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MinEx Consulting Strategic advice on mineral economics & exploration
Exploration and discovery of base and precious metal deposits in the
Pacific Rim over the last 50 years
Richard SchoddeManaging Director, MinEx Consulting
Adjunct Professor, Centre for Exploration Targeting, UWA
PACRIM 2019Mineral Systems of the Pacific Rim Congress3-5 April 2019, Auckland
MinEx Consulting Strategic advice on mineral economics & exploration
Overview
1. What’s covered by the Circum-Pacific Region?2. Trends in exploration expenditures for copper and gold3. Historic Mineral endowment of the CPR4. Size and location of copper discoveries in the CPR5. Size and location of gold discoveries in the CPR6. Trends in discovery costs for copper and gold7. Sillitoe’s 1995 analysis of the CPR
- Size of deposits- Delays in making discoveries
8. MinEx analysis of the delay in making a discovery9. Conclusions
2
MinEx Consulting Strategic advice on mineral economics & exploration
1. CIRCUM-PACIFIC REGIONSpans across 1/3rd of the World’s surface in 41 jurisdictions
3
MinEx Consulting Strategic advice on mineral economics & exploration
Jurisdictions within the Circum-Pacific Region
Latin America- Argentina- Chile- Peru- Ecuador- Colombia
North America- California - Idaho- Oregon - Utah- Washington - Br Columbia-Nevada - Yukon- Alaska
Central America- Panama - Belize- Costa Rica - El Salvador- Nicaragua - Caribbean Islands- Honduras - Mexico
NE Asia- Russian Far East (5 Oblasts)
- Japan- Taiwan
SE Asia- Indonesia- Philippines- Brunei
Eastern Australia- Queensland - NSW- Tasmania - Victoria
Oceania- New Zealand- New Caledonia- Solomon Island- Fiji- PNG
41 Jurisdictions covering 16.3%of the World
41 Jurisdictions covering 16.3%of the World
Note: Excludes Antarctica
4
Source: Minex Consulting © April 2019
MinEx Consulting Strategic advice on mineral economics & exploration
2. TREND IN EXPLORATION EXPENDITURESThe Circum-Pacific countries account for nearly half of global spend for gold and copper
5
MinEx Consulting Strategic advice on mineral economics & exploration
Exploration Expenditures on Gold and CopperPacific Rim Region: 1993-2018
$0
$2
$4
$6
$8
$10
1975 1985 1995 2005 2015
Copper
Gold
Sources: MinEx Consulting estimates based on data from SNL, ABS (for Australia),NRCan (for Canada) and the Alaskan Division of Geological & Geophysical Survey
No data for years prior to 1993
Exploration expenditures increased dramatically in
the mid-2000s
Exploration expenditures increased dramatically in
the mid-2000s
$0.74 bin 2002
$8.07 bin 2012
$3.27 bin 2018
2018 US$ Billion
6
MinEx Consulting Strategic advice on mineral economics & exploration
Exploration Expenditures on Gold by RegionPacific Rim Countries: 1993-2018
$0
$1
$2
$3
$4
$5
$6
1975 1985 1995 2005 2015
Oceania
Eastern Australia
Southeast Asia
Northern Asia
North America
Central America
Latin America
2018 US$ Billion
Sources: MinEx Consulting estimates based on data from SNL, ABS (for Australia),NRCan (for Canada) and the Alaskan Division of Geological & Geophysical Survey
No data for years prior to 1993
$0.50 bin 2002
