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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
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
• 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
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
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