Mineral exploration needs a reliable method to distinguish between uneconomic mineral deposits and economic mineralization. A method and system includes a geophysical technique for subsurface material characterization, mineral exploration and mineral discrimination. The technique introduced in this invention detects induced polarization effects in electromagnetic data and uses remote geophysical observations to determine the parameters of an effective conductivity relaxation model using a composite analytical multi-phase model of the rock formations. The conductivity relaxation model and analytical model can be used to determine parameters related by analytical expressions to the physical characteristics of the microstructure of the rocks and minerals. These parameters are ultimately used for the discrimination of different components in underground formations, and in this way provide an ability to distinguish between uneconomic mineral deposits and zones of economic mineralization using geophysical remote sensing technology.