Key points
- CEO Mike Johnston said a single quarter’s production at steady state (about 3,200 tonnes per day) at average Solwara grades would add around $110 million in EBITDA.
- The two week wet test program will check the rig’s control systems, landing capability, hydraulic functions, video survey systems and drilling cycle time in a submerged environment.
- The rig, nicknamed the Hobbit scout rig, previously completed land based trials focused on rod handling, functional drilling and landing stability.
- Nautilus plans to deploy the rig on its South Pacific tenements after successful completion of the trials, subject to raising further financing.
NAUTILUS COMMENCES WET TESTING PROGRAM FOR ITS NEW SEAFLOOR DIAMOND DRILL RIG
Nautilus Minerals Inc. has commenced wet testing of its new sea floor diamond drill rig, which the company has developed to relieve the drilling requirements of its future exploration programs.
Mike Johnston, Nautilus’s chief executive officer, commented: “According to our recently released preliminary economic assessment for Solwara 1, a single quarter’s production at steady-state mining rates (about 3,200 tonnes per day) and at average Solwara deposit grades, adds around $110-million (U.S.) in EBITDA [earnings before interest, taxes, depreciation and amortization]. Hence forward exploration is a pivotal part of our business. Our pioneering teams are overcoming traditional functional limitations and high fees in sea floor drilling, with our new Hobbit scout rig.”
The scope of the testing is to check the operational functionality of the drill rig’s control systems, landing capability, hydraulic functions, video survey systems and drilling cycle time/performance in a submerged environment. The testing will also look at the system’s ability to sustain simulated offshore operations at optimal productivity levels while familiarizing personnel with all aspects of the equipment and operations, in a reduced-cost environment.
The Nautilus developed rig, nicknamed the Hobbit scout rig, has so far successfully met design targets in a series of land-based trials, largely focused on rod handling, functional drilling and landing stability tests. This wet test program will occur over a two-week period, and will expand the testing parameters to include submerged operations and mechanical endurance.
The rig design utilizes Nautilus’s industry-leading sea floor drilling experience to produce a rig that has improved landing and drill cycle capabilities, combined with simplified control systems, umbilical, and launch and recovery requirements that will allow deployment from cheaper vessels resulting in significant reductions to drilling costs. Importantly, the improved rig capabilities are also expected to translate into improved access to sites through the rig’s greater stability and smaller footprint, relative to systems available in the current commercial market. The company looks forward to reporting the results of this system.
Nautilus will then look to deploy the rig on its South Pacific tenements on successful completion of the trials, subject to raising further financing.
All scientific or technical information contained in this news release has been reviewed and approved by Mike Johnston, the president and chief executive officer of the company who is a qualified person within the meaning of National Instrument 43-101.
About Nautilus Minerals Inc.
Nautilus is the first company to explore the ocean floor for polymetallic seafloor massive sulphide deposits. Nautilus was granted the first mining lease for such deposits at the prospect known as Solwara 1, in the territorial waters of Papua New Guinea, where it is aiming to produce copper, gold and silver. The company has also been granted its environmental permit for this site.
