Posts tagged "Mining"

What mineral exploration can learn from oil & gas. PART 1

Mineral and oil & gas exploration share the same goal: finding resources beneath the Earth’s surface. However, the way they approach discovery is very different. Oil & gas exploration follows a structured, data-driven process focused on identifying the most prospective zones within a petroleum system that have the highest potential for discovery.

In contrast, majority of mineral exploration begins with mineral occurrences and tries to make them bigger, which can lead to staking acreage in locations that may not be optimal for making new economic discoveries.

How can we use AI to map bedrock?

Bedrock maps serve as a crucial source of information in mineral exploration, offering valuable insights into the distribution of the elements of a mineral system. They play a vital role in guiding exploration efforts and generating vectors for locating potential mineral deposits.

In this blog article, we will discuss how AI methods can enhance bedrock mapping, paving the way for more accurate maps and efficient mineral exploration.

Limitations of traditional approaches

Traditionally, bedrock mapping in remote or under the cover areas relied on visual interpretation of geophysical layers, such as magnetic and radiometric data, alongside the extrapolation of known field data collected by geologists to estimate lithologies in unsampled areas. While this approach has proven effective in many scenarios, it often suffers from a high degree of subjectivity and becomes increasingly challenging in greenfield areas, where limited field data is available.

Innovative Feature Engineering - a critical step to connecting Mineral Systems with AI Prospectivity Models

Progress in mineral prospectivity modelling commonly focuses on advancing machine-learning algorithms with limited consideration for improving the representativeness of geological input features to the model. Common inputs are usually oversimplified or biased and often rely purely on direct detection methodology rather than focussing on critical geological processes behind ore formation. To further improve mineral prospectivity modelling, a new approach is needed to draw more value from existing conventional data by applying expert knowledge in creative ways through innovative feature engineering.

How to leverage AI in Mineral Exploration workflows

AI has revolutionized countless industries, yet it has not yet discovered a Tier 1 mineral deposit. What are we doing wrong, and what is the opportunity to get it right? In this article we dive into where machine learning works, where it doesn’t, and why geologists are critical to the process.

Learning from those that got it right: Digital Advertising

In digital advertising, companies like Facebook and Google have achieved remarkable success. They utilize billions of ad-clicks and purchase outcomes to train their models. Each time we click a Facebook ad and make a purchase, their ad targeting becomes smarter. This is because they gain another positive outcome to refine their algorithms.

Embracing Range in Mineral Exploration

In mineral exploration, the success rate is astonishingly low—only 1 in 1000 prospects become a productive mine. At Equivest, our mission is to transform these odds dramatically. This guiding principle shapes everything we do.

What sets us apart from thousands of other companies? Why do we believe we have a competitive edge?

Mineral exploration is an extraordinarily complex and abstract challenge. To navigate this environment effectively, we must understand what makes it unique.

What could the next decade's discoveries look like?

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.

Shifting Away from Known Mineral Occurrences

Exploration in the present

Many battery metals explorers tend to focus on known mineral occurrences, historical mines, and deposits. This can be attributed to several reasons:

1. Exploring in areas with existing mineralization is easier. It requires less conceptual and creative thinking as the geology is well understood and there is more data available.

2. From a marketing perspective, it is easier to convey a compelling “story” to investors when projects are located in well known areas. These projects often appear de-risked, with news ready updates and historical assay results. However, they typically offer limited upside potential in terms of deposit size.

We assessed 500 exploration companies - what are 5 most important learnings

Over the last 2 years, we have looked at over 500 exploration companies and hundreds of exploration properties. This work has been done as part of our investment process for our private exploration portfolio and work for our clients, which we have helped with acquisitions of new assets or building their own exploration investment portfolios. Below are some of our observations that can help improve exploration success rates in the industry.

Next major copper province - Kalahari Copper Belt

Summary

• Kalahari Copper Belt is regarded as a future hot spot for major copper discoveries
• The belt is underexplored and could rival the copper-cobalt belt of Zambia and DRC, which produces 11% of world’s copper and majority of world’s cobalt
• Junior explorers are leading 2021/22 drilling program and are on the hunt for Tier 1-2 discoveries
• Majors are slowly catching up - Rio Tinto amassed large exploration acreage in the region

How do you find the next significant copper discovery?

Despite the declining trend in the discovery rates in recent years, there are some factors that significant finds have in common: