Overview

Predictive Discovery Pty Ltd ("PD") is an exploration company that is using a new technology-based approach to make large high value mineral discoveries. PD's ambition is to be an enduring highly successful mineral exploration company which will, with time, establish a new industry standard for low discovery cost via an intense focus on targeting efficiency.

PD's initial goal is to discover high value gold deposits in West Africa and Australia. However the technology is applicable to other commodities and other regions.  Therefore, in the medium term, investors in PD can expect the company to diversify into other areas where there are compelling and well researched reasons for believing that (1) high value mineral discoveries can be made and (2) the Company's capabilities can be used effectively to reduce discovery cost.

PD is a commercialisation outcome of a large research program known as the Predictive Mineral Discovery Cooperative Research Centre (pmd*CRC). This research centre operated from 1 July 2001 to 30 June 2008 for a total cost (cash and in-kind) of approximately $100 million. pmd*CRC research participants were AMIRA, CSIRO, Geoscience Australia, the University of Western Australia, James Cook University, Monash University, the University of Melbourne and Latrobe University. Also, during its life, the CRC was sponsored by 23 mining and mineral exploration companies and all Government Geological Surveys in the mainland States of Australia.

The pmd*CRC’s aim was to generate new systems and technologies based on an understanding of ore formation processes which could generate a step change in targeting efficiency in the Australian mineral exploration industry. Part of the CRC’s work was to develop numerical modelling (or computational simulation) software to the point that it could be used effectively in mineral exploration. PD’s contractual access to expert users of this software and its knowledge of the workflow required to use that software effectively in mineral exploration is here referred to as the PD Technology.

PD was created by the pmd*CRC to be an exemplar company, which could show how application of the PD Technology could generate high value mineral discoveries and thereby encourage other mineral explorers to adopt similar process-based exploration strategies. To maximise PD’s chance of success, it has obtained:

• an exclusive licence to use the technology on mineral exploration outside of Australia,
• a non-exclusive licence to use the technology on mineral exploration within Australia, and
• an exclusive opportunity to purchase the company that owns the intellectual property rights for the software component of the PD Technology before 31 December 2012.

The PD Technology is used for computational simulation of the processes which form ore deposits. Researchers associated with the pmd*CRC have developed a globally unique capability in this area. These individuals have applied the technology successfully to gold exploration case histories where predictions of the location of gold mineralisation have been followed up with drilling success.

PD aims to improve on the mineral exploration industry’s greatest failing - an extremely low success rate at the prospect drilling stage. Therefore, based on the PD Technology, PD aims to be a highly successful explorer with a significantly lower average discovery cost than its competitors.