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By M. Ravindran

The Government of India started its deep seabed exploration programme during 1982. This programme was started as one of national importance and several national laboratories were involved to realize the development of requisite technologies for deepsea mining and processing. After a concentrated effort on surveying, using its own as well as hired ships, India succeeded by mid 1980s in identifying a prospective site in the Indian Ocean as an exclusive claim for development. India was registered as a Pioneer Investor and became the first country to obtain this status on 17th August 1987. India has been allocated an exclusive mine site of 150,000 km2 in the Central Indian Ocean. Our country also developed considerable expertise in the metallurgical processing for extracting metals from these nodules. The Department of Ocean Development, Government of India, the organization which is designated as the nodal agency responsible for implementing the deep seabed mining programme has drawn up a long term plan which will enable it to fulfill its obligations as a Pioneer Investor. The work toward the design and development of a mining system has been entrusted to the Central Mechanical and Engineering Research Institute, Durgapur. As a part of this programme they have developed a nodule collector and a riser system which have been tested in very shallow waters only. Since this technology development for deep sea mining applications is highly time consuming and very expensive, this programme is also being used to develop components for intermediate applications. In view of the long timeframe required for perfecting a deepsea nodule mining technology, the Government of India is also keen on developing shallow water mining systems for utilizing the placer deposits. One of the richest heavy mineral deposits in the Indian Exclusive Economic Zone is available on the west coast of South India in the state of Kerala. The coastal stretch between Kanyakumari, on the southern tip of India, and Alleppey along the west coast at a distance from the tip of approximately 210 km, there is a good multimineral reserve. The initial survey indicates that the estimated reserves in the surveyed areas are approximately as follows: Ilmenite 1.4 million tonnes Rutile 0.14 million tomes Zircon 0.13 million tomes Sillimanite 0.53 million tonnes

Jan 1, 1994

By M. E. Williamson

In September 2005 Williamson & Associates, Inc. delivered the BMS2 remotely operated seafloor coring system to the Japan Oil, Gas & Minerals National Corporation (JOGMEC). During acceptance trials aboard the JOGMEC research vessel R/V Hakurei Maru No. 2 the BMS2 successfully recovered 7.44 m of rock core in 3377 m water at a site near the crest of a seamount about 500 nm SE of Japan. Hydrogenous ferromanganese oxide crust, basaltic lava, sandstone and volcanic sediments were sampled with near 100% core recovery. The BMS uses rotary rod coring tools to collect samples to a maximum depth of 30 m in water depths up to 6000 m. Depending on bottom type to be sampled, the BMS tool magazine can be loaded with various drilling tools including core barrels with different bit types, drill rod and bore hole casing. The drill has 9 video cameras, a suite of sensors and 60 hydraulic functions powering thrusters, telescoping legs, seawater pumps and all of the standard drilling controls. The BMS provides deep water investigations with the functionality of conventional diamond bit rod drilling currently the mainstay of exploration programs in land mining.

