AGL is working a business model according to the schema. This schema starts with Pre-Geological works on field and finish with the field rehabilitation operations in the end of mining.
At the beginning of everything, the fields are divided into two parts as Greenfield and Brownfield Projects. Geological Reports prepared according to JORK and NI-43/101 systems are the critical points in these two distinctions. In the whole process before this report, the project is specified as Greenfield and is the riskiest in terms of investment. After a Geological Report according to the international standards, the Project become Brownfield and ready to invest easily. The reason is the proven information in report. In this report you can see the financial diagram for incomes and expenditures for all projects with details.
In all projects, in the beginning you only have a small information about mining field. May be a few rock samples, may be a few soil sample results from laboratory; This will be a sign to proving the existence of gold. Especially in Africa, Artisanal mining activities is a common proof for existence of gold. If you see a big artisanal mining activity on area, you can directly start from that point for exploration.
Before starting work in the field, existing reports and literature reviews should be done on the desk. The primary goal is to prepare before going to the field and collect the necessary details for the preliminary report without losing much time in the field. At this stage, a few soil samples and necessary commercial information are collected from the field. The sole purpose of all this pre-study and pre-field visit is to maximize the data we have prior to a commercial deal.
With the data in this preliminary report, preliminary commercial agreements between the site owner and the investor are completed. The owner of the site gives the Investor a period for geological investigations. In this process, if the investor will complete their research and decide to continue the field, the contract rules will be followed according to the first agreement. During these geological surveys, an agreement is reached on a price and this price is permanently paid to the site owner by the investor. If the investor finds the site favorable at the end of the Geological Studies, the initial contract conditions will work, and a partnership is established.
AGL has the infrastructure to support you both for consultancy and geological studies.
After all plans completed professionally, the next will be the site explorations and Geophysical Studies on sites. Geophysical studies show which areas have potential by evaluating the entire area with various methods. Generally, we can understand that there is more metal presence in areas determined by IP and other methods. In this way, we can reduce drilling costs by 90%.
According to the Geophysical study results, we plan soil sampling and then we prepare drilling plan. Drilling is the heart of this process. Drilling is your best friend. It helps you to touch the gold in underground. Drilling means that you can prove to everyone how much the grade and reserve are, as well as proving that gold exists.
AGL has an experiment staff and corporations for drilling and logging. We will assist you in all steps of drilling according to international standards.
As you see in Schema, there are three different risks in all this steps; Exploration, Technical and Financial risks.
When you start a new project, you must first prove the existence of gold. The next step is to report the size and other details of this asset according to internationally accepted standards. All the capital you spent in this process involves highest risks.
Technical risks include potential margins of error in Geological Exploration and potential risks that may occur during the mining and facility stages. However, all these problems should be resolved in the final report. A Brownfield project means a project in which all these risks have been eliminated.
Financial Risk starts from first Geological Explorations. This risk includes all costs until all reporting is completed and ready to set up the facility. In all these processes, there will be no financial return from the project.
As you can see from these determinations; The main thing is where you want to start the project. There is a definition for this risk; “Venture Capital”.