underground. But you still need to be careful about depth and metallurgy.
3.Cash on their balance sheet to carry out further work or a good “management” reputation if they need to raise it.
4.If they’ve only got one project, make sure you’ve done plenty of research as to why it could deliver.
5.How much exploration potential is there?
Getting all this at an attractive share price is not easy, but it at least gives you a guide.
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