Drilling
Demand outpaces supply
Drilling services play a crucial role in the exploration process and as more companies race to join the exploration boom in Nevada, the demand for these services has skyrocketed.
As an example, the Utah-based drilling company Boart Longyear has noticed an uptick across its various offerings, from surface coring to underground drilling and large rotary drilling. The company’s CEO Jeff Olsen acknowledged: “RC drilling is one of the first types of drilling to see increasing demand when the market picks up, and we are currently fully employed within this area in our Nevada operations.”
Drilling companies that have been working to expand their reach into the Nevada in recent years currently face challenges in finding a sufficient labor force to meet the demand. So too have Nevada-based companies like Jentech Drilling Supply, whose business development manager Clint Welsh said: “There are many drilling companies that despite having rigs available, cannot utilize them due to a shortage of staff.”
With the largest obstacle currently impacting the drilling sector being the inability to meet soaring demand, drilling activity is operating at maximum capacity. Certain trends in technology are helping companies keep the pace and improving safety conditions, while new exploration strategies present novel challenges for drilling services.
"As a drilling supply company, we help customers implement drill systems from the “Top Head to Down”. We provide tools for water wells and exploration, as well as equipment for different types of drilling such as hammer drilling, down-the-hole drilling, RC drilling, and many more."
Steve Antonini, General Manager, Jentech Drilling Supply
Technology to drill better, safer
As equipment providers incorporate increasingly sophisticated technology into their product designs, companies specializing in drilling services are no exception. In particular, the trend towards data optimization has extended to the sector. Boart Longyear is working on its Geological Data Services (GDS) with the vision of creating a suite of tools that can collect and unite drilling data into a single body of knowledge. GDS products include TruCore for core orientation, as well as its down-hole survey technologies, TruGyro and TruShot. “Ultimately, once all the data is collected from these tools, we will be able to develop a unified ore body of knowledge,” explained CEO Jeff Olsen. “This will be a huge milestone because all the datasets are currently kept separate in the industry.”
Drilling and blasting consumable products supplier American Mining Services has brought to Nevada a reporting system the company previously implemented in Australia. With the system, COO Ben Howard says: “The company is able to analyze data in order to track the performance and cost analysis for every tool used in mining environments and utilize digital capabilities to increase productivity.”
As more drilling companies adopt their own digital solutions, drilling in Nevada continues to become increasingly efficient.
"We are in an industry where the wind is blowing in the right direction currently, and we have our sails up. But right when people become confident that this period will never end is the exact moment to prepare for leaner times. Alford Drilling plans to take advantage of this prosperous moment without becoming too nearsighted about the long-term future."
Steve Alford, President and Owner, Alford Drilling
As one of the most popular new technologies in the industry, automated rod-handling systems are reshaping how drilling companies operate. Layne’s team of engineers designed their automated rod manipulator (ARM) system so that, relying on a hydraulic motor and gear system, the machinery is able to perform complex motions remotely, liberating drillers from the potentially harmful task of rod handling directly.
National EWP helped introduce the technology to Nevada for core, RC, and large de-watering rigs. Today, all of the company’s rigs have automatic capabilities to reduce hand-related injuries.
In addition to safety, the innovative hands-free technology has generated the unforeseen benefit of promoting workforce diversity. Boart Longyear found that after implementing its own automated rod-handling systems, more women joined the company’s drilling teams as operators no longer have to directly handle heavy rods. “Today, we have approximately 40 female drillers worldwide, predominantly in Latin America,” acknowledged Olsen. “Our number of female drillers in the US is growing rapidly.”
National EWP helped introduce the technology to Nevada for core, RC, and large de-watering rigs. Today, all of the company’s rigs have automatic capabilities to reduce hand-related injuries.
"The market has been relatively healthy for the past two years, but the demand for our services increased dramatically in May 2021. Exploration services have far exceeded the available number of rigs and skilled workers in the market, and most of our equipment is booked well into 2023."
Jeff Morgan, President and CEO, National EWP
Geological hurdles
Despite being the top mining jurisdiction, Nevada can be a tricky place to operate when it comes to drilling. “From a driller’s perspective, it can be the crummiest, lousiest drilling imaginable,” said Steve Alford, president and owner of Elko-based Alford Drilling.
Given the unique geology, Alford acknowledged it can be challenging to sink holes to their target depth or to generate recovery where it has been historically impossible. Mining in Nevada often takes place in remote and fairly harsh environments, where each hole and each site has its quirks. With such variation, drilling companies must approach each project with specialized equipment and preparation.
Nonetheless, Alford believes the difficult nature of the terrain may be contributing to Nevada’s mining prosperity. He said: “The poor conditions are "probably why there is so much exploration going on — a geologist might say that the lousier the drilling is, the more fractured or difficult for recovery, the higher the likelihood is of encountering gold intercepts.”
Likewise, global company Major Drilling specializes in difficult geology, taking on jobs in locations like the Andes or the Arctic. As such, Nevada’s challenges present an opportunity for the company.
“We are deep hole directional specialists, which we take advantage of often in Nevada,” explained Kelly Johnson, senior vice president of operations - North America and Africa. “We pride ourselves in our ability to meet the various challenges caused by the state’s unique geology.”
As the Nevada attracts more companies seeking to reap the benefits of operating in the top mining jurisdiction, drilling contractors will have to continue to take on unique geological challenges as a means of expanding not only their footprint, but the industry’s at large.
Image courtesy of Newrange Gold Corp.