Page 26 - Annual Report 2020

1.5.3 Exploration

Our exploration program is focused on copper, nickel and conventional petroleum in order to replenish our
resource base and enhance our portfolio.
The purpose is to generate attractive, low-cost, value-accretive A global assessment of new opportunities is under review.
options by leveraging our competitive strengths. The Petroleum At Oak Dam in South Australia, the third phase of the drilling
and Metals teams are partnered together on a Joint Global program was completed in the June 2020 quarter, bringing
Endowment study to explore future growth opportunities and the total metres drilled to approximately 21,500. The results are
global, yet-to-find volume through the use of data analytics and currently being analysed. This follows encouraging results from the
artificial intelligence. The study introduces new technology and previous drilling phases, which confirmed high-grade mineralised
innovation to create a competitive advantage and position BHP intercepts of copper, with associated gold, uranium and silver.
for future access.
During FY2020, our Metals Exploration team continued to explore We continued to review other jurisdictions and opportunities to
partner with third parties to counter the increasing exploration
the Oak Dam copper discovery of late 2018, while the remainder maturity of our existing geographies. During FY2020, BHP acquired
of our exploration program was at an earlier stage where we an additional 3.5 per cent and now holds 13.6 per cent interest in
continued to seek, secure and test concessions in regions such Solgold Plc, the majority owner and operator of the Cascabel
as Ecuador, Canada, south-western United States, South Australia, porphyry copper-gold project, and in July 2019, we entered into an
Chile and Peru. Greenfield nickel exploration activities were earn-in and joint venture agreement with Luminex; both in Ecuador.
initiated in Western Australia and we started to look beyond We are maintaining our 5 per cent interest in Midland Exploration
Australia for new nickel opportunities. Inc., a Canadian junior company with interests in copper projects
Our conventional petroleum exploration program progressed in northern Québec in Canada. In Mexico, our Metals Exploration
exploration drilling activities in Trinidad and Tobago deepwater, team continued the financial agreement with Riverside Resources,
adding one additional gas discovery in the north and continuing which enables BHP to access new search spaces and early stage
to progress the exploration potential for oil in the south. Our exploration opportunities. In Australia, we agreed to acquire the
exploration portfolio continued to grow and mature through Honeymoon Well development project and a 50 per cent interest
the addition of Gulf of Mexico leases, appraisal of Trion, issuance in the Albion Downs North and Jericho exploration joint ventures
of offshore licences in Barbados and continued assessment from MPI Nickel Pty Ltd, a wholly owned subsidiary of Norilsk Nickel
of the Orphan Basin in Eastern Canada. Australian Holdings BV.
Exploration in FY2020 Conventional petroleum
Metals (copper, nickel) In FY2020, Petroleum continued to add to and mature the
The Metals Exploration teams are focused on identifying and exploration potential of our portfolio.
gaining access to new search spaces to test the best targets In Mexico, we drilled the Trion 3-DEL appraisal well in the
capable of delivering large, high-quality, Tier 1 deposits while September 2019 quarter. We are encouraged by the preliminary
maintaining research and technology activities aligned with our results, with the well encountering oil in the reservoirs up dip from
exploration strategy. The field exploration activities are directed all previous well intersections. Evaluation and analysis of the Trion
towards Chile, Peru, Ecuador, North America and Australia. These project is ongoing and no further appraisal wells are anticipated.
activities encompass early stage reconnaissance work through
target definition and testing. With the addition of nickel to the In Trinidad and Tobago, we drilled two additional exploration
wells, which completed the exploration program on our northern
exploration portfolio, our field activities now include Western
Australia, where BHP holds a significant land position, and drill licences. The Boom-1 well was spud in August 2019 and
encountered hydrocarbons; evaluation and analysis is ongoing.
programs are scheduled to start as soon as we are able to mobilise.
BHP exploration regions

Northern Canada

Eastern Canada

South West US
Gulf of Mexico (US)
Gulf of Mexico (Mexico)
Barbados
Trinidad and Tobago
Ecuador

Peru
Western Australia
Chile South Australia
Victoria

Copper exploration regions
Petroleum exploration regions
Nickel exploration regions

24 BHP Annual Report 2020