Jan 1, 2005

By Samantha Whisman, James R. Hein

Hydrothermal marine manganese-oxide deposits (HMMD) are cemented and variously replaced volcaniclastic and biogenic sediments that were mineralized by distal, low- temperature, hydrothermal fluids. HMMD predominantly form below the seabed as sediment-hosted statabound deposits but can also form on the seabed. These deposits form at oceanic and back-arc basin spreading centers, volcanic arcs, and mid-place hotspot volcanoes. HMMD have traditionally not been considered to have an economic potential because they were considered to be devoid of economically valuable critical elements. This contrasts with their non-hydrothermal counterparts, ferromanganese crusts and nodules, which are enriched in many critical elements. However, manganese is now one of the critical metals and HMMD have the highest manganese contents (up to 55% Mn, so- called battery-grade Mn) of all the types of deep-ocean mineral deposits. There is a growing demand for this critical metal and an upward trend exists in the price of manganese on the global market. Also, other critical elements can occur in high concentrations in some HMMD and their economic potential has not been considered, especially for lithium (up to 0.17%) and molybdenum (up to 0.24%), but also vanadium (to 820 ppm), chromium (to 346 ppm), and nickel (to 0.45%), among others. Which of these critical elements are enriched and their concentrations depend on the types of rocks leached at depth by the hydrothermal fluids, the composition of hydrothermal minerals precipitated in the higher temperature parts of the circulation system, and the types of sediments mineralized by the manganese oxides. For example, mineralization of a carbonate sediment resulted in the highest lithium contents, whereas leaching of ultramafic rocks at depth as a rule results in the highest chromium and nickel contents in the HMMD. These deposits are known to be widespread, especially in volcanic arcs, but their lateral and vertical extents and consequently size, tonnage, and grade have not been determined. Most samples of hydrothermal deposits have been collected by dredging and therefore the in situ relationships often are not known. One sample from the Mariana volcanic arc, west Pacific, was collected by ROV at 1274 m water depth from a layered outcrop 6.6 m thick that may be a sequence of pervasively mineralized volcaniclastic layers and offers the first clue as to the potential vertical extent that these deposits may attain. However, only the top ~0.4 m-thick layer was sampled, so it is not known whether the mineralization extents throughout the outcrop. Although large manganese deposits of various origins occur on the continents, they consist of manganese carbonates, silicates, or complex mixtures of manganese minerals. In contrast, marine hydrothermal HMMD exhibit relatively simple mineralogy that would make processing of this potential ore much simpler.

Jan 1, 2018

By Stanley R. Riggs

Onslow Bay is a broad, shallow, high-energy shelf system bounded by the Cape Lookout and Frying Pan shoals. It is generally a sediment-starved shelf system dominated by hardbottoms with a scattered and discontinuous veneer of mobile Holocene sediments. Phosphate-rich beds of the Miocene Pungo River Formation crop out in a belt 150 km long and up to 50 km wide across the continental shelf in Onslow Bay, North Carolina. Previous research has demonstrated that a few of these beds contain vast quantities of potentially economic phosphate resources that occur in the surface and shallow subsurface sediments. Onslow Bay contains five phosphate-bearing beds predicted to include up to 20.7 billion tons of in-place phosphate concentrate with total sediment grades ranging up to 22.9% P2O5 and adjusted average concentrate grades of 29.8% P2O5. These phosphates are lithologically and chemically similar to phosphates currently being mined in the nearby Aurora phosphate district in North Carolina. Various lithologies of the Pungo River Formation and associated rock units of Oligocene and Quaternary age crop out on the sea floor to form extensive hardbottom habitats that dominate almost 100% of Onslow Bay. A large proportion of these hardbottoms appear to be sea floor deserts, whereas others are virtual oases with rich associations of benthic organisms. These important differences in benthic community structure appear to be greatly influenced by one or more of the following variables: 1) geologic framework (geologic formation, hardbottom composition, morphology, and spatial orientation relative to dominant currents and waves), 2) texture, movement, and accumulation of surface sediments, and 3) flow rates and chemical composition of discharged submarine groundwater.

Jan 1, 1992

By T. Kuhn

The Logatchev hydrothermal field is situated on the east inner flank of the rift valley of the MAR at 14°45?N and is hosted by serpentinized peridotites and minor gabbronorites while basalts are subordinate. Hydrothermal precipitates recovered from the Logatchev field during a recent R/V Meteor cruise include massive chalcopyrite chimneys, massive pyrite crusts, silicified breccias, abundant secondary Cu-sulfides, red jaspers, abundant Fe-Mn-oxyhydroxides as well as atacamite and Mn-oxides (Kuhn et al., 2004). Previous results of hydrothermal fluid studies in the Logatchev field are somewhat at odds with theoretical models of ultramafic-seawater reaction. Butterfield et al. (2003) suggested that the Fe component of orthopyroxene plays the more important role compared to olivine in ultramafic-hosted hydrothermal systems. This consideration is supported by the recovery of large amounts of Opx-rich gabbronorites and orthopyroxenites in the Logatchev field (Kuhn et al., 2004). A possible tool to constrain the contribution of the different rock types (ultramafics, mafics, MORB) to a seafloor hydrothermal system is the systematic analysis of 187/188Os ratios of the host rocks as educts and the sulfides as products. For instance, abyssal peridotites mainly display low 187/188Os ratios (<0.127); in contrast MORB and gabbronorites have radiogenic ratios of >0.13 (Snow and Reisberg, 1995), orthopyroxenite has ratios of about 0.174 (Büchl et al., 2002) and seawater has an ever higher 187/188Os of about 1 (Sharma et al., 1997). Therefore, massive sulfides predominantly leached from ultramafic rocks should have Os isotopic ratios plotting on a mixing line between the ultramafic rocks and seawater (in a 187/188Os vs. 1/Os diagram), whereas those derived from MORB, gabbronorites and/or orthopyroxenites will be plotting on different mixing lines.

