Abstract: This study includes the geology and reserve evaluation of Kalburçayın (Kangal, Sivas) lignite basin., Kalburçayınlignite basin,, which formed in Pliocene aged depositional environment, is composed of `two* coal seams each havingapproximately 10 meters of thickness.. Clay bearing tuffits having thickness of 3-5 meters takes place between these twocoal seams. Lignites that have calorific values of 1300-1500 kcal/kg are used in two units of a power plant; which placednear Kangal village.. In order to calculate the improved reserve amount of the study area, the variogram function wasdetermined and it was spherically modelled with the parameters of`Co= 6.0, C= 12..0 and a= 1100 m. With the help ofthis model, the error variance of thickness was calculated as 2.33.. By the use of geostatistical block kriging method;reserve amount of the upper lignite seam evaluated as 56 496 410 + 2 34Q, 244- tons and the result is suggested to usefor feasibility calculations of lignite seam.