Executive Summary: Low-impact Mining Exploration

Value for Mining Majors
- Reduced CapEx: Shifting labor- and resource-intensive field exploration to more upfront desk-based activity
- Reduced OpEx: Targeted exploration is efficient reducing exploratory drilling, labor, equipment, and reduces waste
- New Revenue Streams: Technologies can unlock new and previously uneconomic mineral sources or extend the life of existing mines
Technologies are in pilot stages, most yet to commercialize:
- Advanced sensing (Muon, LiDAR and Hyperspectral) technologies are providing more detailed and accurate estimation of ore quality, characteristic and location, e.g., can visualize underground ore quality to target drilling
- AI and ML analysis software are being stacked with advanced sensors, analyzing large data sets to more accurately predict ore location and improve chances of discovery, e.g., can predict and model ore location based on similar mines/topographies
- Precision extraction tools are modular, reducing OpEx, accessing smaller, challenging deposits, e.g., a long, small vein of gold in a protected forest

Business Models:
- SaaS for innovators with a full mining lifecycle focus (e.g., PlotLogic & Ideon)
- Innovators focused purely on exploration are becoming smart mine owners (KoBold)
- Precision drilling combining hardware-as-a-service (HaaS) & SaaS

TAM is large, but demand is dominated by a few mining majors who are likely to acquire innovators, therefore VC bets are limited as investment is dominated by incumbents
Innovators will be selective in co-development with majors (which can narrow focus and limit scaling potential) and cautious about mergers seeking to hold IP for strategic advantage
Mining majors who wish to capitalize on the full benefits of innovation must ensure internal structures are established to scale innovation beyond pilot, mitigate IP protectionism and explore tech uses beyond mining

Markets change. Companies evolve.