Though mining is essential for maintaining our modern lifestyle across the years, over the years, the potential for environmental and cultural damage has given some types of mining a bad name. In a country like Japan, with its long and storied cultural and religious history, the negative impacts of mining can be particularly grave, which is what makes the work of prominent mining industry leader Nippon Dragon Resources, Inc. (NIP:CA) so exciting. On Tuesday, June 30th, Nippon Dragon announced that they will be utilizing their cutting-edge thermal fragmentation mining method to safely access gold-bearing ore in a way that leaves sacred forests and temples safe and intact.
Nippon Dragon’s exclusive thermal fragmentation distributor NDR Japan will carry out the company’s mining on a site that has been closed since WW II. Decades ago, the mine was created within a mountain that is home to several religious temples and a beautiful forest, so it is little wonder that safely accessing the ore requires a state-of-the-art mining method involving little to no explosives, and minimal environmental impact.
A Significant Step Forward for Nippon Dragon
Since the inception of the public Canadian mining company, Nippon Dragon has been focused on developing quality assets that will significantly enhance shareholder value. Today, the company is active in exploration and development of gold resources in Quebec among other potentially valuable mineral assets. However, it is perhaps their patented thermal fragmentation method that holds the most potential for revolutionizing the mining methods – and placing Nippon Dragon at the forefront of the industry.
Thermal fragmentation utilizes heat in order to shatter high-grade veins without the use of destructive explosives and reducing dilution. The innovative technique also reduces the risk of environmental disasters and leads to a massive reduction in energy consumption and greenhouse gas emission – making a clear case for the method as a touchstone of environmentally-conscious mining in the years to come. Since Nippon Dragon has an exclusive patent on the technology, the coming years will provide them with a remarkable opportunity to capitalize on the innovative technique.
As for the Japan-based operation, distributor NDR Japan will cover all costs related to the mining contract, while Nippon will be paid 15% of revenues derived from sales of the precious metals. Though the project is relatively small for a mining operation, Nippon believe that obtaining the extraction contract is a pivotal step forward, and could even lead to revenues before the end of the year. Of course, this is good news for Nippon Dragon shareholders. As any longtime observer in the mining sector is well aware, certainty in the industry is hard to come by, but when a mining operation proves successful, the windfall can be exceptionally lucrative for a company’s investors.
Disclosure: In the purview of Section 17(B) of the Securities Act of 1933 and in the interest of full disclosure, we call the reader's attention the fact that Equities.com, Inc. may be compensated by the companies profiled in the Spotlight Companies section. The purpose of these profiles is to provide awareness of these companies to investors in the micro, small-cap and growth equity community and should not in any way come across as a recommendation to buy, sell or hold these securities. Equities.com is not a registered broker, broker dealer, investment advisor, analyst, investment banker or underwriter. All profiles are based on information that is available to the public. The information contained herein should not be considered to be all-inclusive and is not guaranteed by Equities.com to be free from misstatement or errors. Readers are reminded to do their own due diligence when researching any companies mentioned on this website
DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer