MRT 321-2

MINERAL
EXPLORATION
METHODS

W. A. Panchala Weerakoon
 Objective of this Course
To provide advanced concepts in mineral and gem exploration

At the end of this lecture series, you should be able to:

• Acquire a basic understanding of how geophysical and

geochemical technologies are used in modern mineral
exploration targeting

• Identify the most appropriate methods for exploring for

different commodities in different geological environments
 Objective of this Course
To provide advanced concepts in mineral and gem exploration

At the end of this lecture series, you should be able to:

• To select relevant mineral exploration methods to suit

requirements demonstrate competence in the use of ArcGIS
and other geoscientific data analysis software as applied to
exploration targeting
Continuous Assessment

?
Presentation Poster Group Field report

10 10 10 10
Evans, Anthony M; Ore Geology and Industrial Minerals: An Introduction; 3rd
ed; John Wiley & Sons, Ltd, 2009.

Evans, Anthony M. , Barrett, William L; Introduction to mineral exploration;

Blackwell Science, 1995.
Today our economic and technical growth is driven by the material
needed, as the population increase, the demand for resources
continues to increase
Easily accessible deposits cropping out at the surface
have nearly all been found decades ago: and thus, the
search has turned to more subtle deposits and more
remote locations.
The deposits we
now search for are
largely concealed
by
weathered and
leached outcrops,
drift, soil, or some
other covers,
and sophisticated
exploration
methods are
required to find
them.
Mineral Economics
Supply and Demand
What is demand?
The desire, ability, and willingness to buy a product or service

Do You Demand These?

Desire? Ability? Willingness?

From Household Demand to Market Demand
• Assuming there are only two households in the
market, market demand is derived as follows:
 What is Supply?
The desire, ability, and willingness to offer
products for sale
*Anyone who offers an economic product for sale is a
supplier

Eg: When you work at your job, you are offering your
services for sale. Your economic product is labour. You
would probably supply more for a higher wage.
 The Law of Supply?
6

Price of soybeans per bushel ($)

5
Nimal'S SUPPLY
4
The lawSCHEDULE
of supplyFOR
states that
RICE
3
QUANTITY
there is a positive relationship
SUPPLIED 2
betweenPRICE
price and quantityOFof a
(THOUSANDS 1
good supplied.
(PER BUSHELS PER
0
BUSHEL) YEAR) 0 10 20 30 40 50
This means
RS that
2 supply0 curves Thousands of bushels of soybeans produced

typically have a positive

1.75 10 slope.
per year

2.25 20
3.00 30
4.00 45
5.00 45
Market Equilibrium
• Only in equilibrium is
quantity supplied equal
to quantity demanded.

• At any price level

other than P0, the
wishes of buyers
and sellers do not
coincide.
 Most mineral trading takes place
within the market economy.

• The prices of minerals or mineral

products are governed by supply and
demand.

If consumers want more of a mineral product than

is being supplied at the current price (this is
indicated by their “bidding up” the price),
thus, increasing the profits of companies supplying
that product.
 For several reasons demand
may change over a short
period of time
What
affects the A change in technology may
Demand & increase the demand

Supply?
The expectation of future price
changes or shortages will induce
buyers to increase their orders to
have more of a commodity in stock
• Where one commodity substitutes to a significant extent for
another and the price of this latter falls, then the substituting
commodity becomes relatively expensive and less of it is
bought.
 Conditions of
supply may change
quickly
• Changes due to abnormal
circumstances (natural
disasters, war, other political
events, fire, strikes at the
mines )
• Improved techniques in
exploitation
• Discovery and exploitation
of large new orebodies
Importance of Mining to National
Economy
Future
Demand
• Most of the Rear
Earth
Element’s(REE)
demand may
increase in future
due to rapid
development of
technology
Future
Demand
• However due to
depletion of the
deposits price may
increase rapidly
• New technology will
introduce to refine
low-grade deposits
 World Mine Production and Reserves
(2020 Estimates)

Next Gen. REE

Production Reserves
Country
(Metric Tons) (Metric Tons)

United States 38,000 1,500,000

The global demand for automobiles, consumer Australia 17,000 4,100,000

Brazil 1,000 21,000,000
electronics, energy-efficient lighting, medical
Burma 30,000 not available
technology and catalysts is expected to rise rapidly
over the next decade. Burundi 500 not available
Rare earth element demand is expected to Canada -- 830,000
increase. China 140,000 44,000,000
Greenland -- 1,500,000
India 3,000 6,900,000

Madagascar 8,000 not available

Russia 2,700 12,000,000

South Africa -- 790,000
Tanzania -- 890,000

Thailand 2,000 not available

Vietnam 1,000 22,000,000

Other Countries 100 310,000

World total
240,000 120,000,000
(rounded)

Article by: Hobart M. King, PhD, RPG

https://geology.com/articles/rare-earth-elements/
 Case study ?