$5.18 bin 2012
$2.01 bin 2018
Over the last decade the 7 PACRIM regions
accounted for 41% of global gold expenditures
Over the last decade the 7 PACRIM regions
accounted for 41% of global gold expenditures
7
MinEx Consulting Strategic advice on mineral economics & exploration
Exploration Expenditures on Copper by RegionPacific Rim Countries: 1993-2018
$0
$1
$2
$3
$4
$5
$6
1975 1985 1995 2005 2015
Oceania
Eastern Australia
Southeast Asia
Northern Asia
North America
Central America
Latin America
Sources: MinEx Consulting estimates based on data from SNL, ABS (for Australia),NRCan (for Canada) and the Alaskan Division of Geological & Geophysical Survey
No data for years prior to 1993
$0.25 bin 2002
$2.92 bin 2012
$1.26 bin 2018
Over the last decade the 7 PACRIM regions
accounted for 49% of global copper expenditures
Over the last decade the 7 PACRIM regions
accounted for 49% of global copper expenditures
2018 US$ Billion
8
MinEx Consulting Strategic advice on mineral economics & exploration
3. HISTORIC KNOWN ENDOWMENT50% of the World’s copper resides within the circum-pacific region
9
MinEx Consulting Strategic advice on mineral economics & exploration
Mineral Deposits in the Circum-Pacific RegionAll Years : All Commodities
Gold
Precious (PGE,Ag,Dia, Gems)
Base Metal (Cu,Ni,Zn,Pb)
Mineral Sands
Uranium
Other
Note: Analysis excludes bulk mineral deposits (Coal, Fe, Al, K2O and P2O5) Bubble size refers to whether it is a Moderate-, Major- or a Giant-deposit
Au Cu Ni Zn/Pb Other TOTAL
No. 1589 612 133 143 53 2973
Metal 4447Moz
2409 Mt
148Mt
601 Mt
xx
33% of all known deposits in the World
33% of all known deposits in the World
34% 50% 39% 32%
Share of World Pre-mined Resource
10
Source: Minex Consulting © April 2019
MinEx Consulting Strategic advice on mineral economics & exploration
4. SIZE AND LOCATION OF COPPER DISCOVERIES
Since 1970 a total of 1303 Mt Cu has been found in 302 copper deposits in the circum-pacific region
11
MinEx Consulting Strategic advice on mineral economics & exploration
Number of copper discoveries by sizeMineral discoveries in Circum-Pacific Region: 1950-2018
0
5
10
15
20
1950 1960 1970 1980 1990 2000 2010 2020
Est Unreported
Moderate
Major
Giant
Number
27
includes MinEx’sestimate of unreported discoveries
includes MinEx’sestimate of unreported discoveries
Note: Based on Moderate-, Major- and Giant-sized depositsModerate 0.101 Mt Cu, Major 1-5 Mt Cu, Giant >5 Mt Cu Source: Minex Consulting © April 2019
12
88
243
149
480
MinEx Consulting Strategic advice on mineral economics & exploration
Million Tonnes of Copper foundCircum-Pacific Region: 1950-2018
0
20
40
60
80
100
120
140
160
180
200
1950 1960 1970 1980 1990 2000 2010 2020
Est Unreported Discoveries
No of Discoveries
Mt Cu
Note: Based on Primary copper discoveries >100kt CuIncludes an adjustment for unreported discoveries in recent years.No expenditure data available prior to 1993
Source: Minex Consulting © April 2019
13
MinEx Consulting Strategic advice on mineral economics & exploration
PACRIM Region Copper Discoveries : 1970-79
Note:Bubble size refers to pre-mined resource of copper metal tonnes
100Mt Cu
