Deep Exploration Technologies CRC:

Uncovering the Future

Resources and Energy Symposium

Broken Hill, Tuesday 22 May 2012

Richard Hillis

CEO, DET CRC

Source: Richard Schodde, 2010

7 x T1

19 x T2

1979 1993

1 x T1

11 x T2

1994 2008 80% Australian

production

from mines

>30 years old

Deeper Targets

Source: Rio Tinto, 2009

Depth of cover for copper discoveries (>4 Mt Cu)

Date of Discovery

De

pth

to T

op

of D

ep

osit (m

)

Effect of Depth on Value

Modelling for a Voisey’s Bay style orebody in remote WA

(30 Mt @ 2.5% Ni, 2.0% Cu; 20m thick, 60°dip)

Source: Hronsky, 2005

IRR

NPV

(m)

Growth in Multi-Factor Productivity

Source: OECD.Statistics

Australia Japan UK US

Source: Australian Government Productivity Commission

Distribution of Researchers

Source: OECD Main Science Technology Indicators (MSTI) 2006/1

Firms Collaborating on Innovation

0.0 10.0 20.0 30.0 40.0 50.0 60.0

Australia (2006-07)

Turkey

Estonia

United Kingdom

New Zealand (2006-07)

Hungary

Ireland

Denmark

Slovak Republic

Poland

Czech Republic

Portugal

Netherlands

Spain

Norway

Luxembourg

France

Greece

Austria

Belgium

Slovenia

Finland

0.0 10.0 20.0 30.0 40.0 50.0 60.0 70.0

New Zealand (2006-07)

United Kingdom

Turkey

Australia (2006-07)

Denmark

Poland

Spain

Slovak Republic

Norway

Estonia

Luxembourg

Ireland

Netherlands

Czech Republic

Portugal

France

Hungary

Sweden

Belgium

Greece

Austria

Slovenia

Finland

Government Research

Institutes

Higher Education Sector

Source: OECD Science, Technology and Industry Scoreboard 2009 - OECD © 2009

Large Firms

SMEs

Does Innovation Really Matter?

• minex needs innovation

• lack of collaboration between public sector researchers

and industry

• CRC provides mechanism to have industry problems

drive researcher agenda

Jumping the Innovation Gap

~100 researchers

in 8 different

organisations

IP and Role of Service Providers

Mining Companies

Drilling Equipment

Manufacturers/

Technology Service

Providers

R&D Providers

Research &

Technology Transfer

Drilling equipment

manufacturers & service

providers offer a natural

route to commercialisation

Mining companies and

geological surveys are

the end users

IP

Creation

DET

CRC

IP

Licencing

IP

Utilization

Research Project Areas

• Next Generation Drilling

Technologies

• Fundamentals of Rock

Fragmentation

• Drilling Optimisation

• National Drilling Testing & Training Facility

Drilling

Technologies

Logging and

Sensing

Deep

Targeting

• In Front of Bit Sensors

for Real-Time Drilling

Optimisation

• Sensors for Rapid Down-

Hole Rock

Characterisation

• Integration of

Geophysical &

Petrophysical Data for

Timely Mineral &

Lithology Discrimination

• Joint Inversion of 3D

Seismic and MT Data

• 3D Seismic for Hard

Rock Environments

• Hypogene Alteration as a

Vector for Drilling

• Defining and sampling

deep cover

• SA case study integration

• are we always going to send core for assay?

• are we always going to drill straight holes?

• can we drill follow-up holes without de-mob?

• can we increase effective radius of the borehole?

• ~1,000m Alberta gas wells with 4.5” casing

• soft, predictable sedimentary rocks

• 2-3 hours move in and rig up time

• penetration rates: up to100m/hr

• 2 wells/day achieved

• $US 8,000 per well for drilling

• improved cost, safety, environmental impact

and hole stability in minex

• key challenges for minex include:

coil durability, low WOB drilling

• initial target: greenfields rig to 500m, weight

less than 5 tonnes and $50/m

Project 1.1: Next Generation Drilling Technologies

Project 1.2: Fundamentals of Rock Fragmentation

Project 1.3: Drilling Optimisation

Project 1.3: Drilling Optimisation

Project 1.3: Drilling Optimisation

Project 1.3: Drilling Optimisation

Project 2.2: Downhole Rock Characterisation

Project 2.2: Downhole Rock Characterisation

Project 2.3: Data Integration

Project 3.1: Seismic Exploration

for Hard Rock Environments

Drilling Research and Training Facility

Brukunga

Core

3 pilot driller training

programs: 24

unemployed trainees,

15 now in drilling

industry

Target of 40 PhD

completions over 8

years: 22 PhD

projects commenced

Education

& Training

CT Rig drilling

at $50/m

sampling

cover and

basement

Lab-on-rig

detects

geochemical

vectors within

3.5 km of

mineralised

system

Technology Push (R&D Providers)

Market Pull (Government &

Mining Companies)

Commercialisation (Suppliers)

A New Exploration Model?

Government

co-sponsored

regional

5km x 5km

grid drilling

program

A New

Exploration

Model?

Existing drilling is largely

chasing geophysical and/or

geochemical anomalies, is

subject to many ‘false

positive anomalies’, and

does not inform about true

background and anomalous

geochemical, mineralogical

or petrophysical signals of

mineralised systems.

• wider context of need for innovation

and industry-driven research

• drivers, structure, projects and early

progress of the DET CRC

• more cost-effective, safer and more

environmentally friendly methods of

mineral exploration

• invitation if you wish to be involved

as a Participant or Affiliate

• invitation if you are interested in

driller training or technology testing

opportunities at test site

Conclusions