Using existing technologies from the offshore oil & gas, dredging and mining industries, Nautilus plans to extract high grade Seafloor Massive Sulphide ("SMS") systems on a commercial scale. Nautilus has been working over the past number of years on the building of the Seafloor Production System. On November 13, 2012, Nautilus announced that Management and the Board of Directors of Nautilus decided to terminate construction of its Seafloor Production System in order to preserve cash. This was as a result of a dispute with the Independent State of Papua New Guinea ("State") over costs that Nautilus says the government is obliged to meet for the project
Unfortunately, to date, an agreed commercial resolution with the State has not been achieved and Nautilus believes the avenues for achieving such a resolution within the timeframe that Nautilus could reasonably continue to carry the total development costs for the Project have now been exhausted. Accordingly, in order to preserve capital, this resulted in the termination of the construction of the Seafloor Production System.
Despite this setback, the Company remains committed to maximizing shareholder value by achieving its objective of developing the world's first commercial seafloor copper-gold project and launching the deep water seafloor resource production industry, whilst maintaining an environmentally and socially responsible approach.
To read more on this dispute click here here.
How We Plan to Extract Minerals from the Seafloor
SOLWARA 1 RESOURCE
In 2007 the exploration team drilled a 43-101 resource on the Solwara 1 Project using newly developed ROV drills. The resulting high grade copper-gold resource was the world's first Seafloor Massive Sulphide ("SMS") resource statement. In 2010/11 further drilling was conducted at Solwara 1 resulting in an increase in the resource base. Results of the updated resource were as follows (November 25, 2011):
The original 43-101 resource report can be found here.
The 2011 Golders Resource update also saw the companies second resource declared for the Solwara 12 project (230K t), some 25km NE of Solwara 1, on EL1324.
The Mining Lease ("ML") application and the development proposal were both submitted to the Government of PNG in Q3, 2008 (October 3, 2008). The ML was granted by the Government of Papua New Guinea on January 17, 2011. (January 17, 2011). The Environmental Permit for the development of the Solwara 1 Project was granted in December 2009, by the Department of Environment and Conservation ("DEC") of Papua New Guinea for a term of 25 years, expiring in 2035 (January 5, 2010). To download the EIS and for more information on Safety, Community and the Environment, please visit our CARES pages www.cares.nautilusminerals.com
NEXT GENERATION PRODUCTION
Nautilus plans to launch additional projects on our extensive tenement holdings across the western Pacific. To prepare for this growth we continue to evaluate technology from the perspective of its application to future production systems. Among the key technology areas that we will continue to evaluate and develop are: