June 2002 Newsletter

    The previous month we had lots of problems with a stupid worm called KlezH. It is rather harmless but it can be very annoying. It attaches itself to the POP3 account of the e-mail and then sends itself out to all the people on your mailing list. It can not be fixed or quarantiened, it must be deleted. A good program to delete it with is on the the site www.norman.com It is called Klexfix.exe. It worked for me. Because of our problems with the worm we decided not to infect our clients until we have solved the problem. If you want more info and other ways to kill the virus please do not hesitate to write to me. I apologize to anybody who may have received the worm from me in this past month.

    I travelled to Namibia this past month and do have an article on the different sites we visited further down this newsletter.

    We cover the following articles this month

  • What is the right product to sell on the web.

  • Our recent visit to the Namibian mineral producing sites.

  • South African overview: Gold

  • Lastly we have our regular Silver Hills Mineral Gallery updates page

    Be blessed as you read this newsletter.

    Gerdus

"Don't worry about the world coming to an end today. It's already tomorrow in Australia!"

----- Charles Schultz

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What is the right product to sell on the web

Good product asks the following questions. Do I fulfil a need  or in other words: 'What is the benefit my buyers will gain from this product?'

If your product do not fulfil a need you are wasting your time to try and sell on the web.

    It is not terribly complicated. The best product is the one the people want. If you are thirsty you want something to drink. Find the need and then deliver the product.    

    If you already have a good product I will provide you with a checklist to evaluate your product further down.

    Why must I do this? This gives you direction. You can take your hobby and turn it into a web based business. It is easiest to succeed in something that you love already. You must remember that any web based business will require a certain amount of your hours per day. 

    The best and fastest selling product on the net has been knowledge based products. Something you can sell digitally. A product you do not have to ship physically. Well, I sell rocks and it has also fulfilled a need, my product fills up the best collections with the most stunning rocks and minerals all over the world.

  Selling  physical items and not digital goods

You can sell any physical item on the web but the ones that are not available in your local store is not price sensitive and will be far better in the long run. Items that can have a high mark-up usually proves to be more profitable. But with this kind of high priced items you must make sure that your item matches up to your price. It should also go out with a money back gaurantee. If the customer does not like it he should get his money back.

Items that sell well are books, food, clothing, computer software and toys.

Items that do not sell well on the web are heavy items that cost a lot to deliver like furniture.

  Your 16 point checklist to see if you have the right product

  1.  Product quality. Everything becomes easy when you sell a great product.

  2. Competition. Do not enter into a field where you do not have a specific edge in your field when there are loads of competition. Ask yourself what specific need will I fulfill.

  3. Market size. Rocks and minerals have their niche market, no two rocks are alike and this makes it so ideal for the web. Our market stretches worldwide. Perfect.

  4. Promotability. Can you market your product at a low cost? If you enter in a search word, do you see your product in the search. If you do not find it it might be easy to promote at all.

  5. Profit margin/pricing? The perfect product is the one that cost little to make but which can be sold high.

  6. Supply and exclusivity. If you make the product you can determine supply and the exclusivity. If you do not produce it yourself you need to protect yourself with a contract. After spending a lot of money on developing a website you might just find yourself without a product.

  7. Web advantage. Web advantage may be gained by having an information rich website.

  8. Customer advantage. What advantage would your customer have by buying from you?

  9. Sizzle factor. What prestige or flair can you build into your website

  10. Support required? Can your customer use it without needing support from you in the installation. If you are not sure, prepare yourself for extra costs and returns.

  11. Legals and regulations. If your items is not legal everywhere you might end up in trouble. Also check to see if you are not violating any trademarks.

  12. Cost of transportation. Digital goods can be shipped electronically. Furniture cost too much to ship accross the world.

  13. Cost of inventory. Amazon.com do not keep physical inventory, just titles. Rocks on the other end are expensive to buy and keep. A mayor disadvantage.

  14. Repeat purchace potential. Sell well to your customers and they will be back for more product when they receive their shipment.

  15. Community. Can you develop a comunity through a chat room or a newsletter. Rock collectors love to talk about their rocks.

  16. Is the product fun to sell? It is easier to be creative with something when you enjoy it. You will spend a lot of time doing it anyway.

Our recent visit to the Namibian mineral producing sites.

    To better supply our ever growing customer base all over the world we decided to visit Namibia which is well known for it's wonderfull minerals.

    Our trip took us trough the Kalahari in Botswana. One section of the road was horific, at one stage we thought that we broke an axle when we hit a huge pothole. Our truck then kept veering to the right, we later discovered that the veering was caused by a very strong wind from the right. ha ha!!! The distances between stops are about 350 km apart. You definitely need a vehicle with a big fuel tank. Animals like donkeys and kudus are a big problem as well because there are no fences on this road.

