January 2015

Strategy of a Junior Company on exploration and extraction

CREATION OF THE COMPANY

Convince the shareholders• Favourable geology• Competent management team • Favourable socio-economic context

Convince the public authorities• Technical abilities• Financial abilities

Convince the general public• Transparency• Sustainable development, responsible mining

CONCEPTS

Prospected commodities • W, Sn, … Nb, Ta, Li• Cu, Pb, Zn, … Au, Ag, In, Ge … • Au, Sb

Mining model (responsible mining)• Focus on potential future underground mines• Back filling

MINING MODEL

Economy• “High grade” deposits => good command of the metallogenic models• Medium to large tonnage deposits => assess the whole potential• Adequate capitalisation => appropriate sizing of the infrastructures

Environment• Minimised impact on ground => deep underground mining• Back-filling method• Water and energy-efficient method

Social• Expected lifetime of more than 20 years• Fostering local employment• Post-mining activity: geothermal power plant?

CHOICE OF LICENSES

Large area, >100 km²• Extensive preliminary metallogenic surveys• High success rate (>10%)• Acceptable environmental requirements• A priori favourable social context (2 neighbouring departments can present opposite

reactions)

Diversification• Be less sensitive to metal price volatility• Focus on critical commodities• Enhance valorisation of all potential co-products

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APPLIED LICENSES LOCATION

Source: Carte Minière de la France, BRGM, 1995

RESPONSIBLE EXPLORATION

Systematic exploration of the license• Geochemistry: initial environmental

statement (XRF)• Geophysics (VTEM, …)• Exploration drillholes• Objectives : - 500 m, medium to large

size deposits, 20 years of production Appropriate budget : 8 to 12 M€

on 5 yrs on each licence

Technical communication• Keeping continuously informed the

general public, avoiding polemics• Archiving data and results in a

standardised format• Cores storage and preservation

© Fugro

COMMUNICATION

With the Administration • Respect of the laws• Take an active part in administrative simplification process (Mining

Code reform, …)

With the public• Major challenge: Change the image• Communication in response to media inquiries• Regular meetings with representatives and stakeholders (Chamber

of Agriculture, Mayors, archaeologists, …)• Meetings with “responsible” associations

A new component: “serial opponents” (zadiste in French) or how to communicate with outlaws