Quinton Hennigh, an internationally acclaimed economic geologist, joins the conversation to share vital insights into the mineral exploration landscape. He reveals a worrying drop in metal discovery rates due to major companies shifting focus away from internal exploration. Hennigh discusses his strategic emphasis on underexplored regions like Bolivia and Japan, targeting large-scale deposits that attract major interest. He critiques the abundance of poorly-managed junior companies and advocates for better technical education and streamlined permitting to revitalize the sector.
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insights INSIGHT
Discovery Rates Have Fallen Sharply
Discovery rates for most metals have dropped sharply over the past decade or two.
Major miners stopped self-funding exploration and shifted responsibility to juniors, reducing discovery success.
volunteer_activism ADVICE
Buy Underappreciated Upside And Drill Fast
Target assets with unrecognized exploration upside where a few drill holes can change the story.
Buy cheap, run modest exploration and aim to add years of mine life or make new discoveries.
question_answer ANECDOTE
San Cristobal: Value Added By Exploration
Quinton's team acquired San Cristobal from Sumitomo and rapidly added sulfide mine life through exploration.
They made a major new silver discovery and expanded oxide silver upside around the operation.
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Stijn Schmitz welcomes Quinton Hennigh to the show. Quinton Hennigh is an Internationally Renowned Economic Geologist who provides critical insights into the current state of mineral exploration and mining. Hennigh highlights a significant decline in metal discovery rates over the past decades, attributing this to major mining companies abandoning their internal exploration efforts and shifting responsibilities to junior exploration companies. Hennigh's current strategy focuses on acquiring assets with unrecognized exploration potential, particularly in underexplored regions like Bolivia, Argentina, and Japan. He emphasizes the importance of targeting large-scale deposits that would attract major mining companies' interest, believing that it requires nearly the same effort to explore a small project as a potentially world-class one. The discussion critically examines the current mining exploration landscape, with Hennigh expressing concern about the proliferation of junior mining companies. He argues that approximately 90% of these companies lack direction and technical capability, creating an inefficient market flooded with speculative ventures. This overcrowding has led to misallocation of capital and a diminishing pool of technical expertise in the mining sector. Hennigh is particularly critical of current industry practices, including the royalty and streaming models, which he describes as "parasitic" to mining companies. He also highlights challenges in permitting processes and regulatory compliance, suggesting these bureaucratic hurdles significantly impede mining development. Looking forward, Hennigh advocates for more efficient capital deployment, reducing permitting complexities, and attracting younger talent to the mining industry. He sees potential in unexplored regions and believes that with the right approach, significant mineral discoveries are still possible. His strategy involves identifying undervalued assets with substantial exploration potential, leveraging modern geological understanding to unlock value that previous explorers might have overlooked.
Palisades Gold Radio