This section aims to clearly verify the current legal status, boundaries, validity, and transferability of the license/tenement.

• Verification of the license type, nature, ownership status, and effective date.
• Confirmation and on-site verification of all obtained operational and exploration permits, if any.
• Determination of the distance of the license area to nature conservation or mining-restricted zones.
• Employment and equipment inventory, and accounting records, if applicable.
• Investigation of any conditions that may pose an obstacle to the transfer of the license or company.
• On-site reconciliation of the tenement boundaries according to the current MAPEG (Mining Authority) coordinates.
• Checking for overlapping licenses, pasture lands, possessory rights, or any other property disputes.

This section aims to determine the true potential, economic continuity, and resource-reserve quality of the mineralization with scientific accuracy.

• Review of all raw data and reports where geological mapping, sampling, and geophysical methods were utilized.
• On-site examination of ore outcrops and rapid mapping.
• Auditing and verification of drill hole data accuracy and the quality of data acquisition.
• Evaluating the necessity for additional drilling and sampling for verification or development purposes.
• Accuracy of the geological model (3D model, structural data).
• Review of reserve and resource declarations compliant with reporting codes (JORC, NI 43-101, UMREK, etc.).
• Confirmation that on-site 3D surveys of all mined-out areas have been conducted and depleted from the resource inventory.
• Interpretation of the mineralization concept and consequent evaluation of grade distribution homogeneity.
• Estimation of mineralization continuity and economic viability based on current commodity prices.
• Budgeting commodity prices in the short, medium, and long term and generating scenarios accordingly.
• Evaluation of the grade and tonnage of existing stockpiles, if any.
• Recalculation of economic blocks based on cut-off grades and metallurgical recovery.
• Review of drill hole positional accuracy (survey QA/QC), laboratory chain-of-custody, and quality control protocols.

This section focuses on evaluating the rock mechanics parameters that determine the physical safety of the open pit or underground operation.

• Major faults, joint/fracture systems, and stability analysis.
• Analysis of mechanical parameters such as rock mass strength and deformation.
• Groundwater conditions and drainage requirements.
• Slope and bench configuration, batter/berm angles, and safety factors for the open pit.
• Tunnel advancement cross-section dimensions, roof (back), and sidewall stability in underground operations.
• Rock mass classification (RMR, Q, GSI) and verification of ground support design.
• Determination of water-induced risks (piping, sudden water inflows) and pumping capacity requirements.

This section is aimed at evaluating the processability characteristics of the ore, its recovery potential, and the sales/revenue model.

• Laboratory and pilot-scale beneficiation tests, and recovery rates.
• Evaluation of the impact of by-products and deleterious minerals regarding the process.
• Capacity and suitability of the processing plants.
• Distance to potential facilities for the sale of run-of-mine (ROM) ore extracted from the pit, and the technical specifications of the facility.
• Grindability tests (Bond Work Index) and compatibility with the process circuit design.
• Determination of final product quality, moisture-penalty scales, and marketability constraints.

This section evaluates the current status of all technical and operational infrastructure that will support production on site.

• Collection of all mapping-survey data regarding existing pits.
• Examination of voids or slopes requiring backfill or ground support.
• Evaluation of existing pits from mining technique and geotechnical perspectives.
• Condition of existing facilities (crushing, grinding, flotation, leaching, etc.) and remaining tailings storage capacity.
• Energy sources (grid connection, generators), water supply, and storage.
• Climatic conditions, transportation, and logistics (road, port, railway).
• Waste management and tailings dam safety.
• Spare parts, maintenance equipment, and consumables inventory management.
• Analysis of emergency response routes and areas involving earthquake and landslide risks.

This section addresses the examination of whether a realistic, viable, and sustainable production strategy exists.

• Review of short, medium, and long-term mine production plans and Life of Mine (LOM) plans.
• Commodity prices and OPEX forecasts.
• Annual production capacity and targets.
• Determination of operating cost per tonne and the operational cut-off grade.
• Occupational safety practices (ventilation, gas monitoring, emergency egress procedures).
• Analysis of the possibility of flexible planning (selective mining) according to grade variation.
• Compatibility of the production plan with geotechnical constraints.

This section aims to clarify environmental obligations, permits, and long-term rehabilitation/closure costs.

• EIA (Environmental Impact Assessment) report and approval status.
• Mine rehabilitation plans and liabilities.
• Wastewater, dust, noise, and chemical management plans.
• Identification of legacy activities on-site that may pose a permanent environmental risk.

This section focuses on understanding the relations with the local community, potential socio-economic risks, and possible closure pressures.

• Existing relations with villagers and landowners; the population that can be recruited as a workforce.
• Compensation files and the need for expropriation.
• Social pressure or risk of forced closure.
• Presence of sensitive spots such as cultural heritage sites, hamlets, and agricultural lands.
• Relations with local authorities and assessment of potential social license to operate (SLO) risks.

This section aims to understand the legal risks associated with corporate debts, financial liabilities, and transferred tenements.

• Debts and liabilities: Taxes, social security (SGK), loan debts, and state royalty payments must be examined.
• State royalties and license fees: Annual payments and obligations continue post-acquisition.
• Operating costs: Labor, depreciation, energy, haulage, and maintenance expenses must be analyzed.
• Fines, appeals, and administrative proceedings from the company's past audits.
• Inquiry into whether the transferred licenses have any collaterals, pledges, or execution records against them.

This section aims to evaluate whether there is a human resource with the experience and competence to sustain the operation.

• Experience and retention status of key personnel on site.
• Rate of dependency on contractors/subcontractors.
• Employee turnover rate, unionization status, and competency levels.
• Review of training records, certificates, and OHS qualification documents.
• Backup (succession) plan for critical positions.

This section aims to calculate the financial value of the project realistically and construct the correct acquisition strategy.

• The stage of the project (greenfield – brownfield – in production).
• Realistic valuation based on cash flow (NPV, IRR).
• Risk premiums and pricing scenarios.
• Scope of the due diligence period and the independent technical review (ITR) report.
• Verification of the ultimate pit shell and economic limits by performing economic limit optimization (Whittle, etc.).
• Application of sensitivity analysis on metal price, recovery, OPEX, and CAPEX.

This section focuses on evaluating site risks, accident history, and the adequacy of mandatory safety systems.

• Accident records and history of severe incidents.
• Mandatory OHS documents and emergency response plans.
• Mining engineering inspection notes and non-conformances.
• Ventilation capacity, gas-dust levels, and the status of real-time monitoring systems.
• Personal Protective Equipment (PPE) standards and tracking system.

This section aims to evaluate the project's economic sustainability, cost accuracy, and market conditions.

• Metal price scenarios and project sensitivity analysis.
• Cash flow models and the accuracy of CAPEX/OPEX.
• Pricing: grade, moisture, penalties, and arbitrage margins.
• Contracts (sales, offtake, contractor, energy, leasing).
• Whether there is debt, leasing, financial commitment, or collateral.
• Comparison of logistics costs and end-buyer markets.
• Evaluation of the impact of pricing formulas and penalties in metal sales contracts on the project.