Mincon Group Plc Update on Hydraulic DTH System (9697D)

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RNS Number : 9697D

Mincon Group Plc

15 October 2018

Mincon Group plc

Update on the Mincon Hydraulic DTH system

Mincon Group plc (ESM: MIO AIM:MCON), the Irish engineering group specialising in the design, manufacture, sale and servicing of rock drilling tools and associated products , today provides an update on the ongoing development project for its hydraulic DTH hammer system ("Greenhammer").

As set out in the interim results the Mincon hydraulic DTH system is on site in Australia for testing on a customer's rig. The components of the hydraulic system were fitted on the customer rig at the testing site, pressure tests were run and the system came up to specification as engineered. The hydraulic connections were made, the tanks were fitted and the connections to the rig systems successfully coupled.

However the final component attachment, where the drill string is attached to the mast became problematic due to issues with the connection of the threads on the receiving end of the mast, and the pipe.

After several attempts the threads were damaged, and the testing team now need to design and build a more robust thread to accommodate the torque that will be applied through this connection. Tolerances levels are quite narrow, and energy levels applied are high, so small mismatches or damage can cause a risk multiplier effect of failure now and in the future.

While it is not expected to present a major issue or require any substantial amendments to the hydraulic systems more generally, the redesign of these threads may cause a delay of some weeks until the rig is available to be refitted again. The rest of the system remains on the rig ,though disconnected, until the drill string attachment for the mast is engineered to at least the level now required.

The system was disconnected and the rig restored to its original functionality in fourteen hours, which satisfied another requirement of the test programme.

Mincon intends to release its next interim Trading Update at 7am on Friday 26 October, 2018.

ENDS

For further information, please contact:

Mincon Group plc

   Joe Purcell                         Chief Executive Officer 

Tel: [phone]

   Peter E. Lynch                   Chief Operating Officer 

Davy Corporate Finance ( Nominated Adviser and ESM Adviser)

Anthony Farrell Tel: [phone]

Daragh O'Reilly

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October 15, 2018 02:00 ET (06:00 GMT)