system 360™ total fluids management™...

Introduction:

Minera Hampton Peru SAC (a wholly owned subsidiary of METMINCO Limited) is currently undertaking a resource definition drilling program on its Los Calatos Cu-Mo Project located in

the Department of Moquegua, 70 km southeast of the regional city of Arequipa in southern

Peru. In 2009, Minera Hampton continued their coring programs on the project and in late

2011, AK Drilling International, SA received a coring contract with the specific goals of reduc-

ing industrial water consumption and disposal of fluids on the project. Los Calatos is located

in an area defined as being subtropical montane perarid desert at altitudes ranging from

2500 to 3000 meters above sea level, which presents challenges in supplying adequate in-

dustrial water to the exploration drills working at the site. Water must be transported by truck

from the city of Moquegua, located approximately 65 km from the project. All but 10 km of

the road is a rough gravel road. Round trip time for each load of water hauled by a truck is

approximately 4 hours.

Project Scope:

AK Drilling International approached Baroid IDP with the idea of using the SYSTEM 360™

unit with an engineered fluid to address the water consumption and disposal issues and opti-

mize the drilling operations.

Before using the SYSTEM 360™ unit, rigs at Los Calatos had been consuming

an average of 13,000 gallons of water per rig, per day. Several water trucks were

needed to supply the program. With the drill program expanding, water supply

and mud disposal became important issues.

Each water truck must make a round trip of 130 km to supply 6000 gallons of wa-

ter to the drill sites. There are restrictions on nighttime driving, so each truck can

only make two (4 hour) round trips per day.

Because of rapid incorporation of fine pyritic drilled solids in the drilling fluids, ad-

ditives were needed to treat high solids in muds, thereby, increasing costs. Used

fluids were disposed of in large settling ponds for evaporation. Large volume mud

systems were accepted as normal and fluid disposal rates were high.

Water costs were in excess of $50.00 USD per drilled meter. Water supply logis-

tics, road maintenance, drilling fluid disposal and sump construction all contribut-

ed to high drilling program costs.

SYSTEM 360™ TOTAL FLUIDS MANAGEMENT™ SYSTEM

Total Solution Baroid Industrial Drilling Products

HOW THE SYSTEM 360™ UNIT WORKS

The SYSTEM 360™ Total Fluid Management™ system consists of a highly efficient mud mix-

ing system coupled with a patent-pending flocculent additive process which concentrates and

removes the solids from spent drilling fluid on a core rig. Removal of these fine solids allows

for the re-use of a fluid that would normally be discarded. The SYSTEM 360 unit removes the

solids from the drilling fluid with hydrocyclones and mixes SYSTEM FLOC-360® flocculent with

the solids concentrated slurry from the bottom of the cones. This mixing chamber is where

flocculation occurs. This flocculation creates cross-linked structures in the fluid containing the

solids which can be quickly separated from the water phase in the filter bags mounted on the

unit. (Figure 1)

Cleaned drilling fluid is directed back to the active circulating system when the mud weight is

reduced to less than 8.6 lbs/gallon, while the flocculated mixture containing the drilled solids is

discharged into a filter bag rack where water and flocs are separated. Water generated in this

final filtration step can be returned to the mixing tank to mix new drilling fluid. (Figure 2)

IDP Solution

Flocs discharged from mixing box on the SYSTEM 360™ unit. Water is breaking out of the flocs.

Figure 1


WHAT IS SYSTEM FLOC-360® flocculent?

SYSTEM FLOC-360® aqueous polymeric flocculent causes rapid flocculation of the drilled

solids that have been exposed to PHPA polymer in the drilling fluid during the drilling pro-

cess. The mixing of SYSTEM FLOC-360® flocculent with the fluid occurs within the

SYSTEM 360™ solids separation unit. Once the flocculation of drilled solids and PHPA pol-

ymer occurs, flocs are produced, which are separated from the liquid phase in the filter

bags. The flocs are easily disposed of in a semi-solid form using the bagging feature on the

SYSTEM 360 unit.

