A mine has to be located on a viable mineral deposit, but that isn’t necessarily so giving truth to the Canadian phrase defining a mine, “A mine is a hole in the ground with a fool at the bottom, and a liar at the top.” More then one mine has been built for the sole purpose of bilking the investors.
|Aerial View of the Dome Mine in Timmins, Ontario|
Mines are developed in places where viable mineral deposits are located before building a mine is even considered. The site is found through the efforts of a prospector or today in most cases the efforts of a team of exploration geologists working with geophysicists to locate ore bodies deep inside the crust of the earth. It should be remembered that a “showing” of ore doesn’t necessarily lead to the development of a mine. Usually there are as many as three hundred shows investigated before one is found that can support a mine.
While the preliminary work is ongoing the mine promoters are busily getting the financing to continue the exploration of the site as well as gaining the additional money required to develop the mine. Most of this work is done on the Toronto Stock Exchange (TSX) although there are others that include all the major stock exchanges in the world.
Virtually all the going on’s at the ore site and the financial efforts is reported on http://sedar.com an arm of the Toronto Stock Exchange that reports on virtually all the corporations in the world their filings, financial statements, 43-101 filings, press releases, and notices of stock holder meetings along with their results.
|Heavy mining equipment used in a surface mine.|
A decision also has to be made by management whether the mine is going to be a surface mine or an underground mine. Surface mines are the least expensive to operate, but there are situations that can arise making it more desirable to have an underground mine. This decision will determine the equipment required to operate the mine.
Mines are often built in remote locations requiring not only providing for the mine’s operation, but housing for the workers as well. A large mining operation can require the construction of a city that needs all the facilities like schools, hospitals, libraries and anything else found in a modern city. It will include all the infrastructure found in a modern town or city including roads not only those used in the ore extraction process, but for other means of transportation including in many cases an airport,