Bringing AI and Machine Learning to the Resource Sector
This Goldspot Discoveries Inc. profile is part of a paid investor education campaign.*
Goldspot Discoveries Inc. (TSXV:SPOT) is a technology company that utilizes artificial intelligence (AI) and machine learning to reduce capital risk and increase success in the resource and investment sectors. The company partners with, invests in and obtains royalties from resource and junior exploration companies to help them analyze and interpret data collected through exploration so they can make a discovery.
The company has developed two AI-based platforms to help resource companies identify where deposits are. GoldSpot’s technical services platform takes multiple layers of data and standardizes, transforms and stitches it together to optimize it for machine learning. From there, the data is run through several algorithms that predict where zones of mineralization occur.
The platform was initially developed for gold exploration, but can be used with almost any type of mineralization, including copper or lithium. GoldSpot has partnered with and provides services to premiere resource companies such as Yamana Gold (TSX:YRI), Sprott Mining Inc., McEwen Mining (TSX:MUX), Hochschild Mining plc (LSE:HOC), Vale Canada Limited and Manitou Gold Inc. (TSXV:MTU).
GoldSpot is also developing a second platform that is expected to help the company and investors choose successful resource projects across the globe. Resource Quantamental (RQ) helps the company identify the best projects and teams to work with by collecting together a number of data points that are indicative of future success.
GoldSpot employs 30 people with experience in a variety of areas including chemistry, data analytics, finance and many others. Notable members on GoldSpot’s board of directors include Chairman Frank Holmes who is the Chief Investment Officer for US Global Investors Inc. (NASDAQ:GROW) and has managed over $1 billion in investments. Director Ramon Barua is currently the CFO of Hochschild Mining and Director Donovan Pollitt has over 15 years of resource industry experience. He provides consultation services and operations analysis to buy-side, royalty and private equity clients.
GoldSpot’s Company Highlights
- Generating consulting revenue and maintaining a first-mover advantage by partnering with established miners
- Technical services analyze exploration data to pinpoint where deposits are potentially located and is commodity agnostic
- Current and previous clients include Yamana Gold, Gran Colombia Gold, Sprott Mining, McEwen Mining, Hochschild Mining and many more
- RQ platform uses AI and machine learning to help identify the best projects and teams to work with and predicts which companies are most likely to be successful
- GoldSpot uses RQ to invest in exploration companies and to acquire royalties earlier in the exploration cycle
- Experienced management team with a diverse industry background in mining and data analysis, among others
- Investors include: Frank Holmes, Eric Sprott, Triple Flag Mining Finance, ThreeD Capital and Rob McEwen
- Closed go-to public financing of $7.5 million in February 2019, no debt
The Resource Sector Needs AI and Machine Learning
GoldSpot is determined to disrupt the resource industry by applying machine learning and AI to the exploration process. According to the company, finding deposits is getting more complex, which has led to resource companies spending large amounts of money in order to collect data.
As technology has progressed, new data sources have emerged, resulting in vast amounts of multi-variant and complex data, which has surpassed the capabilities of traditional geologists. GoldSpot has developed a platform that conducts a first-pass analysis of the collected exploration data to help geologists identify deposits.
GoldSpot’s Business Model
GoldSpot aims to use the data generated by its platforms to de-risk, lower costs and increase the rates of discovery in the resource industry. The company monetizes its business by offering its AI and machine learning platforms to both producers and explorers. Working with producers solidifies GoldSpot’s place as first movers and validates its technology to the market. The revenues from producers cover the majority of G&A and allows for a very robust R&D budget. When working with exploration companies, GoldSpot plans to make an investment in the company and acquire royalties, while allowing the issuer access to its team of geologist and data scientists.
GoldSpot has a workflow that allows the maximum amount of data is utilized and analyzed for any type of deposit. The process takes multiple layers of data and standardizes, transforms and stitches it together to optimize the information for machine learning. From there, the data is subjected to traditional geoscientific investigative work, which then highlights the variables that control the distribution and grade of the deposit. Once the data is treated, it is run through a series of machine learning algorithms that help predict zones with high mineralization potential. GoldSpot continuously tests and develops new techniques to help identify mineralized zones.
