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This stance-detecting #AI will help us fact-check fake news – SPONSOR: Datametrex AI Limited $DM.ca

Posted by AGORACOM-JC at 12:53 PM on Wednesday, March 18th, 2020

SPONSOR: Datametrex AI Limited (TSX-V: DM) A revenue generating small cap A.I. company that NATO and Canadian Defence are using to fight fake news & social media threats. The company announced three $1M contacts in Q3-2019. Click here for more info.

This stance-detecting AI will help us fact-check fake news

By: Ben Dickson
  • Fighting fake news has become a growing problem in the past few years, and one that begs for a solution involving artificial intelligence
  • Verifying the near-infinite amount of content being generated on news websites, video streaming services, blogs, social media, etc. is virtually impossible

There has been a push to use machine learning in the moderation of online content, but those efforts have only had modest success in finding spam and removing adult content, and to a much lesser extent detecting hate speech.

Fighting fake news is a much more complicated challenge. Fact-checking websites such as Snopes, FactCheck.org, and PolitiFact do a decent job of impartially verifying rumors, news, and remarks made by politicians. But they have limited reach.

It would be unreasonable to expect current artificial intelligence technologies to fully automate the fight against fake news. But there’s hope that the use of deep learning can help automate some of the steps of the fake news detection pipeline and augment the capabilities of human fact-checkers.

In a paper presented at the 2019 NeurIPS AI conference, researchers at DarwinAI and Canada’s University of Waterloo presented an AI system that uses advanced language models to automate stance detection, an important first step toward identifying disinformation.

The automated fake-news detection pipeline

Before creating an AI system that can fight fake news, we must first understand the requirements of verifying the veracity of a claim. In their paper, the AI researchers break down the process into the following steps:

  • Retrieving documents that are relevant to the claim
  • Detecting the stance or position of those documents with respect to the claim
  • Calculating a reputation score for the document, based on its source and language quality
  • Verify the claim based on the information obtained from the relevant documents

Instead of going for an end-to-end AI-powered fake-news detector that takes a piece of news as input and outputs “fake” or “real”, the researchers focused on the second step of the pipeline. They created an AI algorithm that determines whether a certain document agrees, disagrees, or takes no stance on a specific claim.

Using transformers to detect stance

This is not the first effort to use AI for stance detection. Previous research has used various AI algorithms and components, including recurrent neural networks (RNN), long short-term memory (LSTM) models, and multi-layer perceptrons, all relevant and useful artificial neural network (ANN) architectures. The efforts have also leveraged other research done in the field, such as work on “word embeddings,” numerical vector representations of relationships between words that make them understandable for neural networks.

However, while those techniques have been efficient for some tasks such as machine translation, they have had limited success on stance detection. “Previous approaches to stance detection were typically earmarked by hand-designed features or word embeddings, both of which had limited expressiveness to represent the complexities of language,” says Alex Wong, co-founder and chief scientist at DarwinAI.

The new technique uses a transformer, a type of deep learning algorithm that has become popular in the past couple of years. Transformers are used in state-of-the-art language models such as GPT-2 and Meena. Though transformers still suffer from the fundamental flaws, they are much better than their predecessors in handling large corpora of text.

Transformers use special techniques to find the relevant bits of information in a sequence of bytes instead. This enables them to become much more memory-efficient than other deep learning algorithms in handling large sequences. Transformers are also an unsupervised machine learning algorithm, which means they don’t require the time- and labor-intensive data-labeling work that goes into most contemporary AI work.

“The beauty of bidirectional transformer language models is that they allow very large text corpuses to be used to obtain a rich, deep understanding of language,” Wong says. “This understanding can then be leveraged to facilitate better decision-making when it comes to the problem of stance detection.”

Transformers come in different flavors. The University of Waterloo researchers used a variation of BERT (RoBERTa), also known as deep bidirectional transformer. RoBERTa, developed by Facebook in 2019, is an open-source language model.

Transformers still require very large compute resources in the training phase (our back-of-the-envelope calculation of Meena’s training costs amounted to approx. $1.5 million). Not everyone has this kind of money to spare. The advantage of using ready models like RoBERTa is that researchers can perform transfer learning, which means they only need to fine-tune the AI for their specific problem domain. This saves them a lot of time and money in the training phase.

“A significant advantage of deep bidirectional transformer language models is that we can harness pre-trained models, which have already been trained on very large datasets using significant computing resources, and then fine-tune them for specific tasks such as stance-detection,” Wong says.

Using transfer learning, the University of Waterloo researchers were able to fine-tune RoBERTa for stance-detection with a single Nvidia GeForce GTX 1080 Ti card (approx. $700).

The stance dataset

For stance detection, the researchers used the dataset used in the Fake News Challenge (FNC-1), a competition launched in 2017 to test and expand the capabilities of AI in detecting online disinformation. The dataset consists of 50,000 articles as training data and a 25,000-article test set. The AI takes as input the headline and text of an article, and outputs the stance of the text relative to the headline. The body of the article may agree or disagree with the claim made in the headline, may discuss it without taking a stance, may be unrelated to the topic.

The RoBERTa-based stance-detection model presented by the University of Waterloo researchers scored better than the AI models that won the original FNC competition as well as other algorithms that have been developed since.

Fake News Challenge (FNC-1) results: The first three rows are the language models that won the original competition (2017). The next five rows are AI models that have been developed in the following years. The final row is the transformer-based approach proposed by researchers at the University of Waterloo.

To be clear, developing AI benchmarks and evaluation methods that are representative of the messiness and unpredictability of the real world is very difficult, especially when it comes to natural language processing.

The organizers of FNC-1 have gone to great lengths to make the benchmark dataset reflective of real-world scenarios. They have derived their data from the Emergent Project, a real-time rumor tracker created by the Tow Center for Digital Journalism at Columbia University. But while the FNC-1 dataset has proven to be a reliable benchmark for stance detection, there is also criticism that it is not distributed enough to represent all classes of outcomes.

“The challenges of fake news are continuously evolving,” Wong says. “Like cybersecurity, there is a tit-for-tat between those spreading misinformation and researchers combatting the problem.”

The limits of AI-based stance detection

One of the very positive aspects of the work done by the researchers of the University of Waterloo is that they have acknowledged the limits of their deep learning model (a practice that I wish some large AI research labs would adopt as well).

For one thing, the researchers stress that this AI system will be one of the many pieces that should come together to deal with fake news. Other tools that need to be developed in the area of gathering documents, verifying their reputation, and making a final decision about the claim in question. Those are active areas of research.

The researchers also stress the need to integrate AI tools into human-controlled procedures. “Provided these elements can be developed, the first intended end-users of an automated fact-checking system should be journalists and fact-checkers. Validation of the system through the lens of experts of the fact-checking process is something that the system’s performance on benchmark datasets cannot provide,” the researchers observe in their paper.

The researchers explicitly warn about the consequences of blindly trusting machine learning algorithms to make decisions about truth. “A potential unintended negative outcome of this work is for people to take the outputs of an automated fact-checking system as the definitive truth, without using their own judgment, or for malicious actors to selectively promote claims that may be misclassified by the model but adhere to their own agenda,” the researchers write.

Image credit: Depositphotos

This is one of many projects that show the benefits of combining artificial intelligence and human expertise. “In general, we combine the experience and creativity of human beings with the speed and meticulousness afforded by AI. To this end, AI efforts to combat fake news are simply tools that fact-checkers and journalists should use before they decide if a given article is fraudulent,” Wong says. “What an AI system can do is provide some statistical assurance about the claims in a given news piece.  That is, given a headline, they can surface that, for example, 5,000 ‘other’ articles disagree with the claim whereas only 50 support it. Such as distinction would serve a warning to the individual to doubt the veracity of what they are reading.”

One of the central efforts of DarwinAI, Wong’s company, is to tackle AI’s explainability problem. Deep learning algorithms develop very complex representations of their training data, and it’s often very difficult to understand the factors behind their output. Explainable AI aims to bring transparency to deep learning decision-making. “In the case of misinformation, our goal is to provide journalists with an understanding of the critical factors that led to a piece of news being classified as fake,” Wong says.

The team’s next step is to tackle reputation-assessment to validate the truthfulness of an article through its source and linguistics characteristics.

Source: https://thenextweb.com/neural/2020/03/14/this-stance-detecting-ai-will-help-us-fact-check-fake-news-syndication/

Synthetic media: The real trouble with #deepfakes – SPONSOR: Datametrex AI Limited $DM.ca

Posted by AGORACOM-JC at 5:22 PM on Monday, March 16th, 2020

SPONSOR: Datametrex AI Limited (TSX-V: DM) A revenue generating small cap A.I. company that NATO and Canadian Defence are using to fight fake news & social media threats. The company announced three $1M contacts in Q3-2019. Click here for more info.

Synthetic media: The real trouble with deepfakes

By M. Mitchell Waldrop

  • The snapshots above look like people you’d know. Your daughter’s best friend from college, maybe? That guy from human resources at work? The emergency-room doctor who took care of your sprained ankle? One of the kids from down the street?
  • “Deepfakes play to our weaknesses,” explains Jennifer Kavanagh, a political scientist at the RAND Corporation and coauthor of “Truth Decay,”

Nope. All of these images are “deepfakes” — the nickname for computer-generated, photorealistic media created via cutting-edge artificial intelligence technology. They are just one example of what this fast-evolving method can do. (You could create synthetic images yourself at ThisPersonDoesNotExist.com.) Hobbyists, for example, have used the same AI techniques to populate YouTube with a host of startlingly lifelike video spoofs — the kind that show real people such as Barack Obama or Vladimir Putin doing or saying goofy things they never did or said, or that revise famous movie scenes to give actors like Amy Adams or Sharon Stone the face of Nicolas Cage. All the hobbyists need is a PC with a high-end graphics chip, and maybe 48 hours of processing time.

It’s good fun, not to mention jaw-droppingly impressive. And coming down the line are some equally remarkable applications that could make quick work out of once-painstaking tasks: filling in gaps and scratches in damaged images or video; turning satellite photos into maps; creating realistic streetscape videos to train autonomous vehicles; giving a natural-sounding voice to those who have lost their own; turning Hollywood actors into their older or younger selves; and much more.

Deepfake artificial-intelligence methods can map the face of, say, actor Nicolas Cage onto anyone else — in this case, actor Amy Adams in the film Man of Steel.

Yet this technology has an obvious — and potentially enormous — dark side. Witness the many denunciations of deepfakes as a menace, Facebook’s decision in January to ban (some) deepfakes outright and Twitter’s announcement a month later that it would follow suit.

“Deepfakes play to our weaknesses,” explains Jennifer Kavanagh, a political scientist at the RAND Corporation and coauthor of “Truth Decay,” a 2018 RAND report about the diminishing role of facts and data in public discourse. When we see a doctored video that looks utterly real, she says, “it’s really hard for our brains to disentangle whether that’s true or false.” And the internet being what it is, there are any number of online scammers, partisan zealots, state-sponsored hackers and other bad actors eager to take advantage of that fact.

“The threat here is not, ‘Oh, we have fake content!’” says Hany Farid, a computer scientist at the University of California, Berkeley, and author of an overview of image forensics in the 2019 Annual Review of Vision Science. Media manipulation has been around forever. “The threat is the democratization of Hollywood-style technology that can create really compelling fake content.” It’s photorealism that requires no skill or effort, he says, coupled with a social-media ecosystem that can spread that content around the world with a mouse click.

Source: https://www.knowablemagazine.org/article/technology/2020/synthetic-media-real-trouble-deepfakes

INTERVIEW: Datametrex $DM- The Small Cap #AI Company That NATO And Canadian Defence Are Using To Fight Fake News & Social Media Threats

Posted by AGORACOM-JC at 7:00 PM on Sunday, March 15th, 2020

Until now, investor participation in Artificial Intelligence has been the domain of mega companies and those funded by Silicon Valley.  Small cap investors can finally consider participating in the great future of A.I. through Datametrex AI (DM: TSXV) (Soon To Be Nexaology) who has achieved the following over the past few months:

  • Q3 Revenues Of $1.6 million,  an increase of 186%
  • 9 Month Revenues Of $2.56M an increase of 37%
  • Repeat Contracts Of $1M and $600,000 With Korean Giant LOTTE   
  • $954,000 Contract With Canadian Department of Defence To Fight Social Media Election Meddling
  • Participation In NATO Research Task Group On Social Media Threat Detection 

When a small cap Artificial Intelligence company is successfully deploying its technology with military and conglomerates, smart investors have to take a closer look.   That look can begin with our latest interview of Datametrex CEO, Marshall Gunter, who talks to us about the use of the Company’s Artificial Intelligence to discover and eliminate US Presidential election meddling.  The fake news isn’t just targeting candidates specifically, it also targets wedge issues such as abortion cases now before the US Supreme Court and even the Coronavirus.   Watch this interview on one of your favourite screens or hit play and listen to the audio as you drive. 

