Discovery Generator Business Model
Focused on the Discovery Phase of Exploration
Our primary focus is on the discovery phase of exploration, where the highest value increase occurs from initial drilling to the maiden resource declaration. Recognizing that the odds of achieving a Tier One discovery are low, we emphasize the necessity of having numerous opportunities within our portfolio to enhance our chances of success.
Hybrid Model: Prospect Generator and Junior Explorer
Our approach combines the strengths of both prospect generators and junior explorers. Unlike typical juniors, we maintain a larger portfolio, allowing us to advance projects further. Unlike prospect generators, we not only generate prospects but also engage in drilling and seek partnerships through joint ventures.
Develop projects from the initial concept stage through to drilling using in-house teams.
If drilling suggests a potential discovery, pursue partnerships with major companies.
If partnerships are unavailable, proceed to establish the maiden resource and spin off into a development-focused entity.
Vertical Integration
Efficient Exploration through Internal Capabilities
Exploration is capital-intensive and often depends on subcontractors. However, managing the entire process internally offers significant advantages. By maintaining full exploration capabilities, we gain flexibility in planning and can substantially reduce costs, allowing us to invest more directly into the ground.
Scout's Integrated Approach
Scout is structured to advance projects internally from target definition to drill testing and resource delineation. This comprehensive approach ensures a streamlined process and consistent quality control throughout the exploration stages.
Cost-Effective Drilling Operations
Drilling is the most expensive component of the exploration process. By utilizing internal core drilling, we can reduce costs by 50-75% compared to relying on external drill contractors. This cost efficiency allows us to allocate more resources towards thorough exploration activities.
Year-Round Drilling Operations
Our objective is to maintain continuous drilling operations throughout the year. As exploration results justify, we plan to scale up to multiple internally operated drills, ensuring sustained and efficient progress in our exploration endeavors.
Targeting
Identify drill targets by conducting systematic geological mapping, soil and rock sampling, and targeted geophysical surveys.
Drilling
Commence initial scout drilling internally to assess subsurface conditions, with subsequent resource delineation drilling in the event of a discovery.
Exploration Strategy
Idaho resembles Nevada 30 years ago: rich geological prospects and an underdeveloped exploration landscape.
Long-term focus by a team within a single jurisdiction cultivates a resilient and competitive edge.
Large, diversified portfolio (20,000 ha) mitigates individual project risk and enhances the potential for making a tier-one discovery.
Discovery hinges on the number of targets drilled; prioritize systematically testing large mineral systems.
Exploration Principles
Move Fast: projects must be evaluated swiftly to achieve discovery within a meaningful timeframe.
Lower Costs: in-house exploration is more cost-effective and essential for faster progress; prioritize maximizing dollars spent directly in the ground.
More Drilling: utilize internal drill rigs to drill more projects with greater meterage; "IQ gets you there, but HQ drilling finds it."
Forward Momentum: advance multiple projects at varying stages in the pipeline simultaneously to ensure a continuous stream of positive news.
Disciplined Model: rapidly advance projects and pivot if results do not bolster confidence in a discovery; consistently pursuing partnerships to mitigate risk.