Exploration For Mineral Deposits

5.1-PURPOSE, PROCEDURE, METHODS, MANAGEMENT Exploration can be technologically defined, with regard to the discovery of new mineral deposits, as all the activities and evaluations necessary before an intelligent decision can be made establishing size, initial flowsheet and annual output of new extractive operations. The purpose of mineral exploration is the discovery and acquisition of new mineral deposits amenable to economic extractive operations now or in the future. A prime objective of mineral exploration, however, is to find and acquire a maximum number of such mineral deposits at a minimum cost and within a minimum time. Immediately upon the heels of a successful ''exploration" discovery follow activities called, first, development, then operation. Under U.S. Internal Revenue Code regulations (Secs. 1.615.1 and 1.616.1) in effect at the time of this writing, which state that the "development stage" has been reached when "deposits of ore or other minerals are shown to exist in sufficient quantity and quality to reasonably justify commercial exploitation by the taxpayer," exploration in the technological sense may well continue after a mineral property has entered the "development stage" as defined for tax purposes. In many instances continued exploration, after reaching the tax defined "development stage," has disclosed additional reserves which justify a much larger, more efficient and more profitable operation than that which would constitute the minimum feasible. Even after a mine goes into production, continued ore search generally will increase the reserves, either justifying expansions in plant capacity or prolonging the life of the operation, but this work (actually "exploration") is normally considered, for bookkeeping and tax purposes, a part of mine development. Each exploration entity defines its own objectives in terms of acceptable mini- mum rate of return on investment for any deposit found and retained, and in terms of which commodities, and markets, are to be involved. For these reasons, exploration programs, and aims, will vary over a wide range, although all have the common objective of endeavouring to create new profit centers for the future. 5.1.2-EXPLORATION METHODS Exploration has evolved in the past several decades into a highly sophisticated and expensive endeavor in which large corporate entities, or subsidaries, normally are directed and staffed by highly trained exploration specialists. In some instances consultants, with expertise in a given field, are utilized to the benefit of such corporate groups. The "grasshopper" approach to exploration-searching only for outcropping minerals and/or investigating only mineral prospects offered by the discoverers of such outcrops has given us most of the past and present mines in the US., but this method is rapidly approaching the point of diminishing returns in areas that have been thoroughly prospected for currently marketable commodities. With