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Papua New Guinea

Solwara 1 Project

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Overview

Mine TypeSeabed
StagePermitting
Commodities
  • Copper
  • Gold
  • Silver
  • Zinc
Mining Method
  • Surface miner
Mine Life... Lock
SnapshotSolwara 1 is the world’s first and only subsea deposit with fully approved mining and environmental licenses.

Owners

SourceSource
CompanyInterestOwnership
Deep Sea Mining Finance Ltd. 100 % Indirect
The Solwara 1 Project and related subsidiaries have now been acquired by Deep Sea Mining Finance Limited (DSMF) from Nautilus Minerals Inc. in the course of 2019. DSMF now has full ownership of interests and rights to Solwara 1, key assets, intellectual property, and subsidiaries and is well-positioned to progress Solwara 1 into commercial production.

Deposit type

  • Stratabound

Summary:

The Solwara 1 deposit is a stratabound Seafloor Massive Sulfide located on the flank and crest of a sub-sea volcanic mound that extends approximately 150-200 m above the surrounding seafloor. The average depth of the deposit is about 1,550 m below sea leval (BSL). The slopes of the mound are relatively steep and interrogation of a coarse digital terrain model (DTM) indicates slopes are generally in the range of 15° to 30° but can be locally steeper. There are some flatter areas near the crests of the ridges where much of the deposit is located.

The Solwara 1 deposit is located on the crest and slopes of the Suzette volcanic edifice at an average depth of 1,520 mbsl. Suzette is the northernmost edifice of the Su Su knolls, which also includes North Su and South Su, at 1,150 and 1,320 mbsl respectively.

Su Su knolls are part of a NNW trending volcanic ridge that is about 7 km long and comprises basalt to dacite lavas and breccias. At Suzette, hydrothermal mineralisation is found along the top and flanks of the ridge including chimneys and clay-altered volcanics. Coherent volcanic facies including pillow lavas, sheet and block-jointed lavas are exposed. Volcaniclastic facies include breccias, talus and fine grained volcanic sediments. The Solwara 5, Solwara 9 and South Su prospects are also located on this ridge.

Solwara 12 is located on the SE edge of the Desmos Caldera on a distinctive knoll at around 1,850 mbsl to 1,900 mbsl. The mapped chimney field is around 200 m across and includes clusters of old, inactive chimneys with sediment cover in-between. The Solwara 12 outcropping chimneys are large (up to 10 m high).

Solwara 1 is a tabular flat-lying deposit of massive sulfide-dominant mineralisation lying on the Suzette volcanic edifice. Suzette rises 150 to 200 m above the surrounding seafloor. The edifice locally has steep flanks of up to 30 degrees; but the top comprises a flatter undulating terrain with volcanic rocks, hydrothermal chimneys, and minor sediment cover.

Exposed and drilled volcanic rocks comprise lavas (block jointed and pillows) and breccia (block lava to volcanic talus). Compositions are dominated by tholeiitic to calc-alkaline basaltic andesite to dacite. Some volcanics occur as thin volcanic flows that cap part of the main sulfide-dominant mineralisation within the eastern and northern zones of the deposit.

The main area of the Solwara 1 deposit contains numerous hydrothermal vents or chimneys. Nautilus has sampled many of the chimneys across the deposit and they are composed dominantly of chalcopyrite and pyrite, with minor amounts of sphalerite, and sulfates (barite and anhydrite). Chimney heights generally range from 2 to 10 m and have been observed up to 15 m in height. Where chimney development is strongest the chimneys coalesce into distinct mounds or occur in linear zones that are interpreted to be related to underlying structural features.

Drilling has found massive sulphides below the chimneys, and hydrothermal clay altered volcanics grading to fresh volcanics below the massive sulphides.

Unconsolidated sediments (clay to sand-size particles) are found extensively on top of volcanic and mineralised units. These sediments are from nearby hydrothermal and volcanic venting as well as lesser pelagic input.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

Milling equipment has not been reported.

Processing

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Production

CommodityUnitsLOM
Copper t 130,000
Gold oz 180,000
Silver oz 530,000
All production numbers are expressed as payable metal.

Operational metrics

Metrics
Daily ore mining rate 3,200 t *
Daily mining capacity 6,000 t *
Daily processing capacity 9,480 t *
Annual processing capacity 1.8 Mt *
Waste tonnes, LOM 76 kt *
Tonnes processed, LOM 2,200 kt *
* According to 2018 study.

Production Costs

CommodityUnitsAverage
C1 cash costs Copper USD 1.36 / lb * **  
Assumed price Copper USD 3.32 / lb *  
Assumed price Silver USD 18 / oz *  
Assumed price Gold USD 1,200 / oz *  
* According to 2018 study / presentation.
** Net of By-Product.

Operating Costs

Currency2018
Total operating costs ($/t mined) USD 274 *  
* According to 2018 study.

Project Costs

MetricsUnitsLOM Total
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
Refining costs $M USD  ......  Subscribe
Transportation (haulage) costs $M USD 44.2
Total OpEx $M USD  ......  Subscribe
Income Taxes $M USD  ......  Subscribe
Royalty payments $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
EBITDA (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax NPV @ 15% $M USD  ......  Subscribe
After-tax IRR, %  ......  Subscribe

Heavy Mobile Equipment

Fleet data has not been reported.

Personnel

Mine Management

Job TitleNamePhoneProfileRef. Date
....................... Subscription required ....................... Subscription required ........... Subscription required Subscription required Feb 27, 2018

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