20Mt Cu
5Mt CuOlympic Dam
Los Pelambres [38 Mt]
Los Bronces [34 Mt]
Antamina [29 Mt]
Quebrada Blanca [19 Mt]
260 Mt Cu in 49 Cu deposits
260 Mt Cu in 49 Cu deposits
14
Source: Minex Consulting © April 2019Total Cu tonnage for the decade includes by-product metal from Au and other deposits
MinEx Consulting Strategic advice on mineral economics & exploration
PACRIM Region Copper Discoveries : 1980-89
100Mt Cu
20Mt Cu
5Mt Cu
Escondida [131 Mt]
Grasberg [56 Mt]
295 Mt Cu in 45 Cu deposits
295 Mt Cu in 45 Cu deposits
15
Source: Minex Consulting © April 2019Note:Bubble size refers to pre-mined resource of copper metal tonnes
Total Cu tonnage for the decade includes by-product metal from Au and other deposits
MinEx Consulting Strategic advice on mineral economics & exploration
PACRIM Region Copper Discoveries : 1990-99
100Mt Cu
20Mt Cu
5Mt Cu
Collahuasi [91 Mt]
Tampakan [15 Mt]
334 Mt Cu in 87 Cu deposits
334 Mt Cu in 87 Cu deposits
16
Source: Minex Consulting © April 2019Note:Bubble size refers to pre-mined resource of copper metal tonnes
Total Cu tonnage for the decade includes by-product metal from Au and other deposits
MinEx Consulting Strategic advice on mineral economics & exploration
PACRIM Region Copper Discoveries : 2000-09
100Mt Cu
20Mt Cu
5Mt Cu
Pebble [37 Mt]
Pampa Escondida[34 Mt]
Resolution [28 Mt]
Los Sulfatos[18 Mt]
348 Mt Cu in 79 Cu deposits
348 Mt Cu in 79 Cu deposits
17
Source: Minex Consulting © April 2019Note:Bubble size refers to pre-mined resource of copper metal tonnes
Total Cu tonnage for the decade includes by-product metal from Au and other deposits
MinEx Consulting Strategic advice on mineral economics & exploration
PACRIM Region Copper Discoveries : 2010-18
100Mt Cu
20Mt Cu
5Mt Cu
Hu’u [? Mt]
Cascabal[11 Mt]
66 Mt Cu in 42 Cu deposits
66 Mt Cu in 42 Cu deposits
18
Source: Minex Consulting © April 2019Note:Bubble size refers to pre-mined resource of copper metal tonnes
Total Cu tonnage for the decade includes by-product metal from Au and other deposits
MinEx Consulting Strategic advice on mineral economics & exploration
5. DISCOVERY HISTORY FOR GOLD
Since 1970 a total of 3011 Moz has been found in 658 gold deposits in the circum-pacific region
19
MinEx Consulting Strategic advice on mineral economics & exploration
Number of gold discoveries by sizeMineral discoveries in Circum-Pacific Region: 1950-2018
0
5
10
15
20
25
30
1950 1960 1970 1980 1990 2000 2010 2020
Est Unreported
Moderate
Major
Giant
Number
23
includes MinEx’sestimate of unreported discoveries
includes MinEx’sestimate of unreported discoveries
Note: Based on Moderate-, Major- and Giant-sized depositsModerate 0.101 Mt Cu, Major 1-5 Mt Cu, Giant >5 Mt Cu Source: Minex Consulting © April 2019
20
96
237
271
717
MinEx Consulting Strategic advice on mineral economics & exploration
Moz of Gold foundCircum-Pacific Region: 1950-2018
0
20
40
60
80
100
120
140
160
1950 1960 1970 1980 1990 2000 2010 2020
Est Unreported Discoveries
No of Discoveries
Moz Au
Source: Minex Consulting © April 2019
21
Note: Based on Primary gold discoveries >100koz AuIncludes an adjustment for unreported discoveries in recent years.
