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The Future of Gold Exploration is Under Cover

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The Future of Gold Exploration is Under Cover

The Future of Gold Exploration is Under Cover

Over billions of years, extraordinary amounts of gold and other metals were deposited and spread throughout the Earth’s crust. Humans have been searching for these rich deposits for centuries, and advances in geoscience and technology have helped us become more adept at finding them over time.

However, even with today’s advancements – almost all early-stage prospecting methods are still based on the same key principle: trying to find areas of exposed bedrock, called outcrops, that indicate an orebody is near.

But such outcrops only form in certain circumstances – and what happens when a geological system doesn’t come in contact directly with the surface?

The Problem of Cover

Today’s infographic comes to us from Nevada Exploration, and it identifies the problem behind finding these “hidden” deposits that do not leave a helpful trail of clues on the surface.

Instead of having outcrops where rocks can be readily sampled, these deposits are trapped underneath large amounts of soil and gravel. Geologists call this a covered setting, where they must first find a way to “see through” the cover in order to identify what geological systems really exist below.

Seeing through cover can be expensive and difficult to do, but it also has big potential upside.

There is no reason not to assume as much gold still exists as has been mined in the past, but prospectors, explorationists, and geologists have found the easy gold.

– Dr. Richard Goldfarb, Ph.D., United States Geologic Survey

In fact, many geologists think that the next game-changing gold deposit could be found under cover.

Exploration 2.0

For explorers, it is no secret that the cost per discovery is going up dramatically over time. The reality is that traditional exploration methods are achieving diminishing returns, and as a result companies are settling for lower grade deposits, more complex geological settings, and politically questionable jurisdictions.

Minex Consulting says that between 2007-2016, there has been $65 billion spent globally on gold exploration with only $30 billion worth of discoveries to show for it. Those aren’t exactly inspiring economics for future gold explorers.

But for every industry problem, there is often a precedent to be found elsewhere – and an interesting situation that is analogous was faced by the oil exploration industry years ago. They had reached diminishing returns with shallow water deposits, and developed technology to go deeper. Suddenly, monster deposits were being found again.

Experts involved in mineral exploration see the same thing happening with cover.

With the transition to under cover exploration, the minerals industry is undergoing a transformation much like the petroleum industry transformed to deep sea exploration some decades ago.

– Cam McCuaig, Principal Geoscientist, BHP Billiton

In other words: whoever can figure out how to explore under cover could be reaping big benefits.

The Prize

In the world’s most prolific gold jurisdictions, there are massive amounts of land that have not yet been explored because of cover. In Canada and in Australia, over 70% of land is covered. In Nevada, which produces the most gold ounces per square kilometer, about 55% of land is covered.

Interestingly, Nevada has produced 225 million oz of gold to date, but the majority of these discoveries have come from outcrop clues on the surface. Imagine what gold could be hidden under soil and gravel within the valleys of the state.

Global data so far suggests that deposits discovered under cover tend to be 2-4x bigger.

Exploring Under Cover

While the idea of unlocking this potential is extremely exciting, it also poses a significant technical challenge.

Conventional tools are poorly suited to covered settings, and existing techniques for systematic exploration don’t work. The end result is high-risk, high-cost exploration.

To successfully explore through cover, companies need:

  • New technology to see through cover
  • A way to lower the costs of testing targets
  • A way to directly test covered bedrock

So far, a few ideas have been pioneered for seeing through cover – and it will be interesting to see what results they bring in.

Biogeochemistry: In Australia, explorers are using biogeochemistry as a hint to see what lays beneath the soil. Plants accumulate pathfinder elements in them, or even tiny amounts of gold, which allows explorers to get a hint at what lies deep below.

Hydrogeochemistry: In a place like Nevada, there are massive valleys in the middle of prolific gold districts that have remained unexplored because they are covered with hundreds of meters of gravel. Testing groundwater might be the key, because groundwater flows by gravity from mountains to deep in the valley centers. On the way, this water interacts with bedrock – and any gold deposits that are hidden beneath the surface.

Explorers are looking at other ideas as well, ranging from regional-scale mapping to adapting other oil and gas industry techniques. If any of them are able to unlock the secret of exploring through cover, it could be the catalyst for industrywide change, as well as the discovery of the monster deposits that will meet our mineral needs of the future.

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Mining

More Than Precious: Silver’s Role in the New Energy Era (Part 3 of 3)

Long known as a precious metal, silver in solar and EV technologies will redefine its role and importance to a greener economy.

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Silver More Than Precious

Silver’s Role in the New Energy Era (Part 3 of 3)

Silver is one of the first metals that humans discovered and used. Its extensive use throughout history has linked its name to its monetary value. However, as we have advanced technologically, so have our uses for silver. In the future, silver will see a surge in demand from solar and electric vehicle (EV) technologies.

Part 1 and Part 2 of the Silver Series showcased its monetary legacy as a safe haven asset as a precious metal and why now is its time to shine.

Part 3 of the Silver Series comes to us from Endeavour Silver, and it outlines silver’s role in the new energy era and how it is more than just a precious metal.

A Sterling Reputation: Silver’s History in Technologies

Silver along with gold, copper, lead and iron, was one of the first metals known to humankind. Archaeologists have uncovered silver coins and objects dating from before 4,000 BC in Greece and Turkey. Since then, governments and jewelers embraced its properties to mint currency and craft jewelry.

This historical association between silver and money is recorded across multiple languages. The word silver itself comes from the Anglo-Saxon language, seolfor, which itself comes from ancient Germanic silabar.

Silver’s chemical symbol, “Ag”, is an abbreviation of the Latin word for silver, argentum. The Latin word originates from argunas, a Sanskrit word which means shining. The French use argent as the word for money and silver. Romans bankers and silver traders carried the name argentarius.

