Mining is a risky business, which means that to ensure the most value for investors, mining, development and exploration companies need to work on reducing that risk. Looking specifically at the junior resource sector, some companies choose to adopt the prospect generator model, which works to reduce some of the uncertainty involved in resource exploration. The role of a prospect generator is to identify properties that it thinks are prospective, and then completes early stage exploration on its own. Later, if the project is indeed promising, the prospect generator will seek a joint venture partner that is often older and has more significant working capital. The larger company then pays for further drilling and exploration work, which is more expensive, in exchange for a share of the project, John Kaiser explained in a 2013 interview with Resource Investing News. "What [the prospect generator model] does is it recognizes the real low odds of success on any individual prospect and vends that risk off to somebody with more money, or at least [the guts], to spend it and see if there's something there," Brent Cook, a geologist with the newsletter Exploration Insights, told Mining Markets. "It keeps shareholder dilution to a minimum, and eventually what happens is when a company does make a discovery — if they do — as shareholders, we get a bigger lift in share price, although we don't necessarily own all the deposit." Prospect generation is fairly common, especially for junior resource exploration companies. Their work involves very basic geological tasks like research and compilation, as well as low-level fieldwork like sampling, prospecting and mapping. Of course, that means to succeed prospect generators must have talented geologists and support staff on board. Often, the largest expense for a project generator is logistics and support, as many potential projects are located in developing countries that may not have much infrastructure. In terms of joint venture agreements, prospect generator companies generally surrender between 51 and 70 percent of their projects to partners. The prospect generator serves as a temporary operator in many cases, as it has already begun exploration on the site and has staff familiar with the lay of the land. Usually, companies are paid a fee of 10 percent of the budget for rendering these particular services. At some point, the prospect generator begins to be obligated to fund its own share of exploration and development — or only earn royalties from the project.