Got a question? Ask! We are all about transparency.
Geologists never die, they slowly petrify. New rule, all questions must now be relevant - FARQs.
Got any jokes?
How is your project different to what is typically offered on a stock exchange?
We are aiming to open up an entirely new mineral province, rather than going to the same old destinations where it is getting harder and harder to find anything that ‘moves the needle’. The opportunity is to pick low hanging fruit from a tree in the back paddock, rather than rely on raiding the fruit tree in the middle of the school yard like all the other kids.
Wait, early-stage, that sounds risky. No?
Don’t be fooled by data availability. If there is data, that means someone has already looked … which decreases the risk of finding a big deposit. Little data is good! You don’t discover the Americas by sailing circles around the Mediterranean, again.
Who typically does the early-stage stuff?
Major multinationals, or private companies with deep pockets. Projects such as our CEG, whose scale and quality are typically not available to the public. We recognise an opportunity to give investors exposure to a style of investment that is typically reserved for the wealthy. Come to think of it, we can't identify any public exploration company in the world that is proposing to do what we are planning.
Excellent question! Numbers are hard to come by, but generally it seems to be about 1/60 projects result in a discovery. Understanding the odds is important not only to investors but to how we manage the risks. Value is created by quantifying, and managing the risks.
So what are the discovery risks?
Keeping all things equal, the project is twenty-fold larger than what was offered on the ASX last year. 20/60 = 1/3 is still risky, but way better. Add to that economies of scale and what is already known about the projects, in our opinion it is more not 'if, but what' may be discovered. The beauty of the CEG is that unlike many brownfields projects, it hasn't been studied to death by multiple generations of explorers, which we believe improves our probability of success. We have a lot of technical reasons to think this as well, but that is the subject for a full-blown technical report rather than a FAQ.
Yikes! the probabilities are horrible! What are you doing about it?
It is only expensive if it does not work. Sure, there are cheaper places in the world to hire a Landcruiser and look at rocks, but that does little good if there is no deposit. We are starting with the end in mind by placing an 'X ' on the globe where we believe the next 'big one' will be, and working back from there.
Going big brings economies of scale. We are going big in a genuine frontier terrain and think we can harness some serious first-mover advantage. So while the total figure might look big, it is actually efficient, effective and cheap.
Is it expensive work?
As a Project Generator, our business is to move in, do the base work and identify the easy targets. We then collaboratively work with other groups to take those targets to the next stage. This collaboration may include academia (PhD student sponsorship), government (institutional research). When a project starts getting close to 'drill-ready', then it is time for us to identify and partner with other companies, while retaining some of the upside. This means we don't have to be everything to everyone, and can stick to our knitting by being frontier explorers.
Okay but what next?
We aim to do one thing and do that well. That one thing is to be a frontier explorer. An explorer should be an adventurer that embraces uncertainty, as discoveries are not made in the 'known'. In contrast, once a discovery is made, it is the role of a driller is to reduce uncertainty.
Also, taking a project through all the phases of exploration through to mining means that the investor will be diluted multiple times. As a Project Generator, we aim to redirect proceeds from our transactions back into exploration, while retaining upside exposure. This way risks are diversified, and there is less chance of the investor being continually asked for more venture capital.
Why won’t you hold onto a project through the discovery, study and mining phases?
We aim to retain exposure through minority holdings or royalties in our projects, or shares in our partners. In this collaborative manner, the company maintains upside exposure, without bearing the full risk and cost of any single project. To misquote Charles Darwin: "In the long history of humankind (and animal kind, too) those who learned to collaborate and improvise most effectively have prevailed".
If you plan to do lots of deals, what is the upside?
There is so much to like about Greenland, that it in our view it is harder to find what not to like! Greenland has great rocks, which in our CEG project has so many endearing features, that it has no geological comparison. Add to that the squeaky clean (low corruption), Euro-like mindset, simple regulation written in English, low mineral taxation. With such qualities, we think it is amazing that Greenland isn't crawling with competitors - not that we are complaining!
What's so special about Greenland?
Lots of mines are in challenging geographies - Northern Canada for example is arguably more challenging and remote. The Australian, African and South American deserts aren't easy either. We think that when there's enough in the ground to justify the effort, miners will find a way to make it work.
Also, it's worth mentioning that there has already been a mine in our Greenland area in the 1950s - and it's a lot easier to stay warm these days!
Hang on, Isn't it too cold/icy to mine there?
It's common for exploration companies based in Perth to have projects all over the world. Western Australia is a good jurisdiction to have a mining company in, with useful laws and investors familiar with what a mine project looks like. Greenland has two billion dollar projects owned by companies domiciled in Perth, and Add to that, the Centre For Exploration Targeting has a long history of working in Greenland so there is a surprisingly good local knowledge base. Also, it's where we like to live and where our families and dogs are.
If the project is in Greenland, why are you in Perth?
Our Project Generator model means that we can be quite flexible in where we look, because we're not tied down to one particular mine site that makes up 99% of our assets. Down the line it's likely that we'll find other opportunities elsewhere in the world, and we'll be open to looking at those. For now, though, we have nearly 13,000 square kilometres to go through, and we can't wait to get started!
Greenfields, in Greenland, forever?
Oh where to start? A great place to start learning about what inspires us is to listen to the Exploration Radio podcast episode called 'The Rover Boys'. To us, it embodies the spirit of adventurism and exploration that we admire, and want to bring back to the industry.
Where do you draw inspiration from?
Cool, thanks for the vote of confidence. We are currently getting ready for a retail offering. Meanwhile, if you meet the criteria for a Sophisticated Investor, feel free to contact us and we can map a path forward.