1. ARKeX gradiometry system – a key to future exploration success
Kitty Hall Chief Executive, ARKeX Ltd

2. Contents Introduction to ARKeX
Introduction to Gravity Gradient Imaging
Gradiometry technology
Funding ARKeX
Funding challenges

3. Introduction to ARKeX

4. Introduction to ARKeX
Airborne geophysical services for exploration – mining and oil
Two challenges:
MARKET development
TECHNOLOGY development
There is always a third challenge!
RAISE DEVELOPMENT CAPITAL

5. Introduction to ARKeX
Developing the market – survey services provided using technology adapted from the defence sector
Have grown from 1 to 3 systems
Requires capital
Developing proprietary technology to be 10x more sensitive
This will expand the market significantly
Development capital has been raised
c. £30m to date
From Venture Capital funds

6. What does ARKeX do?
BlueQube is a unique proprietary offering from ARKeX:
Gravity Gradient Imaging (GGI)
Magnetic Gradient Imaging
High Grade LiDAR
Specialist processing
Integrated interpretation
The key element of BlueQube is Gravity Gradient Imaging

7. Introduction to Gravity Gradient Imaging

8. Introduction to Gravity Gradient Imaging
The Earth’s gravity field is not uniform and varies with changes in the underlying geology
Measuring the Earth’s gravity field allows the explorationist to image the sub-surface geology
To do this from the air provides cost effective coverage of wide areas
Traditional Gravimeters measure the total gravity field
Gravity Gradiometers measure the rate of change (gradient) of the gravity field

9. Basic facts – gravity, gravity gradiometry
Gravity measurement cannot distinguish between acceleration (motion of plane) and changes in gravity.
Error in gravimetry therefore related to how well the motion of plane can be measured independently.
This leads to “GPS limit” and this is what fundamentally limits distance over which airborne gravimetry gives good results

10. Gravity vs Gradiometry Ideal World
Gravity Meter
Accelerometer detects changes in gravity due to the variations in the subsurface
Gravity Profile (Gz)

11. Gravity vs Gradiometry Real World Gravity
Gravity Meter
Equivalence Principle
No gravimeter can distinguish between gravity and linear acceleration.
Airborne gravity uses GPS to measure linear accelerations to correct “measured” gravity.
Measured Gravity Profile
Filtered Gravity Profile

12. Gravity vs Gradiometry Real World Gradiometry
Gravity Gradient Meter
Each accelerometer measures same plane acceleration
The difference in outputs is independent of plane motion
Gradiometry is the ideal choice for a moving platform
Gravity Gradient Profile (Gzz)
Ideal World (Gzz)
Filtered Gravity Profile

13. World’s First Gravity Gradiometers
US tax dollars drove the development of the world’s first true dynamic gravity gradiometer in the 1970s
A gradiometer system was developed for use on submarines for defence purposes
This technology was eventually de-classified and applied to exploration from 1997 onwards
This technology, produced by Lockheed Martin in the USA, remains tightly controlled by the US Government because of its military origins
The cost?
c.$250m

14. Gradiometry Technology

15. Lockheed technology
There are two members of the Lockheed family of gradiometers –
FTG (Full Tensor Gradiometer)
ARKeX has 3 FTGeX systems, our own proprietary adaptation of the Lockheed FTG
‘Falcon’ system
A collaborative development between Lockheed and mining giant BHP Billiton

16. Lockheed Martin Full Tensor Gradiometer - FTG

17. ARKeX Fleet: 2 Cessna Caravans, 1 Twin Otter

18. Advantages of BlueQube
Quick and cost effective
Airborne survey covers terrain too difficult or too expensive for other methods
Compliments other datasets (EM and Seismic)
Environmentally friendly – passive measurements only & footprint is minimal
Oil and Mining

19. Technology needs Current systems measure 7-10 E/ rt Hz
However, mining requirements are very exacting
To resolve smaller ore bodies a system with enhanced resolution is required measuring at 1 E/ rt Hz
“E/ rt Hz” is the measure of resolution of a gravity gradiometer

20. Kimberlite pipe example
The following examples are based on some modelling for a diamond exploration company
They provided the dimensions, density contrasts and an areal layout of ‘kimberlite pipes’ to be modelled
The first example shows how the pipes would look with in an ideal world with an instrument with no noise
The second shows the resolution with a 10E/rtHZ tool
The third shows the resolution with a 3E/rtHz tool
The fourth shows the resolution with a 1E/rtHz tool

21. Gradient response in an ideal world – no noise
12.6, 7.1, 3.1, 0.8 Ha pipes
Crater length = 50m
Diatreme length = 850m
Crater density contrast = g/cc
Diatreme density contrast = g/cc
Survey line spacing :
100 x 120 m
Image is inverted for clarity

22. Gradient response from 10E/rt Hz instrument
Only largest kimberlites can be seen

23. Gradient response from 3E/rt Hz instrument
Large and medium kimberlites can be seen

24. Gradient response from 1E/rt Hz instrument
All kimberlites can be seen

25. The solution? ARKeX’s EGG has a target resolution of 1E/ rt hz
This sensitivity is achieved through using superconducting circuitry
EGG sensor operates at -269 deg Celsius (4 deg Kelvin)

26. Exploration Gravity Gradiometer - EGG

27. Funding ARKeX

28. ARKeX Milestones 2004 Company launched - £4m 2005 First FTGeX system
2nd funding round - £5.5m
2007 Second FTGeX system
Venture loan - $10m
Purchase of ARK Geophysics
2008 Third FTGeX system
First EGG in flight trials
3rd funding round - £15.4m
($30m)

29. Funds raised 83% equity 17% debt Specialist energy funds: 53%
General funds: 40%
Other:7%
UK: 47%
Europe 53%

30. Current plans Commercial deployment of EGG technology
Build and deploy EGG systems worldwide
Further development of GGI market in oil and mining
Potential also in defence/ security sector

31. Funding Challenges : What next?

32. London: Oil & Gas Equipment & Services
FTSE 350: companies
AIM: companies
Geophysical companies: 2

33. Alternatives to London AIM
Oslo AXXESS
Axxess market established May 2007
Less stringent listing requirements than a full stock exchange market
“Welcomes younger, smaller and less widely held companies”
Identical market monitoring and continuing obligations to the full Bors

34. Oslo: Oil & Gas Equipment & Services
Bors: companies
AXXESS: 7 companies
Geophysical companies: 8

35. Conclusion
ARKeX has the most advanced technology in gravity gradiometry for exploration
Access to capital has been from Europe rather than UK
Future IPO – London or look elsewhere?

36. Gravity Gradient Imaging : Completing the picture