Geological and economic assessment

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Geological and economic assessment

Holders of a special permit for the use of subsoil must undergo an examination and protection of reserves by the State Commission of Ukraine on Mineral Resources (SCMR), which is carried out on the basis of a report (geological survey) before starting extraction of mineral resources.

The final result of the examination by the State Commission of Ukraine on Mineral Resources is the Protocol, which the subsoil user receives.

What geological and economic assessment is?

The geological and economic assessment of mineral deposits is a professional report on the basis of which the state expertise and assessment of mineral resources of prospective areas and already explored deposits is carried out.

The geological and economic assessment systematically demonstrates the results of geological exploration, feasibility studies and the amount of mineral reserves/resources. In addition to the state examination, the geological and economic assessment is used to inform investors and potential investors and their advisers about deposits or subsoil areas.

What are the types of geological and economic assessment?

Depending on the geological exploration of the subsoil/investment object, one of three geological and economic assessments is carried out:

Initial geological and economic assessment (GEO-3);
Preliminary geological and economic assessment (GEO-2);

Detailed geological and economic assessment (GEO-1);
Repeated geological and economic assessment.

Initial geological and economic assessment (GEO-3) is an initial assessment of promising subsoil areas with the potential for discovering new mineral deposits. The geological data collected in previous years and, if available, previously explored reserves and resources are used to conduct the GEO-3. GEO-3 is usually performed by a comparative method, based on analogy with known commercial deposits or customer specifications. GEO-3 includes a limited amount of geological information about the subsoil area and technical and economic considerations. Its main purpose is to demonstrate the full potential of the subsoil area under study.

Preliminary geological and economic assessment (GEO-2) of deposits is carried out as an initial stage of geological exploration work in the presence of a special permit for geological exploration, including pilot development, of mineral resources with subsequent extraction of mineral resources. It includes a technical and economic report, a preliminary deposit development plan, technological testing of the mineral, beneficiation technology, and estimated reserves. Results (GEO-2) are the first accurate information about the subsoil area/investment object that will be seen by company executives and the State Commission of Ukraine for Mineral Reserves. Depending on the information presented in the GEO-2, further decisions will be made on the feasibility of continuing the project.

Detailed geological and economic assessment (GEO-1) is the final study of the deposit. A GEO-1 covers the same number of sections as a GEO-2, but provides a more accurate assessment and a more detailed report. The detailed geological and economic assessment is based on the measured mineral reserves and includes a feasibility study, taking into account the results of the pilot development. Its main goal is to eliminate all material uncertainties and present relevant information in an accessible form, on the basis of which the investor will make decisions on the development of the project.

Repeated geological and economic assessment of mineral reserves is carried out for deposits whose mineral reserves have been previously approved bythe State Commission of Ukraine on Mineral Resources (SCMR), but which have changed as a result of operation or changes in the requirements of standards for the quantity and quality of minerals.

Geological and economic assessment is carried out for all types of mineral deposits, including combustible, metallic, non-metallic minerals and underground water

Geological and economic assessment of fossil fuel deposits allows us to establish their economic feasibility and the possibility of their development. It includes assessment of qualitative and quantitative indicators, calculation of reserves, and technical and economic assessment. Fossil fuels include coal, peat, oil and gas, which are of great importance in the country's energy sector.

Geological and economic assessment of metallic mineral deposits is an important stage in the study of subsoil to determine its suitability for industrial exploitation. This assessment involves geological and economic studies to determine the size of the deposit, the quality of the mineral, the amount of reserves, and a technical and economic assessment. Metallic minerals include, for example, iron, aluminium, silver and titanium ores, which are of great importance for industry.

Geological and economic assessment of non-metallic mineral deposits is an important stage in planning activities in this area. Determining the qualitative characteristics of a mineral, the amount of reserves, the size of deposits and their economic potential helps to ensure optimal rational exploitation of deposits. Non-metallic minerals include, for example, table salt, gypsum, quartz and other minerals that are of great importance for industry and human use. The geological and economic assessment of groundwater deposits is an important task for providing water resources to the population and industry. It includes assessment of water quality and quantity, determination of reserves and their use.

How can we help?

In Ukraine, geological and economic assessment is carried out and regulated by the relevant legislation. In particular, Resolution of the Cabinet of Ministers of Ukraine №865 dated 30.03.2018 "On Approval of the Regulation on the Procedure for Conducting State Expert Evaluation and Assessment of Mineral Reserves".

The company Geological Investment Group LLC employs experienced geologists, ecologists and lawyers who provide comprehensive support for subsoil users. Our team reliably supports every stage of your production activities.

Among our services geological and economic assessment, which is carried out at all stages of subsoil exploration, including during geological exploration, including feasibility studies, development of deposits and subsoil areas, and estimation of reserves/resources.

When you contact us for a service of geological and economic assessment of reserves, you can rest assured. After all, we develop the entire range of measures for the assessment of mineral reserves: from the development of the Report to its protection in the State Committee of Ukraine on Geological Reserves.