Mirasol

I bought Mirasol Resouces in Febuary. This is a very new mining company and joins my other junior mining companies, Exmin, Cornerstone, Canplatts, and Paragon, the later I got as a spinoff from Rubicon. They all ave a similir business model that sets them apart from many other mining companies. Now junior mining companies are not for the faint of heart. Most go through tons of money and never develop a producing mine, and evenually go bankrupt. However those that do succeed richly reward their stockholders. It's sort of like buying a lottery ticket, but in the stock market. Lots of loosers but a few big winners. The difference with the companies that I have invested in can be compared to the lotteries. Which deal would you prefer: buying one ticket for $2 or ten tickets for $2.

Obviously you would want the ten ticket deal. These companies go out and stake claims to a lot of land that they think has the potential to contain possible new mines. They then get other mining companies to do the much more expensive drilling of the property to see if there is actually enough minerals in the ground to warrant the major drilling progrm that needs to be done before mine construction can begin. As a bonus they usually get the other company to pay for the privilage of spending the money. Of course the other company gets something in return, an interest in the property. However this is worthless unless a mine is actually developed.

With these stocks, you buy them and keep them, sometimes you may wait for years returning nothing, and thenthey are suddenly worth many times what you paid for them. These types of stocks make up a very small proportion of my portfolio, so I will not lose much if they never develope a mine, but I will have a nicegain, if even just one is successful.