Appraisal of Solwara 1 resources upgraded

NAUTILUS Minerals has announced increased resource estimates at its Solwara 1 project in the Bismarck Sea, about 30km north of Rabaul.
The company reported the increase last Friday to the stock market as it also declared a maiden inferred resource at the nearby Solwara12 project which is 25km northwest of Solwara 1.
The company planned to start production from the world’s first under-water mine by the fourth quarter of 2013.
 Its under-water and remote-controlled mining equipment were currently being manufactured in England, according to vice- president investment relations and communications Joe Dowling.
The key features of the resource update, prepared by independent consultant Golder Associates Pty Ltd in accordance with National Instrument NI 43-101, stated at a copper equivalent cut-off grade of 2.6%, are as follows:
l    The company’s total indicated resources had increased 18% to 1.03 million tonnes.
l    Total inferred resources had risen 36% to 1.8 million tonnes.
l    Contained copper in indicated resource at Solwara 1 had increased 25% to approximately 74,000 tonnes.
l    Contained copper in Inferred Resource at Solwara 1 had increased 28% to approximately 125,000t.
l    Contained gold in indicated resource at Solwara 1 had increased 23% to about 166,000 ounces.
l    Contained gold in Inferred Resource at Solwara 1 had increased 5% to about 317,000oz, and 
l    A maiden inferred resource had been declared at Solwara 12, 25km to the northwest of Solwara 1, of 230,000t, grading 7.3% copper and 3.6 grams per tonne gold.
The increases in contained metal within the resource were the result of additional tonnes and importantly, higher grades, due to successful resource drilling which identified further high-grade ore zones.
The increase in tonnes was also partly due to a reduction in the cut-off grade from 4% copper, used in the prior 2008 resource statement, to a copper equivalent cut-off grade of 2.6% in the 2011 resource, following refinements in the project design.
Nautilus Minerals president and chief executive Steve Rogers said the notable increase in the company’s resource base showed the success of the exploration campaign, extending the life of the Solwara 1 project and delivering an improved knowledge of the Bismarck Sea geology.
“Importantly, the declaration of a maiden resource at Solwara 12 begins the process of building a pipeline of projects for Nautilus in the region, and confirms the prospectivity of the Bismarck Sea, where we have identified another 16 prospects for further evaluation.
“Nautilus will attempt to build on this base in the coming year, through on-going exploration activities in PNG and elsewhere in the western Pacific,” Rogers said.
“Nautilus will be undertaking important work including the use of multi-beam sonar and seismic exploration tools in the Bismarck Sea over the coming months to assist in identifying targets for drilling, scheduled to be conducted in the second-half of next year.
“As part of that programme, we will be testing for additional lenses of high grade material in the vicinity of Solwara 1, while the limits of Solwara 12 have yet to be fully identified,” he said.