In 2007, driven by the sustained rise in base and ferrous metal prices as well as soaring precious metal prices, global mineral exploration activity remained generally robust. Increased attention to the long-term supply of energy resources led to a series of booms in uranium exploration.
　　According to estimates by the Metals Economics Group of 2007 mineral exploration expenditures, total spending on non-ferrous metal exploration—including uranium—amounted to US$11.4 billion. This new record has led to a shortage of drilling rigs, drilling personnel, geologists, and high-quality mining sites in many regions.
　　Despite record-high exploration costs, large companies don't seem particularly eager to capitalize on the valuable new discoveries made by smaller firms. The mining boom has also prompted many national governments to consider how they can benefit from the mining sector—either by renegotiating existing agreements or by terminating, modifying, or introducing new lease and tax arrangements.
　　As can be seen from most fundraising activities since 2007, small companies rarely rely on funding from large corporations. Sometimes, large corporations are reluctant to provide funds for new projects, even when doing so would enhance their internal efficiency. Another factor is the involvement of Chinese organizations, which have reached agreements with foreign governments—such as that of the Democratic Republic of the Congo—to secure future supplies of minerals and to acquire stakes in state-owned mining and exploration companies.
　　 I. North America
　　Canada is a country with a thriving and well-developed mineral exploration industry. According to estimates by Canada’s Department of Natural Resources, Canada’s expenditures on exploration and deposit evaluation totaled CAD 2.547 billion, with small companies accounting for 61% and large companies for 39%. Ontario maintains the strongest exploration momentum, accounting for 20% of total expenditures, followed by British Columbia at 17%, Quebec at 15%, Saskatchewan at 10%, and Nunavut at 10%. With the exception of Ontario and Manitoba, exploration activities by small companies are primarily concentrated within provincial boundaries.
　　Copper and gold are the primary exploration targets in British Columbia, where over 1,200 kilometers have already been drilled. Significant investment has also been made in molybdenum deposits. One of the key discoveries is the finding by Seabridge Gold Inc. in the Mitchell Trend within its Kerr-Sulphurets gold project area. The initial estimated gold resource at this site amounts to 563 million tons, with an average grade of 0.72 grams per ton of gold and 0.18% copper.
　　In the Quesnel Trollgh area, Serengeti Resources announced that drilling has been conducted at the Kwanika copper-gold project site. The drill hole encountered a mineralized zone containing 0.69% copper at 111 meters, and a mineralized zone containing 0.54 grams per ton of gold below 112 meters.
　　The major development of the Galore Creek mine in northwestern British Columbia faced significant obstacles by year-end, as explorers were affected by project risks. Construction of the mine has been put on hold after costs surged to CAD 5 billion. Part of the delay was due to major changes in the sequence of construction for the tailings dam and water management systems, as well as delays in power supply. The project is a joint venture between NovaGold Resources and Teck Resources Limited, with proven and probable reserves totaling 785 million tons, containing 0.35% copper, 0.29 grams per ton of gold, and 4.8 grams per ton of silver. Teck Resources Limited has committed an additional CAD 75 million to the project to evaluate and select future mining areas.
　　In Nunavut, according to a joint venture between Shear Minerals Ltd. and Stornoway Diamond Corporation, 337 carats of diamonds were recovered from a 356-ton sample taken from the Churchill project at the Kahuna Dam. Also in Nunavut, after Newmont Mining Corporation announced its plan to acquire the Miramar mining rights for US$1.52 billion, it has allocated US$29 million for exploration activities in the Hope Bay area.
　　Nickel exploration is thriving in North America. In the James Bay region of northern Ontario, Noront Resources has discovered high-grade sulfide deposits containing 4.1% nickel, 2.2% copper, 2.1 grams per tonne of platinum, and 7.1 grams per tonne of palladium. On the border with Minnesota in the United States, Rio Tinto continues to evaluate the mineable massive mineralization at the Lakeview deposit.
　　Mining exploration in Alaska continues to set record levels, largely driven by Canadian funding. Estimated expenditures total at least 250 million U.S. dollars, with more than 27 projects each requiring investments exceeding one million U.S. dollars. The largest project is the Pebble copper-gold-molybdenum porphyry deposit, which is estimated to hold reserves of 337.9 million tons, containing 0.57% copper, 0.36 grams per ton of gold, and 0.036% molybdenum.
　　In 2007, the British and American companies agreed to hold a 50% stake and invest 1.4 billion U.S. dollars in the project. Initially, 125 million U.S. dollars will be used to conduct a feasibility study, which is expected to be completed by the end of 2008.
　　 II. Latin America
　　Mineral exploration spending in Latin America remains concentrated in Mexico, Peru, Chile, Argentina, and Brazil.
