A method of conversion of a water-based mud to a gel-based LCM quickly to control lost circulation in a lost circulation zone in a wellbore during continuous drilling with a drilling mud, the drilling mud comprises a volcanic ash, water, a de-foamer, a pH buffer, and a polymer. The method comprises the steps of entering the lost circulation zone, determining a lost circulation volumetric flow rate, metering a first amount of a binder into the drilling mud to create a binder containing mud, pumping the binder containing drilling mud into the wellbore, and suspending metering of the first amount of the binder to the drilling mud after a pre-defined regulating period of time effective to permit the binder containing drilling mud to create a gel-based LCM operable to alter the lost circulation zone.