Democracy Labs uses Datametrex AI $DM.ca #Nexalogy Tech to Study #Coronavirus Misinformation

Posted by AGORACOM-JC at 7:35 AM on Thursday, March 12th, 2020
  • Announce that Democracy Labs successfully used Nexalogy’s technology to monitor #covid19 and #coronavirus to identify misinformation campaigns and Fake News
  • Democracy Labs is a US based organization providing a hub for ongoing technology and creative innovation that serves progressive campaigns and organizations at the national, state, and local levels.

TORONTO, March 12, 2020 — Datametrex AI Limited (the “Company” or Datametrex”) (TSXV: DM) (FSE: D4G) is pleased to announce that Democracy Labs successfully used Nexalogy’s technology to monitor #covid19 and #coronavirus to identify misinformation campaigns and Fake News. Democracy Labs is a US based organization providing a hub for ongoing technology and creative innovation that serves progressive campaigns and organizations at the national, state, and local levels. In addition to misinformation about Covid-19 DemLabs has also used Nexalogy tech to examine Islamophobia against U.S. Representative Rashida Tlaib.

Key takeaways:

  • 450,000 tweets analyzed from March 1st through 4th using hashtag #covid19
  • Russia Today suggested that the U.S.A. primaries be cancelled and was promoted by BOTS

Results of these campaigns can be found by clicking the attached links:

https://insights.nexalogy.com/democracy-labs-uses-nexalogy-tech-to-study-coronavirus-misinformation-b88ea13c4bed
https://nexalogy.com/insights/keep-an-eye-on-trolls-activity-and-report-harassment-to-twitter/

About Datametrex

Datametrex AI Limited is a technology focused company with exposure to Artificial Intelligence and Machine Learning through its wholly owned subsidiary, Nexalogy (www.nexalogy.com).

For further information, please contact:

Jeff Stevens
Email: [email protected]Phone: 647-777-7974

Forward-Looking Statements

This news release contains “forward-looking information” within the meaning of applicable securities laws.  All statements contained herein that are not clearly historical in nature may constitute forward-looking information. In some cases, forward-looking information can be identified by words or phrases such as “may”, “will”, “expect”, “likely”, “should”, “would”, “plan”, “anticipate”, “intend”, “potential”, “proposed”, “estimate”, “believe” or the negative of these terms, or other similar words, expressions and grammatical variations thereof, or statements that certain events or conditions “may” or “will” happen, or by discussions of strategy.

Readers are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking information. The forward-looking information contained herein is made as of the date of this press release and is based on the beliefs, estimates, expectations and opinions of management on the date such forward-looking information is made. The Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, estimates or opinions, future events or results or otherwise or to explain any material difference between subsequent actual events and such forward-looking information, except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

INTERVIEW: Datametrex $DM.ca – The Small Cap #A.I. Company Governments Use To Fight Fake News & Election Meddling

Posted by AGORACOM-JC at 5:01 PM on Wednesday, March 11th, 2020

Until now, investor participation in Artificial Intelligence has been the domain of mega companies and those funded by Silicon Valley.  Small cap investors can finally consider participating in the great future of A.I. through Datametrex AI (DM: TSXV) (Soon To Be Nexaology) who has achieved the following over the past few months:

  • Q3 Revenues Of $1.6 million,  an increase of 186%
  • 9 Month Revenues Of $2.56M an increase of 37%
  • Repeat Contracts Of $1M and $600,000 With Korean Giant LOTTE   
  • $954,000 Contract With Canadian Department of Defence To Fight Social Media Election Meddling
  • Participation In NATO Research Task Group On Social Media Threat Detection 

When a small cap Artificial Intelligence company is successfully deploying its technology with military and conglomerates, smart investors have to take a closer look.   That look can begin with our latest interview of Datametrex CEO, Marshall Gunter, who talks to us about the use of the Company’s Artificial Intelligence to discover and eliminate US Presidential election meddling.  The fake news isn’t just targeting candidates specifically, it also targets wedge issues such as abortion cases now before the US Supreme Court and even the Coronavirus.   Watch this interview on one of your favourite screens or hit play and listen to the audio as you drive. 

