From Exploration to Reserves: Six Core Keys to Mining Geological Due Diligence

Mining geological due diligence is the “safety valve” before cross-border mining M&A and investment decisions. Drawing on JORC and NI 43-101 practice, Suntrans’ advisory team distils six core keys from exploration to reserves to help clients see through resource reality and defend the value floor.

First, a comprehensive judgement of reserve truthfulness and reliability — independently, objectively assessing the credibility, risks and technical padding of resources/reserves to avoid overstated resources and understated costs.

Second, geological and engineering risk identification — verifying continuity, grade distribution, hydrology and engineering geology, and catching gaps between “paper reserves” and the field.

Third, value-floor assessment — judging real techno-economic value via minability, metallurgical recovery, infrastructure and market, not just nominal resources.

Fourth, data quality and QA/QC audit — auditing sampling, assaying and database build so model inputs are trustworthy.

Fifth, tenure and legal-compliance checks — verifying licence validity, legacy defects, community and environmental obligations to avoid hidden costs.

Sixth, environment and ESG assessment — embedding rehabilitation, community and carbon constraints to pre-identify long-term operating risk. Neglecting any link can bury a liability at the starting line.