Horizontal directional drilling implementation at MIMOSA Mines

Minerales Monclova S.A. de C.V. (MIMOSA) has applied different methane gas drainage technologies, according to the top industry requirements in order to keep the methane gas at the lowest possible concentration in our operations, both in the development sections and longwall sections. Our staff has used the horizontal rotary technique. In 2004 MIMOSA bought a re-built drill machine and signed a contract with Resource Enterprises Inc. (REI), which included a training program in Horizontal Directional Drilling using the reflex system. The training system was developed for a period of three months in Mine VII, with very good performance by the MIMOSA staff. After the training the equipment was moved to Esmeralda Mine, where we had already drilled holes at the development section, 2,500 ft. It was the longest distance that could be reached with our original equipment, obviously; the directional drilling program is another challenge for us and our staff, but we are very confident that our result will be better every time. We will be evaluating each borehole and expect to improve our results in each progressive borehole, until we can drill up to the capacity of the equipment. We are in the process of buying another drill with an electronic monitoring device (DD DMecca) in the following months.