When it comes right down to it, in the natural resources game exploration is exploration. Sometimes an explorer hits it big, other times he tastes dust. From an investor’s point of view, when to make an investment in a natural resources company is the key. Make the investment too soon and the return is a long time in coming or won’t come at all; too late and the cost to invest rises, reducing return. In either case, investing in natural resources exploration and development companies is a roll of the dice, but a potentially profitable one if the right timing and roll is made.
Zoro Mining Corp., an exploration and development-stage mining company, is currently working to map and drill prospective gold, silver and copper properties located in Chile, Peru and Mexico. The company owns a 100% stake in six properties totaling approximately 32,000 acres.
The company has been focusing on its 4 Chilean mining opportunities, but does have 100% ownership in properties located in Mexico and Peru. The Peru opportunity appears to be dictating an open pit strategy where moving large tonnage will be necessary. The company’s Mexican acreage remains in the testing phase but is located within a well known gold seam endemic to the region.
Although the company is at the starting point of its mining activities, management has seen some encouraging results from initial test mapping at its Chilean locations. Each of the company’s four Chile properties will be tested in turn, with emphasis being placed on those sites with logistical and potential return first. In this regard, the company’s Don Beno project, in Region III, Chile, holds the most positive near-term potential.
The company’s initial mapping and testing indicates the possible presence of diamond deposits in an open-ended depth and 2km X 4km size find. The find could be as shallow as 60 meters. As such, the company has contracted with a Chilean drilling company to begin a program designed to drill to an average depth of approximately 500 meters.
Zoro Mining is following the typical mining game plan for getting a mining concern up and running. Generally speaking, management has been fairly restrained in its spending patterns and should benefit from this as programs move forward. The in-place infrastructure surrounding its initial Don Beno project should also aid in moving the company forward, although the likelihood of more capital expenditures to bring extraction to full operations is likely. Mining is mining, but the company does seem to have a solid shot at becoming a good mid-sized player at some point in the future.
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