Exploration and Drilling - Industry


Exploration and Drilling companies focus on discovering new resource deposits than can eventually be profitably mined

  • Exploration companies raise funds to explore a region or deposit
  • Also can be referred to as a "Junior Mining Company"
  • They drill to find an actual ore deposit
  • They analyze the results to infer how much resource their is
  • They¬† also conduct students and estimates in regards to how much money, resources, time, effort, permits, etc. are required to eventually mine the rescue
  • May partner with larger companies to develop a mine and bring it production
  • Often sell out to larger larger development or production companies who will build out a fully functional mine
  • They often have to sell shares to raise additional capital
  • They commonly use Warrants to improve the terms of financing deals

Exploration Strategies
  • Looking in an area where other minds have been successful is a strong tailwind (vs a remote area no one has explored yet)

Exploration & Drilling Technology

  • Traditional Approach
    • Drill, blast, excavate, crush, grind, grate, etc (manually & energy intensive work)
  • Modern Approaches
    • Apply computer software and modern geophysics analysis
    • Use improved chemical and nano-technology to extract core metals