Maiden resourcePlatform focus

Maiden resource

From → to: Maiden resource → PEA
Chance of a mine: 15% → 30%
Money spent so far: ~$10M → ~$20M
Typical duration: 1–2 years

Illustrative mid-range figures for a mid-size project. See the odds curve

What it is

A maiden resource puts a first number on tonnes and grade, and the odds rise to about 1 in 7. It is also where funding is hardest to find: the excitement of discovery has passed, and the economics are still unknown. The stage ends when a first economic study, a PEA, is published.

For investors. An investor is now buying a defined deposit with low confidence. Most of the estimate is usually Inferred, which cannot become reserves without more drilling. Check the reporting code, who signed it, the cut-off grade and price used, and how much of the resource is Inferred.

Work done in this stage

Drilling to grow the resource and test extensions
Early infill drilling in the best part of the deposit
First metallurgical tests on drill core
Updated resource estimates
Work towards a preliminary economic assessment (PEA)

Drilling

Metres: About 10,000–30,000 m more
Spacing: Tightening towards 50–100 m in the core of the deposit
Purpose: Growth (adding tonnes) and early infill (raising confidence)
Other holes: Metallurgical holes for testwork samples

Cost and where the money goes

About $10M in this stage

Drilling: about $8M
Metallurgical testwork: about $1M
PEA study: about $0.3–1.5M

What moves it to the next stage

A preliminary economic assessment (PEA) is published. The project moves to stage 4.

How the PEA, PFS and FS differ

What it takes:

A resource large and confident enough to plan a mine around
Early metallurgy showing the metal can be recovered
A mining and processing concept
Money for the study

Data you should expect to see

A resource report under a recognised code (JORC, NI 43-101, SAMREC or similar), or a clearly labelled historical estimate
Resource table by category: Measured, Indicated, Inferred
Cut-off grade and price assumptions
Early metallurgical test results

Key risks

Inferred resources are low confidence and cannot be converted directly into reserves
Historical estimates may not meet a modern code
Contained metal is not the same as value
Funding is scarce, so raising money often means heavy dilution

Typical financing

Who funds it: Few natural funders: this is the start of the funding gap.

The hardest stage to fund. Speculative investors have moved on to the next discovery, and development investors are not yet interested without a study. Companies piece funding together from several sources and accept more dilution or a partner.

Share placementsMain route
From: Resource funds, existing shareholders
Placements are often at a discount, and many companies trade below the cost of the work already done. Rights issues to existing shareholders are common.
Royalty saleMain route
From: Royalty companies
A sale of typically 1–2% NSR for a few million dollars funds drilling or the PEA without dilution. The buyer takes the risk that the mine is never built, so the price is low.
Strategic stake by a larger minerSometimes used
From: Mid-tier and major miners
Stakes of often 10–20%, with participation rights and sometimes a seat on a technical committee.
Joint venture with a larger partnerSometimes used
From: Mid-tier and major miners
A partner earns into the project by funding resource drilling and studies.
Merger with a peerSometimes used
From: Other juniors
Juniors combine to share overheads, pool projects and reach a size that larger investors will consider.

See the financing path across all six stages

Questions an investor should ask

Which code was used, and who signed off?
What share of the resource is Inferred?
What price and cut-off grade sit behind the estimate?
What do the first metallurgical tests show?

What a listing looks like at this stage

Usually filled

Screening
Location and access
Geology and drilling
Resource table (mostly Inferred, or historical)
Early metallurgy

Usually not yet

Studies (until the PEA)
Reserves

Current listings at this stage

Stage 3: Maiden resourceIllustrative example
Project Karoo-12
Northern Cape, South Africa · Sediment-hosted
- Zinc
- Lead
- Historical estimate of 14.2 Mt at 6.1% zinc and 1.9% lead (1978, not code-compliant)
- Eight 2024–25 twin holes broadly reproduce the historical grades
- About 60% of the historical core recovered; 1,150 m re-assayed
- Owner provided
- Verification pending
Stage 3: Maiden resourceIllustrative example
Project Boreal-03
Ontario, Canada · Orogenic gold
- Gold
- Maiden and updated resource under NI 43-101
- Indicated and Inferred categories
- Preliminary economic assessment in progress
- Owner provided
- Verification pending