In general surface drilling assists mining companies in determining whether there is sufficient mineral deposit to pursue the development of a mine at a given site These services generally involve drilling into soil and rock formations from the surface to obtain core samples for evaluation by geologists The core samples are subsequently analyzed to determine whether there is a large enough orebody of a sufficiently high quality to justify the development of a mining project All 31 of the Companys surface drilling rigs are committed for use in fiscal 2008 The Company plans to use its scale and expertise to expand its surface drilling business both in Canada and internationally The Company is paid in Canadian dollars for all the surface drilling work completed internationally with the exception of reverse circulation drilling contracts which are paid in US dollars Underground Drilling The Companys underground drilling services are commonly requested in two situations i when a mining or exploration company is in search of a new mineral deposit at a new or existing underground mine or ii to define the reserves at an existing site in an effort to maximize the efficiency of its ongoing mining operations Once a mine is in operation drilling is done on an ongoing basis and may continue for many years to confirm the direction and slope of the producing ore body and thus build ongoing production work and expansion of the mine Underground drilling is an essential component of mineral exploration and ongoing mining operation Drilling services for ongoing mining operations are generally undertaken for an extended period of time with underground drilling contracts typically entered into for a period of one to two years Because of the mobilization and demobilization costs associated with changing underground drilling suppliers the incumbent is generally only replaced by a new service provider if the new provider is either substantially cheaper or if there has been a safety issue with the incumbent The Companys strategy of maintaining a low overhead structure has allowed it to offer its underground drilling services at competitive rates and expand its underground drilling market share In addition the Companys superior health and safety program have resulted in excellent safety record Management believes that this places the Company in a favourable position to be awarded and retain underground drilling contracts Management further estimates that the Companys success rate in being awarded underground contracts for which it has bid over the last ten years is approximately 95 F or the twelve months ended March 31 2008 on a pro forma basis Orbit Garant generated approximately 413 million of revenue from underground drilling The Company has 85 underground drills all of which have been committed to existing contracts through the end of fiscal 2008 Management believes that it is the largest underground driller in Canada Management expects that revenue from its underground division will grow in the near future as commodity prices remain firm and more underground mines are developed Seven new underground drills committed for the current fiscal year have been delivered and are in operation Drill Manufacturing Soudure R oyale provides both the Company and many of its direct competitors with high quality surface and underground drills which are engineered and modified to meet the rigorous demands of the drilling services industry and customer expectations Soudure R oyale currently operates one shift and has 13 employees During the twelve months ended March 31 2008 on a pro forma basis Soudure R oyale manufactured 31 surface and underground drills and sold 11 to the Company with the balance being sold to third parties for use in geographic locations where the Company does not operate In December 2007 Soudure R oyale purchased the assets and hired the employees of R A Mecatech Ltd a metal fabrication company located in V aldOr This acquisition enabled Soudure R oyale to double its production capacity Set out below is a summary of some of the favourable attributes of the drills manufactured by Soudure R oyale as compared to similar drills available from third parties Soudure R oyales underground drills are smaller and easier to move have a combined hydraulic system with a smaller electric motor and 34