RENO, Nevada — Randy Myers with Operation Web announced today that a combination of an increase in demand for natural resources to support global economies paired with decreasing discoveries of quality resource deposits has created a crisis in the mining industry. With mining companies having to absorb increasing costs while unearthing the dwindling reserves, , industry experts are calling for a long-term approach to developing and investing in technology to breathe new life into an industry that is jeopardy.
The current crop of tier-one assets–many of which were discovered in the early 20th century
and have been operating for several decades–are largely becoming uneconomic as grades fall,
sustaining capital outlays rise, and processing costs step up.
When paired with the ever-increasing demand for natural resources, the need to find and develop new deposits before current supplies run out is critical. Both existing and emerging economies rely on the mining industry to supply important natural resources that help them thrive and grow, not slow their growth down.
Searching for new deposits on or near the surface is no longer working, as these resources have nearly been exhausted. “We need to be mindful that the near-surface search space is quickly disappearing,” noted Jean des Rivieres, Vice President of Exploration for BHP, the world’s largest mining company. “Any world-class orebody that was partially exposed has, most likely, been discovered.”
Companies like BHP face an uphill battle in resource exploration. The industry’s most recent average return-on-investment has been grim: for every dollar spent on exploration from 2007 to 2016, the industry found only $0.47 of value in terms of discovery. Yet, these numbers have not slowed down eager companies who hope to hit the proverbial jackpot, as more money has been spent over the past decade on exploration, with little reward as discovery rates have sharply declined.
Still, even with these negative trending statistics in mind, industry leaders think there are opportunities for solid returns for those willing to capitalize on new methods and technologies. With this in mind, BHP has refocused their exploration efforts to focus on deposits under cover. Their current under cover exploration efforts account for 85% of their exploration budget—an investment BHP hopes will pay off big.
“This approach is quite different from traditional boots on the ground work,” said des Rivieres.
“We need to rely immensely on geoscience data and technology to help us try to predict
where the deposits are and detect them.”
In any industry, those who are bold and forward-thinking will surely reap the rewards and bring about change. This is especially true in the exploration industry where the current under cover search space is even larger than the above ground areas that have already been picked over, offering rich opportunities to unearth new deposits and for companies willing to invest in new methods to reap these rewards.
Learn how one explorer, Nevada Exploration Inc., is capitalizing on this opportunity. By applying new technology to look for new gold deposits hidden beneath the vast valleys that cover more than 55% of Nevada, the world’s number one gold producer by area, Nevada Exploration Inc. is looking to unearth the next generation of Nevada’s famous, large Carlin-style gold deposits and revitalize the mining industry. Learn how one explorer, Nevada Exploration Inc. (OTCQB:NVDEF; TSX.V:NGE), is capitalizing on this opportunity. Get more information here: .