Geological Contractor

Generating Significant Revenue

Mineral exploration is a very cyclical industry with bursts of great investment interest in junior exploration companies followed by periods of investment drought. The reasons why vary but the effect is the same, either it’s overly competitive for the available geologists during the upswings or geologists leave the industry during prolonged downturns. From an exploration company’s point of view, either extreme pose challenges.

Just as Eagle Plains reduces the financial risk of exploration by using the project generator model, it also seeks to moderate the effects of market conditions on its ability to conduct exploration programs.

The Challenge

Imagine a booming market with ample funding available for exploration but you can’t find the expertise to conduct programs. Conversely, how do you maintain a team of geologists during a prolonged downturn without draining the treasury?

The Solution

The solution to these challenges was found by taking a long-term approach which included reorganizing Eagle Plains’ technical team into a wholly-owned subsidiary, TerraLogic Exploration. As such, this group is able to conduct programs for third party companies while remaining available to also work for Eagle Plains and its partners. There are many benefits to this type of organization:

• Ongoing availability of a technical team
• Continuity of geological knowledge of Eagle Plains’ projects 
• Significant contributions to Eagle Plains’ treasury with profits
• Exposing these geologists to a wide variety of deposit models

In essence, Eagle Plains has turned this challenge into an advantage - rather than having our technical team dependent upon Eagle Plains’ treasury, this reorganization now has this group significantly contributing to the treasury with annual profits of over $1M per year and up to $2M during exceptional years. This also keeps the team consistently engaged in exploration activities and available to conduct exploration programs on Eagle Plains’ properties no matter the market conditions.

TerraLogic Exploration has a team of 10 full-time employees and ramps up during the exploration season to 50-60 seasonal employees.

Below is a chart depicting the annual revenue generated by Terralogic Exploration through geological consulting services conducted for 3rd parties.