Boart Longyear Annual Report 2010

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"On behalf of Shell and the Colorado technical and operations teams, I would like to express our sincere thanks for the excellent safety performance that was achieved on the recently-completed Colorado East RD&D Lease Sodium Appraisal and Hydrology well drilling program."

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Boart Longyear named by The National Business Review as one of the most exciting companies in the mining and quarrying sector for outstanding health and safety records, leading the industry.

Dome Mine incident free

Boart Longyear percussive drilling crews at Goldcorp's Dome Mine in Canada achieve a safety milestone by working two years without any recordable injury, lost time injury or fatality accidents.

Five years of drilling without an incident

Boart Longyear's Percussive Drilling Services group celebrates five years or over 1,949,000 hours without a lost time incident. This achievement included operations in both the USA and Canada.

365 days injury free

OneSteel celebrates 365 days of recordable injury free time with drilling contractor Boart Longyear, which has been working in conjunction with OneSteel on its exploration drilling program for the past two years. OneSteel mineral resources manager Don Dart stated, "We appreciate the level of safety Boart Longyear employees have displayed whilst working in the Whyalla area. Each time we conduct a safety behaviour observation on the drilling activities, we are impressed with the safety approach that this drilling crew consistently demonstrates." Mr. Dart continues, "Achieving one year injury free in a challenging job like exploration drilling is a significant achievement and a very good reflection of the expertise and approach to safety by Boart Longyear."

From Russia with love

Boart Longyear Russia has drilled throughout 2010 on two of Kinross' most important projects in Russia. Both projects are in remote locations and experience extreme winter conditions. The Longyear crews have produced quality results with good production rates and an attention to safety that exceeds that of most contractors in the region. Boart Longyear will continue to be a part of our exploration and development operations.

Howard Golden,
Regional Director of Exploration,
Russia, Kinross Gold Corporation

Food and toy drive in Salt Lake City

The Salt Lake City Bit Plant held a food and toy drive for the families of Guadalupe School to support their Christmas Store. The group donated over 50 toys and collected a crate of food for the families in need. The Guadalupe School in Salt Lake City teaches economically disadvantaged children and non-English speaking adults the vision and skills needed to live productive, rewarding lives.

Boart Longyear is a proud sponsor of FIRST Lego League

Boart Longyear sponsored Utah's FIRST Lego League promoting science and engineering with youth. Innovation and technology continue to be a key focus for Boart Longyear. The Company is proud to sponsor an event that helps develop the next generation of innovators.

FIRST Lego League (For Inspiration and Recognition of Science and Technology) is an exciting global robotics and innovation program that develops an enthusiasm for discovery, science, teamwork and technology in kids ages 9 to 14. FIRST Lego League students have the opportunity to solve real-world challenges by building LEGO-based robots to complete tasks on a thematic playing surface. Teams, guided by their imaginations and adult coaches, discover exciting career possibilities and, through the process, learn to make positive contributions to society.

Boart Longyear helps out in Pike River Mine rescue

Two explosions at the Pike River Mine in New Zealand in November resulted in the country's worst mining disaster since 1914. Boart Longyear's crews were on site in a voluntary capacity to help with the rescue efforts. The mine was located in heavy vegetation that was only accessible by helicopter. Boart Longyear sent its specialist from New Zealand. All the equipment was flown in and assembled in record time.

The drilling operations that were carried out were for rescue holes to monitor gasses and attempt to make contact with any survivors with the hope to ultimately supply them with supplies until the rescue could be carried out.

During the drilling operations, a series of explosive events from within the mine required the drill sites to be evacuated. Boart Longyear drillers remained on site despite multiple opportunities to leave and their dedication to helping with the effort was outstanding.

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The Mining Foundation of the Southwest honored Boart Longyear with the American Mining Hall of Fame Industry Partnership Award. The award was recognition of more than 100 years of service to the mining industry, including innovations in drilling technology.

BHP teams with Boart Longyear

For the past two years, the geology department (within Mine Technical Services) at the Olympic Dam site in Australia has been rolling out a number of Lean Six Sigma business improvement projects.

Partnering with Boart Longyear on projects that focused on improving drilling productivity, the following results were accomplished:

• The Greenbelt Project was successful in improving rig move times by 29%.
• The Yellowbelt Project reduced downtime by 57 minutes and saved 23 motions (as a result of changing decking and improving the workbench).

In a letter from BHP outlining this accomplishment, Josh Briant, Acting Mine Technical Services Manager, wrote, "None of this would have been possible without the cooperation and support of Jody Smith, Underground Superintendent, Boart Longyear."

The success of these projects has shown that by engaging both BHP and Boart Longyear in the improvement process, sharing best practices leads to improved efficiencies on site.

Another job well done in Argentina

The first 2010 core drilling program at Altar has now concluded for the winter season. The drilling was conducted by Boart Longyear Argentina SA, and included up to four core drills operating 24 hours a day.

Seventy-six holes totaling over 26,000 metres were completed between 15 January and 3 May. A total of 140 core holes for over 55,000 metres has been completed at Altar since drilling began in 2003.

Jeff Toohey, Vice President of Exploration of Peregrine, commented, "We are very pleased with Boart Longyear Argentina's execution of the 2010 drilling program. The team they assembled was first class, and the completion of more than 26,000 metres of drilling in less than four months is a testament to their professionalism."

Another strong partnership in Chile

Boart Longyear Product Sales and Environmental, Health and Safety (EHS) partnered with "El Teniente Division" from CODELCO at its office in Chile, to deliver an EHS Workshop on the LM75 rig it had recently purchased for their operations. Approximately 11 Codelco managers and supervisors were in attendance. This event provided a great service to the client and positioned Boart Longyear as competitive supplier and an expert in EHS.