Dr. Michael Doggett Queen's University in Canada specializing in mining economic research suggested that when exploration investment, the following four factors that must be considered:
(1) grade. This is the determinants, and correlated with a metal price fluctuations, if according to the grade of the deposit, and its production cost rough estimate value close to or higher than the metal prices expected, the market will soon sell shares of the company.
(2) location. In a country or region engaged in mineral exploration, investment conditions, political policy stability and foreign exchange rate fluctuations will have a direct impact on the cost and benefit of the mineral company. The position is in the known ore belt and has a successful mine, which will be very beneficial to attract investment.
(3) mining conditions. Mining area near the road, water and electricity supply, mining and mineral processing of the degree of difficulty, these factors should be considered when investing in exploration projects.
(4) project development plan. If the company has a clear development plan for a project, is an active project, which can bring good returns for investors. Some junior exploration company, though they have a good project, but there is no clear, active development plan and investors over the years not to see, can exit the investment.