Although this talks about a gold explorer the same applies to any exploration company before they start mining.
This is why is it so important to get into production as soon as possible after discovery so that the company does not lose the majority of its gains, and why I believe companies like TON will lose most of its value where as KDL will retain most of its value.
http://www.worldofwallstreet.us/2011/04/brent-cooks-life-cycle-of-a-junior-mining-explorer.html
Although this talks about a gold explorer the same applies to...
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