What Geologists Need to Know about Drilling

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1 INTEGRITY RESPECT ACCOUNTABILITY SAFETY RESILIENCE SUCCESS What Geologists Need to Know about Drilling Wayne Pengelly 27 March 2018 newhopegroup.com.au

2 Introduction Teamwork Only need one Crew to achieve success Advantages on the ground Crew harmony Appointed Supervisors based on suitability to the role Buy in towards the bigger picture less silos 27 March

3 Knowledge is success Breaking Down Silos 27 March

4 Good Fundamentals Play a Critical Role! Geologist are wanting a good quality, representative sample of the ground drilled, so many components go into providing this and overcoming drilling challenges. From selecting the most appropriate rig for the job, through to the drill bit on the bottom of the hole, there are a chain of components that need to be optimised to ensure optimum performance and integrity of the recovered sample. 27 March

5 Good Fundamentals Play a Critical Role! There are many barriers to prevent good sample recovery such as poor ground conditions, site and target access and ground water ingress or drilling fluid loss. Doing the basic things right can help alleviate much of this. 27 March

6 The Rig and Ancillary Equipment Important Basics The majority of drill rigs used in Australia are of the top head drive type, which means that the drive-head traverses over a long feed length and 3m or 6m rod lengths are added under the head. Principles are the same for both diamond and rotary rigs. Correct alignment onto the drill collar and a stable, level foundation for the rig to sit on are also critical as the hole deepens and more rod weight is added. 27 March

7 INCIDENT 27 March

8 The Rig and Ancillary Equipment Important Basics What is important for good sample recovery is that all of the moving and rotating components are in good condition and well adjusted and maintained. Vibration and erratic feed rates will limit the ability to drill long, continuous runs. Worn and leaking hydraulic components will result in less power transferred to the rod string, more heat generated and deteriorating rig performance. 27 March

9 Down Hole Tools Drill Rod Basics Diamond coring rods differ from RC rods, which differ from rotary drill rods. Each type of rods require certain levels of care and maintenance to achieve maximum performance. Because diamond drill rods have to be able to pass tools internally, they end up having the thinnest wall section. Threads therefore need to be undamaged and not too worn, especially on deeper holes. 27 March

10 Down Hole Tools Drill Rod Basics Worn threads lose their ability to withstand torsional loading which is especially important for directional drilling. Fluid leakage is another detrimental outcome of worn threads which can result in less fluid reaching the drill bit for cooling and cleaning of cuttings from the hole. RC and rotary rods have much more robust joints that can withstand more wear and tear. RC rods do need to be regularly checked to ensure that the joints are sealing OK. All drill rods need the correct thread lubricant to be regularly applied 27 March

11 Drill Bits Many Variations Available Drill bit selection is also critical in achieving good production rates and therefore keeping overall metre cost under control. Impregnated diamond bits Surface set drill bits PCD Bits Tungsten carbide Hammer / Blade 27 March

12 Drill Bits Many Variations Available 27 March

13 Drilling Fluids The Need for Muds Drill hole stability is critical for ensuring the unobstructed passage and rotating of the drill string, as well as sufficient annulus space for the drill cuttings to pass to the surface. Before commencing the drilling program, the correct mud program should be determined. It is a good idea to engage a reputable fluid supplier for advice on this. Fluid technology continues to develop and the right selection will assist with the hole stability and also with core recovery in unconsolidated ground. 27 March

14 Drilling Fluids The Need for Muds Lubrication of the drill bit is an absolute necessity when drilling as it keeps the bit face cool and prevents it binding up. The drilled rock particles also have to be rapidly cleared away and back up the annulus and out of the hole. Fluid type and mix to achieve the optimum viscosity needs to be carefully considered and implemented. 27 March

15 Directional Drilling Many Reasons for it Directional drilling in mineral exploration is commonly used to target a particular zone that may not be accessible via straight line drilling, or to undertake branching of daughter holes off a single main hole, or because of the need to recover a hole that is wandering off of target. High fluid flows at higher pressures are key to ensuring satisfactory down-hole motor drilling. As it is not possible to take a core sample with most steering systems, it is essential that free cutting drill bits are used due to the increased amount of rock which must be cut away. 27 March

16 Directional Drilling Many Reasons for it Inseam drilling is another area of expertise and it is utilized for to remove trapped gas from coal bed formations. This can be undertaken either from the surface or from underground and the equipment used varies widely dependent on the application and the desired result. Engage with a drilling contractor who has expertise and a proven track record in these applications to ensure best chance of success. 27 March

17 Expertise There is No Substitute 27 March

18 Disclaimer IMPORTANT: The information in this document has been provided to you for information only by New Hope Corporation Limited ( NHC ) and is subject to change without notice. Nothing contained in this document constitutes investment, legal, tax or other advice. The information in this document does not take into account your investment objectives, financial situation or particular needs. Before making an investment decision, you should consider, with or without the assistance of professional securities adviser, whether an investment in NHC is appropriate in the light of your particular investment needs, objectives and financial circumstances. Nothing in this document should be considered a solicitation, offer or invitation to buy, subscribe for or sell any security in the United Sates of America ( US ) or in any place in which, or to any person to whom, it would be unlawful to make such an offer or invitation. The distribution of this document outside Australia may be restricted by law. Persons who come into possession of this document who are not in Australia should seek advice on and observe any such restrictions. Any failure to comply with such restrictions may constitute a violation of applicable securities laws. Neither this document nor any copy hereof may be transmitted in the US or distributed, directly or indirectly, in the US or to any US person including (1) any US resident, (2) any partnership or corporation or other entity organised or incorporated under the laws of the US or any state thereof, (3) any trust of which any trustee is a US person, or (4) and agency or branch of a foreign entity located in the US. By accepting this document you agree to be bound by these limitations. NHC has prepared this document based on information available to it. Although reasonable care has been taken to ensure that the facts stated and opinions given in this document are fair and accurate, the information provided in this document has not been independently verified. Accordingly, no representation or warranty, express or implied is made as to the fairness, accuracy, completeness or correctness of the information and opinions contained in this document. To the fullest extent permitted by law, none of NHC, its directors, employees or agents or any other persons accepts any liability for any loss whatsoever arising from any use of this document or its contents, or otherwise arising in connection therewith. 27 March

19 INTEGRITY RESPECT ACCOUNTABILITY SAFETY RESILIENCE SUCCESS newhopegroup.com.au

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