The Need
Deconstructing the main need to achieve social and environmental sustainability is summarised in four components:
Capital: The claims in most, if not all, instances have unproven reserves. Claim holders do not normally have the skill to develop a bankable business plan, therefore limiting the access to capital. Without capital the reserves cannot be appropriately explored or geo mapped and equipment cannot be acquired. The downward spiral for the mine owner, local populous and all its stakeholders therefore continues.
Capacity: Due to the fragmented number and physical small size of each claim, the economic viability to support the funding and acquisition of capital equipment is simply not an option for most financiers. A model that clusters small claims into economically viable business units needed to be devised to achieve an acceptable level of risk and financial viability.
Equipment: A properly developed Small Scale Mine will have access to equipment such as Compressors, Mechanical Drills, Crushers, Hoppers, Mills, wash plants, refining - equipment of this nature requires service and maintenance and are capital intensive.
Skilled Resource: Access to Geologists, Mine Engineers, Quality assessors, Business Coaches would substantially assist in achieving a higher economic outcome for a mine