Nibletz Staff
The thought of searching for gold conjures up images of heavy plant machinery. It also depicts hundreds of people digging deep holes in the quest for this precious metal. And, to many of us, it also means a lot of investment!
As you can imagine, searching for gold on an industrial scale is a mammoth operation. Most of us assume that you need a lot of machines, tools, people, and money to get the job done. Because of those preconceptions, few entrepreneurs venture out in the gold mining industry.
But, what if I told you that starting a gold mining company isn’t as hard as it sounds? You might think that I’m crazy, right? The truth is, you usually don’t need vast physical and financial resources. Here’s why:
Finding gold hotspots isn’t an expensive exercise
As you can appreciate, there’s no point mining for gold in the wrong places. Instead, it makes sense to carry out research and find likely “hotspots” first. The process itself isn’t too costly. That’s because you can often rely on previous valid research to guide you.
So, if you had visions of needing a team of 1,000 people to dig random holes, think again! Often, you’d only need just a few people to help you on your quest. And most of those would be working from behind a desk, not in the great outdoors!
You don’t need to buy earthmoving equipment
The plant machinery used to mine for gold is huge. In fact, some earthmoving equipment can be as big as your house! Many entrepreneurs don’t even want to think how much it would cost to buy them.
But, what’s the point in spending millions buying them when you can lease them? In a nutshell, all you are doing is renting the equipment for a set period. Doing so keeps your cash flow healthy and your bank manager happy.
You might be wondering about maintenance costs of such behemoths. Sure, you’d have to pay for parts like new spherical bearings and hydraulic hoses. But, you can get insurance to pay for major mechanical problems such as engine failure.
You can take over an existing mine
Sometimes mine operators might not have the resources to continue searching for gold. To cut your costs even further, you could simply take over an existing gold mine.
Some mine owners may even lease the mine to you, taking a percentage of your profits. It’s a win-win situation for entrepreneurs that want to keep costs down to the bare minimum.
You could join forces with your competitors
Joining forces with other gold mine operators might seem like a strange thing to do. But, many people do that quite often to keep their costs down!
As you can appreciate, it takes a lot of time and manpower to dig deep while looking for gold. Some mine operators go out of business because they just run out of money to cover those costs.
Let’s say you’ve identified a likely source for gold. But, it’s near one of your competitors. You could both join forces, and each takes a share of the profits. The combined manpower, equipment and investment means that gold will get found quicker. And, of course, much easier!
As you can tell, mining for gold isn’t as hard as you might think!
