As exciting as these events were, the problem with these occurrences is that they're rather rare, and although many people have rushed to find their own fortunes, often to their demise, very few actually have. And yet there are mining companies who to this day profit from the discovery and brokerage of gold, precious minerals, oil, and diamonds in the ground from known producing areas.
So how do these mining companies succeed? The keys to succeeding on any reliable scale from gold mining tend to rely on combinations of:
- Mining in known-producing areas with enough deposits of gold ore.
- Having the expertise, mining equipment, and investment necessary to actually get the gold out of the ground.
- Brokering deals that get the raw gold to commercial buyers (although you might buy a ring to woo your sweetheart, bet they'd not thank you for delivering a truckload of gold ore on their doorstep! The raw gold still needs refining and turning into what you or I would recognize as gold.)
Madre Tierra (affectionately shortened to "Madre" at times in this report) does or has plans to do all of this in a very smart way, which we will explore in the next section.
Madre's Business Model
Setting up a commercial mining operation isn't cheap. One detailed estimate published by MIT in 2016 said, "Opening a mine and separation plant can cost from $500 million to $1 billion, depending on the location, element, ore grade, and a variety of other factors."
So unless you have a spare BILLION laying around this is not the type of business for a startup to practically consider. The risk of not finding substantial reserves of gold from such an investment is immense, and the interest on such a loan alone would be an immense burden for any startup.
But Madre approached this opportunity differently.
Madre's business was founded by building relationships and collaborating with already established artisanal miners and small-scale mines. It then acts as a broker for those mines based on what they unearth.
This is very smart because it puts Madre Tierra in the gold transaction at reduced risk without first requiring massive investment in mining equipment. And because it is working with already-established local miners, the company can immediately benefit from local knowledge, expertise and know-how.
In terms of its own gold mining, Madre approached this opportunity by focusing on one area in the Santa Rosa Del Sur area – the leading gold production municipality in Bolivar, Colombia.
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