Geoff Hampson: Building a Mid Tier Gold Mining Company
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Geoff discusses how he got involved with Para Resources while looking for opportunities. He builds companies with excellent management teams. Their strategy is to search for properties with good historical potential and an already permitted mine. They found two such properties. They own two, the El Limon mine in Columbia and the Gold Road Mine in Arizona. He says, “You make your money when you buy, not when you sell.”
Their El Limon mine located in Columbia is in an area that has been mined continuously for the past 150 years at 10-12g/ton. They have been upgrading the plant to increase production to the daily permitted amount of 400 tons (1500-1800oz) per month.
The region is unique in that they work with local surface artisanal miners who have been mining illegally. With the Columbian government’s assistance, they have been able to get many of these miners licensed. Part of this agreement is that they must sell the ore to the mine an arrangement that has been working well and brings many benefits to the local economy.
They remain focused on mining underground and additional exploration to confirm the previous owner’s results.
Their Gold Road Mine in Arizona is in a historic mining region and they are looking into expanding the resource base before restarting the mine. The plant only needs minor maintenance. They have accumulated several mining claims around their main property. Excellent grades (24g avg/ton) were mined prior to shutdowns due to the war effort in 1942.