Some say that one cannot teach old dogs new tricks. Many “old line” industries have had to learn the hard way that this is very far from the truth. There are always new and important developments occurring that will ultimately transform an industry or market into a revitalized profit center. The trick is to see these changes coming and be there before they occur. Some industries may appear less likely to have this happen, but in the end, they are the industries that should be kept in focus. These areas are the ones that will offer the most opportunity for profit, even if others don’t yet see it.
Geovic Mining Corp., a mining exploration and development company, works to exploit cobalt, nickel and magnesium deposits primarily in Cameroon, Africa. Initial test holes at the company’s primary and secondary sites have shown exceptional results, while the beginnings of a testing program at its remaining adjacent sites are getting underway. Operations at its primary site are expected to commence by 2010.
The company has completed extensive testing at its Nkamouna (Ka-moon-a) mining site with excellent results. Ore reserves are estimated at 54.7 million tones, yielding average grades of 0.25% cobalt, 0.69% nickel and 1.33% manganese. Concentrates at this site are estimated at reserve yields of 11.7 million tonnes for feedstock to the company’s processing facility. The company’s Nkamouna site is its primary site, with six others located at its borders or nearby. Inferred deposits at these sites are significant and being tested further for probable activity as market conditions warrant.
Although gold and silver tend to get most of the attention, when it comes to talking mining stocks, there are other materials that may hold a relatively more profitable future. As markets develop and new technologies are investigated, minable materials that were once overlooked can become more attractive. In this regard, nickel has always been a source of high return due to its relative scarcity while cobalt, and its increasing importance to rechargeable batteries and batteries for alternative energy automotive batteries, is another.
In many respects, cobalt is likely to become a mainstream mining product sooner rather than later. As mentioned in earlier posts, Chinese cobalt technology is rapidly advancing with regard to processing, as are technologies related to other aspects of cobalt use. Geovic Mining is ahead of the curve in these base material areas and does appear ready to capitalize as it works toward bringing significant reserves online. Mining of any type is an exercise in timing and moving earth. Geovic Mining has both well in hand and is ready to profit down the road.
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