MinEx Consulting Strategic advice on mineral economics & exploration
PACRIM Region Gold Discoveries : 1970-79
100 Moz Au
20 Moz
5 Moz
Olympiada
Pueblo Viejo [42 Moz]
397 Moz in 70 Au deposits
397 Moz in 70 Au depositsHycroft [33 Moz]
Gold Quarry [27 Moz]
Round Mountain [25 Moz]
22
Source: Minex Consulting © April 2019Note:Bubble size refers to pre-mined resource of gold
Total Moz for the decade includes by-product metal from Cu and other deposits
MinEx Consulting Strategic advice on mineral economics & exploration
PACRIM Region Gold Discoveries : 1980-89
964 Moz in 232 Au deposits
964 Moz in 232 Au depositsCarlin – Barrick [77 Moz]
Lihir [68 Moz] Yanacocha[57 Moz]
Porgera[36 Moz]
Pascua-Lama [22 Moz]
100 Moz Au
20 Moz
5 Moz
23
Source: Minex Consulting © April 2019Note:Bubble size refers to pre-mined resource of gold
Total Moz for the decade includes by-product metal from Cu and other deposits
MinEx Consulting Strategic advice on mineral economics & exploration
PACRIM Region Gold Discoveries : 1990-99
731 Moz in 163 Au deposits
731 Moz in 163 Au deposits
Donlin Creek[45 Moz]
Cadia East[37 Moz]
Turquoise Ridge [29 Moz]
Veladero [20 Moz]
Penasquito [19 Moz]
100 Moz Au
20 Moz
5 Moz
24
Source: Minex Consulting © April 2019Note:Bubble size refers to pre-mined resource of gold
Total Moz for the decade includes by-product metal from Cu and other deposits
MinEx Consulting Strategic advice on mineral economics & exploration
PACRIM Region Gold Discoveries : 2000-09
778 Moz in 129 Au deposits
778 Moz in 129 Au depositsKSM [98 Moz]
Snowfield [35 Moz]
La Colosa [28 Moz]
Caspiche [25 Moz]
100 Moz Au
20 Moz
5 Moz
25
Source: Minex Consulting © April 2019Note:Bubble size refers to pre-mined resource of gold
Total Moz for the decade includes by-product metal from Cu and other deposits
MinEx Consulting Strategic advice on mineral economics & exploration
PACRIM Region Gold Discoveries : 2010-18
141 Moz in 64 Au deposits
141 Moz in 64 Au deposits
100 Moz Au
20 Moz
5 Moz
Swan –Fostrville [3Moz]
26
Source: Minex Consulting © April 2019Note:Bubble size refers to pre-mined resource of gold
Total Moz for the decade includes by-product metal from Cu and other deposits
MinEx Consulting Strategic advice on mineral economics & exploration
6. TREND IN DISCOVERY COSTS
Unit discovery costs in the Circum-Pacific Region have dramatically risen in the lastdecade
27
MinEx Consulting Strategic advice on mineral economics & exploration
Exploration Expenditures and number of discoveries : CopperCircum-Pacific Region: 1950-2018
$0
$1
$2
$3
$4
0
5
10
15
20
1950 1960 1970 1980 1990 2000 2010 2020
Est Unreported Discoveries
No of Discoveries
Exploration Expenditure
Number
Note: Based on Primary copper discoveries >100kt CuIncludes an adjustment for unreported discoveries in recent years.No expenditure data available prior to 1993
Source: Minex Consulting © April 2019
28
2018 US$ BillionDiscovery performance has declined in recent
years
Discovery performance has declined in recent
years
Exploration Spend
MinEx Consulting Strategic advice on mineral economics & exploration
Average cost per copper deposit foundPACRIM Region versus the World: 1975-2018
$0
$100
$200
$300
$400
1975 1985 1995 2005 2015
Note: Based on a 3-year rolling AverageBased on primary copper deposits >100kt CuIncludes an adjustment for the number of unreported discoveries in recent years
2018 US$m per Discovery
WORLD
PACRIM Region
3-Year Rolling Average
PACRIM is simply following the same trend as the rest of the World …
$320m
$154m
Over the last decade unit discovery costs have
significantly risen
Over the last decade unit discovery costs have
significantly risen
$105m
$282m
$33m
… no real surprise given that it accounts for half of global spend
Source: Minex Consulting © April 2019
29
MinEx Consulting Strategic advice on mineral economics & exploration
