Introduction
At the recent Deutsche Goldmesse conference, Joanna from Equivest had the opportunity to deliver a keynote on the future of mining exploration. In Equivest, we are at the forefront of integrating technological innovations into mining. This blog post captures the key points from the keynote, highlighting the challenges and opportunities in the mining industry.
The State of Mineral Exploration
Despite its critical role, early-stage exploration is significantly underfunded. This stage yields the largest discoveries, yet it receives the least investment. The mining industry spends approximately $14 billion annually on exploration, with a success rate of only 1 in 1000, compared to a 1 in 3 success rate in the oil and gas sector.
Strategies for Improvement
To enhance the success rate in mining exploration, three key areas need to be focused on: People, Processes, and Property.
People: The expertise and innovative thinking of the team are crucial. Employing talented individuals who can think creatively and challenge existing paradigms is essential.
Processes: Utilizing efficient and modern exploration techniques can significantly improve outcomes. This includes integrating advanced data analysis methods and innovative technologies.
Property: Securing exploration sites is with Tier 1 geology is a must. Better identifying areas with high potential for significant discoveries is what we need to move the needle on discovery rates.
Integrating Data Science in Mining
One of the most transformative elements in modern mining exploration is the integration of data science. Machine learning and AI are being used to process large geological datasets more efficiently. While these technologies are not a silver bullet, they are powerful tools that, when combined with traditional methods, can significantly enhance exploration efforts.
For example, in 2022, Equivest conducted a nickel exploration study in Australia. Out of 60 prospects drilled that year, only four were found to be promising, leading to one small discovery. This highlights the importance of using mineral systems and data driven approaches to focus on high-potential areas.
Focus on Mineral Systems
Understanding mineral systems is another critical aspect of successful mining exploration. Geological processes can predict the locations of deposits. For instance, high-grade copper porphyries are typically found in areas with thick crusts, like the Andes, while thinner crusts, like those in British Columbia, are more favorable for gold deposits. This knowledge helps target the right areas for exploration.
The Future of Mineral Exploration
Looking ahead, the need for better funding allocation and innovative thinking in the mining industry is evident. Despite a challenging year with fewer discoveries, regions like Australia have shown significant potential. By focusing on the three key areas—People, Processes, and Property—and integrating advanced technologies, the mining industry can improve its success rates and drive future discoveries.
Q&A
During the Q&A session, several questions were addressed:
AI in Exploration: AI has not yet led to major discoveries but is improving efficiency and data analysis capabilities.
Effective Exploration Methods: Emerging technologies like passive seismic and autonomous soil-sampling robots are promising innovations for mineral exploration.
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