It’s an elusive and difficult task for a small cap explorer to ever discover a resource that might one day prove commercially viable. And it’s even more difficult to successfully navigate the collection of major obstacles lying between such a discovery, and possible future production. Many potentially commercial resources are stranded indefinitely by high capital expenditure requirements, poor or non-existent infrastructure, low commodity prices and negative political risk factors.
Rarely do project packages offering a low capital expenditure route to early production at previously producing mines, become available. When they do, the odds are against such projects also existing within a low political risk environment, with excellent surrounding infrastructure, and its commodity in a long term bull market. And on the rare occasion such an opportunity does present- just one well-led and well-connected company will get to sign the deal.