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STOP. This is a very common mistake that many investors make; just because a mining company has the mining rights to a large ore body does not necessarily mean that this miner will be a suitable and profitable investment for your portfolio. There are a multitude of other factors that must first be considered when investing a mining company. Let's imagine for a moment that this newly discovered ore body is located on a Native reserve that is adjacent to a popular national park in British Columbia that is frequented by many tourists annually, what would this mean for the mining company? The jurisdiction in which an ore body is located is just as important as the grade of the ore body, because extraction of the natural resource could take decades, and this would very quickly eat into the company's capital and potential earnings, eventually leading to bankruptcy of the mining company. Stock promoters very rarely talk about the challenges posed by the jurisdiction of a find, and this is something that every astute mining investor should consider when researching an investment.

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These factors are:

a) Evaluation of the primary target commodity

b) Stage of mining project

c) Understanding and evaluation of the quality of the underlying asset base

d) Evaluation of the management team

e) Determining the company's financial position

f) Valuation

g) Promotion

h) Understanding near term catalysts

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