North America is emerging as the first stop in an exploration rebound as fresh financing starts reaching the field, but the next bottleneck is crews, not rigs, Major Drilling (TSX: MDI) CEO Denis Larocque said.
Cash raised in the second half of last year and early this year usually took six to eight months to show up in drill programs, Larocque said last week during the at the PDAC convention in Toronto. Juniors were likely to drive early-stage drilling while seniors stepped out and drilled deeper around existing mines, helped by stronger gold and copper prices.
“There’s enough drill rigs in the world to probably meet the demand that’s coming. It’s not a rig problem,” Larocque told The Northern Miner’s Westen Editor, Henry Lazenby. “It’s going to be a people problem.”
That squeeze is already shaping pricing. Labour costs have been rising faster than contract rates, but Larocque said margins should improve as older contracts roll off and miners pay up to keep experienced crews.
Watch the full interview below:
The preceding Joint Venture Video is PROMOTED CONTENT sponsored by Major Drilling and produced in co-operation with The Northern Miner. Visit: https://www.majordrilling.com/ for more information.
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