GoldSpot is also developing a second platform that is expected to help the company and investors choose successful resource projects across the globe. RQ combines the best of technology, people, data and AI to identify long-term growth through the company’s partnerships, investments and royalties.
RQ uses a robust and comprehensive database backed by machine learning to help GoldSpot identify the best projects and teams to work with worldwide. The platform is also expected to predict which companies are most likely to be successful, helping investors make profitable investment choices.
The service contains four core components: product, platform, people and innovation. As the platform searches for investments, it looks at the various opportunities that a company has to offer, its business model, the management team and board of directors and any R&D the company is conducting. Based on these criteria points, the program then selects the best investment candidates.
GoldSpot’s Partnerships and Agreements
In January 2018, GoldSpot completed a $1.3 million equity financing with Hochschild Mining, a leading British-based silver and gold mining company with operations in North, Central and South America.
“We are pleased that such key influencers in the mining sector have such confidence in our vision. More importantly, it is a testament to the merits of our technology that one of our first clients has a vested interest in our success,” said GoldSpot President and CEO Denis Laviolette. “We believe that big data and machine learning are poised to disrupt the entire mining sector. Our innovation is reinvigorating an archaic sector, reducing significant risk, while giving our stakeholders the most torque for their buck.”
In January 2018, GoldSpot entered into a mineral interest purchase agreement with Triple Flag Mining Finance, a company that focuses on financing and investing in the mining sector, was the lead order in GoldSpot’s go-public financing, investing $2.9 million. Under the terms of the agreement, Triple Flag is expected to acquire a 50 percent interest on the mineral interests that GoldSpot currently holds or acquires for a cash consideration of $100,000.
New Found Gold
In March 2019, GoldSpot signed a partnership and investment agreement with New Found Gold Corp. The company has also agreed to invest up to $750,000 in New Found Gold’s next round of financing. GoldSpot acquired a one percent NSR on New Found Gold’s Linear property in Newfoundland and plans to provide its technical services for six months.
New Found Gold’s Linear project covers approximately 70,000 hectares and 17 known high-grade gold showings in Newfoundland. The property has an 85-kilometer strike length on the Joe Bett’s Pond and Appleton fault zones which are considered to be major structural mineralizing controls in the Linear gold belt. In the 1980s, the area was initially explored by Noranda Inc and was later drilled by Rubicon Minerals Corporation in the 2000s.
In March 2019, GoldSpot obtained a 0.5 percent NSR on One Bullion Limited’s Botswana property located in the Republic of Botswana where the company is expected to provide technical services for two years. The company also made a $75,000 investment in One Bullion.
One Bullion’s 850,000-hectare Botswana property is centered in the Kraaipan greenstone belt as it extends towards the Botswana-South Africa border. This area is believed to be a prospective target that hosts approximately 14 million ounces of gold and platinum on the South African side of the border. The Botswana side is largely covered by alluvium and remains mostly underexplored.
In March 2019, GoldSpot closed its strategic partnership by investing $580,000 in Manitou Gold. The company has also secured a 0.5 percent NSR on Manitou’s Kenwest property and is expected to provide its technical services for one year. This agreement marks GoldSpot’s entry into the junior mining space.
Gran Colombia Gold
In April 2019, GoldSpot was engaged by Gran Colombia Gold Corp. to use machine learning to identify new drilling targets at its Segovia operations, located in the Segovia-Remedios mining district of Antioquia in Colombia.
Vale Canada Limited
In October 2019, GoldSpot was engaged by Vale Canada Limited to use machine learning to identify new drill targets at Vale Canada’s Coleman mine in Sudbury, Ontario.
“Vale is one of the world’s largest nickel producers and the Coleman mine is a major operation in Ontario. To be part of the digital transformation of one of the world’s leading diversified miners is an incredible opportunity for our company. At GoldSpot, we are excited to put our technology and team into action on a copper, nickel and precious metals deposit,” said Laviolette.
