Strategy

Due

Dilligence

One of the biggest risks to a project is not understanding the quality of the geological data and the associated geological risks.

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)

Understand Your Geological And Resource Estimation

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.

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:

 

  1. Conduct a thorough examination of the geographical and geological characteristics of the asset under consideration to understand its potential value and associated risks.
  2. 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.
  3. Analyse the market for the asset, including supply and demand dynamics, pricing, and competition, to understand profit potential and market risks.
  4. Assess the technical and operational feasibility of extracting and developing the asset, identifying operational risks and potential opportunities for development.
  5. 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.

The Goal of Geological Due Diligence

 The goal of geological due diligence is to validate and verify all claims made about a specific deposit. This step is crucial when considering the acquisition of a geological or mining project. History has shown the importance of conducting proper due diligence, as demonstrated by the Bre-X scandal that had a profound impact on the mining and reporting industry. Before making any mining or exploration investment, regardless of size, a thorough due diligence process must be undertaken to ensure accurate and truthful data representation, providing decision-makers with a realistic view of the project.

The goal of a geological due diligence

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.

Before making any mining or exploration investment, big or small, and before making any final decisions, a proper due diligence must be performed. Decision makers need to ensure the data they are basing their decisions on is accurate and truthful, and that it represents the project in a realistic manner.

MINROM’s team of geologists utilises cutting-edge technology and software to provide precise geological data and analyses. With our expertise and advanced tools, we deliver accurate and reliable geological information to support informed decision-making in the due diligence process.

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