Mining Due Diligence Checklist: 12 Checks Before You Buy

Mining due diligence is the checking you do before you pay for a mineral property: you confirm who holds the title, whether the claim is still alive, what the rock really contains, what permits and surface rights apply, and whether the price still works at today’s gold price. If you are looking at a gold mining claim for sale, the safest order is title first, then land access and permits, then grade and tonnage, then price and contract. A federal claim in the United States gives a possessory right to the minerals, and it is forfeited and void by operation of law if the yearly filings are missed (BLM, Staking a Mining Claim on Federal Lands), so a status check on day one can save the whole deal.

This guide gives a 12-point mining due diligence checklist, the fees and filings that follow a federal claim, how to read grade and recovery numbers, what a due diligence report and a consultant should deliver, and where satellite screening fits. It is written for claim and licence owners, consultants and investors. It is general information, not legal, tax or investment advice.

What you actually buy with a gold mining claim for sale

An unpatented mining claim is a right to explore for and mine minerals on federal land, held under the General Mining Law of 1872. It is not ownership of the ground. The BLM describes the law as giving a possessory right to a valuable mineral deposit that has been discovered, and it explains that a mineral patent, which would convey title and make the land private, cannot be applied for because Congress has barred new patent applications since 1 October 1994 (BLM). So almost every claim for sale today is unpatented, and the seller can only pass on what the seller holds.

Three words matter in a sales listing. A lode claim covers a vein or hard-rock deposit. A placer claim covers loose gold in gravel, sand or stream sediment. A valid discovery is the legal test that a claim holds a valuable mineral deposit: the BLM applies a “prudent person” rule, asking whether a person of ordinary prudence would be justified in spending more time and money to develop a mine. A claim can be recorded and still fail that test if it is challenged.

That is why a listing that says “proven gold” or “high-grade” tells you nothing until you see assays, sample locations and who took them. What you can buy with confidence is the claim’s recorded status, a transfer of the seller’s interest, and any data the seller can document. The video below explains in plain words why holding a claim is different from owning the land under it.

▶ Explains why owning a gold claim is not the same as owning the land under it. · 3:19

Mining due diligence checklist: 12 checks before you pay

Use this table as the master list. Each line is a question you should be able to answer in writing before closing. The sections after it explain the checks that cause most disputes.

Skipping one line is the usual cause of a bad deal. A seller who cannot produce items 1, 2 and 5 within a few days is giving you information about the claim, whatever the explanation.

How to check title, claim status and fees

Start with the register, not the seller’s packet. In the United States the BLM runs the Mineral & Land Records System, called MLRS, where claimants file new claims, transfers of interest, affidavits of assessment and notices of intent to hold (BLM, Mining Claim Fees). Pull the case file for every claim in the package and compare serial numbers, claim names and legal descriptions with the listing. Then read the county recorder’s file: the BLM requires quitclaim deeds and amended notices to be recorded with the county first, unless the state does not require recording.

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What the BLM charges to locate, hold and transfer a federal claim

Fees per claim, US$, claims filed on or after 1 September 2024

Fees you inherit after buying a federal claim

For new claims filed on or after 1 September 2024 the BLM charges US$25 processing, US$49 location and US$200 maintenance per lode claim, US$274 in total. Maintenance is due on or before 1 September each year: US$200 per lode claim or mill site, and US$200 per 20 acres or part of 20 acres for a placer claim. A claimant who, with all related parties, owns 10 or fewer claims nationwide can file a maintenance fee waiver and instead file an affidavit of assessment and a notice of intent to hold by 30 December, at US$15 per claim. Transferring a claim costs US$15 per claim per transferee (all from BLM, Mining Claim Fees).

These numbers matter in two ways. First, if the seller has missed a payment, the claim may already be void, whatever the asking price says. Second, a package of 40 lode claims carries US$8,000 a year in maintenance fees before any work, so the carrying cost belongs in your model. The chart below puts the main BLM charges side by side.

Chain of title and encumbrances

A chain of title is the unbroken series of transfers from the first locator to the seller. Gaps and deeds that were never recorded are common sources of dispute. Also ask about a net smelter return royalty (NSR), a percentage of the money from selling the metal after smelting and refining costs; it follows the property to every later owner and cuts the margin permanently. Check for options, joint venture agreements and liens as well. If any of them exist, get copies, not summaries.

