Due Dilligence Mining
Legal and technical preliminary analysis of the application or contract for a mining concession, in order to learn the current contract status of each of the relevant entities:
Legal: Title administrative analysis verifying at minimum: Title class, Mineral, Location, Origin and history: (Filing, title number, main resolutions affecting the holding), registration date, current holder of rights and duties of the title, area, boundary demarcation, current contract stage (exploration, infrastructure and assembly, mining) and mining registry code.
Technical: Environmental restrictions analysis (Natural Reserves, Districts under Integrated management, moorland, Law 2 of 1959, POMCAS), communities (African-American, Indigenous, or other), geographical location, reference system.
Global Geology SAS uses a main procedure that reassures the reliability of your company’s investments, avoiding fraud or technical-financial complications in the future.The following steps are taken:
- Title administrative analysis verifying at a minimum: Title class, Mineral, Location, Origin and history: (Filing, title number, main resolutions affecting the holding), registration date, current holder of rights and duties of the title, area, boundary demarcation, current contract stage (exploration, infrastructure and assembly, mining) and mining registry code.
- Title’s legal status analysis. Legal status, Legal Rights and Duties acquired, fulfillment status of acquired commitments (periodic reports, royalties, etc) and commitments with third parties.
- Analysis of the Geological position and mining interest for the area according to available information in Global Geology’s database and/or public libraries; geological position, geographical and correlation with known areas.
- Technical-environmental status analysis: fulfillment of technical-environmental commitments with governmental authorities PTO (Plan de Trabajos y Obras), PTI (Plan de Trabajo e Inversiones), PMA (Plan de ManejoAmbiental) y LA (LicenciaAmbiental).
- Field visit
- Geological model evaluation, quality verification of previous geological explorations, resources and reserve calculation reliability, exploratory work (tunnels, shafts, drillings, made canals), sampling, industrial testing and quality testing, annual production and reservoir life cycle.
- Analysis of geographical, socio-political and access roads’ conditions.
- Investing needs for industrialization, working capital, equipment and labor, infrastructure and technical-geological studies. Project’s initial transaction flow.
It consists of applying theJorc Code or NI-43101
This code summarizes the current mining industry practicesin relation to standards and norms applied to prospects, resources, and mineral reserves, with the objective of informing the public about financial instruments derived from mining assets within the capital markets..
These norms follow guidelines already adopted and applied by capital markets in countries that stand out for having dynamic and thriving mining industries, such as Australia, Canada, South Africa, United Kingdom and others
During this stage, an expert in certification appraises any job performed during stage 3, for which an international certification agency is required. Value: the value depends on the certification agency chosen.