This research paper discusses and evaluates the feasibility of using Inertial Navigation System (INS) in mine tracking, which is necessary for both surface and underground mining operations. INS provides position, velocity and attitude through direct measurements from inertial sensors (Accelerometers and Gyroscopes). INS suffers from time-dependent error growth which causes a drift in the object track, thus compromising the long-term accuracy of the system. In order to validate the INS algorithm, a toolbox developed under MATLAB environment was used to generate a reference and INS trajectories. Deep investigation and analysis of the affected error sources of INS has been conducted. The attained results indicated that the accuracy of INS depends upon the error sources, so it is important to integrate INS with other sensor output (as GPS) to minimize the effect of sensor drifts