Some say that the clerks of the world control the world, and to a certain degree they would be correct. Society in general places great emphasis on regulations in one form or another, and the clerks keep track. These regulations may be implied or strictly adhered to, but they run just about every facet of daily life whether we like it or not.
Searchlight Minerals Corp., a development stage mining company, works to develop and extract base metals from claims primarily in the southwestern US. The company is currently in the development stage but indicates production start-up by the end of 2008.
In a certain sense, the company is embarking on two projects that might be considered as relatively stable and profitable in an industry full of unknowns. The only investment risks for the company come in the form of the company’s ability to manage the overriding technical and administrative aspects involved in making their projects work.
The company’s Clarksdale slag project involves the extraction of gold and other base metals from a 20-million-ton slag pile (from a historically rich copper/gold/zinc mine circa 1947). The only main hurdle for its Searchlight gold project involves proper legal ownership work for over-and-under Bureau of Land Management rights. The base metal materials, in the form of gold, silver and zinc, are in place and verified at the Clarksdale project (tested to 0.50oz. per/ton) while initial testing in a known gold-producing region appears but a formality. Put simply, all that is needed are proper permits and aligned and tested equipment to remove the metals. Some might say this is a no brainer, but then again this may not always be so.
Today’s environmental and worker-safety world is such that obtaining permits is a several-step process requiring time and money. Failure to comply means additional time and money to bring a project back in line with expected costs and timetables. A small risk to be sure, but a risk that can lead to increased costs and reduced profits. Additionally, equipment designed for the removal of metals in a slag situation need to be aligned and tested for full efficiency. Generally, this is because efficiency is what makes the project feasible in the first place. Again, the time and money aspect rears its ugly head to affect profit.
As of August 2008, the company has received 2 of the required 3 occupancy permits necessary to commence start-up. Equipment is ready to be installed and aligned, although as of last check, it’s not in place for permit reasons. The company’s Searchlight mine is progressing in the drill-testing stage with full rights to claims obtained. From an investment perspective, Searchlight Minerals appears to be well on its way to establishing a solid capital base and mining infrastructure for some time to come.
Let us hear your thoughts below: