1. EVOLUTION OF DEVICO TECHNOLOGY CDDA 2015 Ben L’Heureux

2. Devico AS Devico AS located in Trondheim, Norway – DEVIation COntrol = Devico – Devico established in 1988 by Viktor Tokle (spin-off from SINTEF University of Trondheim) Vision – Devico shall be world leading within directional core drilling, borehole surveying and belonging software Today – Is the Only company in the world to offer directional core drilling technology – Significant provider of advanced borehole surveying instruments to world market – Extensive network of agents and license users – Projects carried out for 27 years in more than 50 countries all over the world

3. Devico Distribution Network

4. Devico Products Borehole surveying instruments – Magnetic: DeviShot – Non-magnetic: DeviFlex – Core orientation: DeviCore BBT – Alignment Systems – Sales and rental Directional Core Drilling (DCD) – Steers during wireline core drilling – Collects core while steering – Offered as a service – Personnel and equipment from Devico

5. DeviShot Magnetic multishot: survey in front of the bit Wireless communication Integrated running gear LED-light indication

6. DeviFlex Non- magnetic multishot for surveying inside drill string Three centralizers Strain gauges & accelerometers

7. DeviCore BBT Core Orientation Kit includes 2 probes Wireless: BlueTooth Rugged, Fast Simple to use Sales and Rental

8. DeviSight Surface Alignment system for drillhole and setting up drills Azimuth Alignment System True North Surface Azimuth: 0.5 deg Tilt and Roll accuracy: +/- 0.1 degrees Azimuth Sampling: 10 per sec. Position Accuracy: 30 cm Satellite Constellations: GPS and Glonass (GNSS)

9. DEVICO DIRECTIONAL CORE BARREL Technology & Methodology

10. Devico historical highlights

12. Specifications DeviDrill™ Wireline Total weight: 87 kg Length: 5400 mm Core length: 3 m Core diameter: 31.5 mm Hole diameter: 75.6 mm

13. Design & Concept Attaches to standard NQ wireline drill string Operates under same parameters as standard NQ Recovers 3 meters of 31.5mm core

14. The DeviDrill is a mechanically and hydraulically operated tool Stationary outer barrel: Slides in a set tool face while drilling Rotating inner core barrel (driveshaft): Transfers rotation from drill string to bit Non-rotating innertube Collects 3 meter core How does the DeviDrill™ work?

15. Operation parameters Penetration rates – 7-12 cm/min Dogleg – 3 to 12°/30 m depending on drill rods and customer requirements Mud – Pure water preferred – Polymers and bentonites – Viscosity up to 40 is common

16. Advantages Coring in the curved section of the borehole Same drilling parameters as NWL Fits directly on NWL drill string All equipment included in start package High penetration rate (7-12 cm/min) No equipment left in hole Creates smooth and stable curvature Easily adjustable dogleg Keeps borehole diameter Enables surveying ahead of drill bit

17. DCD (Devidrill) vs Mud motors DEVICO/ With DeviDrill (10 - 14 cm/per min) Mud Motors (2 - 4 cm/per min) cm/per min Mud MotorsDeviDrill Weight on Bit25KN45KN Dogleg settingsFixedAjustable Drill string sizeBWL sizeNWL size Diamond bitNavy Bit full faceDiamond coring bit Orientation controlAt surfaceAt hole bottom Mud Motors (200 - 400 L /per min) DEVICO/ With DeviDrill (40 L /per min)

18. Applications of DCD Deviation control Branch holes Flexibility – Target intersect angle – Drill rig positioning Geotechnical

19. 1- Control natural deviation When? – Geology gives strong/unpredictable natural deviation – Deep targets Why? – Hit high priority targets accurately – Hit targets in predefined grid – Drill along straight line, e.g. for shafts How? – Start with normal wireline core drilling – Directional survey – Short sections of directional coring to control deviation «We would not be able to target accurately without it [Devico]» Bob Carmichael, Lundin Mining Portugal

20. 2- Branch holes When – Infill Drilling – Deep targets (+500 m) – Sensitive environme nt Why – Improve exploration accuracy – Reduce amount of drill sites «We drilled 45 holes (26,250 m) using Devico technology. In conventional drilling approach we would have drilled 47,000 m, so Devico saved 20,750 m» Jukka Välimaa, Agnico-Eagle How – Borehole planning – Drill mother hole and direct to first target – Sidetrack mother hole and steer to second target – Sidetrack mother or branch hole again

