Deep Tech

Beyond Pickaxes & Drills: Transforming mining exploration

Deep Tech

Beyond Pickaxes & Drills: Transforming mining exploration

Words Jack Kennedy

November 21st 2024 / 8 min read


When it comes to optimising the mining value chain, this needs to start at the very beginning—the exploration process. 

But exploration currently stands at a critical crossroads. Traditional methods—largely unchanged since the 1990s—are proving increasingly ineffective. The statistics back this up: the average cost of discovering a new mineral deposit has tripled to $218 million, while success rates are just 0.5% (out of 15,000 projects, only 45 end up finding anything). In other words, it’s costing a lot more to find a lot less.

The environmental and safety risks associated with exploration are also becoming harder to ignore. Drilling, blasting, and preliminary surveying can disturb local ecosystems. While on the safety side, exploration teams often work in remote and hazardous locations, increasing the risks of accidents, injuries, and exposure to extreme conditions. 

There’s clearly a huge opportunity here for startups.  A wave of new technologies—from remote sensing to automated sampling—promises to transform how we find the next generation of mineral deposits. 

AI is making waves in the exploration field. KoBold recently stole headlines raising just shy of $500M from the likes of a16z and Breakthrough Energy Ventures: their AI platform radically improves accuracy of finding new material deposits, having earlier this year unearthed one of the largest copper deposits of all time. Earth AI is another trailblazing startup in this arena, proclaiming to move from detecting a prospect to drilling in just 3 to 6 months. 

Prospectral, one startup in our mining tech portfolio, have demonstrated a novel deployment of computer vision technology for exploration. Spun out of the University of Cambridge, they’re combining nanotechnology-based hardware and AI-driven software to aid real-time identification and analysis of materials.

Here’s where we see the key opportunities in mining exploration, and where founders may face challenges or pertinent considerations.

Interested in receiving more insights like this ? Subscribe to our newsletter and join 19,000+ founders, investors, and innovators

Subscribe here

Opportunities 

The accelerating pace of technology, especially AI, has created fascinating new possibilities when it comes to the discovery, analysis, and excavation of materials. These include:

Remote sensing

Mining exploration has long been a game of educated guesswork. Geologists sift through existing data to understand where potential deposits might be—reviewing geochemical data, geophysical indicators, and characteristics of existing deposits to guide where to look next. 

Remote sensing technologies—using satellite imagery and aerial surveys—are transforming this approach, adding layers of precision that were unimaginable just a decade ago.

Ideas we’re excited by: 

  • Enhanced mapping: Satellites and drones equipped with LiDAR or hyperspectral cameras can detect subtle mineral signatures, streamlining the search and reducing reliance on extensive manual surveys.

  • Quantum mapping: Using quantum sensing combined with AI to see through the Earth's crust, mapping deposits in real-time like an "MRI for the planet.”

Fieldwork analysis 

Once a promising site is identified, detailed on-the-ground work begins. 

Manual sampling in challenging terrains, weeks-long delays in laboratory analysis, and the inherent risks of on-site geological surveys have historically made this phase prospecting an expensive and uncertain endeavour.

Ideas we’re excited by: 

  • Instant analysis: Portable analysis tools could give near-instant chemical data out in the field, letting geologists make decisions on the spot.

  • Automated sample collection: Using autonomous vehicles to collect samples, combined with in-field analysis, could lower human risk and speed up timelines.

  • Data connectivity: In remote areas, better connectivity and edge computing can help process data in real time.

Drilling & subsurface data 

Drilling is the moment of truth in mineral exploration. Yet this phase has become increasingly complex and costly, with near-surface deposits growing scarcer and exploration demanding ever-deeper, more sophisticated approaches. All of which make this phase a major bottleneck in exploration.

Ideas we’re excited by: 

  • Advanced subsurface mapping: Non-invasive tech like AI can help locate deposits without needing to drill. 

  • Low-impact drilling: Technologies like smaller, automated drills promise to reduce both environmental and financial costs.

Challenges

While these opportunities are exciting, building a startup in mining exploration comes with its own unique set of obstacles. Here are some of the key barriers and challenges to be aware of:

Data management: Exploration generates mountains of data—terrabytes at a time. But much of it remains unstructured, siloed, or underutilised. Without clean, standardised datasets, even the smartest algorithms can deliver flawed results. Startups need the skills to clean up and standardise this data to make sure any analysis actually means something. 

Access to proprietary data: There’s a real hierarchy when it comes to valuable exploration data—from direct drilling samples to historical exploration records. While satellite data is easy to get hold of, the real competitive edge comes from accessing better proprietary data. 

Regulatory challenges: Mining exploration is a heavily regulated industry, and delays due to permitting are common, accounting for nearly 40% of project slowdowns. That said, geopolitical trends like the EU’s Critical Raw Materials Act signal growing support for domestic exploration initiatives.

Macro-economic challenges: One of the key risks is the commodity price cycle whereby if tech allows more discoveries to be made, then supply will rise and pricing will fall, which could ultimately put startups out of business. Startups will need to mitigate that risk by integrating horizontally (across the mining chain), or vertically (exploration to extraction).

Startups that can streamline data collection, integrate automation, and deliver real-time insights will not only lower costs but help make mining more sustainable—a crucial shift in the face of increasing global demand for critical minerals.

Reach out to Jack (jack.kennedy@foundersfactory.co) or apply directly here

Apply here

About Jack

Jack Kennedy is an Investor at Founders Factory, focused on climate and deep tech. He leads investments for our Mining Tech program with Rio Tinto. He brings prior experience both founding and investing in climate tech.

Words by
Share article

News from the Factory Floor

trends

Modern Day Alchemy: Decoupling the material supply chain

What if we could meet demand for rare materials without relying on physical mining?

founder stories

DRIFT Energy founder Ben Medland: On creating a new class of renewable energy

Ben Medland, founder & CEO of DRIFT, describes how their unique combination of hardware and software is creating a groundbreaking opportunity for the energy transition

trends

Beyond Pickaxes & Drills: Transforming mining exploration

Can emerging tools make mineral exploration smarter and more sustainable? We examine the opportunities and challenges in the sector