Why Ukraine is
important to Russia?
Why Ukraine is
important to Russia?
• Ukraine has extremely rich and complementary mineral resources in
high concentrations and close proximity to each other.

• The country has abundant reserves of coal, iron ore, natural gas,
manganese, salt, oil, graphite, sulphur, kaolin, titanium, nickel,
magnesium, and mercury
 Metallic minerals
• 7th place in the world in iron extraction: 39 M tonnes and 2.4% of global
output (after Australia, China, Brazil, India, Russia and RSA)
• 8th place in the world in manganese extraction: 651 thousand tonnes and
3.6% of global output (after RSA, Australia, China, Gabon, Brazil, Ghana and
India)
• 6th place in the world in titanium extraction: 431 thousand tonnes and 6.3%
of global output (after China, RSA, Australia, Canada і Mozambique)
• 2nd place in the world in gallium extraction: 9 tonnes and 2.9% of global
output (after China)
• 5th place in the world in germanium extraction: 1 tonne and 1% of global
output (after China, Russia, USA and Japan)
 Non-metallic minerals
• 6th place in the world in kaolins extraction: 2,4 M tonnes and 5,9% of
global output (after China, USA, Germany, India and Czech Republic)

• 10th place in the world in zirconium silicate extraction: 26 thousand tonnes

and 1,9% of global output (after Australia, RSA, China, Mozambique,
Senegal, USA, Kenia, India and Indonesia)

• 8th place in the world in graphite extraction: 13 thousand tonnes and 1.3%
of global output (after China, Brazil, North Korea, India, Russia, Canada and
Madagascar)
 Mineral fuels
• 13th place in the world in power plant coal extraction: 18,9 M tonnes and 0,4%
of global output (after China, India, USA, Indonesia, Australia, RSA, Russia,
Colombia, Kazakhstan, Poland, Vietnam and Canada)

• 12th place in the world in coking coal extraction: 5,2 M tonnes and 0,5% of
global output (after China, Australia, Russia, USA, India, Canada, Mongolia,
Kazakhstan, Poland, Mozambique and Colombia)

• 10th place in the world in uranium extraction: 1 tonne and 1,4% of global output
(after Kazakhstan, Canada, Australia, Namibia, Niger, Uzbekistan, Russia, China
and USA)
• Russia exports about 75Mt of iron ore per year, it’s an important
producer and about 45Mt of this goes to China.

• Russian nickel production is also important and sanctions against

Russia will also put pressure on nickel prices.

• Russia also produces 40% of the palladium in the world.

Ukraine, on the other hand, is a major global producer of manganese, so

there are many materials being impacted by this conflict.
 Case Study

What will happen if the conflict of Israel

converted in to World War III
Disruption of Oil Supply: The Middle East the world's largest oil producers,
including Saudi Arabia, Iran, Iraq, and Kuwait.
A war in the region could disrupt oil production, refining, and
transportation infrastructure, leading to a decrease in oil exports from the
region.

Increase in Oil Prices: Any disruption to oil supply from the Middle East
would likely lead to an increase in oil prices globally.
Investors and markets react strongly to geopolitical instability in major oil-
producing regions, which could lead to speculation and price spikes.

Shifts in Energy Policies: Governments and industries may reevaluate their

energy policies and investments in response to heightened geopolitical risks.
This could accelerate efforts to diversify energy sources, invest in renewable
energy technologies, and increase energy efficiency.
•
Impact on Global Economy: Higher oil prices can have significant
implications for the global economy, affecting industries that rely
heavily on oil, transportation costs, and consumer spending.
Economic slowdowns or recessions could result from increased energy
costs.
Geopolitical Tensions: A war involving the Middle East and Israel could
exacerbate geopolitical tensions globally, potentially leading to broader
conflicts or diplomatic crises.
This could further unsettle markets and affect investor confidence.
Opportunities for Other Producers: Other oil-producing regions, such
as the United States, Russia, and some African countries, could benefit
from disruptions in Middle Eastern oil supply by increasing their market
share and exports.
Let's talk about Mineral Industry in Sri Lanka
 Let's talk about Sri Lanka

https://www.srilankabusiness.com/blog/mineral-resources-from-sri-lanka.html
Mineral Production Sri Lanka
What you Learn today
• Importance of Mineral Exploration
• Supply and demand
• How Mineral Economy affect to World
• Minerals in Sri Lanka
• How Mineral Industry in Sri Lanka Contribute to the
GDP