Introduction to the Exploration Unit

The Exploration Unit, as the scientific and technical arm of Es’hayeh Sepahan Iron Ore Mines Company, operates within the Strategic Planning Center for Mineral Development and Asset Management. Relying on specialized knowledge, modern technologies, and the latest domestic and international standards, its mission is defined as the identification, evaluation, and development of mineral resources.

This unit, through precise organization of geology, geochemistry, geophysics, drilling, and data quality control teams, manages the entire exploration chain—from identifying prospective areas to accurate estimation of mineral reserves.

Structure

Exploration Management Department
Geology and Field Mapping Department
Geochemistry and Analytical Laboratory Department
Geophysics and Geological Modelling Department
Drilling and Sampling Department
Data Quality Control (QA/QC) Department
Economic Analysis and Project Feasibility Department

Duties

Exploration Management Department

• Developing the vision and macro exploration strategy aligned with the company’s mineral development goals

• Designing and approving short-term, mid-term, and long-term exploration programs

• Managing the portfolio of exploration projects in active mines and new areas

• Optimal allocation of financial, equipment, and human resources based on technical and economic prioritization

• Monitoring and controlling project progress based on Key Performance Indicators (KPIs)

• Ensuring all activities comply with domestic standards (IMIDRO, Ministry of Industry, Mine, and Trade) and international reporting standards (JORC, NI 43-101)

• Establishing communication with governmental bodies, regulatory organizations, and investors for obtaining permits and resources

Geology and Field Mapping Department

• Preparing and updating geological, alteration, and structural maps at appropriate scales

• Identifying lithological units, tectonic structures, and mineralization-prone areas

• Precisely documenting field observations using GIS systems and digital mapping

• Collaborating with geochemistry and geophysics departments to integrate data and define drilling targets

Geochemistry and Analytical Laboratory Department

• Designing geochemical sampling networks during reconnaissance, follow-up, and detailed exploration stages

• Preparing, coding, and sending samples according to international protocols

• Conducting elemental and isotopic analyses using modern techniques (ICP-MS, XRF)

• Ensuring result accuracy through full implementation of laboratory QA/QC programs

Geophysics and Geological Modelling Department

• Conducting ground and airborne geophysical surveys (Magnetic, Radiometric, IP/RS)

• Processing and interpreting data with specialized software to identify high-potential zones

• Creating 2D and 3D geophysical-structural models and integrating them with geological and geochemical data

Drilling and Sampling Department

• Designing drilling patterns suitable for each exploration stage (Reconnaissance, Infill, Resource Definition)

• Managing core drilling (Core Drilling) and reverse circulation (RC Drilling) operations

• Accurate core logging and standard maintenance in the Core Shed

• Conducting systematic sampling and safe delivery to the laboratory

Data Quality Control (QA/QC) Department

• Monitoring the sample chain of custody from collection to analysis

• Using reference standards, blanks, and duplicates to ensure data accuracy

• Performing statistical analysis to identify systematic or random errors

• Ensuring database integrity and compliance with standard reporting formats

Economic Analysis and Project Feasibility Department

• Accurately estimating mineral reserves using 3D models and specialized software (Surpac, Datamine)

• Performing economic analysis of extraction and processing scenarios based on market indicators and operational costs

• Conducting pre-feasibility and final feasibility studies

• Providing analytical reports to support managerial decision-making and attract investors

Scope of Activities of the Exploration Unit

• Conducting exploration activities alongside extraction in four plaser iron ore mines owned by the company

• Verifying depletion of land reserves and marked areas post-extraction and approving tailings dump locations to prevent waste

• Performing systematic exploration (from preliminary to detailed) in Block 1 and Block 7 of the Abadeh and Jazmourian regions in collaboration with IMIDRO

• Planning complete exploration for the Shesh Ab mine in Khaf-Sangan region to fully identify and evaluate the reserve

• Collaborating with governmental mining authorities in auctioned exploration areas (Iran Mineral Preparation & Production Company) within provincial mining zones with exploration permits

• Preparing and updating annual exploration reports of operating mining areas for extraction planning, submission to the Ministry of Industry, Mine, and Trade, and license renewals

Unit Approach

Data Integration to Reduce Exploration Risk

• Integrating geological, geochemical, and geophysical data into a central database and 3D modeling environment to improve drilling target accuracy and reduce risk and costs, based on global best practices guiding major investment and mineral development decisions.

Resource Optimization with Technical-Economic Prioritization

• Using the Exploration Target Ranking System to rank areas based on technical and economic indicators, focusing resources on projects with the highest potential return

Sustainable Development

• Conducting environmental impact assessments, minimizing ecosystem interventions, and engaging with local communities through programs aligned with sustainable development frameworks

Achievements (KPIs)

Recent key achievements of the Exploration Unit include:

• Establishing a comprehensive exploration data bank with over 10,000 meters of deep and semi-deep drilling

• Identifying and documenting new areas with high economic potential in mineral regions in collaboration with governmental authorities

• Successfully executing drilling operations in diverse geological conditions

• Improving reserve estimation accuracy and reducing data uncertainty

• Providing a foundation for processing studies and economic feasibility assessments

Vision

• Discovering and developing new mineral reserves with high economic value

• Utilizing modern exploration technologies (Artificial Intelligence, remote sensing, advanced 3D modeling)

• Enhancing the company’s position in the national mineral and metal supply chain

• Creating added value for shareholders and enabling sustainable competitiveness in domestic and export markets