Nautilus Minerals Inc. (TSX:NUS) (OTC:NUSMF)
(Nasdaq Intl Designation) (the
"
Company" or "
Nautilus")
announces that is has commenced wet testing of its new seafloor
diamond drill rig, which the Company has developed to relieve the
drilling requirements of its future exploration programs.
Mike Johnston, Nautilus’ CEO commented,
“According to our recently released Preliminary Economic Assessment
for Solwara 1, a single quarter's production at steady state mining
rates (~3,200t/d) and at average Solwara deposit grades, adds
around US$110 million in 1EBITDA**. Hence forward exploration is a
pivotal part of our business. Our pioneering teams are overcoming
traditional functional limitations and high fees in seafloor
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
familiarising personnel with all aspects of the equipment and
operations, in a reduced cost environment.
The Nautilus developed rig, nick-named the
“Hobbit” scout rig (Figure 1), 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 utilises Nautilus’ industry
leading seafloor 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 funding.
All scientific or technical information
contained in this news release has been reviewed and approved by
Mike Johnston, the President and CEO of the Company who is a
"Qualified Person" within the meaning of National Instrument
43-101.
1 see table 22.3 page 231 of the PEA in links section. Steady
state production is achieved during Q4, 2020 to Q2 2021, where
EBITDA averages US$112.9 per quarter
** EBITDA - net income with interest, taxes,
depreciation and amortization added back to it
Links
http://www.nautilusminerals.com/irm/PDF/1973_0/NautilusAnnouncesPreliminaryEconomicAssessmentforitsSolwara1Project
Figure one -
http://www.nautilusminerals.com//irm/media/98/Hobbit drill
rig.jpg
For more information please refer to
www.nautilusminerals.com or contact:
Investor Relations Nautilus Minerals Inc.
(Toronto) Email: investor@nautilusminerals.com Tel: +1 416 551
1100
The TSX does not accept responsibility
for the adequacy or accuracy of this press release.
Certain of the statements made in this news
release may contain forward-looking information within the meaning
of applicable securities laws, including statements with respect to
the development of the Solwara 1 Project, plans to cost effectively
build a pipeline of resources, the PEA, and the operation of the
Company's exploration tools including the "Hobbit" drill rig. We
have made numerous assumptions about such statements,
including assumptions relating to the
Company’s funding requirements, project funding, and
completion and operation of the Company's
seafloor production system and exploration tools. Even
though our management believes the assumptions made and the
expectations represented by such statements are reasonable, there
can be no assurance that they will prove to be accurate.
Forward-looking information by its
nature involves known and unknown
risks, uncertainties and other factors
which may cause the actual results to be materially different from
any future results expressed or implied by such
forward-looking information. Please refer
to our most recently filed
Annual Information Form in respect of material assumptions
and risks related to the prospects of extracting minerals from the
seafloor and other risks relating to the
Company's business and plans for
development of the Solwara 1 Project. Risks
related to continuing the Company's operations and advancing the
development of the Solwara 1 Project include the risk that the
Company will be unable to obtain at all or on acceptable terms, and
within the timeframes required, the remaining financings necessary
to fund completion of the build, testing and deployment of the
Company's seafloor production system; that the Company will be
unable to rectify or arrange for the rectification of the default
under the shipbuilding contract for the construction of the
production support vessel; that agreements with third party
contractors for building slots within certain timeframes are not
secured as required; the risk that the Company's seafloor equipment
and exploration tools, including the "Hobbit” scout rig, will not
operate as expected; and the risk that the Company will be
unsuccessful in delineating new mineral resources through future
exploration activities. As the Company has not completed a
prefeasibility study or feasibility study in respect of the Solwara
1 Project, there can be no assurance that the Company's production
plans will, if fully funded and implemented, successfully
demonstrate that seafloor resource production is commercially
viable. Except as required by law, we do not expect to update
forward-looking statements and information as conditions
change and you are referred to the full discussion of the
Company's business contained in the Company's reports filed with
the securities regulatory authorities in Canada.
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.
Nautilus also holds highly prospective
exploration acreage in the western Pacific (granted and under
application), as well as in international waters in the Central
Pacific.
A Canadian registered company, Nautilus is
listed on the TSX:NUS stock exchange and is also a member of the
Nasdaq International Designation program. Its corporate office is
in Brisbane, Australia. Its major shareholders include MB Holding
Company LLC, an Oman based group with interests in mining, oil
& gas, which holds a 30.4% interest and Metalloinvest, the
largest iron ore producer in Europe and the CIS, which has a 19.2%
holding (each on a non-diluted basis, excluding loan shares
outstanding under the Company’s share loan plan).