Risk Managed Exploration
Risk Managed Exploration (RME) is the guiding force behind all Geoinformatics processes. We believe that Risk can inherently be managed throughout all stages of minerals exploration via the understanding of:
- Geological risk factors such as the chance of discovery and size of discovery
- Using “Expected Values” to value exploration properties and assets
- How to eliminate false positives
- How to retain false negatives
- Maintenance of a well balanced portfolio of assets
- Sovereign and environmental risk factors
RME fundamentals start off with understanding the geological context of exploration areas. This is achieved by ensuring that all relevant information previously collected is validated and integrated. This is followed by trying to gain as much understanding as possible in the third dimension. Geoinformatics has developed techniques to rapidly integrate, validate, interpret, model and target 3D information.
Understanding the concept of Expected Value (EV = probability x value – costs) throughout the life-cycle of a project enables the explorer to assess how much effort and resources should be put in to exploration. Geoinformatics is funding a research project at Macquarie University that looks at modeling valuations as well as the use of Bayesian principles and the effect on exploration success of false positives and false negatives.
A well balanced portfolio of projects is important to being able to continually provide exploration success. By have a stable of one or two advanced projects; 4 to 10 prospects; 10 to 50 regional plays and wide areas of grass-roots exploration allows the company to continually advance and add value at all stages.
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