Remote sensing datasets and methods are suitable for mapping and managing the natural resources like minerals, clean water, and energy and also govern their sustainability nowadays. Hyperspectral (HS) imaging has immense potential for rock type classification, mineral mapping, and identification. This work demonstrates the potential of feature extraction techniques and unsupervised machine learning methods for the space-borne hyperspectral remote sensing data in characterizing and identifying mineral and classifying rock type in Banswara, Rajasthan, India. Feature extraction techniques can reveal variations within the data, which can help identify geological areas, reduce noise, and check the dimensionality of the data. Singular value decomposition (SVD)-based principal component analysis (PCA), kernel PCA (KPCA), minimum noise fraction (MNF), and independent component analysis (ICA) were tested for lithological mapping using recently launched DLR Earth Sensing Imaging Spectrometer Hyperspectral (DESIS) and PRecursore IperSpettrale della Missione Applicativa (PRISMA) data in order to map geologically significant areas. Unsupervised machine learning methods, such as Iterative Self-Organizing Data Analysis Technique (ISODATA) and K-means, were also employed. Vertex component analysis (VCA) was utilized to check for similarity and identify various spectral features. Our work demonstrates the advantages of using feature extraction algorithms such as PCA and KPCA over MNF and ICA in geological mapping and interpretability. We recommend K-means as the preferred method for lithological classification of hyperspectral remote sensing data. Our work highlights the potential of advanced feature extraction algorithms for mineral mapping using hyperspectral data, providing different ways to identify minerals and ultimately leading to better mineral resource management.