Surface rights, access and permits

Rock that is rich on paper can still be unmineable. Surface rights, protected habitat, a town, a road without legal access or a water source in the wrong place can each stop a project. The video below shows a survey where good ground could not be mined because of what sat on top of it.

▶ A survey where good rock could not be mined because the land above it was blocked. · 2:05

On federal land the BLM requires reclamation of any surface disturbance, even if the claim is later declared abandoned and void, and it requires a reclamation bond or other financial security before approving a plan of operations or allowing work under a notice (BLM). Activity that causes only negligible disturbance, for example work with no earthmoving equipment or explosives, may count as casual use and needs no notice. Exploration disturbing 5 acres or less needs a notice with a reclamation plan; more than 5 acres needs a plan of operations. Ask the seller for every past notice, plan and bond, and ask the agency whether any work on the claim was ever the subject of a violation. Unreclaimed ground, old shafts or tailings can become the buyer’s problem.

Outside the US the idea is the same but the paperwork differs. In Ontario, the province’s guidance says contacting surface rights owners and holders is a requirement in some cases under the Mining Act, including when registering or transferring a mining claim (Ontario, mining sequence). For state-level rules on staking and holding, see our guide to California gold claims, which shows what a state adds to the federal filings.

Gold claim due diligence: grade, tonnage and recovery

Grade is the amount of gold per tonne of rock, usually grams per tonne (g/t). A cut-off grade is the lowest grade that still pays for mining and processing; rock below it is waste. Recovery is the share of the gold in the ore that you actually get into a saleable product. Contained gold is not recovered gold, and recovered gold is not profit.

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Gold value in one tonne of ore at two USGS average prices

Contained gold, US$ per tonne, before mining, processing, royalty and reclamation costs

For an early-stage claim, treat any number without sample locations as a story. A sound data pack should include the assay certificates from an accredited lab, a sample map, a description of how samples were taken and stored, and the results of duplicate or blank samples if the owner used them. Our guide to choosing a gold assay lab explains the common methods. Surface grab samples show that gold is present, not how much rock carries it. Only drilling and a resource estimate by a qualified person can speak about tonnes.

The dumbbell chart below shows why you should also stress-test the gold price. A tonne of ore at 2 g/t holds about US$116 of gold at the USGS 2021 average price and about US$212 at the 2025 estimate, before any mining, processing, royalty or reclamation cost. A claim bought on a rising price can lose its margin when the price falls back.

Gold price and what it means for a claim valuation

Gold trades in the low US$4,000s per troy ounce in early November 2026 (Kitco live chart), and the quote moves through the day, so replace the example price in the calculator with a fresh one when you run numbers. The USGS reports annual average prices of US$1,801 per troy ounce in 2021, US$1,802 in 2022, US$1,945 in 2023, US$2,388 in 2024 and an estimated US$3,300 in 2025 (USGS Mineral Commodity Summaries 2026, gold).

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Annual average gold price, US$ per troy ounce

United States, 2021 to 2025 (2025 is a USGS estimate)

The same report puts 2025 US mine production at an estimated 160 tonnes, with Nevada about 64% and Alaska about 22% of the total, and notes that the top 25 operations yielded about 94% of US mined gold. For a small claim that last figure is a reminder of scale: most mined gold comes from large operations, so a claim’s value rests on what is proven in the ground rather than on the district’s reputation.

Two valuation habits keep you honest. First, model at least three prices: today’s, a lower one, and the lowest you think is plausible over the mine life. Second, keep the asking price separate from the ore value; a seller’s asking price is a negotiating position, not an estimate of value. The calculator below turns your grade, recovery, cost and price inputs into a margin per tonne so you can compare it to the ask.

Mine acquisition due diligence: reports, qualified persons and resource terms

When the target is an advanced project rather than a bare claim, due diligence becomes a technical and financial review. The key document is a technical report written by a qualified person. In the US securities rules (Regulation S-K subpart 1300), a qualified person has at least five years of relevant experience and is a member or licensee in good standing of a recognised professional body. An initial assessment is a preliminary study that can support a statement of mineral resources but not mineral reserves, and a mineral resource is material whose grade, quantity and form make economic extraction reasonably likely (17 CFR 229.1300). Canada has its own rulebook for public disclosure, National Instrument 43-101, Standards of Disclosure for Mineral Projects (Ontario Securities Commission).