　　In Mexico, mineral exploration activities are on the rise, and the Mulatos mine operated by Alamos Gold is a prime example. The company has delineated several ore deposits around its operating mine site, with total resources amounting to approximately 3 million ounces of gold at a grade of 0.5 grams per tonne. Notably, the El Yaqui mine has yielded oxide ore with a grade of 2.7 grams per tonne over a 44-meter interval.
　　Although Chile’s copper production is thriving, exploration activities by small companies are relatively limited; many of the land parcels currently under exploration are held by Codelco. To encourage exploration, the Chilean government has encouraged Codelco to make some exploration land available through bidding organized by the state-owned mining company Enami.
　　The development of the Esperanza copper-gold mine by the Chilean mining company Antofagasta was approved in 2007, at which time its reserves stood at 535 million tons with a copper grade of 0.56%. Subsequently, additional resources were discovered, bringing the total resource base to 1.13 billion tons of copper at a grade of 0.45%. In the Maricunga gold belt, Andina Minerals has increased its resource estimates at the Volcán mine site, with proven and probable reserves now totaling: 115 million tons at a grade of 0.79 grams per ton of gold, and 170.3 million tons at a grade of 0.77 grams per ton of gold.
　　In Argentina, Aquiline Resources announced that the estimated resource volume for its Navidad project has been increased. Proven reserves stand at 127.7 million tons, with a grade of 110 grams per ton of silver and 1.1% lead; inferred reserves amount to 49 million tons, with a grade of 97 grams per ton of silver and 0.5% lead. The total resource volume is equivalent to 606 million ounces of silver.
　　Peru has numerous major development projects, including the Michiquillay copper mine project, which was acquired from the government by a British-American company for US$403 million.
　　In Brazil, there have been continuous reports of successful exploration for nickel laterites. Anglo-American Company has discovered the Jacare large deposit in the state of Pará, with reserves totaling 400 million tons and an estimated nickel content of about 1.3%. However, the results of the preliminary assessment have not yet been released.
　　The joint venture between Newmont’s Surgold JY and Alcoa has achieved great success in its exploration activities at the Nassau Hill in Suriname. Reports indicate that gold resources exceeding 2 million ounces have been identified, and Newmont plans to spend $17 million on exploration in 2008.
　　 III. Australia
　　According to statistics from the Australian Bureau of Statistics, the country’s mineral exploration expenditure for the 2006–2007 period totaled A$1.71 billion (including coal), of which 64% was allocated to exploration of existing mineral deposits. Gold remained a particularly high-priority target, with exploration spending reaching A$555 million. Iron ore exploration spending surpassed that for nickel, and from 2006 to 2007, exploration expenditures for copper and lead-zinc nearly doubled.
　　The trend in uranium exploration is similar: in 2007, uranium exploration expenditures exceeded 100 million Australian dollars. Nearly half of these exploration expenditures were concentrated in Western Australia, but expenditures in Queensland, South Australia, and the Northern Territory also increased significantly. In recent years, exploration spending on iron ore in Western Australia has nearly surpassed spending on gold.
　　In Western Australia, a joint venture between Anglo-Gold Ashanti and Independence Group NL (which holds a 30% stake) has spent A$39 million on exploration and feasibility studies for the Tropicana project, located approximately 300 kilometers east of Kalgoorlie. The project is situated along the eastern margin of the Yilgarn Craton, and the gold resources initially discovered in the Tropicana and Havana zones are estimated to exceed 3 million ounces. The mineralization occurs as flat, lens-shaped bodies within quartz-feldspathic gneiss, and it is expected that open-pit mining could commence within the coming year, with a gold grade of 4.6 grams per tonne. The joint venture owns the majority of assets across the entire mine area, which spans over 350 kilometers. Additionally, it has been reported that a mineralized zone measuring 3 meters thick, with a gold grade of 66 grams per tonne, has been identified in the Beachcomber prospect, located 220 kilometers southwest of the initial discovery.
　　Olympic Dam-style prospective areas have been identified at Carapateena and Punt Hill, west of Lake Torrens. These exploration results are advancing mineral exploration efforts in South Australia. At Carapateena, drilling has been conducted to depths ranging from 500 meters to 905 meters, and mineralization has been encountered, with grades of 2.1% copper and 1.0 gram per tonne of gold. Teck Cominco is acquiring the project from Resolute Mining and has already completed a 75-kilometer drilling program, investing A$32 million. The company can pay up to 66% of the market price to fully acquire the project and is also exploring other geophysical targets. At Punt Hill, along the mineralized fault zone, Monax Mining has encountered a mineralized body at a depth of 126 meters, with grades of 0.4% copper, 0.24% zinc, 4.9 grams per tonne of silver, and 0.1 gram per tonne of gold.
