In the all too painful investment environment that has defined the last couple years, it’s no surprise that investors have increasingly looked toward gold, the traditional hard-times hedge. Since 2005, the price of gold has skyrocketed and gold mining stocks have attracted worldwide attention. The advantage of early-stage gold mining stocks is that they represent a train that has still not left the station. Gold is expensive, but shares of many gold exploration companies can still be purchased cheaply because they’re still in the early development stage. When and if a company strikes success, the huge difference between original share price and the market demand for gold immediately comes into play. It’s one of the biggest risk-reward plays in town.

But grabbing onto just any gold mining stock is a one-way ticket to nowhere. While others are investing in anything that shines, you need to look for a company with a superior exploration and development strategy. Constitution Mining Corp. (OTCBB: CMIN) has one of the most clearly defined approaches in the industry. It’s based on a real-world understanding and acceptance of the risks involved in gold exploration.

• First and foremost, the company believes that accepting such risks only makes sense when the potential payoff is big. As a result, they’ve made it a part of their core strategy to devote resources only where there is real and visible potential for an elephant-sized reward. Small deposits of gold can be found all over the world, but only certain districts offer the possibility of multi-million-ounce finds.

• In addition, they only go where there are few if any unreasonable political risks, even for big projects. In other words, they target areas where gold exploration is respected and encouraged, states and nations that are mining-friendly. This means places where taxes and sovereign royalties are reasonable, and where the regime for mineral rights is well-established and stable.

• Finally, they have assembled a management team with very specific big-mine experience, and they work with industry partners that share their go-big philosophy.

True to their word, Constitution Mining’s current projects are in some of the richest and yet most stable locations anywhere: 178 square miles of Gold Sands in northeastern Peru, and 2,141 claims in Nevada, largely in the prolific Walker Lane gold belt. The Nevada base alone could represent 308,000 ounces of gold (nearby Round Mountain has produced more than 10 million ounces of gold). Try multiplying those numbers by the current price per ounce of gold, and you’ll get an idea why Constitution Mining’s “think big” approach is worth serious consideration.

For additional information, visit the company website at