    We arrived at Windhoek, the capital of Namibia. Windhoek is nesstled inbetween mountains and the word quaint can well descibe this city. Early the next morning we were off to the Erongo mountains. The Erongo mountains  are just north of the town of Karibib. The Erongos consist of a series of large granite mounds. Here you find aquamarine and black schorl. Lately they have been digging demantoids as well that are green in color. I bought some specimens here from the small miners. You also find mica and fluorite here. Some of the very shiny black schorl has hialite, a very fluorecent mineral on it. We will be listing some of these fine specimens in the weeks to come.

    Here we missed a large collection that was one of the finest that have been dug recently. The guy who was in charged of the miners had a certain price in mind and I had another price in mind. We could not agree in the middle. Negotiations do not always go the buyers way I found out very early on my trip to Namibia.

    We stopped over at the Hentiesbay off ramp on the way to Swakopmund. Here you find about 20 stalls all selling minerals. The quality here was rather poor and the prices typically tourist. You can choose what you want but the sellers wants high prices for anything that looks like something.

    We slept in the coastal town of Swakopmund. This must be one of the prettiest towns anywhere, colonial German architecture.

    The next morning found us going North-east to the town of Uis. Uis is a typical tradingpost with a post office, police station and a trading store. It used to be a mining town. Here we met Alan who runs the local Inn. We stayed over the night and we bought some minerals from Alan. We also found us a guide to take us to the Gobobos mountains where the magnificent amethyst are dug. The next day we set of for the mountains. The road takes you around the massive called the Brandberg. We saw Springbok, jackal and Gemsbok. The road becomes smaller and smaller until you almost need a 4x 4 to manage the roads.

    We finally reached the 'camps'. Ovambo miners stay here for months on end before going home with their profits. We saw the diggings and now understand why the prices of these magnificent quartz are 'high'. They sometimes go ten to twenty days without dgetting any crystals. The pockets are difficult to find and the basalt rock in which they occur are very hard to work. Average yield is one to two crystals per day.

    But stories abound of the few who made money. One pocket brought its owner $ 2500.00 and a car was bought with the proceeds. I personally saw a crystal priced at $ 1800.00. Negotiations here are tough and prices are high at the source. There are plenty of buyers. Top crystals can cost you up to $ 2000 at the source.

    The next day we travelled to Warmbad in the south. Here we bought more of the colorful quartz from the source. We discovered that the best crystals now comes from a farm called Sandfontein. This means Sandfountain. (Afrikaans is easy)It is a hunting camp and the miners are only allowed on the farm when there is no hunters. Being the hunting season we found that the miners were not allowed to dig. But we still managed to get a good batch of quartz here from other diggings. We see great oportunities for future trade up ahead with this quartz. They will be digging a lot more of the quartz and the supply seems to be endless.

    When we got to the borderpost the next day we were told that we can not take our stones accross the border without a permit from Keetmanshoop 500 km's away. The police then continued to unpack our rocks to 'detain' them until we could show him a permit. Being Saturday we just had to relent and cross the border without our rocks and take the weekend off buying rocks on the South African side.

    Early Monday we were at Keetmanshoop to get our permit. After visiting almost 12 offices and being send to one state official to the next we discovered that the permit can not be issued in Keetmanshoop it must be issued at Windhoek. Windhoek being 1100 km's away there and back. The last chap we spoke to was a European guy in charge of Fauna and flora. They issue hunting permits. He said to me that I must remember that it is Africa.

    I then phoned one of the dealers,Ralph Wartha in Windhoek who shared with me all their woes in dealing rocks from Namibia. Two years ago dealers from all over the world were very dissapointed by these problems after legally buying rocks in Namibia.

    The only way we could get our stones back from the customs and excise people was to visit the Chief of Police in Keetmanshoop. He arranged for us to get our rocks back. This cost me another trip of  600 km's. Well I will not bore you with the details of how we got the rocks here. Make sure that you have the right paperwork and enough time when you buy rocks from Namibia. It may cost you two days extra but it is worth the wait when you do not want your rocks taken away from you. We travelled 7200 km's in 9 days. Any further questions you might have is invited.

    My next trip will be to the Congo (DRC) in June. I will report about that in the next newsletter.

    South African overview: Gold

A dream sea of gold

      Springs and run-off water have been responsible for some extraordinary mineral concentrations. The gold deposit of the Witwatersrand, the greatest subterranean treasure so far found by man, was created by water action, although the details of how this actually happened are complex and controversial.

      It seems most likely that there was, about 1000 million years ago, an inland sea or lake on the site of the Witwatersrand. It was to become a strange dream sea of gold. Into this sea, rain washed a rich spoil of erosion. .Included in the spoil, apart from pebbles and silt were carbon, uranium, iron pyrites, chromite, gold and silver, as well as small green diamonds.

      This mixture was deposited on the sea floor in layers. Their nature varied because of changes in climate, water currents, and the material available as spoiI for the eroding water. The sea level also changed. Eventually, the basin was filled and dried up. The bed solidified. Over the ages it was subjected to irnmense pressures. It was twisted, tilted, faulted and exposed to extremes of heat and cold. Lava from subterranean deeps intruded into it. Its minerals were partly dissolved and redistributed.

