Mining Intelligence and News
Papua New Guinea

Solwara 1 Project

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Overview

Mine TypeSeabed
StagePermitting
Commodities
  • Copper
  • Gold
  • Silver
  • Zinc
Mining Method
  • Surface miner
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SnapshotThe Solwara 1 Project is a deep-sea polymetallic deposit, containing copper and gold, found within a seafloor massive sulfide formation. The site is located in the Bismarck Sea at water depths of up to 1,700 meters below sea level.

Solwara 1 is the world’s first and only subsea deposit with fully approved mining and environmental licenses.

Sustainable Mining Solutions (JV Deep Sea Mining Finance/SM2) is pleased to announce the successful completion of the Pilot Test Programme during Q2/Q3 2024 by MV Coco in the Bismarck Sea, Papua New Guinea, furthering the development of the Solwara 1 Project.

The following activities were performed during the Programme: Environmental Monitoring, Bulk Sampling, Collection of samples for further test work and analysis.

SM2 proposed a new and less environmentally invasive mining system that will provide the required infrastructure and expertise to develop the Solwara 1 project in the waters of New Ireland.

Owners

SourceSource
CompanyInterestOwnership
SM2 Limited Indirect
Deep Sea Mining Finance Ltd. Indirect
Nautilus Minerals Niugini Ltd. (operator) 85 % Direct
Sustainable Mining Solutions (SMS) is a joint venture between Deep Sea Mining Finance Limited (DSMF) and SM2 Limited (SM2).

DSMF acquired the assets and key subsidiaries of the Nautilus Group in a transparent process known as Companies Creditors Arrangement Act, approved by the Courts of Canada, B.C., in 2019.

This included the acquisition of Nautilus Mineral Niuguini Limited, which holds the current Mining Licence and Environmental Permit of Solwara 1.

SM2 is a partner of DSMF, who acquired their interest through the successful completion of 2 phases of work under a Farm-In Agreement.

The Government of Papua New Guinea (PNG) has both a direct and indirect involvement:

Direct Interest: The state-owned entity, Eda Kopa Ltd, holds a direct 15% equity interest in the Solwara 1 Project.

Indirect Interest: The Solwara 1 project is regulated under PNG law, which is governed and monitored by the Mineral Resources Authority and the Conservation Environment Protection Agency.

Deposit type

  • Stratabound
  • VMS

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 *
Ore tonnes mined, LOM 2.2 Mt *
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 7,319 / t *  
Assumed price Silver USD 18 / oz *  
Assumed price Gold USD 1,200 / oz *  
* According to 2018 study / presentation.
** Net of By-Product.

Operating Costs

CurrencyAverage
Total operating costs ($/t mined) USD  ....  Subscribe
* 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.

Aerial view:

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