Key points
- The indicated resource is 870 kilotonnes at 6.8 per cent copper, 4.8 g/t gold, 23 g/t silver and 0.4 per cent zinc.
- The inferred resource is 1,300 kilotonnes at 7.5 per cent copper, 7.2 g/t gold, 37 g/t silver and 0.8 per cent zinc.
- The estimate used 111 core drill holes from 2007, 133 surface samples, 35 core holes from 2006 and an electromagnetic survey, with a cut-off of 4.0 per cent copper.
- Nautilus raised $214-million (U.S.) in equity capital in 2007 and says the NI 43-101 resource report will be posted on SEDAR within 45 days.
Nautilus Minerals Inc. has learned that Golder Associates PTY Ltd. has completed the world’s first NI 43-101-compliant resource estimate for a seafloor massive-sulphide (SMS) system at the company’s Solwara 1 prospect, located in the territorial waters of Papua New Guinea (PNG).
It has an indicated mineral resource of 870 kilotonnes at 6.8 per cent copper, 4.8 grams per tonne gold, 23 g/t silver and 0.4 per cent zinc.
It has an inferred mineral resource of 1,300 kilotonnes at 7.5 per cent copper, 7.2 g/t gold, 37 g/t silver and 0.8 per cent zinc.
The estimate from Golder is based on the following:
Results of 111 core drill holes drilled from the seafloor in 2007;Surface mapping and sampling (133 samples);Supporting information from 35 core holes drilled in 2006.
- Results of 111 core drill holes drilled from the seafloor in 2007;
- Surface mapping and sampling (133 samples);
- Supporting information from 35 core holes drilled in 2006.
The estimate is further supported by an electromagnetic (EM) survey, which very effectively outlines the surface extent of massive-sulphide mineralization. A cut-off of 4.0 per cent copper was used.
David Heydon, Nautilus’s chief executive officer, commented: “We are pleased that our mine plan drilling, of a portion of the Solwara 1 deposit, trialling new remotely operated deep sea drills, has been accepted as competent to qualify for a NI 43-101 resource. This is a big step forward for this new industry. We are focused on outlining a pipeline of mineral deposits, which we could aggregate over time using a mobile-ship-supported mining system. Apart from the Solwara 1 deposit, we have to date identified seven other prospects in PNG, and have title over at least 10 mineralized areas in territorial waters of the kingdom of Tonga.
“The Solwara 1 resource is a subset of the Solwara 1 deposit. The resource is open to the west and at depth, where 38 per cent of holes drilled this year finished in mineralization. The mineralized system is exposed at the surface and well supported by the EM survey, which effectively maps the surface expression of copper-rich mineralization. This provides us with confidence in the extent and continuity of the resource. Indicated and inferred resources are categorized based on drilling density and drill core recovery, with no fundamental geological difference between mineralization in the different resource classes. We are confident that additional drilling could quickly upgrade the resource in the inferred category if desired.”
The area drilled in 2007 was constrained by the time available for drilling, as a result of the vessel contract term and the depth limitations of the new remote-operated vehicle (ROV) rigs. As a result, it was not possible to pursue the western extensions of the system, nor to test a number of interesting EM anomalies in the vicinity. The revolutionary ROV drill technology developed and employed this year resulted in a step change improvement in core recovery (73 per cent in massive sulphide) from previous subsea drilling systems. However, the design capability of this new system was limited to drilling to a maximum of 19 metres. Currently, the company is working with its partners on developing drilling systems with extended depth capability, to effectively evaluate the deeper potential in 2008.
This completes a very busy year of milestones for the company, including:
Nautilus’s first offshore program, incorporating two vessels completing 200 operating days of offshore operations with no lost time injuries;Discovery of four new mineralized areas offshore of Papua New Guinea;The world’s first commercial electromagnetic survey of a seafloor massive-sulphide (SMS) deposit;The world’s first drill out using remote-operated drill rigs of an SMS deposit;The world’s first NI 43-101 drill resource for an SMS deposit;Completion of baseline environmental surveys at Solwara 1;Raising $214-million (U.S.) in equity capital in 2007;Being awarded a contract to build the world’s first remote operated SMS mining machines.
- Nautilus’s first offshore program, incorporating two vessels completing 200 operating days of offshore operations with no lost time injuries;
- Discovery of four new mineralized areas offshore of Papua New Guinea;
- The world’s first commercial electromagnetic survey of a seafloor massive-sulphide (SMS) deposit;
- The world’s first drill out using remote-operated drill rigs of an SMS deposit;
- The world’s first NI 43-101 drill resource for an SMS deposit;
- Completion of baseline environmental surveys at Solwara 1;
- Raising $214-million (U.S.) in equity capital in 2007;
- Being awarded a contract to build the world’s first remote operated SMS mining machines.
Nautilus is now planning for a major exploration and development program for 2008. The NI 43-101 resource report being compiled by Golder will be posted on SEDAR within 45 days.