      The whole was transformed, to the extent that if there was indeed an ancient sea it has vanished completely, but has left behind a shroud of gold and  other precious things - a shroud below which no life ever made a home.

      Something like 1000 million years passed, with this strange series of rocks and sediments, like a huge saucer, buried deep beneath a later overburden of volcanic and sedimentary material. The saucer tilted. Its rim reached the surface to form the Witwatersrand (ridge of white waters).

      This was the lid of a real treasure chest of nature. Prehistoric man lifted it a little and extracted iron. Pioneer Europeans found specks of gold in streams, but their origin was a mystery.

      An 1801 map of the South African interior showed the Witwatersrand, and marked it as rich in gold, but prospectors searched without success. The 73 families who farmed along the ridge eked out a living, isolated frorn markets for their produce, their nondescript homes huddling in hollows for shelter from winter's cold, dry, frosty winds.

      The man who found the answer to the riddle of the specks of gold arrived in December 1885. In that summer month, when the Witwatersrand was green and warm, a shabby-looking man who spoke with an Australian accent, George Harrison, tramped up to the Witwatersrand and secured a job building a house for Johan Oosthuizen, on the farm Langlaagte (the Long dale). Harrison was on his way to prospect in the Eastern Transvaal but, short of money, he took on this constructional work to help him on his way.

      Harrison, taciturn and almost illiterate, fossicked  around during his spare hours. He never said anything then or afterwards about how it happened, but some time in March 1886 he crushed, as others had done before, a sample of the conglomerate. The sample he panned came from the Main Reef, at one of the few places where it was exposed. He panned it  in one of the streams and without great hope looked down into the battered black pan and saw the dirt dissolve and swirl away. Suddenly, there was a marvellous glitter. The treasure chest was open. Harrison made little from his find. He registered it, and received the usual free discoverer's claim but, an alluvial miner at heart, sold it for £10 when the great rush started, and vanished. There is a legend that he passed that way some years afterwards, looked at the boom city of Johannesburg in disgust and opined that he was sorry he had ever done it.

       The extent of the Main Reef is still unknown. The deepes gold mines in the  world probe down into it. The E.R.P.M. (East Rand  Proprietory Mine) shaft at Boksburg goes down 3240 m, and ore is known to extend deeper than 15 000 m.

      The limits of recovery are set, not by the extent of the reef, but by technical problems and costs. Everyday, 40 000 tons of ice are used in the E.R.P.M. shaft to provide a reasonable temperature. Apart from gold, the Witwatersrand reefs are prolific producers of silver, to the extent of 1 part silver to every 10 parts of gold; and of iron pyrites, a pale,  brass-yellow coloured mineral composed of 53,4 percent sulphur and 46,6 per cent iron. Once known as  fool's gold because it was thought to be valueless,  iron pyrites is today used to make sulphuric acid. Uranium oxide (uraninite) is also abundant.

      The basin containing the Witwatersrand System is about 300 km by 150 km and is tilted southwards, deep below the Karoo System. Using magnetometers, geophysicists have traced the gold-bearing reefs to the west of the Rand, where they are buried under such thick masses of water-saturated dolomite that to reach  them miners have to resort to the most extraordinary   a feats of applied science. At Blyvooruitzicht, one of the world's richest gold mines, they had to plug an influx of nearly two million litres of water an hour  which suddenly burst through a fissure 500 m below the surface as the shaft was being sunk.

      In the Orange Free State, the gold-bearing reefs, known there as the Basal Reefs, were traced as a result of the sinking of more than 500 boreholes.

      More than 100 brought significant quantities of gold to the surface. One, on the farm Geduld (Patience), produced from a depth of 1300 m a sample which contained nearly 20 per cent of pure gold. Its assay of 23 037 inch-dwt staggered the mining world, as it was the richest ever found.

          There are very few gold specimens that ever come out of any of these mines. I met a miner who mined at one of the richest gold mines who told me that he never saw physical gold in any of the rocks in 15 years that he worked on the mine. I once saw gold specimens from the Eersteling mine at Pietersburg. The gold there was caused by hydrothermal water action. It is illegal to own raw gold in South Africa.

Quotes on DELEGATION

"No executive ever suffered because his subordinates were strong and effective." 

- Peter Drucker 

"One of the qualities I would certainly look for in an executive is whether he knows how to delegate properly. The inability to do this is, in my opinion, one of the chief reasons executives fail."

- J. C. Penny 

"Delegating is the art of letting someone else have your way." 

- Unknown 

"The best executive is the one who has sense enough to pick good men to do what he wants done, and self-restraint enough to keep from meddling with them while they do it."

- Theodore Roosevelt 

"Good leaders never put off until tomorrow what they can get someone else to do today."

- Unknown 

"A manager who can't delegate is about as competitive as a school of guppies at a convention of barracudas."

- Dale McConkey 

"Get into the habit of asking yourself if what you're doing can be handled by someone else."

- Unknown

UPDATES for the month of May 2002