Jan 1, 2004

By Cornel E. J. de Ronde, Alexander Malahoff

Six active Kermadec arc submarine volcanoes, located between 34°S and 36°30&apos;S were mapped and sampled between April and July 2005, using submersibles Pisces V and Pisces IV aboard the mothership R/V Ka&apos;imikai-o-Kanaloa. The purpose was to study the relationship between hydrothermal activity, formation of hydrothermal mineral deposits, structure of the volcanoes, and the biodiversity of life associated with the hydrothermal vents. Of the volcanoes examined, all showed evidence of hydrothermal activity, including metal-rich plumes and helium anomalies. Only two of the volcanoes, namely Brothers and Clark, showed chimneys and surficial polymetallic sulfide deposition. Hydrothermal venting at a water depth of approximately 1,650 meters near the base of the northwest caldera wall of Brothers volcano has produced a field of chimneys, up to seven meters high and discharging black smoker venting. Temperatures up to 300°C were measured from the active vents. Clark volcano has a double cone summit at a water depth of 875 meters. The shallowest cone has a near-summit hydrothermal vent field with five-meter tall venting chimneys with smaller structures around the periphery. Water temperatures of 200°C were recorded for these chimneys.

By S. C. W. de Jong, E. de Hoog, J. M. van Wijk, S. J. Dasselaar

Introduction Technology development for sustainable, safe, reliable and efficient mining of polymetallic nodules in the deep seas requires careful design, thorough understanding and integrated testing of all equipment, physical processes and (sub) systems involved (Dasselaar et al [1]). Proceeding from Vertical Transport System (VTS) experiments at IHC laboratory scale by Van Wijk [2], with typical system dimensions of several meters, to prototype or pilot scale testing with typical dimensions of several kilometers, is a giant leap. Naturally, intermediate steps are required in order to mitigate the possible risks in the full-scale system’s (physical) processes. Within the EU program Blue Mining (2014-2018), possibilities emerged for performing experiments at intermediate scale: the so-called medium-scale vertical slurry experiments. Near Freiberg, Germany, the village Halsbrücke possesses a 140 meter deep empty vertical mine shaft, perfectly suited for housing the test setup. For this purpose, a 318 meter long 145 mm pipeline circuit was constructed, including both a 130 meter high vertical riser and fall pipe section. A purpose-built sediment injection and separation system was deployed, including a 55 kW centrifugal pump. The riser section has been equipped with sensors capturing pressure, temperature, flow velocity, volumetric concentration and flow visualization. The planning, modification and construction of the test facility site itself is described by Müller et al [3]. The present paper describes the objectives, experimental program, equipment, and the preliminary results. Publications on in-depth results are foreseen in the (near) future.

Jan 1, 2018

By J. Robert Moore

Introductory remarks will be made by the speaker, chiefly on recent and current developments in the industrial, agency and academic sectors that relate to the status of marine mining and mineral exploration programs and to recommendations for strengthening and continuing these programs. Subsequent to these brief comments, a selected panel with representation from industry, academe and government will address the following related topics: 1) development and objectives of new centers for marine mining technology, 2) cooperative R. and D. programs between academe and the user groups, 3) arrangements for specialized training and student instruction that will provide for educational components, and 4) funding and other support for implementing new centers and new programs. The panel discussion will be open to all UMI participants and whose contributions will be both solicited and encouraged.