Empower Clinics $EPW.ca gleans key patient insights from its artificial intelligence pilot program $WEED.ca $CGC $ACB $APH $CRON.ca $HEXO.ca $TRST.ca $OGI.ca

Posted by AGORACOM-JC at 8:57 PM on Tuesday, March 19th, 2019
  • Company is working with Canntop AI to identify insights for improvements to physician recommended treatment plans
  • “Insights derived from artificial intelligence are beginning to demonstrate how patients in our key markets are talking about or describing their experience and ideas related to cannabis/CBD-based treatments, and even suggesting recommendations about alternative therapies and their effectiveness in treating a wide array of qualifying conditions,” Empower CEO Steven McAuley said in a statement.

Empower owns and operates a vast network of physician-staffed clinics focused on helping patients through medical cannabis

Empower Clinics Inc (OTCMKTS:EPWCF) (CSE:EPW) told investors Tuesday that the artificial intelligence tools supplied by Canntop AI, a subsidiary of Datametrex AI Limited, was helping the medical cannabis company sift through mountains of data to create “actionable insights,” with the aim of improving patient care.

“Insights derived from artificial intelligence are beginning to demonstrate how patients in our key markets are talking about or describing their experience and ideas related to cannabis/CBD-based treatments, and even suggesting recommendations about alternative therapies and their effectiveness in treating a wide array of qualifying conditions,” Empower CEO Steven McAuley said in a statement.

The Vancouver cannabis company said it provided crucial SEO terms and phrases which Canntop integrated into the artificial intelligence platform so Empower could get more insights about its two largest markets in Portland and Phoenix. The whole idea rests on gaining “actionable insights” on how consumer social data is generating interest in CBD-based products, alternative pain management, and the use of cannabis-based therapies, said the company. 

“We believe the outcomes of our AI efforts, if successful, could position the company as an educational leader,” said McAuley. “We plan to collaborate with the industry with the ultimate goal of improving patient care.”

Artificial intelligence eliminates tedious data-sorting chores, and with machines using algorithms, it give them superhuman learning powers. Ultimately, AI gives companies like Empower, the tools to make faster, more accurate decisions after acquiring information about patients.

Powerful AI tools change the equation

“Canntop’s powerful AI tools are helping us analyze the substantial amounts of data in the Empower database and we expect will facilitate the integration of the additional data we expect to derive from the proposed acquisition of the Sun Valley Clinic group, that has a combined 165,000 patients,” said McAuley.

Empower has struck a non-binding deal to acquire the business of the Sun Valley Holdings, which operates a network of medical cannabis and pain management practices, with clinics in Arizona and Las Vegas as well as a tele-medicine platform serving California.

Empower utilizes a patient electronic management system that is HIPAA compliant and provides deep insight to patient care. The company’s tele-medicine platform also supports remote patients who use its portal when they are unable to come to a location, but still benefit from a doctor consultation.

“We are thrilled that Empower chose Canntop AI to be their partner for their artificial Intelligence needs. This is a great validation for our business model,” said Michael Frank, Chief Strategy Officer at Datametrex. “We believe this alliance between Canntop and Empower will create a strong platform for data analysis in the cannabis sector especially in the US, providing insurers and health care providers an ideal solution for patient care.”

Empower is a leading owner and operator of a network of physician-staffed clinics focused on helping patients improve their health through the use of medical cannabis.

Separately, Empower has also started selling its own line of CBD-based products called Sollievo via its network of company-owned clinics in the US. The offerings include CBD lotion, tinctures, spectrum oils, capsules, lozenges, patches, topical lotions, gel caps, e-drinks, hemp extract drops and pet elixir hemp extract drops.