21. 2-Branch holes - Sidetracking Cut the curve Dogleg above 8°/30m ROP 1-2 cm/min 2-3 hours to complete Cement plugs Wedges

22. 3-Flexibility in Exploration When? – Difficult to get good angle between borehole and target, e.g. steeply dipping orebodies – Rig cannot be positioned optimally due to difficult terrain, limited underground access, pits, environment etc. Why? – Hit target with best possible angle – Intersect otherwise inaccessible parts of the ore-body «Devico forced it down in inclination, through the ore horizon … and the hole switched from failure to success» Glenn Patriksson, Lundin Mining Sweden

23. 4- Geotechnical When? – Mapping formation for tunnels and geotechnical projects – Drilling inside ore formation Why? – Core sample from the full predetermined trajectory – Intersect formations in most relevant direction

24. Business Delivery Models DCD is offered as a service, personnel and equipment from Devico co-operating with the drilling contractor on site. Devico offers various business delivery models, ranging from short to long- term, to meet the requirements of each client and project.

25. Program Delivery Borehole planning A dedicated crew Turn Key planning, program management, and target delivery, or cut by cut steering at client’s discretion Flexible program planning as required by project

26. Projects Aurora, Guyana Rakita Exploration d.o.o., Serbia Agnico-Eagle, Finland Continental Gold, Colombia Geotechnical-Tunnelling Projects done in Canada

27. Aurora, Guyana Problem – High natural deviation up and left due to foliation – Narrow ore body formation Solution mother holes with branches – Hole 1: 9 directional holes – Hole 2: 10 directional holes Time saving for the client Project done with CDDA member Orbit Garant

28. Rakita Exploration d.o.o., Serbia Target depth: 2200 m Depth of DCD: 1482-1546 m Length of DCD: 64 m Change of az: 40° Change of inc: 4° Avg. dogleg: 4.1° per 30m Production rate: Up to 11 m/shift

29. Agnico-Eagle, Finland Savings using DeviDrill compared to traditional surface drilling: – 41% in meters – 500m less drilling per branch – 29% in time – Drilling speed in branches only 24% slower than standard drilling – Cost savings per hole variable Best 77%, Average 25%

30. Continental Gold, Colombia Three main reasons for using directional core drilling – Limited area to set up drill rigs (topography and tunnels) – Environmentally sensitive area Roads and rig platforms are problematic – Location of ore formation makes branch holes beneficial

31. Continental Gold, Colombia Project done with CDDA member Major drilling Group

32. Jurong Island,Singapore Geotechnical project: Pioneer Tunnel for cable Very narrow path of 10 meter tolerance to fallow with a near 90 degree change in direction before reaching the shore line. With inclination of -25 degree, then horizontal 3.5 months duration - combination of DCD 35% and standard drilling 65% Project done with Diamond Drilling Contractor: Tritech from Asia Plan View Side View

33. Molde, Norway Road Authority of Norway Geotechnical tunnelling Project of E39 Highway

34. Molde, Norway Four directional drill holes – Environmentally sensitive area – Average of 300 meters DCD in most holes

35. Some projects done in Canada Seabridge Gold – British Columbia KSM Project –2013 – 2014 Mountainous terrain and the shortened drilling season. Using a branching method versus drilling new holes saved valuable time and reduced number of meters drilled. The DeviDrill™ improved the separation possible from the parent holes.

36. Some projects done in Canada Stornoway – Quebec 2014 We supported the delineation drilling campaign at Stornoway’s Renard project in Quebec. Our crew worked with three drilling platforms at the peak of the program. Project done with CDDA member Rouiller Drilling, Amos-Val d’Or

37. Summary Directional Core Drilling can provide benefits in many drilling programs by: – Controlling natural deviation – Reducing meters necessary to map an ore body – Intersecting targets with optimal angle – Intersecting normally inaccessible targets – Collecting core sample while steering Working with Devico is an opportunity to combine your drilling services for any specialized projects.

38. Thank you for your attention www.devico.com www.talikindustrial.com