Investing in Undervalued Stocks

Mineral Exploration Companies - Greenfield Exploration vs. Brownfield Exploration

Mineral Exploration Companies - Greenfield Exploration vs. Brownfield Exploration

Mineral exploration companies are often broken down into two categories: greenfield and brownfield exploration stocks. To find out in which type of mineral companies I prefer to invest in, I refer you to the note at the bottom of the page.

Greenfield exploration refers to uncharted territory, where mineral deposits are not already known to exist. Greenfield exploration projects can be subdivided into grassroot and advanced projects.

Brownfield exploration, also known as near-mine exploration, refers to areas where mineral deposits were previously discovered.

Mineral Exploration Companies Categories

Category  Subcategory  Description 
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.

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.


If you would like to be the first to be informed when I add new content to UndervaluedEquity.com, please leave your details in the name grab form on the Support page!

You can also support me directly by clicking on the advertisements that appeal to you, or by making a voluntarily donation with Paypal.

Your support helps me to speed up the process of adding great, free content to UndervaluedEquity.com!


Note: I believe the best mineral companies to invest in are those with a producing asset combined with brownfield exploration potential, as the facilities for mining and processing the ore have already been built and paid for. Therefore, the additional capital cost for processing the new found ore is very low.

In addition, I also feel myself comfortable investing in companies with an advanced exploration project combined with a huge amount of cash on their balance sheet.


What Type of Content Can You Expect to Find on UndervaluedEquity.com

Main Section  Description 
News (RSS)  Today's News Related to the Global Energy and Mining Stocks. On this page a RSS feed is displayed with stock market news related to the energy and mining sectors. You can subscribe to this free RSS feed too! 
My Due Diligence  How I Conduct My Stock's Due Diligence Investigation Process. If you want to know what I learned while I was conducting my due diligence, I recommend you to read all the chapters of the investigation process. 
My Stock Watchlist  Are These the Best Stocks to Buy Today. In my stock watchlist you find stocks who offer great potential, but at the time I analysed these stocks they didn't comply with all my guidelines from my due diligence chapters. 
My Stock Portfolio 

Are These the Best Shares to Buy Now. As the year 2015 has just started, I believe it's about time that I share my stock portfolio with you. Therefore, you will find my updated stock portfolio on this page.



comments powered by Disqus

About Jeroen Snoeks

Jeroen Snoeks - UndervaluedEquity.com

Jeroen Snoeks is the founder of UndervaluedEquity.com, a website for investors passionate about investing in undervalued stocks. Through UndervaluedEquity.com, he shares his experience and knowledge and will soon reveal his personal stock portfolio.

  Positive SSL Transparant Background