Junior miners are trimming drill programs and pushing back fieldwork this year as shortages of geologists and drill crews drive up costs and limit access to contractors.
With major miners offering higher pay and securing equipment under long-term contracts, many juniors are struggling to access the people and rigs needed to advance early-stage projects. It’s adding pressure to already constrained exploration budgets.
S&P Global Market Intelligence data from 2025 shows exploration activity declined in Australia, Canada and the United States last year as junior spending weakened. Grassroots budgets fell to a record-low share of total exploration outlays, and the number of active explorers dropped to 2,166 from 2,210 in 2024.
The squeeze reflects a broader workforce challenge across the mining sector. Forecasts from the Ottawa-based Mining Industry Human Resources (MIHR) Council suggest that the sector needs to fill between 190,000 and 255,000 positions in Canada over the next decade, driven by retirements and industry growth. A 2023 outlook published by MiHR and the Prospectors and Developers Association of Canada also points to declining enrolment in geoscience programs and a mismatch between exploration labour demand and the number of trained entrants.
Hiring woes
Eric Saderholm, co-founder and managing director of exploration at American Pacific Mining (CSE: USGD; US-OTC: USGDF), said the labour shortage is extending timelines and complicating program planning for junior companies.
“Some of the companies that used to be able to come within a month have told us they’re booked for the whole year,” Saderholm told The Northern Miner. “We have a list of 17 different contractors we’re going for right now just to find one drill.”
Mining executives are flagging the same issue at the corporate level. In EY’s latest global mining and metals risks outlook for 2026, 75% of executives said they were not confident in their ability to resolve labour shortages for onsite operations. “Hiring and the workforce is one of the top 10 challenges we've identified,” said Antoine Mindjimba, a partner at EY Canada and people consulting leader for the firm’s metals and mining practice, said.
Wage pressure
Rising labour costs are compounding the impact of limited contractor availability, forcing juniors to spend more each year to carry out the same amount of work.
“When you’re making your budget, you can say: last year’s budget, same amount of holes, add 5% to everything,” Saderholm said.
He said contract geologists are now commanding roughly double what they did four years ago, reflecting tight supply and competition for experienced workers.
“Even the younger guys coming in are charging $500 to $600 a day,” Saderholm said. “That was a senior geologist four years ago.”
Wage inflation is being felt across the sector, Mindjimba said, noting that mining companies are competing with energy, infrastructure and industrial construction for many of the same technical skills. Workers with in-demand expertise currently have greater bargaining power, particularly at smaller companies.
“It’s going to be harder for the junior miners to win the war for talent because they have less means,” Mindjimba said.
Rigged competition
Beyond rising costs, junior explorers are also facing tighter access to drilling equipment as major miners secure rigs under long-term programs. Saderholm said competition for contractors has intensified in recent years, particularly in active mining districts where large development projects are underway.
“You’re competing with everybody now,” he said. “There are a couple of large projects in Nevada, especially the Fourmile and the Silicon, that have just sucked up drills left and right.”
Barrick Mining (TSX: ABX; NYSE: B) has outlined plans to expand its surface drilling fleet at the Fourmile discovery to more than 20 rigs as part of a multi-year evaluation and development campaign. Meanwhile, AngloGold Ashanti (NYSE: AU) completed more than 130 km of drilling across its Arthur Gold project in 2024 and continues infill and expansion work tied to ongoing pre-feasibility studies at the Silicon and Merlin deposits.
“Once they get in with the big pockets, that drill is out of commission,” Saderholm said. “You might as well forget it. It’s gone all year.”
He said timelines for securing equipment have lengthened significantly. “I used to be able to make a phone call and get on a list and have a drill within a month,” Saderholm said. “Now it’s looking more like three or four months down the road before anybody can shake free.”
Scaling back
With labour and contractor costs climbing, many juniors are trimming programs. Rather than committing to continuous multi-rig programs, companies are advancing projects in smaller stages and waiting for crews and equipment to become available before allocating additional funds.
“If you go in with the same budget constraints every year, you’re going to wind up getting less and less,” Saderholm said.
The shift often translates into fewer metres drilled and longer timelines between exploration milestones, particularly for companies operating in remote regions where staffing and mobilization costs are higher.
“With the increase in manpower costs, you’re going to get less steel in the ground,” Saderholm said. “That’s just the way it is.”