by Gerardo Del Real
It is well understood that mineral exploration is a highly risky business venture.
It is also well understood that the high risks associated with mineral exploration can bring rich rewards for companies that have exploration success.
Despite a 10-fold increase in spending on exploration over the last decade, the amount of discoveries has remained relatively flat. A combination of higher costs, declining commodity prices, and the misallocation of capital has led most of the 2,000-plus junior exploration companies to find themselves struggling to keep up with the expenses required to continue to exist.
There are, however, exceptions to the rule.