IDEON Technologies: Bringing Medical Imaging to Mineral Exploration

• IDEON provides a unique value proposition, offering subsurface imaging that is substantially higher resolution and more accurate than incumbent solutions. This can significantly de-risk drilling programs and improve resource delineation.
• Major mining companies like BHP and Glencore are validating the technology via blind testing and adopting it for production applications. Landing these Tier-1 customers provides strong third-party validation.
• IDEN's imaging technology is highly relevant for the exploration targeting of key batteries and heavy metals needed to support the global energy transition, a multi-decade mega-trend.
• The subscription-based business model provides predictable recurring revenue and a sticky customer base, while aligning incentives around customer success.
• If IDEON can continue gaining share amongst supermajor miners, the total addressable market is enormous – in the hundreds of billions in annual exploration spending alone.

IDEON Technologies, an early-stage company founded in 2015, is using an innovative subsurface imaging technology called muon tomography to help mining companies optimize their exploration efforts and operations. Muon tomography works similarly to medical imaging techniques like X-rays or CT scans, providing high-resolution 3D images of the density anomalies underground that can indicate the presence of mineral deposits. This technology aims to reduce the uncertainty inherent in mineral exploration and enable more efficient extraction.

Muon tomography addresses a major pain point for mining companies - geological uncertainty. Currently, most mineral exploration relies on 150-year-old drilling techniques that are costly and provide limited subsurface insight. IDEON claims its technology offers unparalleled “straight-line imaging” and locational accuracy compared to other geophysical surveillance methods. By precisely pinpointing density anomalies, IDEON can guide precision targeting for future drilling.

The Muon Detection Process

Muon tomography relies on using naturally occurring muons to image the density profile of the subsurface. Muons are subatomic particles continuously created when cosmic radiation interacts with the upper atmosphere. These particles rain down through the atmosphere and into the earth at a constant rate.

IDEON uses special muon tracking detectors that are lowered down existing boreholes to appropriate depths beneath the area of interest. Typically multiple detectors are deployed to provide sufficient angular coverage. The detectors passively record the flux of muons coming from all directions in the sky above them.

Denser materials like economic mineral deposits absorb and deflect more muons. By measuring changes in muon trajectory and intensity underground, the muon flux data can then be analyzed to generate a 3D density model of the overlying rock above the detectors.

The key components of IDEON's muon detection system include:

• Muon Detectors: Utilize scintillation panels to track muon trajectories and measure intensity. Oriented upward to record muons coming through the overburden rock above.
• Field Computer: Logs and aggregates the muon tracking data from all detectors deployed at a site. Applies time synchronization.
• Remote Communications: Secure data transfer from the field computer to IDEON's analysis centers via satellite networks.
• Power System: Provides continuous power for the detectors and field computer. Uses batteries recharged by solar panels.
• Analysis Software: Proprietary algorithms analyze the aggregated muon data to transform it into a detailed 3D volumetric density model.

A key advantage of muon tomography is that it provides a direct measurement of density, a fundamental physical property. Many incumbent geophysical techniques rely on indirect proxies like magnetism or conductivity. Muon tomography's straightforward relationship between muon absorption and density delivers straightforward subsurface imaging. By providing continuous monitoring, the muon flux data can be accumulated over time to build up high-resolution 3D models. IDEON claims its muon tomography delivers industry-leading subsurface clarity and the most precise location of underground density anomalies.

Compelling Use Cases

Muon tomography has strong utility across the entire mining cycle, from early-stage exploration through production. IDEON focuses on applications where its ability to deliver high-resolution 3D density models can provide the greatest economic benefit.

In greenfield exploration, IDEON's technology excels at initial deposit delineation and resource estimation. The accurate imaging minimizes drilling requirements to define the size and geology of an ore body. IDEON also claims superiority for brownfield exploration, achieving better resolution of complex mineralization next to or beneath existing mines.

For mines in production, IDEON is applying its data to guide selective underground excavation while leaving lower-grade material untapped. Enabling precision mining of higher-value material, can boost profitability and ore recovery rates. Additionally, muon tomography is being used to optimize mine layouts and phases to defer waste rock handling costs. Improved geology insight assists with planning tailings storage facilities and mapping structural features like faults.

IDEON's CEO also noted the potential for their technology to help reduce timelines from discovery to initial production. Compressing this cycle is critically important for mines producing commodities like battery metals or uranium needed to support the global energy transition.

