Position Taken In Goldspot Discoveries – Where Artificial Intelligence Meets Mineral Exploration

Position Taken In Goldspot Discoveries – Where Artificial Intelligence Meets Mineral Exploration

After meeting with the GoldSpot Discoveries (TSXV – DUKE.p) team at the Vancouver Resource Investment Conference some 10 or so days ago, I’ve taken a position in the company, by way of private placement, at $0.40 (post exchange and consolidation).  The company should be up and trading in the coming weeks as it moves forward with its business combination with Duckworth Capital, a CPC (capital pool company).

I’ve taken my position because I like the team behind the play, it’s unique artificial intelligence approach, its partners, and ultimately, its valuation.

The Chairman and co-founder of GoldSpot is Collin Kettell – somebody I’ve known for a very long time.  As you can read here, I first met Collin as a teenager back in 2004.  Even back at that first meeting, at his then home in Burtonsville, MD, I could tell Collin was very bright and ambitious.  And if the early part of his career is any indication, you can see why I saw something special in Collin back in 2004.  In many ways, he reminds me of a young Marin Katusa or Pat DiCapo – guys you knew would be ultra-successful after spending just a short period of time with them.  Assuming a good entry valuation, I’m always happy to take a position and back an up-and-coming industry star and friend.  As I’ve mentioned before, in this industry, you always back the jockey.

Another director of GoldSpot is Sheldon Inwentash.  Sheldon is currently Founder, CEO, and Chairman of ThreeD Capital.  But Sheldon is better known for his former role in leading Pinetree Capital where he was a highly supportive and early investor in some of junior mining’s better stories – Aurelian Resources and Gold Eagle Mining come to mind.  Sheldon was also very generous to me when I got going in this industry – his invitations to take early positions in some of the companies he was getting behind (like Mega Uranium) played an important role in my ability to create the modest wealth that now allows me to write this blog.

The team is strong.  Beyond all the PhD’s on staff, Goldspot has CEO and director Denis Laviolette, COO and director Vincent Dube-Bourgeois, director Ramon Burea (also CFO of LSE listed Hochschild Mining), and VP Corp Dev and director Cejay Kim.  As the company moves forward in the coming months, I imagine some strong industry names might also join the team – stay tuned.

For a better understanding of how GoldSpot leverages artificial intelligence in mineral exploration, I’ve copied and pasted this excerpt from their website:

“Armed with domain experts to bridge the gap between machine learning and geoscience, GoldSpot’s front-to-back solution extracts training data for the eventual use of machine learning. GoldSpot solves problems presented by big data and unutilized layers of geological data. This significantly decreases risk, while increasing the efficiency and success rate of mineral exploration. GoldSpot leverages this technology by: working with premier mining companies to vector ore; staking its own claims to option or joint-venture; and by developing its own trading algorithm to buy and sell mining stocks.”

Sounds interesting and on a basic level, I get it and like it a lot.  But this type of “machine learning” play is new to me and I’m not entirely proficient in assessing the “technology meets mineral exploration” game.  I take a huge amount of comfort in the fact that GoldSpot has already partnered with strong industry groups like Yamana Gold, Sprott Mining, McEwan Mining, and Hochschild Mining.  After years and years without much in the way of new discoveries, major mining companies are starting to realize that doing the same thing over and over again will not yield exploration success – GoldSpot’s artificial intelligence approach may play a big role in the exploration success of its current and future partner companies.

At $0.40, GoldSpot will have about a $40 million valuation and $7-8 million in cash when it starts trading.  It will continue to receive revenue as part of its current and future service agreements.  And it has sufficient cash to carry out its model of taking equity positions in juniors in exchange for service agreements and royalties.  With all the people involved and the game-changing potential, I look forward to following my ownership in GoldSpot Discoveries.

Philip O'Neill
Philip O'Neill
poneill@mp1capital.com