Just wanted to update you all on my status: I hit a major milestone on my way to my first million dollars. In late october 2011, my father and I inked a major Iron ore deal with a firm on the TSX-V. The type of deal is what is called an option agreement.
The option agreement is usually a three year agreement that gives the corporation that options our mineral claims the right to do " as they wish" with regards to proving up reserves and moving the resource into production (if the time is right). Each year the firm that options a specific set of claims from us must fulfill its obligations to provide a certain amount of cash and stock to keep the option in good standing. They must also spend a certain amount of money on exploring the property.
Your compensation for providing these projects or group of mineral claims can vary upon the option agreement signed but most commonly you will get compensation in the form of cash payments, shares in the publicly traded firm and lastly a NSR (Net Smelter Royalty) if production occurs.
The optionee may cancel the option as they wish if the mineral claims or "property" are not what they are looking for. If the property goes into production we are entitled to a 2% NSR of which 1% can usually be bought back from the company for $1,000,000 or so.
This deal involved a set of 46 mineral claims that I located by conducting research in September 2011; they were interesting because the geology of the claim area was the right kind to host iron ore and the claims all had a strong magnetic anomaly which shows the potential for Iron ore. Needless to say after finding these claims; we immediately staked them. Two hours after we staked these mineral claims the whole area around us was staked by the firm that we ended up inking the option agreement with. The big deal with Iron Ore is that you want to prove up a deposit large enough with appropriate iron grade so that it is economical to mine thereby kicking into gear the 2% NSR if production begins.
The optionee has already started drilling my property and so far on the first and only hole drilled they got back some impressive results from the lab: 35.6% FE (iron) over 137 meters and there was another intersection from the same hole 29% FE over 10 m. The drilling has stopped now for winter but they will hit the ground running in March 2012 to do more drilling and hopefully prove up tonnage and grade.
Crossing my fingers here and hoping after all is said and done we can prove up a +100 Million tonne deposit; The beauty of mining is that it is hugely leveraged.
Not yet a millionaire by any means; trying to move forward by researching for valuable mineral properties. I am searching for a number of minerals including Gold, Iron Ore, Lithium, Copper, Platinum/Palladium, Uranium, Nickel, rare earth etc... I am also keeping my eyes open to other entrepreneurial opportunities that may arise.
Once the deal was inked; I cannot tell you how I felt; it was really an amazing feeling. Just knowing that you completed something so big was an amazing feeling and it still makes me smile and it has reignited my spirit to think big.
The option agreement is usually a three year agreement that gives the corporation that options our mineral claims the right to do " as they wish" with regards to proving up reserves and moving the resource into production (if the time is right). Each year the firm that options a specific set of claims from us must fulfill its obligations to provide a certain amount of cash and stock to keep the option in good standing. They must also spend a certain amount of money on exploring the property.
Your compensation for providing these projects or group of mineral claims can vary upon the option agreement signed but most commonly you will get compensation in the form of cash payments, shares in the publicly traded firm and lastly a NSR (Net Smelter Royalty) if production occurs.
The optionee may cancel the option as they wish if the mineral claims or "property" are not what they are looking for. If the property goes into production we are entitled to a 2% NSR of which 1% can usually be bought back from the company for $1,000,000 or so.
This deal involved a set of 46 mineral claims that I located by conducting research in September 2011; they were interesting because the geology of the claim area was the right kind to host iron ore and the claims all had a strong magnetic anomaly which shows the potential for Iron ore. Needless to say after finding these claims; we immediately staked them. Two hours after we staked these mineral claims the whole area around us was staked by the firm that we ended up inking the option agreement with. The big deal with Iron Ore is that you want to prove up a deposit large enough with appropriate iron grade so that it is economical to mine thereby kicking into gear the 2% NSR if production begins.
The optionee has already started drilling my property and so far on the first and only hole drilled they got back some impressive results from the lab: 35.6% FE (iron) over 137 meters and there was another intersection from the same hole 29% FE over 10 m. The drilling has stopped now for winter but they will hit the ground running in March 2012 to do more drilling and hopefully prove up tonnage and grade.
Crossing my fingers here and hoping after all is said and done we can prove up a +100 Million tonne deposit; The beauty of mining is that it is hugely leveraged.
Not yet a millionaire by any means; trying to move forward by researching for valuable mineral properties. I am searching for a number of minerals including Gold, Iron Ore, Lithium, Copper, Platinum/Palladium, Uranium, Nickel, rare earth etc... I am also keeping my eyes open to other entrepreneurial opportunities that may arise.
Once the deal was inked; I cannot tell you how I felt; it was really an amazing feeling. Just knowing that you completed something so big was an amazing feeling and it still makes me smile and it has reignited my spirit to think big.
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