　　In the Northern Territory, Australian Energy Resources announced a significant discovery in its Range 3 deep pit. Drill hole No. 24 encountered a 20-meter uranium mineralized zone at a depth of 530 meters, with a grade of 0.61% U3O8.
　　 IV. Africa
　　The primary target countries for mineral exploration in Africa are: Angola, the Democratic Republic of the Congo, Ghana, South Africa, and Tanzania.
　　In the Democratic Republic of the Congo, exploration activities for copper, diamonds, and gold—the country’s most prominent mineral resources—have slowed down as the government reviews exploration leases. At the end of the year, the country’s Ministry of Mines announced that most of the existing contracts would be re-examined. Given the significant presence of Chinese investors in the country, the government has also borrowed at least 5 billion U.S. dollars—beyond the scope of formal agreements—to finance infrastructure projects such as road construction. Gecamines has signed concession agreements with three Chinese companies to develop the Mashamba and Dikiluwe copper-cobalt mining complexes.
　　An example of base-metal development is the Kinsvere copper-silver mine operated by Anvil Mining Corporation, which has proven and probable reserves totaling 33.7 million tons, with a copper grade of 3.7%. Extensive drilling work was carried out in 2007.
In 2007, major exploration efforts continued in the Kasai Craton, located in southern Congo and northeastern Angola, with a focus on finding kimberlite pipes and other significant diamond-bearing formations. The leading companies involved are De Beers Group and BHP Billiton. Reports indicate that both companies have allocated substantial funds to their diamond exploration budgets in these countries. Many companies are collaborating with various state-owned diamond corporations—such as Congo’s MIBA and Angola’s Enidama. Additionally, some companies are partnering with private license holders, including Mwana Africa, Belgium’s Bugeco SA, and Petra Diamonds. In the Alto Cuiloa region of Angola, a joint venture between Petra Diamonds and BHP Billiton has already extracted small samples from the area.
　　In South Africa, although year-end attention to record-high platinum prices has spurred exploration activities, the long-term viability of newly developed projects and further changes in mining rights usage remain key concerns. In the southwestern part of the Bushveld region, Australian Platinum Company has acquired a 49% stake in ARM Platinum’s Kalplats project through a feasibility study. This deposit is shallow and relatively thick, with an estimated ore reserve of 75 million tons and a grade ranging from 1.4 to 3.6 grams per ton. To the east of Gansberg, Anglo American has identified an ore reserve of 40 million tons, with grades of 7.7% zinc and 10 grams per ton of silver; reserves in adjacent areas remain to be developed.
　　Uranium exploration remains active in Namibia. Xemplar Energy has launched an extensive program to identify white gneiss intrusions and has discovered 14 intrusions across a total area of 30 square kilometers in southern Namibia. In these intrusions, the first two drill holes encountered relatively low-grade, deep and wide mineralized zones. Near existing infrastructure in central Namibia, Teal Exploration & Mining has identified the Otjikoto project with resources totaling 1.8 million ounces, averaging 1.3 grams per ton of gold.
　　In addition, in northern Senegal, South Africa’s Randgold Resources has delineated a new gold-bearing structure in the Massawa area. RAB Company encountered gold mineralization at a depth of 24 meters, with a grade of 8.6 grams of gold per ton.
　　 V. Europe
　　In Europe, despite strong local opposition to exploration activities—particularly uranium mining—mineral exploration is thriving, especially in Eastern Europe and the Scandinavian Peninsula.
　　Ireland has seen a resurgence in mining activities focused on zinc exploration, particularly in the Limerick region. The joint venture between Connemara Mining and Teck Cominco (holding a 75% stake) has discovered a 4-meter-thick zone containing 11.6% zinc within thick metamorphic limestone at a depth of 376 meters near the Pallas Green mine, owned by Minko and Xstrata. At the Galmoy mine, Lundin Mining reported the discovery of a new mineralized zone typical of the M orebody, located below 100 meters within the mine. Additionally, 16 new discoveries with grades of 18.7% zinc have been made in the surrounding areas.
　　According to the Raw Materials Group, Sweden may be Europe’s primary target, accounting for the lion’s share of exploration expenditures in Scandinavia—approximately €135 million ($200 million). Although exploration activities are vigorous in Sweden and other smaller companies, Boliden Mining & Metals Group of Sweden has doubled its exploration spending, dominating the local exploration landscape. For instance, Northern Resources is once again exploring a series of magnetite deposits in northern Sweden and Finland, aiming to produce pelletized ore as well as copper-gold by-products. The Stora Sahavaara deposit holds reserves of 140 million tons, with grades of 43% iron and 0.07% copper.