Jan 1, 1986

By Laurie Meyer

The need for improved, high confidence estimates of nodule abundance to support mine permitting, detailed mine planning and mining and processing equipment design is evident. To date, physical samples represent the ?Gold Standard? for nodule abundance measurement, and are likely to remain as such. However, there are some interesting improvements in the area of 3-D scanning which, if marinized for operations at 6000m, may prove to be reliable alternative methods for mapping abundance over large areas particularly if calibrated or benchmarked with physical sample data. . Features of a high confidence physical sampling device, such as the 0.75m2 (0.86m on a side) box corer developed and successfully used by the Kennecott Group for exploration in the CCZ, take into account not only the accuracy in nodule sample collection but a host of other operability considerations which can mean the difference between a successful exploration cruise yielding high numbers of large area samples and one in which few, inaccurate, often inconclusive samples are collected (or, even worse, the sampler fails to grab any nodules for any number of reasons). The collection of physical samples at appropriate spacing within a mine area combined with more qualitative indications of nodule density such as can be obtained using acoustic backscatter should prove adequate for the near term objectives related to overall abundance appraisal or estimates of ?indicated? resource. Looking ahead, exploration cruises will need to yield increasing amounts of data to support development of higher confidence resource abundance estimates to support issuance of mining permits and detailed design of mining plans and equipment. It is likely

Sep 14, 2011

By Thomas Pichler

In the past marine mining technology has focused on bulk mining of base metals from polymetallic massive sulfides. This has not been very successful because of the relatively low unit value of these metals and other reasons such as water depth, etc.. The process of gold enrichment in hydrothermal deposits is controlled through five different factors: (1) nature and source of the solution, (2) source of the gold, (3) a mechanism for mobilizing and transporting, (4) a mechanism for deposition, and (5) a mechanism to preserve the deposit. Gold has been identified in marine polymetallic massive sulfides from various locations on the ocean floor (e.g., spreading centers, seamounts) with contents ranging up to 5 ppm Au. This is within the current range of 1.0 to 7.0 ppm gold content which classifies gold ores. The gold appears to have been derived during hydrothermal alteration of the oceanic crust. Until the present there has been little attention to the possibility of mining gold or other precious metals in the marine environment. However, the magnitude of hydrothermal alteration (seawater can penetrates to a depth of 5 km into the oceanic crust) and primary gold contents of the rocks in the pathway of the fluid indicates that major gold deposits must have formed on or in the ocean floor, but they have not been found. To find a big deposit might only take an exploration model exclusively designed for gold exploration on the ocean floor.

Jan 1, 1993

By Chris Castle

The Chatham Rise is a submarine topographic feature lying off the east coast of New Zealand between the South Island and the Chatham Islands and within New Zealand?s jurisdiction. The Chatham Rise hosts economically significant deposits of rock phosphate and other potentially valuable minerals. The deposits comprise nodules lying on, or just below the surface of the seabed in shallow waters. Rock phosphate is an essential ingredient of fertilizer and can be applied directly to pasture. There is a realistic opportunity the phosphate deposits could supply New Zealand?s agricultural requirements for an estimated 30-year period at current rates of consumption.

Jan 1, 2011

By Henk van Muijen, Jan Willem de Wit

1.1 Profile IHC Holland Merwede IHC Holland Merwede is world market leader in the construction of specialist dredging equipment and large-size custom-built offshore vessels. The clients of IHC Holland Merwede include major dredging companies, oil and gas exploration groups, offshore contractors and government authorities. IHC Holland Merwede is focused on the continuous development and innovation of technology to ensure maximum performance and efficiency of its designs and constructions supplied to the dredging and offshore industries. IHC Holland Merwede has a staff of approximately 2,000 at its locations in Hardinxveld- Giessendam, Kinderdijk, Krimpen aan den IJssel, Sliedrecht, Delfgauw, Goes, Hendrik Ido Ambacht and Heusden. Besides worldwide representations, IHC Holland Merwede has branches in China, Houston (USA), India, the Middle East and Singapore. 1.2 Mission IHC Holland Merwede’s mission is to optimize value by anticipating and satisfying its client’s requirements, with efficient advanced technology solutions. The group’s aim is to be consistently at the forefront of technology development, in the business sectors in which it operates.