Exploration Expenditures and Mt Cu found : CopperCircum-Pacific Region: 1950-2018
$0
$1
$2
$3
$4
0
20
40
60
80
100
120
140
160
180
200
1950 1960 1970 1980 1990 2000 2010 2020
Est Unreported Discoveries
No of Discoveries
Exploration Expenditure
Mt Cu
Note: Based on Primary copper discoveries >100kt CuIncludes an adjustment for unreported discoveries in recent years.No expenditure data available prior to 1993
Source: Minex Consulting © April 2019
30
2018 US$ Billion
Exploration Spend
MinEx Consulting Strategic advice on mineral economics & exploration
Average cost per pound of copper foundPACRIM Region versus the World: 1975-2018
0
2
4
6
8
10
1975 1985 1995 2005 2015
Note: Based on a 3-year rolling AverageBased on primary copper deposits >100kt CuIncludes an adjustment for the number of unreported discoveries in recent years
2018 US Cents/lb Cu
WORLD
PACRIM Region
3-Year Rolling Average
PACRIM is now twice as expensive as the global average
8.7 c/lb
1.5 c/lb
Over the last decade unit discovery costs have
significantly risen
Over the last decade unit discovery costs have
significantly risen
1.3 c/lb
3.2 c/lb
0.3 c/lb
Source: Minex Consulting © April 2019
31
MinEx Consulting Strategic advice on mineral economics & exploration
Exploration Expenditures and number of discoveries : GoldCircum-Pacific Region: 1950-2018
$0
$1
$2
$3
$4
$5
$6
0
10
20
30
40
1950 1960 1970 1980 1990 2000 2010 2020
Est Unreported Discoveries
No of Discoveries
Exploration Expenditure
Number
Source: Minex Consulting © April 2019
32
2018 US$ Billion
Exploration Spend
Note: Based on Primary gold discoveries >100koz AuIncludes an adjustment for unreported discoveries in recent years.No expenditure data available prior to 1993
MinEx Consulting Strategic advice on mineral economics & exploration
Average cost per gold deposit foundPACRIM Region versus the World: 1975-2018
$0
$100
$200
$300
$400
1975 1985 1995 2005 2015
Note: Based on a 3-year rolling AverageBased on primary gold deposits >100koz AuIncludes an adjustment for the number of unreported discoveries in recent years
2018 US$m per Discovery
WORLD
PACRIM Region3-Year Rolling Average
PACRIM’s costs are higher than the global average
$330m
$191m in 2018
Over the last decade unit discovery costs have
significantly risen
Over the last decade unit discovery costs have
significantly risen
$27m
$384m in 2017
$66m
$47m
$210m
Source: Minex Consulting © April 2019
33
MinEx Consulting Strategic advice on mineral economics & exploration
Exploration Expenditures and Moz found : GoldCircum-Pacific Region: 1950-2018
$0
$1
$2
$3
$4
$5
$6
0
20
40
60
80
100
120
140
160
1950 1960 1970 1980 1990 2000 2010 2020
Est Unreported Discoveries
No of Discoveries
Exploration Expenditure
Moz Au
Source: Minex Consulting © April 2019
34
2018 US$ Billion
Exploration Spend
Note: Based on Primary gold discoveries >100koz AuIncludes an adjustment for unreported discoveries in recent years.No expenditure data available prior to 1993
MinEx Consulting Strategic advice on mineral economics & exploration
Average cost per ounce of gold foundPACRIM Region versus the World: 1975-2018
$0
$100
$200
$300
1975 1985 1995 2005 2015
Note: Based on a 3-year rolling AverageBased on primary gold deposits >100koz AuIncludes an adjustment for the number of unreported discoveries in recent years
2018 US$ per Ounce
WORLD
PACRIM Region
3-Year Rolling Average
PACRIM’s costs are higher than the global average
$220/oz
$85/oz in 2018
Over the last decade unit discovery costs have
significantly risen
Over the last decade unit discovery costs have
significantly risen
$7/oz
$186/oz in 2017
$16/oz
$18/oz
Source: Minex Consulting © April 2019
35
MinEx Consulting Strategic advice on mineral economics & exploration
7. COMPARISON WITH SILLITOE’S 1995 STUDY OF THE REGION
