INNOVATION IN DIAMOND DRILLING

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1 INNOVATION IN DIAMOND DRILLING

2 PRESENTATION OUTLINE Recent evolution of the diamond drill Advances in bit technology Reducing the impact on the environment Safety Improvements The future of diamond drilling

3 DRILL EQUIPMENT

4 EVOLUTION OF THE DIAMOND DRILL Direct Drive Began as a vertical only drill with tripod Swivel head allowed for angle holes Built-in derrick made the work safer and quicker Hydraulic chuck and feed Unitized drill saved on setup time and provided a consistent work space

5 EVOLUTION OF THE DIAMOND DRILL Hydraulic Drill Features/Advantages Received more detailed information from the drill Easily managed all functions from a single station Allowed for better control of feed pressures and rotation torque Reduced tower function to a simple feed frame Eliminated the need for helpers to be working off the deck

6 EVOLUTION OF THE DIAMOND DRILL Hydraulic Drill Features/ Advantages Created smaller, more mobile and more reliable equipment Modular configuration allowed for easy transport by helicopter Allowed rod joints to be broken and made up by the drill

7 EVOLUTION OF THE DIAMOND DRILL Component Based Portable Drilling Systems (Man Portable Drills) Materials can be transported inside small fixed wing aircraft, pick-up trucks, and dug-out canoes. Heaviest single component weighs approximately 400 lbs. Unit can be transported by local labourers and/or mules on footpaths. Drill's light weight and small size reduce flying time on helicopter supported jobs.

8 EVOLUTION OF THE DIAMOND DRILL Component Based Portable Drilling Systems (Man Portable Drills) Land permitting and reclamation made easier due to minimal environmental footprint due to a setup in a 4m by 4m space or less. No roads needed as rigs are transported manually. Local employment is utilized which generates a positive response in the community.

9 EVOLUTION OF THE DIAMOND DRILL More Power, Smaller Footprint Diesel prime mover driving hydraulic pumps All drill functions are hydraulic including water pump and mud mixing equipment Small in physical size and infinitely controllable Rarely fail and parts easily changed out Ability to drill deeper

10 DOWNHOLE TOOLS Surface Set Bits Originally individual stones, hand set daily Evolved to surface set bits that were more robust Were productive in certain ground conditions Once the diamonds are polished the bit is replaced.

11 DOWNHOLE TOOLS Impregnated Bits Allowed for previously unheard of bit life Achieved enhanced penetration rates. Utilized lower cost synthetic diamonds Specific matrix recipe s were used for different formations Achieved a wider range of operating parameters

12 SUPPORT EQUIPMENT REDUCING THE IMPACT ON THE ENVIRONMENT Solids Removal Systems Reduces site footprint and environmental impact Reduces water consumption Reduces mud consumption Allows for zero discharge when required Reduces cuttings to a virtually dry product

13 SUPPORT EQUIPMENT REDUCING THE IMPACT ON THE ENVIRONMENT

14 SUPPORT EQUIPMENT REDUCING THE IMPACT ON THE ENVIRONMENT

15 SAFETY EQUIPMENT Rod Handler A significant number of injuries are due to repetitive motions Eliminates most lifting & twisting functions Eliminates need to handle rod joints

16 THE FUTURE BRINGING THE INFORMATION AGE INTO DRILLING Data Solutions For Project Management - Fieldview Real-time monitoring of drilling production and costs Accessible through the internet to multiple users Reduces time for on site management Increases project transparency

17 THE FUTURE BRINGING THE INFORMATION AGE INTO DRILLING Project Management Software - Fieldview Collect, track and archive site audits, safety meetings/statistics and any follow up actions Ability to generate managements reports Management tool for incidents and accidents

18 THE FUTURE OF DIAMOND DRILLING More Information Gathered from Drill and Equipment Current equipment capable of high productivity Significant amount of non-coring time leads to project average of 25 m/shift Sensors and software capture data that is available to X-shift (ex. rod rpm, feed pressure, fluid flow rates, mud quality, supply water temperature and volume) System wide data collection will improve efficiencies, allow for optimization and rapid adjustment to changing drilling conditions, reduce downtime and help predict problems before they occur

19 THE FUTURE OF DIAMOND DRILLING Directional Drilling Current Solutions Must be planned well in advance Often require highly skilled operators Added expense to a program. Navi-Drill Future Solutions Easier to operate; equipment deployed by drilling crew Improved rates of production Tighter turning radius Faster turn-around to production

20 SAFETY STANDARDS & SYSTEMS Drove standardization of equipment & tools Coordinates contractor safety meetings Develops statistical information Distributes alerts to the industry Developed a contractor standard for diamond drilling (DEC) Requires contractors to demonstrate their knowledge of, and readiness to meet, the many expectations that directly apply to the diamond drilling industry Continuous improvement Internal Review & Evaluation External Audit

21 THANK YOU

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