Key points
- Since October 2006 Nautilus has attracted Anglo American, Teck Cominco and Epion as major shareholders and raised $270-million (U.S.) in cash.
- The company targets a mining commencement date in the third quarter of 2010, subject to approvals and permitting.
- Major equipment tender packages for the treatment facility have been issued, and a metallurgical test program has been awarded to AMMTEC.
- Tenders for the mining platform, subsea mining equipment, and riser and lifting systems have been received from international marine and offshore contractors.
Nautilus Minerals Inc. is updating the development plans for the Solwara 1 sea floor copper-gold project in the territorial waters of Papua New Guinea (PNG).
Despite the cessation of discussions with dredging contractor Jan de Nul as reported in Stockwatch news on July 6, 2007, the initiation stage of the Solwara 1 project development has continued to advance aggressively.
David Heydon, chief executive officer and president, commented: “The company today is in a vastly different position than where it was when it entered into a heads of agreement with Jan de Nul on Oct. 4, 2006, for Jan de Nul to provide a mining platform, and, accordingly, has attracted a range of major contractors and equipment suppliers that see Nautilus now poised to commence development of the world’s first copper-gold mine, potentially opening up a whole new resource industry. Since October, 2006, the company has attracted Anglo American, Teck Cominco and Epion as major shareholders, has raised significant capital ($270-million (U.S.) of cash in the bank), and has drilled out the Solwara 1 deposit.”
Mr. Heydon added: “Given the expressions of interest and tenders received to date for offshore components, we believe that we will have the option to award a complete mining services contract that would avoid Nautilus having to contribute capital for the mining vessel or platform and would provide for an experienced contractor to operate the mine offshore. Indications are that the total mining system will be delivered within the economic framework previously established with Jan de Nul, and will allow for a mining commencement date in the third quarter of 2010, subject to timely approvals and permitting.”
Treatment facility
With respect to the treatment facility, major equipment tender packages have been issued and responses from the supplier and contractor community are being received on time. Preliminary surveys of potential land sites have been carried out and geotechnical investigations will be launched this month. In addition to the preliminary design effort and site selection, optimization studies are being carried out together with an extensive metallurgical test program awarded to AMMTEC to be conducted on material recovered from the recent drilling program.
Mining platform
Following the receipt of expressions of interest from a number of leading international marine contractors, Nautilus issued a tender to suitably qualified organizations for the provision of mining services. Mining services encompass the provision of a mining platform, management of delivery of the subsea mining equipment and the future mining operations. From the expressions of interest submitted already, it is clear that there are a number of existing vessels operating in the world today that have the capability of being adapted as a mining services vessel as well as a number of vessels under construction which also meet the project’s time frame. Nautilus is very pleased with the response of the wider industry to this exciting project.
Subsea mining equipment
Tenders have recently been received for the deepwater subsea mining tool from leading specialist organizations with experience in deepwater robotics, subsea rock cutting and marine mining.
Riser and lifting system tenders have also been received from deepwater-experienced contractors with extensive riser-design and solids-pumping experience primarily from the offshore oil/gas and dredging industries.
The company is finalizing its review of these tenders and, following completion of commercial negotiations, would propose to award the formal contract for the provision of mining services and related equipment.
