Since then, however, the share allocated to grassroots exploration has gradually diminished, as explorers shifted focus from generative, early-stage programs to late-stage and mine site exploration. Consequently, this trend has adversely affected the rate of new discoveries.
“Based on our discovery series, we have consistently observed a downward trend in both the number of discoveries and the amount of contained metal over the years for both copper and gold exploration,” says Cesar Pastrana, data analyst at S&P and author of the report.
Risk-adverse approach
While this transition is partly natural, as assets are expected to mature over time, the decline in the investment climate following the drop in metal prices after 2012 has “compelled explorers to adopt a more risk-averse stance” and re-prioritize their budget allocations, Pastrana adds.
“This shift has led to an increased emphasis on extending…
