Core Analysis that Arguments Geological Work

Q: How did Corescan develop, and why did Mexico represent an attractive market for the company?

A: Corescan was formed in 2000 in Perth, Australia, as a vertically integrated, hyperspectral core imaging company. As well as designing and manufacturing the scanner, we also provide a scanning service and core and sample preparation assistance. Once the data has been acquired, our analysts in Australia and Canada analyze the information and upload it to a virtual shared core library where it is stored in perpetuity. Our analysts are trained geologists, and so we work alongside the client, which ranges from geologists, to metallurgists and engineers, in order to provide a 360-degree consultancy service.

About five years ago we began working with Newcrest Mining in Australia, which was an important step in developing and optimizing our mining and exploration products. We have then successively moved out into further markets in Southeast Asia, Chile, Peru, Canada, and the US, and have more than 300km of core in our archives. The technology works on a variety of different ore deposits but it is particularly effective in analyzing copper porphyry and epithermal gold. Therefore, considering the prevailing trend of ore deposits in Mexico, it was a simple strategic decision to move our operations into this country. However, we never operate in a country without the support of the local mining community, and so we were delighted to receive the support of our partners at GeoResolution. Through this partnership, we became aware that several leading executives working in the top mining companies in Mexico, particularly in Fresnillo and Grupo México, were eager to try our new technology and were keen to use it to refresh their operations, increase profit, and lower margins. Since arriving in the country, we have also begun working with a number of Canadian and Australian junior exploration companies who we assist with small quantities of directed exploration scanning.

Q: How far have you seen the mining industry’s traditional conservatism changing since you began working in Mexico?

A: Although Mexico is conservative, I do not believe the country is alone in this. When first introduced to our technology, many geologists are concerned that our system, which carries out automated mineralogical identification and textural mapping, will remove the need for their human input. However, that is not the case, and one of our most important jobs is to explain that our technology is not replacing geologists but rather augmenting their work. Corescan’s technology essentially gives geologists a valuable tool and enables them to carry out more consistent and accurate logging. Moreover, our system creates a rare bridge between geologists and metallurgists, because the increased accuracy provides metallurgists with a consistent data stream in a much shorter space of time than a human can achieve. This allows geologists to optimize and shorten the time-consuming process of logging, and to begin collaborating with the metallurgists to discuss what the geology truly signifies. For example, in a typical timeline, once drilling permits have been acquired, it often takes one year of drilling and analysis before pre-feasibility studies can be carried out, but our technology reduces that period by at least six months. This is immensely valuable for an exploration company leasing a concession because it can then decide whether or not to continue holding the ground.

Q: How can Corescan technology help clients reduce the downtime of their operations?

A: The new data source typically takes between three to four weeks for geologists to get accustomed to, and we endeavor to make it user friendly. We now offer quasi- realtime scanning, which can generate full mineral maps within four hours of extracting the core from the drillhole. The point data that our system produces is then exported to a mineral percentage log, which can then stream directly into whichever third-party software is in use, such as Leapfrop, Vulcan, Gocad, Target, or MineSite.

Q: How does the scanner operate?

The system is made up of three components. Firstly, there is a 50-micron spatial resolution camera for detailed photographic image generation. Secondly, there  is a hyperspectral imager, which has a spectral range of 450-2,500 nanometers in 510 bands at an average of 3.8 nanometers. This provides exceptionally high spectral resolution, which allows the user to conduct fantastically detailed mineral identification as well as mineral composition, such as the difference between magnesium versus iron-rich chlorite. We conduct analyses for thousands of minerals and mineral sub-species across the surface of core at 500-micron resolution, which turns out to be approximately 200,000 pixels per meter of core. Lastly, there is a laser profiling instrument, which is a standard laser that produces information regarding the core’s topography. This data can be used to extract standard geotechnical variables including rock quality designation (RQD), roughness, breaks-per-meter, fracture spacing, and fracture orientation. All three technological components are perfectly geospatially linked, and the scanning process from start to finish takes about 7-12 minutes per box of core. Geologists can then analyze the data after a further five minutes so there is a rapid turnaround. Corescan will then upload the results and the data to the client via Coreshed.com as well as final delivery of jpeg files so decisions can be made about the geological model, viability of further drilling, and/or metallurgical domains.

Q: Given that the data is uploaded onto a cloud, how do you protect your clients from cybercriminal threats?

A: Security is one of the most important services we offer our clients. Corescan can curate core collections and host the data for as long as necessary via Coreshed.com. In Perth, we have duplicated servers in constant operation, meaning data is always backed up, while we also mirror data around the world on various cloud servers. In order to control access to data, each user has a username and password, and this is generally only given to a senior figure who can then decide who to share it with. We do not store this information, so if a password is forgotten, the system generates a new one, and this ensures that the only person who can access information is the client. Furthermore, we have some clients whose policy dictates that their data cannot be stored on the cloud, and in these cases we transfer data to their internal database, essentially creating an individual Coreshed for that client. Of course, we always keep a backup ourselves as we believe that to be vital but we are happy to avoid storing data on the cloud if that is what the client prefers.

Q: How are Corescan’s partnerships with companies such as GeoResolution mutually beneficial, and how will the group’s business in Mexico develop over the next few years?

A: We would not be in Mexico without GeoResolution and Itzcoatl Drilling because they are vital to our operations. Together, we form a perfect network of remote sensing, resource geologists, and drilling expertise, and the support we receive from these partnerships is essential in our efforts to introduce new technology into the market. Mexico has become one of the most important markets for the company going forward, and we are committed to the country for the long term. We are currently assessing the possibility of merging our drilling and core scanning services because we believe that not only could that be a far more efficient way of operating but it could also drive prices down for our clients. Moreover, we are planning to develop the consultancy side of the business in order to truly offer a complete solution to our clients.