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

Source: https://ca.proactiveinvestors.com/companies/news/216765/empower-clinics-gleans-key-patient-insights-from-its-artificial-intelligence-pilot-program-216765.html

ThreeD Capital Inc. $IDK.ca Acquires Securities of GoldSpot Discoveries Corp. $NSM.ca $PEEK.ca $CKR.ca $ZC.ca $PNP.ca $VQS.ca $NXJ.ca $KXS.ca $PFM.ca $HIVE.ca $BLOC.ca $CODE.ca

Posted by AGORACOM-JC at 12:34 PM on Monday, February 11th, 2019
  • Announce that it has acquired ownership and control of an aggregate of 10,883,764 common shares of GoldSpot Discoveries Corp. on February 8, 2019. 
  • The Subject Shares represented approximately 11.5% of all issued and outstanding common shares of the Company as of February 9, 2019 immediately following the transaction described above.

TORONTO, Feb. 11, 2019 — ThreeD Capital Inc. (“ThreeD” or “the Acquirer”) (CSE:IDK), a Canadian-based venture capital firm focused on investments in promising, early stage companies and ICOs with disruptive capabilities, is pleased to announce that it has acquired ownership and control of an aggregate of 10,883,764 common shares (the “Subject Shares”) of GoldSpot Discoveries Corp. (the “Company”) on February 8, 2019.  The Subject Shares represented approximately 11.5% of all issued and outstanding common shares of the Company as of February 9, 2019 immediately following the transaction described above. Neither the Acquirer nor any of its joint actors otherwise own any securities of the Company.

The Subject Shares were acquired pursuant to a business combination transaction of which the security holders of GoldSpot Discoveries Inc. completed a reverse takeover of the Company (formerly Duckworth Capital Corp.) and not through the facilities of any stock exchange.  The Subject Shares were acquired in connection with the transaction are subject to a Tier 1 Value Escrow Agreement as required by the TSX Venture Exchange (the “TSXV”).  The Subject Shares shall be released in accordance with such escrow agreement as follows: 25% release on the date of the TSXV bulletin approving the transaction; 25% released six months after the date of the bulletin; 25% released twelve months after the date of the bulletin; and 25% released eighteen months after the date of the bulletin. The common shares of the Company are expected to resume trading on the TSXV under the symbol “SPOT” at a date to be approved by the TSXV and announced by the Company.

The holdings of securities of the Company by ThreeD are managed for investment purposes, and ThreeD could increase or decrease its investments in the Company at any time, or continue to maintain its current investment position, depending on market conditions or any other relevant factor.

The trade was effected in reliance upon the exemption contained in Section 2.3 of National Instrument 45-106 on the basis that ThreeD is an “accredited investor” as defined herein.  A copy of the applicable securities report filed in connection with the matters set forth above may be obtained by contacting the Company at 69 Yonge St., Suite 1010, Toronto, ON, M5E 1K3, Attention: Denis Laviolette, President and CEO (tel: 641-992-9837).

About ThreeD Capital Inc.

ThreeD is a publicly-traded Canadian-based venture capital firm focused on opportunistic investments in companies in the Junior Resources, Artificial Intelligence and Blockchain sectors.  ThreeD seeks to invest in early stage, promising companies and ICOs where it may be the lead investor and can additionally provide investees with advisory services, mentoring and access to the Company’s ecosystem.

For further information:
Gerry Feldman, CPA, CA
Chief Financial Officer and Corporate Secretary
[email protected]
Phone: 416-941-8900 ext 106

This #AI Company Is the Future of #Gold Exploration $IDK.ca

Posted by AGORACOM-JC at 8:53 AM on Monday, February 11th, 2019

February 8, 2019

Press Release: U.S. Global Investors Announces Quarterly Results Webcast

By Frank Holmes
CEO and Chief Investment Officer
U.S. Global Investors

Gold mining is one of the very oldest human occupations. The earliest known underground gold mine, in what is now the country of Georgia, dates back at least 5,000 years, when people were just starting to develop written language.

Over the centuries, a number of innovations have emerged that disrupted and forever changed how we explore and mine for gold and other metals. Think dynamite, or the steam engine.

Lately, however, innovation has slowed. Mining companies are in cost-cutting mode, and many producers have favored generating short-term cash flow, often to the detriment of longer-term value. In last year’s “Tracking the Trends” report, Deloitte analysts observed that “miners from 50 years ago would find little has changed if they entered today’s mines, a situation that certainly doesn’t hold true in other industries.”


click to enlarge

Consider the earth-shattering change that’s taken place in oil and gas over the past two decades. Fracking and horizontal drilling have completely revolutionized how we extract resources from the ground, making hard-to-reach oil and natural gas accessible for the first time.