In a landmark paper Dick Sillitoe assessed the discovery history of 52 major precious and base metal deposits in the region
36
MinEx Consulting Strategic advice on mineral economics & exploration
Assessed 54 major deposits found in the
period 1970-1994
Assessed 54 major deposits found in the
period 1970-1994
38 gold 14 copper
1 silver1 zinc
For the same time-period, MinEx has data on 296
major deposits found in the region
For the same time-period, MinEx has data on 296
major deposits found in the region
ie >1 Moz Au, > 1 Mt Cu
37
MinEx Consulting Strategic advice on mineral economics & exploration
Sillitoe’s analysis was comprehensive and covered the entire region
38
MinEx Consulting Strategic advice on mineral economics & exploration
Many of the deposits in Sillitoe’s study grew in size
COPPERChange in Pre-Mined Resource
0
20
40
60
80
100
120
140
0 10 20 30 40
Mt Cu in 2018
Mt Cu in 1995
1x
On average, copper deposits grew in
size by 3.1x
On average, copper deposits grew in
size by 3.1x
GOLDChange in Pre-Mined Resource
0
20
40
60
80
100
120
140
0 10 20 30 40
Moz Au in 2018
Moz Au in 1995
1x
On average, gold deposits grew in
size by 2.1x
On average, gold deposits grew in
size by 2.1x
39
Source: Minex Consulting © April 2019
5x
3x
5x
3x
MinEx Consulting Strategic advice on mineral economics & exploration
8. PRE-DISCOVERY EFFORTS
Sillitoe found that, on average it took ~3 companies and ~19 years of exploration effort to make a discovery
40
MinEx Consulting Strategic advice on mineral economics & exploration
It takes persistence and patience to make a discoveryTime delay and number of companies involved prior to the actual discovery of a Major base- or precious-metal deposit
0%
20%
40%
60%
80%
100%
0-1 2-5 6-10 11-15 16-20 >20 Total
9%
11%
30%
4%
15%
31% 100%
Time spent (in years) exploring the property before the discovery was made
0%
20%
40%
60%
80%
100%
1 2 3 4 5 >5 Total
6%11%
28%
31%
11%
Number of Companies who explored the property before the discovery was made
13% 100%
Note: Analysis is based on 54 Major base- and precious-metal discoveries in the circum-Pacific region between 1958-1994. The analysis excludes any historical small-scale operations on the project lease.
Source: Minex Consulting © April 2019, based on discovery data from RH Sillitoe 1995
The average exploration time for a Major discovery was 19 years. One third were
found within 5 years
The average exploration time for a Major discovery was 19 years. One third were
found within 5 years
On average, 2.8 companies explored the property prior to discovery
On average, 2.8 companies explored the property prior to discovery
Note: 9 of these discoveries had a delay of >40 years.
Excluding these drops the average to 2.6 companies
and 12 years
Note: 9 of these discoveries had a delay of >40 years.
Excluding these drops the average to 2.6 companies
and 12 years
41
MinEx Consulting Strategic advice on mineral economics & exploration
MinEx carried out a similar analysis, based on the discovery histories for 100 copper and gold projects, as given in NR43-101 reports
42
MinEx Consulting Strategic advice on mineral economics & exploration
It takes persistence and patience to make a discoveryTime delay and number of companies involved prior to the actual discovery of a significant copper or gold deposit
0%
20%
40%
60%
80%
100%
0-1 2-5 6-10 11-15 16-20 >20 Total
14%
21%
21%
12%
12%
20% 100%
Time spent (in years) exploring the property before the discovery was made
0%
20%
40%
60%
80%
100%
1 2 3 4 5 >5 Total
Number of Companies who explored the property before the discovery was made
Note: Analysis is based on 100 significant (>100koz, >100 kt Cu) gold and copper discoveries in the Western Worldbetween 1960-2018. The analysis excludes any historical small-scale operations on the project lease.
