Very good interview here...

Very good interview here guys.

http://www.citizeneconomists.com/blogs/tag/potash/

Part of the interview goes the following way...............

For junior developers, which are either in pre-exploration or exploration phase, the due diligence is more difficult. We spend a lot of time with the management team, going onsite, talking to the geologist and making sure the resource is there. We also ensure that there are no outside risks?no native land claims or land lease difficulties. We want to make sure a company can secure land and exploration leases over a contiguous area, so it will be smooth sailing when drilling starts.

After that, it depends on how well the company is financed, the quality of its management team and the level of its compliance and its experience in the field. Finally, you have to ask: ?What are the barriers to entry for these particular players?? It could be country, infrastructure or any of a whole list of risks. The amount of due diligence you do on the smaller companies is a lot more than you would do on the larger ones.