While silver’s monetary meanings still stand today, there have been hints of its use beyond money throughout history. For centuries, many cultures used silver containers and wares to store wine, water, and food to prevent spoilage.

During bouts of bubonic plague in Europe, children of wealthy families sucked on silver spoons to preserve their health, which gave birth to the phrase “born with a silver spoon in your mouth.”

Medieval doctors invented silver nitrate used to treat ulcers and burns, a practice that continues to this day. In the 1900s, silver found further application in healthcare. Doctors used to administer eye drops containing silver to newborns in the United States. During World War I, combat medics, doctors, and nurses would apply silver sutures to cover deep wounds.

Silver’s shimmer also made an important material in photography up until the 1970s. Silver’s reflectivity of light made it popular in mirror and building windows.

Now, a new era is rediscovering silver’s properties for the next generation of technology, making the metal more than precious.

Silver in the New Energy Era: Solar and EVs

Silver’s shimmering qualities foreshadowed its use in renewable technologies. Among all metals, silver has the highest electrical conductivity, making it an ideal metal for use in solar cells and the electronic components of electric vehicles.

Silver in Solar Photovoltaics

Conductive layers of silver paste within the cells of a solar photovoltaic (PV) cell help to conduct the electricity within the cell. When light strikes a PV, the conductors absorb the energy and electrons are set free.

Silver’s conductivity carries and stores the free electrons efficiently, maximizing the energy output of a solar cell. According to one study from the University of Kent, a typical solar panel can contain as much as 20 grams of silver.

As the world adopts solar photovoltaics, silver could see dramatic demand coming from this form of renewable energy.

Silver in Electric Vehicles

Silver’s conductivity and corrosion resistance makes its use in electronics critical, and electric vehicles are no exception. Virtually every electrical connection in a vehicle uses silver.

Silver is a critical material in the automotive sector, which uses over 55 million ounces of the metal annually. Auto manufacturers apply silver to the electrical contacts in powered seats and windows and other automotive electronics to improve conductivity.

A Silver Intensive Future

A green future will require metals and will redefine the role for many of them. Silver is no exception. Long known as a precious metal, silver also has industrial applications metal for an eco-friendly future.

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Visualizing China’s Dominance in Rare Earth Metals

Rare earth deposits exist all over the planet, but the majority of the world’s rare earth metals are produced and refined in China.

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China's rare earth exports

China’s Dominance in Rare Earth Metals

Did you know that a single iPhone contains eight different rare earth metals?

From smartphones and electric vehicles to x-rays and guided-missiles, several modern technologies wouldn’t be what they are without rare earth metals. Also known as rare earth elements or simply “rare earths”, this group of 17 elements is critical to a number of wide-ranging industries.

Although deposits of rare earth metals exist all over the world, the majority of both mining and refining occurs in China. The above graphic from CSIS China Power Project tracks China’s exports of rare earth metals in 2019, providing a glimpse of the country’s dominating presence in the global supply chain.

China’s Top Rare Earth Export Destinations

Around 88% of China’s 2019 rare earth exports went to just five countries, which are among the world’s technological and economic powerhouses.

Export DestinationShare of China's Rare Earth ExportsTop Rare Earth Import (tons)
Japan36.0%Cerium
United States33.4%Lanthanum
Netherlands9.6%Lanthanum
South Korea5.4%Lanthanum
Italy3.5%Cerium
Rest of the World12.1%Cerium

Japan and the U.S. are by far the largest importers, collectively accounting for more than two-thirds of China’s rare earth metals exports.

Lanthanum, found in hybrid vehicles and smartphones, was China’s largest rare earth export by volume, followed by cerium. In dollar terms, terbium was the most expensive—generating $57.9 million from just 115 metric tons of exports.

Why China’s Dominance Matters

As the world transitions to a cleaner future, the demand for rare earth metals is expected to nearly double by 2030, and countries are in need of a reliable supply chain.

China’s virtual monopoly in rare earth metals not only gives it a strategic upper hand over heavily dependent countries like the U.S.—which imports 80% of its rare earths from China—but also makes the supply chain anything but reliable.

“China will not rule out using rare earth exports as leverage to deal with the [Trade War] situation.”

—Gao Fengping et al., 2019, in a report funded by the Chinese government via Horizon Advisory.

A case in point comes from 2010 when China reduced its rare earth export quotas by 37%, which in part resulted in skyrocketing rare earth prices worldwide.

average prices of rare earth imports

The resulting supply chain disruption was significant enough to push the EU, the U.S., and Japan to jointly launch a dispute settlement case through the World Trade Organization, which was ruled against China in 2014.

On the brighter side, the increase in prices led to an influx of capital in the rare earth mining industry, financing more than 200 projects outside China. While this exploration boom was short-lived, it was successful in kick-starting production in other parts of the world.

Breaking China’s Rare Earth Monopoly

China’s dominance in rare earths is the result of years of evolving industrial policies since the 1980s, ranging from tax rebates to export restrictions. In order to reduce dependence on China, the U.S. and Japan have made it a priority to diversify their sources of rare earth metals.

For starters, the U.S. has added rare earth metals to its list of critical minerals, and President Donald Trump recently issued an executive order to encourage local production. On the other side of the world, Japan is making efforts to reduce China’s share of its total rare earth imports to less than 50% by 2025.

Increasing rare earth mining outside of China has reduced China’s global share of mining, down from 97.7% in 2010 to 62.9% in 2019. But mining is merely one piece of the puzzle.

Ultimately, the large majority of rare earth refining, 80%, resides in China. Therefore, even rare earths mined overseas are sent to China for final processing. New North American refining facilities are being set up to tackle this, but the challenge lies in managing the environmental impacts of processing rare earths.

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