A mineral resource is not a mineral reserve. A reserve is the part of a resource shown by a pre-feasibility or feasibility study to be economic after real mining, processing, permitting and cost factors are applied. Check which word the seller uses and which study backs it. If a document says “reserve” but was prepared as an initial assessment, ask why.

What a mining due diligence report should contain

• Title and tenure opinion: status of every claim or licence, chain of title, encumbrances, and what is not covered.
• Data audit: how samples and drill holes were collected, lab certificates, quality control results and any gaps.
• Resource review: an independent look at the tonnes and grade, the cut-off grade and the estimation method.
• Metallurgy and recovery: test work on this ore, with the process route and its recovery assumption.
• Permitting and surface: status of approvals, bonds, community and land access issues.
• Economics: cost per tonne, price scenarios, sensitivity and the price at which the project breaks even.
• Risk register and recommendation: each unresolved item, its cost to fix and whether it affects price or walk-away.

Junior mining due diligence

A junior mining company is a small exploration-stage company that usually has no revenue. Review of one has two halves: the property (everything above) and the company. For the company, read the filings on the regulator’s database: who holds the mineral titles, whether the company or a subsidiary holds them, what it owes, what options or royalties are attached, how much cash it holds against planned work, and which technical reports support its public statements. Our guide on how to sell a mine shows the same documents from the seller’s side, which helps you see what a complete data room should contain.

Silver mining due diligence

The same checklist applies to silver, with one change in the economics. The USGS reports that in 2025 US silver came from 4 silver mines and as a byproduct or coproduct from 31 base-metal and precious-metal operations (USGS Mineral Commodity Summaries 2026, silver). A byproduct is a metal recovered along with a main metal, so its value depends on the main product’s costs and recovery. When silver is the target, ask whether the study treats it as the main product or as credit from lead, zinc, copper or gold, and test the project without the credits.

Mining due diligence consultants: scope and deliverables

Mining project evaluation consultants are independent geologists, engineers, lawyers and surveyors who check a deal for a buyer, lender or investor. Hire for the biggest risk in your deal. A title problem needs a mining lawyer; a resource doubt needs a geologist who meets the qualified person definition; a plant or recovery question needs a metallurgist; a permit question needs an environmental specialist.

1. Ask for the scope in writing: which of the 12 checks, which data sources and which site visits.
2. Ask who signs the work, their professional registration and whether they hold a financial interest in either side.
3. Ask for a draft findings list within the first week so that you can renegotiate early instead of at closing.
4. Ask what they will not cover, such as legal title or environmental liability, and who covers it.
5. Ask for a one-page summary with each finding rated by cost and by effect on price.

If you are comparing a gold due diligence platform or data service, ask what it shows: raw registry records, satellite layers, third-party assays or its own scores. Ask for the source and date of every layer, whether you can export the data and whether a named professional stands behind any interpretation. A platform is a screening tool; it does not replace a title opinion or a qualified person’s report.

Due diligence outside the United States

Each country has a different register, and the first task is to find it. In Western Australia the Mining Act 1978 defines a dealing as a transfer or mortgage of a legal interest in a mining tenement (Western Australia Mining Act 1978), so check what dealings are registered against a tenement. In Nigeria the Minerals and Mining Act sets up a Mining Cadastre Office responsible for administering mineral titles and the cadastral registers, and provides for revocation of a title for failure to pay fees (Nigerian Minerals and Mining Act). A buyer should confirm that the seller holds the right type of licence, not only an artisanal permit. Segilola began commercial production in 2022 and is described as Nigeria’s first industrial gold mine; it produced 98,006 ounces that year according to figures cited by the African Gold Report (African Gold Report).

In Scotland, the Crown Estate Scotland says Crown ownership of naturally occurring gold and silver stems from the Mines Royal Acts of 1424 and 1592, except where ownership was granted away in formal deeds (Crown Estate Scotland). For the concept of mining concessions used in many countries, see our guide on what a mining concession is.

What satellite screening can and cannot do in due diligence

Satellites do not see gold. Multispectral imagery maps the rock around it: iron-oxide staining, clay and mica minerals, silica and structure, which can point to alteration of the kind that goes with some gold systems. In due diligence this is most useful before you spend on a site visit: you can check whether the claim sits on or near mapped alteration, compare the seller’s target areas with the satellite map, look for old workings, roads and water, and spot signs of land use that conflict with the story you were told. The video below states the limits plainly, and they are worth reading before you rely on any map.