IDP Solution

Solids handling unit. Mixing/pumping unit

Figure 2


HOW SYSTEM 360™ SOLIDS SEPARATION UNIT WAS USED FOR THE PROJECT

Usage is very simple:

1. Pump approximately 900 liters (240 gallons) of dirty mud into the mixing tank of the

SYSTEM 360™ unit. With a mud balance, determine the fluid density of the fluid to be

cleaned. (Figure 3)

2. If not already present in the drilling fluid, add EZ-MUD® GOLD polymer to the fluid to be

treated at a concentration of approximately 1 kilo/ 900 liters of drilling fluid (~2 lbs/240 gal-

lons) using the mixer of the SYSTEM 360 unit.

3. Fill the flocculent additive barrel on the SYSTEM 360 unit to the “Full” mark with fresh water

and add 1 liter of SYSTEM FLOC-360® mixture to each full drum of water.

4. Start the injector pump for the SYSTEM FLOC-360® mixture and set the discharge pressure

at 8-10 PSI. Direct the main pump flow from the mixing tank to the hydrocyclones. The drill-

ing fluid must enter the hydrocyclones with a pressure of 32-40 PSI. Verify this by checking

the pressure gauge mounted on the hydrocyclones.(Figure 4)

IDP Solution

System 360 solids control unit

Figure 3

Hydrocyclones discharging concentrated solids

Figure 4


DESCRIPTION OF THE WORK PERFORMED

The SYSTEM 360 unit was run from the surface to the total depth (TD) on a particular drill

hole. The SYSTEM 360 unit was used to mix all mud on the site. Coring began at the sur-

face, and the hole was drilled HQ mm in diameter from the surface to 1137.55 m where the

hole reached TD.

The drill rigs were equipped with volumetric water flow meters to quantify the

amount of water used.

Los Calatos project comprises a multi-phase porphyry system, brecciated and cut by vertical

dikes. There are hard compact sections with some fracturing accompanied by high amounts

of pyrite in some sections. Other sections are altered (potassic, quartz sericite, propyllitic and

argillic alteration) with brecciated clasts with rock flour and clays as matrix. (Figure 5). The

characteristics of the drilling fluid were designed to match the type of ground conditions en-

countered at the site. The mud mixture consisted of engineered ratios of QUIK-GEL® GOLD,

QUIK-TROL® GOLD LV, EZ-MUD® GOLD and EZ-MUD® DP additives. The make-up water

that was being delivered to the site had a very high hardness level (magnesium ~800 ppm), so

before any additives were mixed, it was necessary to treat the water by adding a diluted caus-

tic soda solution. The solution precipitated divalent ions present in the water to reduce total

hardness to less than 150 ppm.

IDP Solution Continued:

Examples of competent sections of drill core on Los Calatos Project

Figure 5


The newly mixed drilling fluid was weighed with a FANN® mud balance and had an average

density of 8.45 lbs / gal. Returns from the hole were also weighed using the mud balance.

When the mud density reached 8.7 lbs / gallon, the SYSTEM 360 unit was used to treat

batches of the drilling fluid in order to remove solids and lower the mud weight to approxi-

mately 8.6 lbs/gallon. (Figure 6)

To treat each batch, approximately 900 liters of spent drilling fluid was pumped into the

SYSTEM 360 mixing tank. To this tank, 1 kilogram of EZ-MUD® GOLD polymer was added.

Then, the fluid was diverted to the hydrocyclones. Slurry from the bottom of the hydrocy-

clones was sent to the mixing box where the flocculent was introduced. Flocs were formed

immediately, and discharged along with the water phase into the filter bags. Clean water

drained from the filter bags into the tank located at the bottom of the SYSTEM 360 unit.

IDP Solution Continued

Mixing tank with dirty mud being processed using the SYSTEM 360 unit.

Figure 6


Filter bag rack and bag press on the SYSTEM 360 unit. The

press is used to squeeze water from the filter bags.

