Stage guide
Six stages classify every project the same way. Stages 2 to 4 are the platform's focus.
What it costs to raise the odds
Each step of drilling and study work raises a project's chance of becoming a mine, and each step costs more than the last. More explainers
Stage 3: Maiden resource
Maiden resource
First resource estimate signed by a qualified person. Mostly Inferred, sometimes with Indicated where drilling is denser.
- Chance of becoming a mine
- About 15% (1 in 7)
- Spent so far (cumulative)
- About $10M
- +$7M since discovery: drilling ~$6M, assays and estimate ~$1M
- Drilling
- 10,000–50,000 m at about 80–200 m spacing
- Typical funders
- Junior explorers: the start of the funding gap
Show as a table
| Milestone | Chance of a mine | Spent so far (cumulative) | Drilling |
|---|---|---|---|
| Grassroots exploration | About 0.1% (1 in 1,000) | About $0.3M Starting spend: mapping, sampling, geophysics | None yet |
| Discovery drilling | About 3% (1 in 30) | About $3M +$3M since grassroots: drilling ~$2M, surveys and access ~$1M | 2,000–5,000 m, scattered target holes |
| Maiden resource | About 15% (1 in 7) | About $10M +$7M since discovery: drilling ~$6M, assays and estimate ~$1M | 10,000–50,000 m at about 80–200 m spacing |
| Preliminary economic assessment (PEA) published | About 30% (1 in 3) | About $20M +$10M since the maiden resource: drilling ~$8M, metallurgy ~$1M, PEA study ~$1M | Infill toward about 40–100 m spacing, first metallurgy |
| Pre-feasibility study (PFS) published: Probable reserves | About 45% (about 1 in 2) | About $40M +$20M since the PEA: drilling ~$10M, testwork and environment ~$5M, PFS study ~$5M | Indicated spacing, plus geotechnical, hydrogeology and condemnation holes |
| Feasibility study (FS) published: Proven reserves | About 65% (2 in 3) | About $70M +$30M since the PFS: drilling ~$10M, testwork and permits ~$5M, FS study ~$15M | About 15–50 m spacing in the early mine plan |
| Construction decision | About 85% | About $120M +$50M since the FS: early engineering and orders ~$30M, permits and community ~$10M, financing ~$10M | Mostly complete; some grade-control and near-mine drilling |
| Construction | About 95% | About $500M +$380M since the build decision: plant ~$200M, mine and fleet ~$100M, power, water and tailings ~$80M | Grade control and near-mine exploration |
| Producing mine | It is a mine | About $1B +$500M during the build: rest of construction ~$400M, ramp-up and working capital ~$100M | Ongoing grade control and reserve replacement |
The six stages
- Stage 1: GrassrootsMapping and surface sampling, up to the first drill holes.Prospectors, junior explorers
- Stage 2: Discovery drillingDrilling has intersected mineralization; no resource estimate yet.Junior explorersPlatform focus
- Stage 3: Maiden resourceFrom the first resource estimate up to a published PEA.Few natural funders (the gap)Platform focus
- Stage 4: Resource upgradeFrom the PEA to the PFS: infill drilling upgrades Inferred to Indicated.Few natural funders (the gap)Platform focus
- Stage 5: Pre-developmentFrom the PFS to the build decision: Measured drilling, the feasibility study, permits and financing.Mid-tier miners, strategic partners
- Stage 6: Development and productionFrom the build decision through construction and ramp-up to an operating mine.Majors, banks, streaming and royalty companies
The typical financing path
Early stages run on equity and partners' money. Royalties and strategic stakes help bridge the funding gap in the middle. Near the build decision, mid-tier and major miners often buy the project outright, and construction is funded by a package of project debt, streams, offtake and equity. How the capital stack works
| Financing route | Grassroots | Discovery drilling | Maiden resource | Resource upgrade | Pre-development | Development and production |
|---|---|---|---|---|---|---|
| Share placements | Main route | Main route | Main route | Main route | Main route | Main route |
| Flow-through and tax-incentive shares | Sometimes used | Sometimes used | Not typical | Not typical | Not typical | Not typical |
| Government grants and incentives | Sometimes used | Not typical | Not typical | Not typical | Not typical | Not typical |
| Option or earn-in | Main route | Main route | Not typical | Not typical | Not typical | Not typical |
| Royalty sale | Sometimes used | Sometimes used | Main route | Main route | Main route | Sometimes used |
| Strategic stake by a larger miner | Not typical | Sometimes used | Sometimes used | Main route | Not typical | Not typical |
| Joint venture with a larger partner | Not typical | Not typical | Sometimes used | Sometimes used | Main route | Not typical |
| Merger with a peer | Not typical | Not typical | Sometimes used | Not typical | Not typical | Not typical |
| Stream | Not typical | Not typical | Not typical | Not typical | Sometimes used | Main route |
| Offtake and prepayment | Not typical | Not typical | Not typical | Not typical | Sometimes used | Sometimes used |
| Bridge loans and convertible notes | Not typical | Not typical | Not typical | Not typical | Sometimes used | Not typical |
| Project finance debt | Not typical | Not typical | Not typical | Not typical | Not typical | Main route |
| Export credit and development banks | Not typical | Not typical | Not typical | Not typical | Not typical | Sometimes used |
| Sale to a mid-tier or major miner | Not typical | Not typical | Not typical | Sometimes used | Main route | Sometimes used |
| Owner's own cash and corporate debt | Not typical | Not typical | Not typical | Not typical | Not typical | Sometimes used |