Correcting Geological Errors

Rectifying Geological Misreporting Using GIS to Prevent Unjustified Royalty Payments

At Geomining Data Solutions, we go beyond consultancy. We solve high-stakes problems in the mining industry through a deep understanding of geology, regulation, geospatial technology, and enterprise IT.

Background

A mining lease was awarded based on a Geological Report (GR) that incorrectly projected high-grade lump ore. Actual mining revealed low-grade fines, but the leaseholder faced demands for high-grade royalty and taxes.

Challenge

• Original GR was flawed due to:
• Misinterpreted borehole data
• Incorrect collar level correlation
• Sparse data points
• Government issued demand notice based on the incorrect/misreported GR

Our Intervention

Conducted additional infill drilling and exploration. Used GIS tools and spatial correlation to overlay borehole data with surface geological features. Identified discrepancies with the help of geological mapping. Developed a new 3D block model and re-estimated reserves using specialized pit design and modeling software. Submitted the revised resource estimation to government authorities.

Outcome

• Revised GR was officially accepted.
• Leaseholder gained legal right to sell fines at appropriate tax rate.
• Saved crores in royalty and tax overpayments.

Impact

• Demonstrated the need for spatial intelligence in resource estimation.
• Highlighted our Geo-spatial and GIS capabilities.
• Strengthened data-driven decision making in auction design.
• Positioned us as experts in geoscience, IT, and regulatory defense.