Durin Automates Drilling for Critical Minerals - $3.4M Investment

The High Costs of Critical Mineral Exploration

Locating new deposits of essential minerals represents a significant financial undertaking. Global expenditure on mineral exploration reached between $12 and $13 billion in 2023, according to industry reports.

A Challenging Pursuit

Mineral exploration is inherently risky. Despite utilizing sophisticated geological models to identify promising areas, the success rate remains low. Approximately only three out of every 1,000 exploration attempts result in the discovery of a viable deposit.

Confirmation still necessitates physical drilling and core sample analysis to validate initial assessments. This process is crucial for verifying the accuracy of geological predictions.

The Dominance of Drilling Costs

“Roughly 70% of the capital raised by exploration firms is allocated to drilling activities,” stated Ted Feldmann, founder and CEO of Durin, in an interview with TechCrunch. “The expense associated with drilling is substantial and often prohibitive.”

Durin's Robotic Approach

Recognizing the need for cost reduction, Ted Feldmann, leveraging his background in the mining industry, is pioneering the integration of robotics into drilling operations.

Labor as a Key Expense

In minerals exploration, drilling services are typically outsourced to specialized firms. A significant portion of their expenses – around 60% – is attributed to labor costs, Feldmann explained.

The current shortage of qualified drillers within the United States exacerbates this issue. This scarcity drives up labor expenses and limits exploration capacity.

Traditional Drilling Operations

A typical drilling rig operation requires a team of two to three individuals. Their responsibilities include maintaining the supply of drill pipe and fluids, as well as operating the drilling machinery itself.

The operator’s role involves interpreting data from the rig’s instruments – both auditory cues and gauge readings – to assess the type of rock being penetrated and adjusting drilling parameters accordingly.

Securing Seed Funding

Durin has successfully secured $3.4 million in pre-seed funding, led by 8090 Industries, as exclusively reported to TechCrunch. Additional investors include 1517, Andreessen Horowitz, Bedrock, Champion Hill, Contrary, Day One Ventures, and Lux Capital.

Developing the First Automated Rig

Durin commenced the design of its initial drilling rig earlier this year. This rig is capable of creating boreholes up to 300 meters deep and 2.5 inches in diameter.

Currently operated manually, the rig is equipped with an array of sensors to collect data. This data will be used to develop a model for guiding future automated systems.

The company is also developing an automated pipe-loading system to streamline the drilling process as the bore deepens.

Towards Unattended Operation

The startup is initiating its first drilling program, and Feldmann anticipates accumulating sufficient data by year-end to begin building its automation model.

He projects that fully automated drill rigs could be operational within two to three years.

The Future Role of On-Site Personnel

Even with automation, Feldmann believes that on-site personnel will still be necessary. Their duties will shift to include delivering supplies, monitoring progress, and retrieving core samples.

“Our goal is to eliminate the need for personnel to remain stationed at the rig during operation,” Feldmann clarified.

Automation promises to significantly reduce costs and improve efficiency in the critical minerals exploration sector.