Mining fraud scam artists will be looking over their shoulders in the new millennium thanks to a special task force formed to foil their misdeeds.
The Nevada Attorney General's Office has announced a new tool in the battle against scams in an industry that moves $3.2 billion a year in mineral resources in the state.
The the Mining Fraud Task Force will comprise government officials and mining industry representatives. Its mission is to protect investors against profiteers with questionable motives.
The Attorney General's Office also recommends some tips for potential investors to protect themselves:
-- Verify the legitimacy of the mining dealer: Only licensed dealers are permitted to sell mining stock.
-- Check mining firm registration: Firms should be registered with city county, state or federal agencies. Firms must also obtain permits to extract precious metals.
-- Do not fall for claims of new or secret mining processes: Processes are well-known throughout the mining industry.
-- Precious metals do not mix: Different metals are not usually found together. Platinum-group metals have not been mined in Nevada since 1919.
-- Measure the reward versus the risk: Be skeptical of guaranteed high returns on a short-term investment.
