Improved Drilling Accuracy Results In Reduced Ore Dilution at Evolution, Cracow (a2d917f6-13bc-4cac-8758-bced53c996a6)

During a period of six months in FY2018, a series of trials were conducted to compare drilling accuracy using two different methodologies and the subsequent impact this had on ore dilution. Testing was conducted at Cracow underground gold mine in Queensland, Australia. The drill rig’s existing alignment process was compared to a new technology system with the following observations: - Using the existing alignment process only 20% of holes surveyed recorded toe points within the +/-300mm (11.8in) tolerance blast-hole deviation. - The new technology was proven to limit rig alignment error, reducing average blast-hole deviation and increasing the number of holes drilled within tolerance by 160%. The increased accuracy reduced stope dilution by reducing over-break of subgrade ore: - Stopes drilled using the new technology recorded 62.6% less average dilution. - This contributed to an overall reduction in dilution for the full year (FY18) of 5 percentage points compared to FY17 - from 22% to 17% (a net decrease of 22.7%). A cost-benefit analysis extrapolated from the trials stipulates that if the new technology were in use for a full 12 months, when applied to FY17 full year data, a 10 percentage point reduction in dilution would represent a net 45.4% decrease, and would result in AUD8.2M (USD5.9) additional ore recovered, with AUD4.5M (USD3.2M) less spent on wasted cost of haulage and processing of diluted ore. As a result, return per tonne would increase 22%, from AUD87 (USD63) to AUD106 (USD77.1). INTRODUCTION Dilution – planned and unplanned – remains a significant cost impairment in the mining process. A series of trials were held over a six-month period in FY18 which established the cost-benefit of new technology as it applies to the alignment accuracy of production drilling rigs in underground mining, thus confirming its ability to limit drilling as one of the causes of dilution. The trials identified three underlying factors affecting drilling accuracy, measurable by blast-hole deviation surveys of planned vs actual toe data. These were; rig alignment error, collar location change/error, and in-hole deviation. The trials involved a comparison of existing rig setup processes and technology, with the new technology (Minnovare’s Production Optimiser system). The trials were undertaken in the same environment; an operating underground gold mine - Cracow Gold Mine. The comparison first revealed the extent to which rig alignment impacts blast-hole deviation. Secondly, the new technology was proven to limit rig alignment error, thereby reducing average blast-hole deviation and increasing the number of holes drilled within tolerance by 160%.