No equivalent technology exists in precious metals. Some companies are now using cutting-edge technology like blockchain to improve supply chain efficiency and transparency, but to date there’s no “gold fracking” method. As a result, metal ore grades are decreasing, and large-scale gold discoveries are becoming fewer and farther between.

One company thinks it has the formula to reverse this trend. I think it could be sitting on a gold mine, pun fully intended.

Meet Goldspot Discoveries

“Some people call it ‘peak gold,’ but I tend to think of it more as ‘peak discovery,’” says Denis Laviolette, the brains behind Goldspot Discoveries, a first-of-its-kind quant shop that aims to use artificial intelligence (AI) and machine learning to revolutionize the mineral exploration business.

A geologist by trade, Denis conceived of Goldspot while serving as a mining analyst with investment banking firm Pinetree Capital. His vision, as he described it to me, was to disrupt mineral exploration as profoundly as Amazon disrupted retail and Uber the taxi business.

“We have more data at our fingertips than ever before, yet new discoveries have been on the decline despite ever increasing exploration spending on data collection,” Denis continues. “We believe Goldpsot can change that. Harnessing a mountain’s worth of historic and current global mining data, AI can identify patterns necessary to fingerprint geophysical, geochemical, lithological and structural traits that correlate to mineralization. Advances in AI, cloud computing, open source algorithms, machine learning and other technologies have made it possible for us to aggregate all this data and accurately target where the best spots to explore are.”

Hence the name Goldspot—though I should point out that Denis considers the Montreal-based company “commodity agnostic,” meaning it collects and aggregates data for all metals, including base metals, not just gold.

Moneyball for Mining

Denis has the record to back up his extraordinary claims. In 2016, Goldspot took second place in the Integra Gold Rush Challenge, a competition with as many as 4,600 worldwide applicants. After consolidating more than 30 years of historical mining and exploration data into a 3D geological model, the company was able to identify several target zones with the highest potential for gold mineralization in Nevada’s Jerritt Canyon district, among several others.

Goldspot’s targeting approach was a complete success. New zones were discovered by AI, validating the company’s models of finding patterns in the data that humans alone couldn’t have seen.

The exercise stands as an example of what can be unlocked when machine learning is applied to geoscience.

“When I first entered the field, geologists were still using pen and paper, and I’m not even that old,” Denis says. “We were paying for all this data, but no one was really doing anything with it.”

Denis’ quant approach to discovery reminds me a lot of Billy Beane, the former general manager of the Oakland A’s and subject of the 2003 bestseller and 2011 film Moneyball. Beane was among the first in sports to pick players, many of them overlooked and undervalued, based on quantitative analysis. His strategy worked better than anyone anticipated.

Although the A’s had one of the lowest combined salaries in Major League Baseball—only the Washington Nationals and Tampa Bay Rays had lower salaries—the team finished the 2002 season first in the American League West.

Similarly, Goldspot seeks to help mining companies cut some of the costs and risks associated with discovering high-quality deposits—something it’s managed to do for a number of its clients and partners, including Hochschild Mining, McEwen Mining and Yamana Gold.

And speaking of teams, Denis has assembled an impressive roster of PhDs and experts in geology, physics, data science and other fields.

But Wait, There’s More…

The company, not yet three years old, does more than assist in exploration. It also invests in and acquires royalties from exploration companies, similar to the business model practiced by successful firms such as Franco-Nevada, Wheaton Precious Minerals, Royal Gold and others.>

The difference, though, is that Goldspot has developed an AI-powered screening platform to identify the very best and potentially most profitable investment opportunities.

For this, Goldspot has also received accolades. It was one of only five finalists in Goldcorp’s 2017 #DisruptMining challenge, for “revolutionizing the investment decision model by using the Goldspot Algorithm to stake acreage, acquire projects and royalties, and invest in public vehicles to create a portfolio of assets with the greatest reward to risk ratio.”

I’ll certainly have more to say about Goldspot in the coming weeks. For now, I’m excited to share with you that the company is scheduled to begin trading on the TSX Venture Exchange early next week. The future belongs to those that can mine data and harness the power of AI, and I’m convinced that what Denis and his partners have created fits that bill. Congratulations, and the best of luck to Denis Laviolette and Goldspot Discoveries!