What geological audit means ?
A geological audit is considered an integral stage in the selection of a subsoil area or mineral deposit for investment. At the same time, the geological audit is an important element when preparing a company for an inspection by the State Geological Control.
In both cases, the audit minimizes risks and negative consequences. In the first case, a geological audit is an assessment of the geological risks and opportunities of a project in order to make an investment decision, including an assessment of the potential content and quality of minerals, the geological structure of the site and geotechnical aspects.
Collection and analysis of available geological data and project resources, such as exploration history, geological maps, cross sections, geophysical data, reserve estimation reports, etc. that indicate the geological structure and structure of the study area.
Preparation of information on the balance sheet reserves of minerals accounted for in the State Balance Sheet of Mineral Reserves of Ukraine.
Assessment of potential mineral reserves at the site, including determination of the quantity of reserves, quality of minerals and their localization.
Analysis of logistics routes and the nearest potential consumers of products.
Assessment of the economic potential of resources, prospects for their use and manufacture of products from them.
Determination of the cost of geological exploration and geological and economic assessment of the deposit's reserves.
Analysis of existing restrictions on geological exploration and development of the subsoil site, such as environmental and water protection zones, coastal protection zones, sanitary protection zones, presence of pipelines and wells on the subsoil site that are not marked on maps or in the auction documentation.
Analysis of potential competitive subsoil users.
Why is it necessary to conduct a geological audit?
The advantages of geological audit are that it helps to reduce the risks associated with the area under study and makes it possible to ensure the rational use of resources. These factors, in turn, can help increase production efficiency and ensure greater profitability of geological projects.
In addition, geological audit is an important element of decision-making in the field of geology and mineral development, which helps to reduce investment risks and increase the return on investment.
Geological audit procedure: what should you know?
A geological audit of a mining company is a comprehensive review of its geological activities and available documentation in accordance with applicable law in order to identify potential risks and issues that may affect its financial condition, reputation and legal liability.
Collecting information about the company and its beneficial owners.
Analysis the current data of the Special Permit, the status of implementation of the Special Conditions and the Work Program.
Analysis of the field development status, project documents and recommendations of the State Commission of Ukraine on Mineral Resources protocol.
Analysis of land and mining allotments.
Checking the company's compliance with environmental legislation.
Analysis of related permits.
Providing recommendations and support to eliminate identified deficiencies in the audit process.
Identification of potential risks and issues that may affect the company's financial position and reputation.
Assistance in planning future activities and development of the company.
Minimizing the risk of liability for illegal actions of the previous owners.
Increase customer confidence in making a purchase decision.
The main criteria for a geological audit include analyzing geological information, verifying compliance with regulatory requirements and standards, identifying risks and developing strategies to mitigate them, and assessing resource reserves and geological conditions.
The team of Geological Investment Group will help you successfully complete the geological audit of your company.
