Finding Gold
I just read this story in MarketWatch… true story…
When Rob McEwen (now chairman and CEO of McEwen Mining Inc.) bought the Red Lake Mine back in 1989, he was told that the half-a-century-old Ontario gold source was near the end of its life. The mine — previously part of Dickenson Mines — was thought to be tapped out. But another company’s mine nearby was still producing, and geological surveys hinted at the possibility of ample deposits. “I thought there was always more room to find more gold,” said McEwen.
At the time, McEwen says, he attended a MIT conference that introduced him to the Web, which led him to an epiphany of sorts: He could use a novel technique to “ask the world where the gold is in our mine.”
n 2000, he posted the mine’s geologic data online, offering prize money to anyone who could locate the untapped deposits. The competition of its kind was unheard of in the industry. The idea of giving all of your information to the world was counter to everything the big companies had ever thought. Major mining companies are extremely secretive and possessive of their data. They think they have the best technical people and would never risk giving the perceived competition anything that may help them.
The tactic worked. The winning entry was a collaboration between Fractal Graphics and Taylor Wall & Associates, which developed a three-dimensional computer model of the mine with graphics that helped McEwen and his geologists determine where to unearth fresh gold stores. Including the prize money, the company spent roughly $1 million on the challenge, according to McEwen. But the payoff dwarfed the relatively modest expense, yielding about $3 billion in gold.
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There is a lot to be learned and gained by collaborating. Scientists do it. Smart business people do it. Maybe our world leaders could learn something from this story and work together and collaborate to find solutions to OUR global pandemic.
When Rob McEwen (now chairman and CEO of McEwen Mining Inc.) bought the Red Lake Mine back in 1989, he was told that the half-a-century-old Ontario gold source was near the end of its life. The mine — previously part of Dickenson Mines — was thought to be tapped out. But another company’s mine nearby was still producing, and geological surveys hinted at the possibility of ample deposits. “I thought there was always more room to find more gold,” said McEwen.
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But the buried treasure proved elusive — and after boosting its exploration efforts during a 46-month labor dispute, the company was determined to strike gold.At the time, McEwen says, he attended a MIT conference that introduced him to the Web, which led him to an epiphany of sorts: He could use a novel technique to “ask the world where the gold is in our mine.”
n 2000, he posted the mine’s geologic data online, offering prize money to anyone who could locate the untapped deposits. The competition of its kind was unheard of in the industry. The idea of giving all of your information to the world was counter to everything the big companies had ever thought. Major mining companies are extremely secretive and possessive of their data. They think they have the best technical people and would never risk giving the perceived competition anything that may help them.
The tactic worked. The winning entry was a collaboration between Fractal Graphics and Taylor Wall & Associates, which developed a three-dimensional computer model of the mine with graphics that helped McEwen and his geologists determine where to unearth fresh gold stores. Including the prize money, the company spent roughly $1 million on the challenge, according to McEwen. But the payoff dwarfed the relatively modest expense, yielding about $3 billion in gold.
* * *
There is a lot to be learned and gained by collaborating. Scientists do it. Smart business people do it. Maybe our world leaders could learn something from this story and work together and collaborate to find solutions to OUR global pandemic.
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