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What is the difference between Greenfield Exploration vs. Brownfield Exploration?

What is the difference between Greenfield Exploration vs Brownfield Exploration? Cubility - Perth, Australia

Article originally published by UndervaluedEquity

Mineral Exploration Companies Categories

  1. Greenfield Exploration – Greenfield exploration relies on the predictive power of ore genesis models to find mineral deposits in previously unexplored areas or in areas where they are not already known to exist.
    • Grassroot Exploration Project – When a geologist has a conceptual idea about where a mineral deposit might be and spends money to see if the mineralization is really there, this is referred to as grassroot exploration. Common activities include: airborne satellite surveys, ground based geological and geophysical prospecting and surveying as well as determining drill target areas. Grassroot exploration projects are the riskiest projects in the mining business. Some statistics indicate that only 1 in 5,000 to 1 in 10,000 grassroot exploration projects ever reach the production stage.
    • Advanced Exploration Project – Advanced exploration projects have clearly defined mineral resources with reasonable prospects for being developed into standalone mines or satellite mines. In the mine life cycle, these projects are generally positioned between the near pre-feasibility stage and the near bankable feasibility stage.

  2. Brownfield Exploration – In brownfield exploration, geologists look for deposits near or adjacent to an already operating mine. As geologists are able to use existing data, the risk in brownfield exploration is considerably lower than in greenfield exploration. Because the facilities for mining and processing the ore have already been built and paid for, the additional capital cost for processing the new found ore is very low.

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