Learn about the key factors that affect the success of mineral exploration projects, and how to measure them, such as target generation, drilling, resource estimation, and more.

One of the key hallmarks of successful exploration companies is the calibre of the exploration geologists. You need veterans with exposure to varied types of deposits and smart juniors that can easily learn and also know newer geology softwares. This is a potent combination. Lastly even if a deposit is not discovered, the geology should absolutely be understood so that future properties could easily be discarded or new targets will be realized with new theories. Lastly management should have at least one good property that has a higher probability of a discovery rather than accumulating prospects that fill up a prospectus unnecessarily!

Last updated on Aug 26, 2024

What are the key success factors for mineral exploration projects, and how can you measure them?

Mineral exploration is a challenging and risky business that requires a combination of technical, financial, environmental, social, and managerial skills. To succeed in this field, you need to understand the key factors that influence the success of an exploration project, and how to measure them. In this article, we will discuss some of the most important aspects of mineral exploration, such as:

1 Target generation

Target generation is the process of identifying and prioritizing areas that have the potential to host mineral deposits. This involves using geological, geochemical, geophysical, and remote sensing data, as well as existing knowledge and models, to define and rank exploration targets. Target generation is crucial for optimizing the use of resources and reducing exploration costs. You can measure the effectiveness of target generation by comparing the number and quality of targets generated, the discovery rate, and the cost per target.

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Cesar A. F. Esmas, P. Geo. 🇨🇦

Senior Tunnel Inspector at GHD
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One of the key hallmarks of successful exploration companies is the calibre of the exploration geologists. You need veterans with exposure to varied types of deposits and smart juniors that can easily learn and also know newer geology softwares. This is a potent combination. Lastly even if a deposit is not discovered, the geology should absolutely be understood so that future properties could easily be discarded or new targets will be realized with new theories. Lastly management should have at least one good property that has a higher probability of a discovery rather than accumulating prospects that fill up a prospectus unnecessarily!

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Michael McClintock, P.Eng.

Founder & Principal @ McClintock Group | Enhancing Mineral Projects, Advocating for Shareholders
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My perspective is as an investor and as an engineer in the mining and mineral space, not as an explorationist. However what I will say is exploration should be treated as a business and value prospects on a risk reward basis. Whether exploration proves to be successful is a function of risk management. The goal is not to eliminate risk, but attempt to get the highest possible gain while maximizing how many chances or targets that can be tested for a given amount of money as efficiently as possible. It is heavily dependent on making predictions on what are the best tradeoffs while dealing with imperfect data.

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Blessing Olamide Taiwo

Mining Engineer//Blast Fragmentation Technical Specialist// Rock Mechanics//WipFrag//Researcher//ISEE Member
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Mineral deposit targeting through blocking optimizes exploration by focusing on high-potential areas, reducing costs, and increasing resource efficiency. It enhances accuracy in resource estimation, supports strategic planning, and minimizes environmental impact by limiting unnecessary exploration activities.

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2 Drilling and sampling

Drilling and sampling are the main methods of testing and evaluating exploration targets. They provide direct information on the presence, grade, and geometry of mineralization, as well as the rock characteristics, alteration, and structure. Drilling and sampling are expensive and time-consuming, so they need to be planned and executed carefully. You can measure the performance of drilling and sampling by analyzing the drill hole spacing, depth, orientation, recovery, quality control, and assay results.

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Blessing Olamide Taiwo

Mining Engineer//Blast Fragmentation Technical Specialist// Rock Mechanics//WipFrag//Researcher//ISEE Member
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Drilling and sampling are crucial for accurately quantifying ore deposits, providing detailed data on mineral content, grade distribution, and deposit size. This process enables precise resource estimation, supports feasibility studies, guides mine planning, and ensures economic viability by reducing uncertainty and optimizing investment decisions.

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3 Resource estimation

Resource estimation is the process of quantifying the amount and grade of mineralization in a deposit, based on the drilling and sampling data. It involves applying statistical and geostatistical methods, as well as geological interpretation and modeling, to estimate the tonnage and grade of different categories of resources. Resource estimation is essential for determining the economic viability and potential value of a deposit. You can measure the accuracy and reliability of resource estimation by comparing the resource models with the actual production data, or by conducting independent audits and reviews.

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Blessing Olamide Taiwo

Mining Engineer//Blast Fragmentation Technical Specialist// Rock Mechanics//WipFrag//Researcher//ISEE Member
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Resource estimation quantifies the amount and grade of mineralization using drilling and sampling data, providing a reliable basis for mine planning. This process helps calculate cut-off grades and ore tonnage by defining economic thresholds for mining, ensuring optimal resource utilization, and guiding strategic decisions. Accurate estimates support financial planning and maximize return on investment by aligning extraction with market conditions.

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4 Environmental and social impact

Environmental and social impact is the effect of exploration activities on the natural and human environment, such as land use, water quality, biodiversity, cultural heritage, community relations, and human rights. Environmental and social impact assessment is the process of identifying, predicting, evaluating, and mitigating these effects, in compliance with the relevant laws, regulations, standards, and best practices. Environmental and social impact management is important for minimizing the negative impacts and maximizing the positive impacts of exploration, as well as for obtaining and maintaining the social license to operate. You can measure the environmental and social impact of exploration by using indicators such as the number and severity of incidents, complaints, and violations, the level of stakeholder engagement and satisfaction, and the extent of environmental and social performance improvement.

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Blessing Olamide Taiwo

Mining Engineer//Blast Fragmentation Technical Specialist// Rock Mechanics//WipFrag//Researcher//ISEE Member
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During the exploration stage, environmental and social impact assessments identify potential risks to land, water, biodiversity, and communities. This information guides safe mine design by incorporating measures to mitigate adverse effects, protect natural resources, and address community concerns. Early insights enable the development of responsible mining practices, ensuring compliance with regulations and fostering sustainable operations.

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5 Project management

Project management is the application of knowledge, skills, tools, and techniques to plan, execute, monitor, control, and close exploration projects. It involves defining the project scope, objectives, deliverables, budget, schedule, quality, risk, and communication. Project management is vital for ensuring that exploration projects are completed on time, within budget, and according to specifications. You can measure the success of project management by evaluating the project performance against the planned criteria, as well as by assessing the project outcomes and benefits.

Mineral exploration is a complex and dynamic process that requires a multidisciplinary and integrated approach. By understanding and measuring the key success factors for mineral exploration projects, you can improve your decision making, efficiency, and effectiveness, and increase your chances of finding and developing profitable mineral deposits.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Blessing Olamide Taiwo

Mining Engineer//Blast Fragmentation Technical Specialist// Rock Mechanics//WipFrag//Researcher//ISEE Member
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Core drilling and exploration provide detailed data on ore body characteristics, which helps manage dilution and acid mine drainage. By identifying rock types and structures, drilling data informs accurate ore delineation, reducing dilution. Additionally, exploration reveals potential sources of acid mine drainage, allowing for targeted mitigation measures, such as proper waste rock management and neutralizing treatments, to minimize environmental impact.

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What are the key success factors for mineral exploration projects, and how can you measure them?

1

2

3

4

5

6

1 Target generation

2 Drilling and sampling

3 Resource estimation

4 Environmental and social impact

5 Project management

6 Here’s what else to consider

Mining Engineering

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What are the key success factors for mineral exploration projects, and how can you measure them?

1

2

3

4

5

6

1 Target generation

2 Drilling and sampling

3 Resource estimation

4 Environmental and social impact

5 Project management

6 Here’s what else to consider

Mining Engineering

Rate this article

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