Law & Order… ?
“So what could go wrong?”
Plenty. Especially when we’re talking mining — a world of dynamite, heavy machinery, and even heavier politics.
From the earliest days, mining and quarrying have carried a reputation for danger. Historically, they were even used as death sentences—assignments designed to remove political threats. King David himself probably wouldn’t have blinked at the thought.
So how do we manage chaos? That’s where law and order come in. Enter: Doc Holliday, Virgil Earp, Wyatt Earp, and Morgan Earp. They weren’t just lawmen—they were the storm. Skirt the law? Evade regulation? Cross them, and you did so at your peril.
But in modern mining, the threats aren’t just six-shooters and saloon standoffs. No—today’s dangers come in the form of jurisdictions, creative accounting, and PR-driven fantasy.
Jurisdictional Jams: When the State Says, “Pay Up”
Take Mali.
Barrick Gold is now locked in a legal cage match there, tangled in half a billion-dollar tax dispute. What’s worse? The government has sequestered one of Barrick’s largest mines in the country.
Lesson: Jurisdictional risk isn’t a footnote—it’s the whole story.
Deposit Dinging: The Devil in the Drill Hole
Ever seen this gem?
“Errata: Drill Hole DS-169169 was listed as 100m of 2.34 g/t. Correction: 1.00m of 0.234 g/t. Please note accordingly.”
Translation: The resource isn’t ten times richer than expected—it’s ten times poorer. Investors only find out after the stock price has already nosedived. By then, it’s too late to react—unless you enjoy doing a Kramer-style write-off.
The Classic “Asset Swap Swindle”
Here’s a good one:
AXRF Corp. trades its valuable Red Dog ADD-IN (231 claims in Alaska) for two silver mines in Guatemala. Sounds like a blockbuster trade—until you realize:
- Both Guatemalan mines are shut down due to indigenous water rights issues.
- The Alaskan borough is about to demand a remediation bond equal to 50% of the mine’s capitalization.
Both companies scramble to save face, but the stock is already circling the drain.
Corporate Shuffle: Now You See It, Now You Don’t
Watch for the executive musical chairs. For example:
- CFO resigns.
- COO steps in as temporary CFO.
- Another firm announces a new COO… who used to be with the first company.
It’s corporate three-card monte. Distract. Delay. Deny.
Optimism, Stupidity, and Debt: A Recipe for Disaster
Take Aurcana Corp.
Once full of flashy news releases and promises, it ended in bankruptcy. All assets sold off. Debts defaulted. The only thing left? Shareholders wondering what went wrong.
Red Flag: When a stock refuses to go up on good news… someone knows something you don’t.
Final Word: Be Skeptical. Prove Everything.
Here are three hard-won lessons from the trenches:
- The Army: Don’t blindly follow authority. Gullibility is expensive.
- Aurcana: Hope is not a strategy. Wishing doesn’t change fundamentals.
- “Harry”: Whether it’s fraud or just PR spin, deception is deception.
Bottom Line
In mining, law and order aren’t optional—they’re survival.
From dusty claims to boardroom games, the risks are real, and the cost of naivete is high. So take a breath. Ask hard questions. Read the footnotes.
Because when things go wrong in this sector, they don’t go a little wrong—they go spectacularly, explosively, bankruptingly wrong.
See you Next week? Panning for treasures at the beach.
Denaliguide Summit 
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