　　In Finland, high prices for base metals have prompted the resumption of production at two small nickel mines, sparking a surge in mineral exploration activities. Near Tampere, Dragon Mining NL has re-evaluated a nickel deposit near the Vammala plant, which processes gold ore. The company has also discovered a new mine field at Jokisivu, containing 322,700 ounces of gold with a grade of approximately 6 grams per ton. However, mining development there has encountered local opposition. Despite Finland’s ongoing construction of a new nuclear power facility, a significant number of people continue to oppose uranium exploration, leading to disruptions in exploration activities in the country’s eastern regions.
　　Although production at the Kisladag mine of Eldorado Gold Corporation in western Turkey has been forced to halt, Turkey continues to encourage certain exploration and development activities—including those across Europe. The closure of the mine was triggered by concerns raised by local environmental groups regarding the legitimacy of the mine’s environmental impact assessment.
　　In northwestern Turkey, the joint venture between Tekkominco and Fronteer Development Company reported the discovery of a copper-gold porphyry deposit in the Halilaga area near Canakkale. Initial drilling encountered mineralization at a depth of 298 meters, with grades of 0.5% copper and 0.53 grams per ton of gold. Tekkominco has also acquired a 60% stake in the Kirazali and Agi Dag deposits. The Agi Dagi deposit holds resources totaling 1.7 million ounces of gold; measured, indicated, and inferred reserves amount to 18.3 million tons (1.2 grams per ton of gold and 10.2 grams per ton of silver) and 10.2 million tons (1.3 grams per ton of silver and 15.5 grams per ton of silver), respectively.
　　 Six, Asia
　　The increasing demand for metals continues to boost Asia's appeal for mineral exploration.
　　Exploration in Mongolia remains uncertain, as the joint venture between Rio Tinto and Ivanhoe Mines to develop the Oy Tolgoi copper-gold mine has yet to receive approval from the country’s parliament. South of this mine, Entrée Gold has discovered mineralized zones in the Heruga mining area. The typical depths of mineralization are 430 meters (0.42% copper) and 1,740 meters (0.75 grams per tonne of gold).
　　Exploration in India still faces challenges, and some diamond explorers have reduced their exploration activities. However, Rio Tinto has collected numerous large samples.
　　In Southeast Asia, Rox Resources reported that the lead-zinc project in northeastern Laos has yielded promising discoveries, including lead-zinc mineralization encountered at a depth of 19 meters. This appears to be a rare MVT mineralization occurrence in tropical regions.
Dew.
　　In Pakistan, the Reko Diq exploration project is still ongoing. Barrick Gold Corporation and the Balochistan government (which holds a 25% stake) are currently delineating the main copper-gold deposit in the remote western part of the province. By the end of 2007, the joint venture had spent US$46 million on exploration, with initial resource estimates totaling 2.4 billion tons, featuring an average grade of 0.51% copper and 0.27 grams per ton of gold.
　　seven Russia and the CIS
　　The Russian government’s stance toward foreign companies remains unclear, placing Highland Gold Mining Company in a difficult situation as it seeks to develop the Mayskoye deposit in the Chukotka region. The company could lose its mining license, but it has managed to stay afloat—for now—after Millhouse LLC, owned by Russian billionaire Roman Abramovich, spent $400 million to acquire a 40% stake in Highland Gold Mining. The Mayskoye deposit is reported to hold proven reserves of 2.6 million ounces of gold at 11.5 grams per ton, with controlled reserves totaling 4.6 million ounces (9.8 grams per ton).
　　According to estimates by Russia’s Polar Gold JSC, the Natalka gold deposit in the Russian Far East holds reserves of 40.8 million ounces of gold with a grade of 0.13 grams per ton. Currently, $31 million has been invested in feasibility studies and pilot testing. By 2012, the Natalka mine is expected to achieve a production rate of 1.3 million ounces per year, making it Russia’s largest gold mine. In the Yakutia region, Alrosa announced a new discovery in the Verkhne-Munskoy kimberlite, planning annual mining output of 1.2 million tons.
　　According to reports from platinum explorers, new progress has been made in exploration activities on the Kola Peninsula in northwestern Russia. As disclosed by Puma Minerals, the Vostochnyi Churavi prospective area—discovered east of the Fedorova Tundra gold deposit (in which Barrick Gold holds a 50% stake)—contains resources totaling 1.1 million tons, with grades of 2.4 grams per ton of platinum, 5.2 grams per ton of palladium, and 0.3 grams per ton of gold. In 2007, approximately 55 kilometers of drilling were carried out at this site, and it is reported that reserves of 13 million ounces of palladium have now been confirmed. A feasibility study for open-pit mining is currently underway.
(Compiled by Liu Wei from MJ, FEB., 2005)