Exploration Stages in Mining: Understanding Risk and Value Creation
Primary Keywords:
exploration stages in mining, prospecting and exploration
Introduction
Mining exploration follows a series of stages, each with different risk levels and investment implications.
Stage 1: Concept & Prospecting
Highest risk
Lowest cost
High upside
This is where startups typically begin.
Stage 2: Early Exploration
Sampling and geophysics
Target refinement
Initial drilling
Risk decreases as data improves.
Stage 3: Advanced Exploration
Infill drilling
Resource estimation
Technical studies
This stage attracts institutional investors and partners.
What This Means for Early Investors
Early investors accept higher geological risk in exchange for maximum upside exposure.
Conclusion
Understanding exploration stages allows investors to align expectations with realistic timelines and outcomes.
