Exploration Roars Back in 2025 as Gold Leads the Charge - S&P Global

Key Highlights:

• Exploration activity surges as the S&P Global Market Intelligence Pipeline Activity Index (PAI) jumps 5% in January 2025.
• Gold PAI surges 8% to 114, driving the strongest recovery in exploration activity.
• Drilling rebounds sharply, with total projects up 17% and early-stage drilling soaring 31%.
• Mining equities rally, with the total market cap of listed mining companies rising 2.4% to $2.13 trillion.

The global mining sector has started 2025 with a strong rebound in exploration activity, fueled primarily by gold’s resurgence and rising exploration optimism. According to S&P Global Market Intelligence, the Pipeline Activity Index (PAI) rose 5% in January, marking a sharp recovery from the slowdown seen at the end of 2024.

The exploration recovery was led by gold, which saw its PAI jump 8% to 114, reflecting increased exploration focus and renewed investment confidence. Meanwhile, the base and other metals PAI inched up 3% to 63, suggesting a moderate yet positive turnaround in commodity exploration.

Despite ongoing challenges in financing, drilling activity picked up substantially, with total projects increasing 17% month over month. Early-stage drilling saw a notable 31% jump, indicating growing confidence in identifying new mineral deposits.

Gold Shines as Exploration Financing Faces Pressure

While gold exploration soared, the financing environment remained challenging. Total funds raised by junior and intermediate mining companies fell 48% to $463 million, the lowest in three years. Gold financings dropped 59% to $153 million, marking the third consecutive month of decline. The number of transactions also hit a multi-year low, with only 56 gold financings recorded in January.

For base metals, financing remained constrained, falling 44% to $130 million. Copper, zinc, and silver projects all experienced declining financial inflows, reflecting continued investor caution in the sector.

Source: S&P Global 

Despite these financing headwinds, mining equities moved higher, with market capitalization of 2,663 listed mining companies rising 2.4% to $2.13 trillion. This suggests that investors remain optimistic about the sector’s medium-to-long-term growth prospects.

Drilling Activity Rebounds Sharply

After a sluggish December, drilling activity surged in January, signaling renewed confidence in mineral discovery efforts. Total reported drillholes increased 2%, while total projects rose 17%.

Key trends in drilling activity:

• Early-stage projects up 31%, indicating rising interest in new discoveries.
• Minesite drilling increased 27%, driven by higher gold exploration spending.
• Late-stage drilling climbed 4%, suggesting sustained progress in advancing key projects.

The biggest drilling highlight came from Aya Gold & Silver Inc.’s Zgounder silver and gold mine in Morocco, where drilling intersected 21 meters grading 2,165 g/t gold. This result underscored the potential for high-grade discoveries amid the rising tide of exploration investment.

Positive Project Milestones & Initial Resource Growth

January saw six new initial resource announcements, with the most significant coming from:

• Minsud Resources Corp. (Argentina) – 188Mt @ 0.25% Cu, 0.11 g/t Au, 10.6 g/t Ag, containing 674,000 oz gold & 466,000t copper.
• Tintina Mines Ltd. (Chile) – 320.6Mt @ 0.36% Cu, 0.255 g/t Au, totaling 1.16 Mt copper & 2.62 Moz gold.

On the milestone front, seven positive project developments were recorded, all related to gold. Major developments included:

• Artemis Gold Inc. announcing the first gold pour at Blackwater Gold Mine (Canada).
• Asante Gold Corp. completing a definitive feasibility study for extending Bibiani Gold Mine (Ghana).
• Alamos Gold Inc. commencing pre-production construction at Lynn Lake Gold Project (Canada).

The only notable setback was Barrick Gold Corp.’s temporary suspension of operations at its Loulo-Gounkoto Gold Complex in Mali, due to ongoing gold shipment restrictions.

Exploration Price Index & Commodity Performance

The S&P Global Market Intelligence Exploration Price Index (EPI) increased to 216 in January, up from 212 in December. This was largely due to:

• Gold prices rising 2.5%, supporting a stronger gold exploration outlook.
• Platinum gaining 1.3%, copper up 0.6%, while silver remained flat.
• Zinc (-6.8%) and cobalt (-2.1%) posted the biggest declines, reflecting weaker demand in these segments.

Outlook for 2025: Can the Exploration Recovery Continue?

The strong start to 2025 suggests that mining exploration activity is on a recovery trajectory, with gold leading the charge. However, financing constraints remain a challenge, particularly for junior explorers seeking capital for early-stage projects.

With gold continuing to attract interest and base metals showing tentative signs of stability, the next few months will be crucial in determining whether this recovery has legs.

If the uptrend in drilling and positive project milestones persists, 2025 could mark a strong turnaround year for the global mining sector, reaffirming S&P Global’s data-driven outlook on exploration resilience.