▶ The three limits of satellite mineral exploration that matter in due diligence. · 2:08

Satellite results are exploration targets, not a resource estimate, and they do not replace sampling, drilling or a title check. Farmonaut offers satellite-based mineral detection for early screening: you supply a polygon or KML/KMZ file, and a report is delivered in 5 to 20 business days. The company states that early-stage exploration cost can fall by up to 80 to 85%. To scope a report on a claim you are evaluating, use the mining quote form.

Contract terms, red flags and closing

The last check is the contract. Your lawyer should confirm what the seller promises about title, fees paid, absence of liens and disputes, and what happens if the promise is false. Good terms tie part of the payment to proof of clean title, use escrow, and give you a way out if a record turns out to be wrong. Our overview of a mining contract explains the clauses that usually appear in these deals. Document the transfer correctly: quitclaim deeds are recorded with the county first, and the BLM charges US$15 per claim per transferee for the transfer filing.

Warning signs worth a hard stop include:

• Assays with no lab certificate, or sample points that cannot be located.
• A resource figure with no named qualified person or no stated cut-off grade.
• Claims that the registry shows as closed, or fee receipts that stop partway.
• Pressure to pay a deposit before you have seen the title records.
• A price based on a gold price that is not dated or a recovery that has no test behind it.
• No answer on surface owner, access road or past disturbance.

Small buyers often ask what return to expect. Nothing in a claim sale can promise one; a claim is an option to explore, and many never become a mine. Plan the work, the fees and the time you can carry the claim, and keep an exit if the evidence is weak.

Frequently asked questions

What is mining due diligence?

It is the review of a mineral property before purchase or investment: legal title, claim status, land access, permits, sampling and assay data, resource estimates, metallurgy and economics. The aim is to find problems while you can still change the price or walk away.

What should a mining due diligence report include?

A title and tenure opinion, a data audit, an independent review of the resource, metallurgy and recovery, permitting and surface issues, an economic model with price scenarios, and a risk register with each item rated by cost and by effect on price.

How do I check that a gold mining claim is active?

For federal claims, search the BLM’s MLRS for each serial number and read the case file for yearly maintenance fee or waiver filings. Check the county recorder for the location notice and any deeds. If the maintenance filings are missing, the claim may be void.

Does buying a gold claim mean I own the land?

No. An unpatented claim gives a possessory right to the minerals on federal land under the 1872 Mining Law. The land stays public, and surface use is regulated, with reclamation and bonding rules for disturbance beyond casual use.

What fees come with owning a federal lode claim?

The BLM’s maintenance fee is US$200 per lode claim per year, due by 1 September, with a waiver for claimants who own 10 or fewer claims nationwide and file assessment paperwork instead. New claims filed on or after 1 September 2024 total US$274 in first-year fees, and a transfer costs US$15 per claim per transferee.

What is a qualified person in mining?

In US securities rules it is a person with at least five years of relevant experience who is a member or licensee in good standing of a recognised professional body. Canada’s NI 43-101 uses a similar idea. A qualified person signs technical reports that support resource statements.

What is the difference between a mineral resource and a mineral reserve?

A resource is mineralised material with reasonable prospects of economic extraction. A reserve is the part shown by a feasibility-level study to be economic after mining and processing factors. An initial assessment can support a resource but not a reserve under the US rules.

What is junior mining due diligence?

It is a review of a small exploration company in two parts: its property (titles, data, permits) and the company itself (filings, cash, debts, royalties and options attached to its assets).

Is silver due diligence different from gold?

The checks are the same, but silver is often a byproduct. USGS reports that US silver in 2025 came from 4 silver mines and 31 base-metal and precious-metal operations, so test whether the project still works without credits from other metals.

What should I look for in a gold due diligence platform?

Look for named data sources with dates, the ability to export the records, clear labels that separate registry facts from interpretation, and a named professional behind any analysis. A platform can screen ground but cannot replace a title opinion.

Can satellite imagery replace drilling or sampling?

No. Satellite data maps surface alteration and structure and helps rank targets before you spend on a site visit. Drilling and assays are still the only way to measure grade at depth.