MinAnalytical is a new venture for Ausdrill – an independent analytical service company providing a range of geochemical and precious metals analyses to the mineral exploration and mining industry. The company has also just bought another drilling company in Western Australia. MinAnalytical has a dedicated team of focused people using the latest instrumentation to offer:

• A comprehensive range of high quality geochemical laboratory techniques with personalised service and prompt turnaround times
• Minesite production and grade control laboratories using either manual or automated processes
• Strategic synergies with the Ausdrill group to offer a one stop shop for companies undertaking mineral exploration and mining.

Ausdrill has also agreed to acquire 100% of the drilling business trading as Connector Drilling for consideration of approximately A$30 million together with an earn‐out of 50% of EBITDA from completion to June 30, 2011. Connector was established in 1992 and has developed into a specialised hydrogeological drilling contractor with the most modern fleet of rigs and ancillary equipment in Western Australia. It has established a reputation for leading the market in the area of engineered controls for the reduction of manual handling. The business operates in two areas being waterwell drilling and non‐waterwell surface drilling.

Ausdrill says Connector Drilling is currently regarded as the premier waterwell drilling contractor in Western Australia. Connector Drilling specialises in large diameter bores (≤ 610 mm) and has a depth capacity exceeding 1,000 m. Ausdrill says “Connector operates the only Dual Rotary (DR) capable rigs with a fully automated pipe and casing handling system.”

Other surface drilling in the mining sector involves the drilling and casing of surface/ventilation holes, sand and paste fill for underground mines. In addition, there are opportunities to provide gradient test wells and hot aquifer geothermal holes.

The business operates seven rigs with a further new rig in transit and another on order. The business has over 50 employees and its key customers include: Rio Tinto, Fortescue Metals Group, Newmont and Newcrest.

Ausdrill anticipates that there will be a continued high demand for hydrogeological drilling and that Connector is well positioned to meet customer needs with rigs at incorporate the latest safety related technologies. Connector  has planned for growth with a modernisation program of its fleet and has recently commissioned two new DR capable rigs (including a Schramm T130XD), has a third new DR rig in transit, and a fourth rig on order due for completion in April.

The acquisition will be funded from the group’s existing cash resources with the key items of plant being refinanced under conventional hire purchase/lease arrangements.