Figure 7

Solids separated using the SYSTEM 360 unit during the

drilling of the hole at the Los Calatos Cu-Mo Project.

Figure 8

During the process of removing the drilled solids, the density of the drilling fluid being cycled

through the unit was monitored in the processing/mixing tank using a FANN® mud balance.

When the density was reduced to 8.6 lbs/gallon, a diverter valve on the SYSTEM 360 unit

was opened and the cleaned drilling fluid was pumped to the suction tank of the active circu-

lating system.

Once the water had drained from the filter bags, the solids were dumped on site to be

cleaned up later, which allowed the bags to be re-used several times.

IDP Solution Continued


Of the 900 liters of drilling fluid used, approximately 400 liters of clean water was generated; the

remainder of the fluid (cleaned mud with a density less than 8.6 lbs / gallon) was discharged to

the suction tank in the active circulating system. (Figure 9)

During the drilling of the hole, the drill rig used approximately 8000 liters of water per shift (an

average of 22 meters of drilling per shift), with a recovery of approximately 3600 liters of clean

water (45%) and approximately 2650 liters of cleaned drilling fluid returned to the system, per

shift (33%). (Chart 1 and 2)

The following data was generated during the drilling of the specific hole:

Results

Water filtering into lower tank. Solids being dumped from bag.

Figure 9

Fluid Treated

(Ltrs.)

Water Recovered

(Ltrs.)

Fluid improved returned to system for drill

(Ltrs.)

416,000 187,200 137,800

Chart 1: Drilled from surface to 1,137 m. (52 shifts worked)


Chart 2:

A total of 72,514 gallons of water were used during the 26 days of drilling the hole, an

average of 2,789 gallons per day.

Total water consumption was reduced by 78.5 %.

Total water savings on this hole was approximately 265,486 gallons. With each water truck hav-

ing a capacity of 6000 gallons, this equates to avoiding 44 water truck trips during the drilling of

this hole.

Drilling fluid additive usage was reduced and the drilling was completed ahead of schedule.

Training the AK Drilling International crews was accomplished in one week by Baroid IDP person-

nel.

While drilling the hole, heavy rainstorms washed out 14 kilometers of the access road to Los Ca-

latos project, which prevented any water trucks from traveling to the project for 10 days. During

that time, AK Drilling International personnel pumped spent drilling fluids out of sumps on previous

drill sites at Los Calatos and used the SYSTEM 360 unit to separate solids from the fluids and re-

covered make-up water and usable drilling fluids. This allowed drilling to proceed without inter-

ruption even though there was no fresh water available on site for drilling. Another drilling contrac-

tor had to shut their drills down during this time.

Results Continued

Water consumption prior to

using SYSTEM 360 solids

control unit, per rig.

(Gallons/Day)

Water used when running

the SYSTEM 360 solids

control unit.

(Gallons/Day)

Total saving of water using

SYSTEM 360 unit.

(Gallons/Day)

13,000 2,789 10,211


Use of the SYSTEM 360 unit reduced water usage by almost 80%.

Safety was enhanced by the substantial reduction of water hauls and truck time.

Drill sump size was reduced by 90%. (Figure 10)

No stuck tubes or broken wire lines have occurred at Los Calatos since the SYSTEM 360 unit

has been in use. This indicates a cleaner fluid with less solids to centrifuge inside the rods and

tube heads.

Water separated by the SYSTEM 360 unit can be re-used for the preparation of new drilling fluid.

Because the SYSTEM 360 unit effectively removes fine clays from a drilling fluid, the amount of

additives necessary to maintain a mud system is greatly reduced.

Drill crews were easily trained to use the system.

Economic Value Created

A drill pad at Los Calatos on an 1100

meter hole before implementation of the

SYSTEM 360 unit.

Sump size on a 1900 meter hole using the

SYSTEM 360 unit to remove solids. Approxi-

mately 4 meters by 5 meters.

Figure 10: Sump size comparison

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system 360™ total fluids management™...

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