Goldcorp Case Study

• Goldcorp is Toronto based mining firm with a 50 year-old mine in Red Lake Ontario.
• In 1999 CEO Rob McEwen instructed his geologists to release all geological records to the public.
• “Goldcorp Challenge” offered $575k to anyone who could find the gold. Drew 1,200 people from 50 countries.
• Results:
• 110 sites identified 50% new, 80% produced gold.
• 8 million ounces found.
• Company value up from $100 million to $9 billion.

Company geologists knew there was gold in the mine but not exactly where (expensive to make mistakes). After hearing of the success of Linux, CEO Rob McEwen had an idea to use crowdsourcing to find the gold. Industry protocol is to NEVER release geological data. EE’s were also concerned over their standing in industry. Interesting people joined the challenge: Students, military, physicists, computer graphics. Australian company Fractal Graphics won the competition by applying science of geographic information system (GIS) to the “flat” Goldcorp data. Fractial never visited the mine.