Goldspot’s Management Team
Frank Holmes — Independent Chairman
Frank Holmes is the CEO and CIO at US Global Investors, a leading mutual fund and asset management firm. He is also a thought leader in the technology and mining spaces and a pioneer in using a quant-approach to investing. He is a sought-after keynote speaker at international investment conferences and is a regular guest in business media. Holmes’ Frank Talk CEO blog is one of the most widely read finance blogs.
Vincent Dube-Bourgeois — CEO and Director
Vincent Dube-Bourgeois has worked for the Ontario Geological Survey (OGS) and Noront Resources Ltd. His M.Sc. project consisted of describing and interpreting the geochemistry and geodynamic setting of the volcanic rocks hosting the gold-rich VMS Lalor deposit in Snow Lake, Manitoba. He has a B.Sc. in Geology from the University of Ottawa.
Denis Laviolette — President and Executive Chairman
Denis Laviolette has over 10 years of exploration in exploration, mine operations and capital markets. He has worked in northern Ontario, Norway and Ghana, where he took on a diverse array of tasks, including grassroots exploration, start-up mine management and advanced mine operations. He has also worked as a mining analyst with Pinetree Capital Ltd. and now serves as a mining analyst and VP Corporate Development for ThreeD Capital Inc. Laviolette is the president of New FOund GOld Corp. and a director for Xtra-Gold Resources Corp., Northern Sphere Mining Corp. and Tartisan Resources Corp. He has a B.Sc. Earth Sciences (Geology) degree from Brock University.
Cejay Kim — Chief Business Officer
Cejay Kim has 10 years of experience in the capital markets. Previously, he served as the CIO of Palisade Global Investment, a merchant bank specializing in the resource sector and Request Equities, a merchant bank in the junior mining sector supported by the KCR Fund. The KCR Fund is a $100 million venture managed by Marin Katusa. He has a BA in Economics from the University of Calgary, MBA in Global Asset and Wealth Management from Simon Fraser University, a CFA charter holder and is a member of the Calgary CFA Society.
Sarah Sun — Chief Data Strategist
Sarah Sun has a decade of experience in financial services and data science. She was previously the Senior Manager of Data Strategy at TD Bank and Principal Data Scientist at Capital One Canada. She has experience in data strategy, data monetization, innovation planning, artificial intelligence, data science and data governance. She has a BMath, with a double major Mathematical Finance and Statistics from the University of Waterloo.
Binh Quach — CFO
Binh Quach is a Chartered Professional Accountant with over 20 years of experience working for both public and private companies. Previously, he was the Controller of Pinetree Capital Ltd. for 14 years. Currently, he is the Controller of ThreeD Capital Inc. and CFO of New Found Gold Corp.
Donovan Pollitt — Independent Director
Donovan Pollitt has over 15 years of resource industry experience, ranging from grassroots exploration to underground and open-pit mining exploration. Currently, he is the President of Pollitt Mining, providing consulting services to mining operations and research and operations analysis to buy-side, royalty and private equity clients. Previously, he was the President and CEO of Wesdome Gold Mines. He has a BASc in Mining and Mineral Engineering from the University of Toronto and an MBA from the MIT Sloan School of Management. Pollitt is a PEng and a CFA Charterholder.
Ramon Barua — Independent Director
Ramon Barua is the CFO of Hochschild Mining plc. Previously, he is the CEO of Fosfatos del Pacifico, a mining project in northern Peru owned by Cementos Pacasmayo, an associate company of the Hochschild Group. During 2008, he was the General Manager for Hochschild Mining’s Mexican operations, having previously worked as Deputy CEO and CFO of Cementos Pacasmayo.
Prior to joining Hochschild, Barúa was a Vice President of Debt Capital Markets with Deutsche Bank in New York for four years and a sales analyst with Banco Santander in Peru. He is an Economics graduate from Universidad de Lima and holds an MBA from Columbia Business School.
*Disclaimer: This profile is sponsored by Goldspot Discoveries Inc. (TSXV:SPOT). This profile provides information which was sourced by the Investing News Network (INN) and approved by Goldspot Discoveries Inc. in order to help investors learn more about the company. Goldspot Discoveries Inc. is a client of INN. The company’s campaign fees pay for INN to create and update this profile.
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