Development of geological exploration projects

  1. Collection and analysis of subsurface site data
    For effective design of geological exploration works (GEW), it is essential to use various data sources and accurately link materials. Our specialists have experience working with large volumes of historical data, ranging from searching for geological information in archives to precise georeferencing of graphic materials.
  2. Development and coordination of geological assignments
    A geological assignment is a document that defines the project solutions. Our specialists work closely with the client’s relevant departments to coordinate this document and consider all interests when developing project solutions.
  3. Creation and population of the project
    To effectively design GEW and manage the work, it is necessary to create a common geological information base. LTS specialists perform this task using modern GIS systems such as Micromine and Leapfrog.
  4. Development of the geological model of the site
    A geological model is developed for each site, where data allows. The detail of the model depends on the objectives and the completeness of the available data
  5. Development of the methodological section
    The methodological part of the project is developed based on current standards, the experience of specialists, and modern subsurface study methods.
  6. Development of the environmental section
    The environmental section of the project requires careful development in accordance with licensing agreements and regulatory documents governing environmental standards.
  7. Project coordination
    At the final stage, the project is coordinated with the Client. Necessary corrections are made, taking into account the interests of the subsoil user and compliance with regulatory standards.
  8. Development of research programs by type
    Specialized types of research provided by GEW projects are mostly carried out by contractors. Developing detailed work programs by type (engineering-geological, hydrogeological, environmental, geophysical) enables effective technical task creation and monitoring of contractors’ performance and deadlines.

Geological exploration projects

  1. Preparation of Geological Exploration Project Documentation
    Geological exploration project documentation includes the following materials and documents:

    • Geological (technical) assignment
    • Project for conducting subsurface geological studies
    • Technical and economic estimate of project costs
    • Work schedule for project implementation


    The project documentation is intended to formulate and justify methodologically sound geological objectives, as well as technically and technologically accurate solutions that ensure the most comprehensive geological study of the subsurface.
  2. Geological Objectives
    Geological objectives depend on the type of licensing agreement and the stage of work:

    BP — Prospecting stage
    BR — Evaluation stage
    BE — Exploration and extraction of the useful component
  3. Prospecting Stage
    The main goal of prospecting work is to provide a geologically substantiated assessment of the prospects of the investigated areas. Forecast resources are identified, part of which may be upgraded to category C2 reserves. These resources and reserves serve as baseline data for selecting targets for further evaluation.
  4. Evaluation Stage
    The main goal of evaluation work is to determine the overall scale of the deposit and calculate gold reserves in categories C1 and C2. Based on the results, a feasibility study (FS) is developed, presenting a preliminary assessment of the deposit’s industrial potential and justifying further exploration. Temporary exploration conditions are formulated, which are used for a control estimate of reserves.
  5. Detailed and Exploration Stage
    The main objectives at this stage are to clarify the industrial value of the deposit and explore reserves up to category C1 in priority areas. Upon completion of exploration, a feasibility study for permanent exploration conditions is prepared. Reserve estimates are then carried out based on these conditions.
  6. Cost and Timeline
    The cost of services for preparing project documentation and the timeline for completing the work depend on the complexity of the site, the defined objectives, and the quality of the initial data.

Feasibility Study Development

  1. Technological justification of conditions
    Technological specialists develop and justify the optimal technological scheme, considering the interests of the subsoil user and the requirements for the rational use of subsoil (maximum extraction of useful components).
  2. Engineering-geological, hydrogeological and environmental justification of conditions
    To justify decisions regarding mining and technical conditions for deposit development, information is analyzed on the deposit type, complexity of engineering and geological conditions, regional seismicity, tectonic fracturing of rocks, and their physical and mechanical properties. Measures are also planned for drainage and water removal, treatment of pit and mine waters, and environmental aspects of deposit development, including radiation-hygienic characteristics of the minerals.
  3. Optimization of pit contour and development of mining-technical part of feasibility study
    To calculate the economically justified pit shell, pit contour optimization is performed based on cut-off grade scenarios. Rational boundaries, key technical solutions, and mining methods are justified. Losses, dilution, and operational reserves are calculated, and the required set of equipment is determined.
  4. Economic justification of conditions
    Economic justification and assessment of project feasibility are the final outcomes of all exploration work and research. The technical and economic rationale (TER) determines whether further exploration, pilot development, or preparation for commercial development is justified.
  5. Development of feasibility study for exploration conditions
    This is carried out at both the exploration assessment stage (temporary conditions) and the deposit evaluation stage (final exploration conditions). The goal is to define the minimum content of the useful component that ensures profitable extraction at current market prices. Several cut-off grade scenarios are calculated, and the most economically viable one is selected.

