DUE DILIGENCE
Make geology investment decisions based on accurate and truthful data
Proper due diligence is essential for the success of any geology project. It allows investors to make well-informed decisions using accurate and reliable data that accurately reflects the project, thereby reducing potential losses and increasing ROI. That’s why investors turn to trusted experts like Minrom before committing to a mining or exploration project.
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Minrom's due diligence service offerings
- Independent Due Diligence of Exploration Projects and Operating Mines
- Technical geological due diligence
- Review of mineral tenement status
- Mineral resource audit reports
- Audit sampling databases, geological models and resource statements
- Project review & ranking for proposed investors (NPV, IRR, other criteria)
A proper exploration strategy based on a mineralisation model should dictate all aspects of an exploration programme. Developing an exploration strategy with defined results-driven phases can make the difference between a successful or a failed project.
The goal of a geological due diligence is to validate and verify all the claims made about a specific deposit. This is a very important step when looking at acquiring a geological or mining project. If you have any doubts about whether it is worth the expenditure, think of the Bre-X scandal that changed the world of mining and reporting.
A proper understanding of the geology and resource estimation is essential to mitigate risks and make informed investment decisions. Our due diligence process ensures that calculations regarding mineral resources, estimation methods, and resource classification are rigorously reviewed. This helps investors identify any discrepancies or red flags, potentially saving them from significant financial losses.
Steps to identify resource risks and opportunities
As a counselling organisation, it is crucial to identify both resource risks and potential opportunities. To accomplish this, we recommend the following steps:
- Conduct a thorough examination of the geographical and geological characteristics of the asset under consideration to understand its potential value and associated risks.
- Evaluate the regulatory and legal environment in which the asset is located to identify potential barriers to development and assess the impact of regulations on the asset’s value.
- Analyse the market for the asset, including supply and demand dynamics, pricing, and competition, to understand profit potential and market risks.
- Assess the technical and operational feasibility of extracting and developing the asset, identifying operational risks and potential opportunities for development.
- Consider the environmental and social impact of asset development, assess risks associated with environmental and social issues, and identify opportunities for sustainable development.
By conducting a comprehensive analysis of these factors, you can identify resource risks and valuable opportunities. It is essential to stay updated on industry trends, consult with experts, and make informed decisions based on accurate information.
