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MASTER DRILLING GROUP LIMITED - Voluntary announcement to shareholders

Release Date: 18/01/2018 11:00
Code(s): MDI     PDF:  
Wrap Text
Voluntary announcement to shareholders

Master Drilling Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 2011/008265/06)
JSE share code: MDI
ISIN: ZAE000171948
(“Master Drilling” or the “Company”)



Voluntary announcement to shareholders, Master Drilling unveils disruptive mobile
tunnel boring solution (Technology to address miners’ costs, safety and productive
challenges):


Master Drilling, a world leader in specialised drilling solutions, today announced that its new
disruptive Mobile Tunnel Boring (“MTB”) solution, to be unveiled at Investing in African Mining
Indaba 2018 in Cape Town, will be ready for commissioning in the third quarter of the year.

Master Drilling’s internally conceptualised design and internationally patented MTB technology was
developed in response to the growing demand from clients, and the mining industry at large, for a
cost effective mechanised tunnelling contract service offering that addresses safety and efficiency
challenges on new and existing operations. The new solution may also make it possible for marginal
projects to pass feasibility hurdles due to cost and time savings.

Danie Pretorius, CEO of Master Drilling, said: “This disruptive technology allows continuous mining
and requires no blasting, thereby significantly enhancing mining efficiencies. It is as advantageous
at the capital stage of mining projects, with quicker deployment and access to the ore body, as it is
at the production stage through substantial productivity increase when opening up blocks of
ground or increasing a mine’s footprint.”

Master Drilling’s MTB solution can bore out an excavation of 4.5 and/or 5.5 meters in diameter at a
rate that far exceeds conventional tunnel construction methods. The MTB can deliver various
infrastructure solutions such as for declines, ramps, haulages and contact tunnels in hard rock with
compressive strengths in excess of 300 MPa.

Its modular construction makes it also possible to retrofit to existing operations and major mining
companies have expressed interest in deploying Master Drilling’s first MTB once commissioned in
the third quarter of 2018.

Koos Jordaan, Executive Director of Master Drilling, said: “The concept phase of our MTB started in
April 2017 and after consideration of various alternatives, we made the decision to pursue a

                                                                                                       
collaborative option in the market to realise the concept. We are pleased to have partnered with
Italy’s Seli Technologies, a company with half a century’s experience principally in civil mechanised
tunnelling, to manufacture and assist us during operation of our first MTB.”

The continuous process involves excavation, support and waste removal that creates a smooth
circular excavation that does not disturb the side walls of the tunnel. In addition, the geometry
makes for a stable and strong tunnel and, because it is a non-explosive process, it increases the on-
face time and delivers higher production advances on a cost-efficient basis.

“As a solution driven company delivering a fully mechanised range of services to clients, we will
continue to invest in R&D as this new service is adopted and matures.

“We believe this solution presents substantial future growth opportunities for Master Drilling and
we plan to order new MTBs on a continuous basis with the second machine planned for early
2019,” concluded Pretorius.

Master Drilling’s MTB solution will be deployed through a newly established and dedicated division,
Master Tunnelling. Master Drilling is also exploring other opportunities in the civil tunnelling
industry.

Established over 30 years ago, Master Drilling is a South African based JSE-listed company with over
160 rigs across 20 countries providing a comprehensive range of drilling and raise boring services
predominately to the mining industry.

Fochville
18 January 2018

Sponsor
Investec Bank Limited




                                                                                                        

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