Source: Minex Consulting © April 2019
The average exploration time for a significantdiscovery was 12 years. One third were
found within 5 years
The average exploration time for a significantdiscovery was 12 years. One third were
found within 5 years
On average, 2.5 companies explored the property prior to discovery
On average, 2.5 companies explored the property prior to discovery
14%
29%
20%
30%
5% 2% 100%
0%
20%
40%
60%
80%
100%
0-1 2-5 6-10 11-15 16-20 >20 Total
Time spent (in years) by the successful company exploring the property before the discovery was made
9%41%
47%
3% 100%
The successful company took on average 2.5 years to find the deposit
The successful company took on average 2.5 years to find the deposit
43
MinEx Consulting Strategic advice on mineral economics & exploration
The speed of discovery is slowing down
6.98.1 7.5
14.2 13.814.7
3.6 3.02.0 1.7
2.7 3.1
0
2
4
6
8
10
12
14
16
1960-69 1970-79 1980-89 1990-99 2000-09 2010-18
1.72.3
2.7 2.42.8
2.6
0
1
2
3
4
Discovery Year
Number of Companies to make the discovery
Years required to make the Discovery
All Companies
Successful Company
Avg = 2.5 Companies
Avg = 12 Years
Avg = 2.6 Years
Note: Analysis is based on 100 significant (>100koz, >100 kt Cu) gold and copper discoveries in the Western Worldbetween 1960-2018. The analysis excludes any historical small-scale operations on the project lease.
Source: Minex Consulting © April 2019
44
MinEx Consulting Strategic advice on mineral economics & exploration
Summary
1. The Circum-Pacific Region covers 41 jurisdictions over 16% of the Worlds’ surface area
2. Over the last decade the CPR accounted for 41% of the World’s exploration expenditures on gold For copper the figure was 49%
3. The CPR hosts 50% of the World’s historic mineral endowment for copper and 34% of the World’s gold endowment4. Since 1970:
a total of 302 copper deposits containing ~1300 Mt Cu have been found in the CPRa total of 658 gold deposits containing ~3000 Moz Au have been found in the CPR
While the number of discoveries and the amount of metal found appears to have fallen off in recent years, this may simply be due to theinherent delay in drilling out a discovery. Deposits found 25 years ago are now 2-3x larger in-size
5. Unit discovery costs have risen in the last decade in the CPR. It currently costs ~$280m to make a copper discovery (or 3.2 cents/lb Cu) and $380m ( or $186/oz) for a gold discovery. This is double the World average.
6. In 1995 Dick Sillitoe published a landmark study assessing the discovery history of 54 deposits in the CPR. He found that on average, it took 19 years and 2.8 companies to make a discovery.
7. MinEx carried out a study assessing 100 gold and copper discoveries (around the World) and found that, on average it took 12 years and 2.5 companies to make the discovery. The successful one (ie the last company in the chain) took 2.5 years to find the deposit. Over the last 40 years the rate of discovery appears to be slowing down.
45
MinEx Consulting Strategic advice on mineral economics & exploration
Conclusions
The Circum-Pacific Region is highly fertile for copper and gold, and it will continue to deliver giant discoveries in the future.
46
.. However, of concern is that unit discovery costs arenow higher than the World Average
MinEx Consulting Strategic advice on mineral economics & exploration
Contact details
Richard SchoddeManaging DirectorMinEx Consulting Melbourne, Australia
Email: [email protected]: MinExConsulting.com
Copies of this and other similar presentations can be downloaded
from my website
Copies of this and other similar presentations can be downloaded
from my website
47