Mineral Exploration - Greenfields and Brownfields

Greenfields and Brownfields

Exploration is termed either Greenfields or Brownfields depending on the extent to which previous exploration has been conducted on the tenements in question. Greenfields alludes to unspoilt grass, and brownfields to that which has been trodden on repeatedly. While loosely defined, the general meaning of brownfields exploration is that which is conducted within geological terrain within close proximity to known ore deposits. Greenfields are the remainder.

Greenfields exploration is highly conceptual, relying on the predictive power of ore genesis models to search for mineralisation in unexplored virgin ground. This may be territory which has been drilled for other commodities, but with a new exploration concept is considered prospective for commodities not sought there before.

The success rate of exploration and the return on investment is low because exploration is an inherently risky business. Figures for success rates depend on the commodity in question but a good strike rate can be measured in the oil industry; the supergiant Prudhoe Bay oilfield was found on the 12th well drilled into the area. Within gold deposits a discovery hole may be one in one thousand and within some base metals commodities strike rates range from one in fifty to one in one hundred.

Greenfields exploration has a lower strike rate, because the geology is poorly understood at the conception of an exploration program but the rewards are greater because it is easier to find the biggest deposit in an area earlier, and it is only with more effort that the smaller satellite deposits are found. Brownfields exploration is less risky, as the geology is better understood and exploration methodology is well known, but since most large deposits are already found the rewards are incrementally less.