While applicable to many resources, IDEON focuses on deposits where the density contrast versus surrounding rock makes anomalies more definitive on muon tomography scans. Prime targets include:

• Battery metals like nickel, copper and cobalt
• Precious metals including gold and silver
• Heavy minerals such as uranium and lead-zinc

With commodity-specific expertise, IDEON can best support customers exploring for and producing these high-demand materials. The company plans to expand into further deposit types over time as it builds out operational capabilities and industry experience.

Validating the Technology

Gaining confidence in any new exploration methodology is critical before mining companies will invest significantly. IDEON employs a standardized process to demonstrate and validate the capabilities of its muon tomography technology.

Most customer engagements begin with a blind test at a site where the client has already collected extensive subsurface data through drilling campaigns and other geological surveys. The client provides IDEON with no prior data, allowing an unbiased test. IDEON deploys its muon sensors via existing boreholes and scans the area, delivering a full 3D density model of the site.

The client then compares IDEON's muon tomography results to its own drill data and legacy geophysical surveys. The correlation between the IDEON density model and known mineralization zones and geologic features validates the accuracy of the technology. Importantly, IDEON's ability to precisely locate the 3D positions of density anomalies is verified.

Matching IDEON's results to pre-existing data builds the customer's confidence that the technology works and provides meaningful insights beyond available alternatives. IDEON claims that its muon tomography consistently provides more accurate and higher-resolution subsurface imaging compared to techniques like gravity, magnetics, or seismic reflection.

Once IDEON has proven its capabilities via an initial blind trial, clients then proceed to commercial deployments at additional sites. This follows a "land and expand" adoption model. The partnerships start with a single area of interest, allowing the customer to gain experience with the technology and IDEON's services. Based on positive results, the engagement then progressively expands to more sites and applications.

IDEON currently has 8 major mining companies as active clients. The CEO states that with all these customers, IDEON has moved beyond initial blindtesting and is now in commercial production deployments. This includes majors like BHP, Glencore, and NexGen Energy. Winning repeat business from the world's largest miners provides strong third-party validation for IDEON's muon tomography technology.

The Commercial Model

IDEON employs a subscription-based model for its muon tomography services, seeking to provide simplicity and alignment compared to prevalent geoscience industry pricing approaches.

Traditionally, exploration contractors charge bespoke fees for customized deployments along with complex componentry pricing for hardware, software, and data processing. Project-based pricing leaves significant variability and risk for the mining company client.

Instead, IDEON provides an all-inclusive solution encompassing:

• Muon detection hardware & instrumentation
• In-field deployment, operation, and technical services
• Satellite communications and data transfer
• Proprietary data analysis software and algorithms
• Expert interpretation and reporting

Rather than a one-off project fee, the customer pays IDEON a fixed subscription cost on a recurring 6-month basis. This covers initial deployment and ongoing monitoring and analysis at a site.

The subscription model provides clarity for the client on total spend, while incentivizing IDEON to maximize the value delivered within the fixed periodic payment. Importantly, it aligns both parties around the success of the program.

Longer-term, as IDEON's data better informs exploration and mine planning, the company expects its value proposition to customers will continue increasing. However, IDEON has avoided complex value-based pricing models. The CEO stated his belief that reasonable standard pricing is central to developing win-win partnerships with major customers.

Future Growth Trajectory

Currently focused on mineral exploration and mining applications and highlighting muon tomography's potential across the entire resource development lifecycle.

In the near term, IDEON aims to continue expanding deployments with existing major clients. Many current surveys are initial trials on a fraction of those customers' assets. Significant upsell potential exists as IDEON's value is proven over time.

Adjacent growth avenues include adapting the technology for new early-stage applications:

• Subsurface infrastructure mapping for improved mining safety
• Monitoring slope stability and pit walls to prevent collapse
• Tracking changes in leach pads, tailings dams, and reservoirs
• Environmental remediation verification at closed mines

Longer term, muon tomography could enable breakthrough large-scale resource mapping and continuous environmental monitoring capabilities.

Oil and gas is a major sector where muon technology could dramatically improve reserve estimates and field depletion monitoring. IDEON also sees potential for continuously tracking seasonal fluctuations in aquifer and watershed conditions.

Expanded infrastructure monitoring roles include imaging the internal composition of dams for early warning of structural issues. Muon tomography could also locate permafrost degradation and map tunnels, voids, and sinkhole risks in cities.

By maintaining a responsive customer-centric focus, IDEON plans to follow clients' needs in incrementally expanding applications beyond its current mining industry base. Diverse new use cases will widen IDEON's addressable market and growth trajectory over the next decade. If the company can establish itself as an indispensable standard technology across multiple natural resource sectors, the long-term upside is substantial.