As a first-mover, the company is able to deploy exploration methodologies that have advanced massively since the bulk of the historical work in the 1970s and early 1980s. For context, consider a smart-phone, then envisage how the world looked prior to that, or the internet, or brick-mobile phones, or even home PCs – and this gets you close to the time when the last regional scale exploration programs were performed. Analogously, Greenfields has the opportunity to access ‘Siri’ when AM-radio was cool. Today, with up to 50 years’ technological advancements under our belts, we can search further, faster, and more accurately. Furthermore, as there has been little prior exploration relative to countries like Australia the probability of discovering near-surface deposits is much higher.
EffectIve Economies of Scale
The size of the project area also provides substantial economies-of-scale. Greenfields estimates that on a $/km2 basis it may achieve an order of magnitude reduction in the first-year exploration costs. This means that Greenfields' proposed exploration programs have the potential to be far more efficient than most opportunities. The proposed program of airborne gravity-magnetic-radiometric surveys are not only high-quality, but is envisaged to be high-resolution due to a 100 m spacing between survey lines. Such highly dense, and diverse data acquisition may give the proposed program a degree of effectiveness that is rarely achieved by comparable companies. This approach of doing things right from the outset, helps to ensure that a deposit does not get missed – which is a huge opportunity cost that Greenfields aims to avoid.
Adressing the odds
With a land holding that is more than 20 times larger than the median of its peers, on a simple aerial basis has an order of magnitude better chance of hosting a deposit. While statistics on the matter are hard to come by, the generic probability of discovering a deposit within a project is in the order of 1/60 . By having an area more than 20 times larger than its peers, the simplistic probability becomes closer to ~1/3, and this is before the uniquely favourable geological setting of eastern Greenland is taken into account.