    The economic section includes cost estimates for all project stages — overburden removal, extraction, beneficiation, auxiliary works, construction of mining infrastructure, roads, and power lines. Minimum content levels are then calculated that ensure all expenses are covered. The assessment considers fuel and lubricant costs, consumables, average wages, and market prices of the mineral.

3d modeling of deposits

LTS Specialists Perform the Following Types of Modeling for Subsoil Use Optimization and Planning:

  1. Geological-Structural Modeling
    This is the foundation for planning geological exploration (GE), resource assessment, and evaluation of hydrogeological and engineering-geological conditions. The company’s specialists carry out structural and geological interpretation of deposits and rock masses, resulting in a geological-structural model created using modern software.
  2. Resource Modeling
    Resource modeling is performed to assess mineral resources and estimate reserves in accordance with international standards. This includes the creation of wireframe models of mineralization, ore bodies, and estimation blocks, as well as the development of a block model of the deposit.
  3. Geological Exploration Planning
    |Geological exploration design for solid mineral resources is based on all available data, which are consolidated and interpreted using specialized software. A primary 3D geological-structural or mineralization model is created, which serves as the basis for designing the spatial layout of exploration workings and temporary infrastructure. During the course of GE, the model may be updated in real-time as new data become available, allowing adjustments to be made to the direction of work, such as drilling and sampling.

    Additionally, a quality assurance program for GE may be developed in line with modern global practices. This program includes regulations describing the processes of mineral quality testing, sample preparation, analytical procedures, and overall quality control (QC) of geological exploration.
  4. 3D Modeling of Deposits (Wireframe and Block Models)
    Modeling and interpretation of the geological-structural position of ore deposits are carried out at all stages of exploration and evaluation. Typically, the following are created:

    • A geological-structural model of the deposit and a mineralization development model, which serve as the basis for all subsequent modeling.
    • A block model of the deposit, on which mineral resource and reserve evaluations are based.


    Understanding the geological structures that influence the distribution of the useful component within the deposit volume is a key prerequisite for performing a reliable assessment of extraction potential.
  5. Estimation of Reserves and Evaluation of Mineral Resources According to International Standards
    Each deposit evaluation takes into account the specific features of the project. In most cases, the following core studies are conducted:

    • Analysis of the volume and quality of available information, including data validation and database auditing.
    • Creation of 2D and/or 3D geological models and models of mineralized zones.
    • Statistical and geostatistical data analysis, and selection of the most effective methods for grade and bulk density interpolation.
    • Classification and reporting in accordance with international reporting standards.

  6. Quality Assessment and Validation of Block Models
    Quality assessment and validation of block models (including those created by third parties) are performed using specialized software with built-in tools. This is based on comparison with source data and analysis of the full set of utilized information. Control evaluations of reserves and resources using various methods may also be carried out.

Calculation of reserves and assessment of mineral resources

Geophysical research

  1. Creation and Population of the Geological GIS (GGIS) Project
    To assess and estimate reserves, it is necessary to build a unified geological information database. This task is performed by the company’s specialists using modern Geological GIS (GGIS) systems such as Micromine and Leapfrog.
  2. Analysis of the Completeness and Quality of Geological Data
    Following the analysis of acquired geological data, an information report is prepared for the Client. This report contains conclusions on the feasibility of using various types of sampling for estimating and calculating reserves, analysis of exploration grid density, and the proposed classification of mineral resources.

    If the report is developed according to international standards, it includes a section with QA/QC analysis and conclusions regarding the quality of the exploration activities performed.
  3. Development of the Geological Model of the Site
    The foundation for reserve calculation and mineral resource evaluation is a geological model that accounts for the structure and specific features of the deposit.

    LTS specialists develop this model using available data. The level of model detail depends on the project goals and the completeness of the geological information.
  4. Development of the Wireframe Mineralization Model
    Based on exploration data and statistical analysis of mineralization heterogeneity, a wireframe model of mineralization is created. This model defines the mineralization boundaries in accordance with pre-established cut-off parameters and can be constructed to global standards.
  5. Development of the Resource (Block) Model of the Deposit
    To justify the parameters of block modeling, comprehensive statistical and geostatistical analysis is carried out. This includes domain definition, capping of extreme values, selection of interpolation methods, determination of search ellipsoid parameters, and optimal block size.

    The quality of block modeling is monitored through various techniques, including basic statistics comparison, swath plots, cross-validation, and verification interpolations.
  6. Classification of Reserves and Resources
    Classification of reserves and resources is carried out in accordance with international mineral resource reporting standards.
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