By Mike Woodborne

The marine diamond industry off south-western Africa is maturing rapidly. Some of the larger explorers have reached an advanced stage in their resource development and new mining operations have been started in the last year. Most of the major exploration, mining and marine engineering companies have offices in Cape Town. As a result of the increased activity and experiences to date, new approaches to marine diamond exploration and mining are now evolving. Primary factors contributing the new approaches are namely 1) the concentration of expertise in a localised area 2) the significant increase in the base of available exploration and production results and 3) parallel advances in the marine engineering design and geophysical survey equipment. The sea floor geology and setting of the marine diamond exploration areas is now better understood. Consequently the strategy for exploration and the selection of appropriate survey equipment is improved. Due to new equipment developments, different exploration alternatives now exist, depending on the programme objectives. Significant advances have also been made in the data processing and modelling undertaken to assist in the identification and targeting of potentially diamondiferous prospecting features. Similarly, the design of appropriate prospecting tools and programmes has also been improved. Following exposure to the requirements of the marine diamond industry, the design engineering and operating companies have responded with innovative designs for new prospecting tools. In recent years the availability of relevant information on marine diamond prospecting and production has increased. As a result, there is now sufficient basis for the construction of meaningful financial valuation models that can be effectively used to control and guide the exploration projects, to the benefit of both the explorer and the investor.

Jan 1, 1998

By S. Rajendran

Gas Hydrates (Methane Hydrates) are solid, ice-like substances composed of water and natural gas. They occur naturally in areas of the world where methane and water combine at appropriate conditions of temperature and pressure and are found in ocean bottom sediments and in some permafrost areas. Besides temperature and pressure, factors like bathymetry, sediment thickness, sedimentation rates, and total organic carbon content (TOC) also control gas hydrate formation in the ocean basins. The stability of gas hydrates depends on the critical combination of high pressure and low temperature (0 - 17 bars, 0 - 25°C), which in turn is dependent on the mix of gases from which the mineral is formed. As the critical parameters can be altered by deposition, erosion, slumping, formation or melting of ice cover, rise and fall of sea level, and sudden temperature changes induced by tectonic activities, current flow, or volcanisms, the gas hydrates tend to be very unstable. The Indian offshore is promising for the occurrence of gas hydrates in a total of about 80,000 km2 area in the bathymetry range of 700 to 3000 m as reported in earlier surveys. A gas hydrate stability zone thickness map was prepared using bathymetry and sea bottom temperatures along the continental margins of India. This map is expected to provide the depth window while searching for Bottom Simulating Reflectors (BSR). The study indicates that a minimum water depth of 750 m is required for the formation of gas hydrates, above which the chances for gas hydrate occurrence appear minimal despite other favorable conditions like organic-rich sediments, etc. Single-channel seismic analog records (Gupta et al., 1998) indicate that the Western Continental Margin of India (WCMI) offers a greater promise for gas hydrate occurrences, particularly with regard to the number of BSRs traced on the analog records as compared to earlier surveys.

Jan 1, 2005

By I. Yu. Melekestseva, V. V. Zaykov

Paleooceanic structures of the Urals fold belt contain different volcanic-hosted massive sulfide deposits of the Urals, Kuroko and Cyprus types [Prokin, Buslaev, 1999]. Small Cobearing massive sulfide deposits, as Ishkinino, Ivanovka and Dergamysh, associated with ultramafites of the Main Urals fault, are less known. Interest to them had arisen after discoveries of the modern “black smokers” associated with ultramafic rocks of the Middle-Atlantic Ridge (MAR). Ores of the Urals deposits are enriched in Co (0.3 %) and Ni (0.6 %) that are concentrated in Co-Ni-Fe-sulfides, sulfarsenides, and arsenides. Ores also contain the increased gold contents – 3–6 ppm and up to 16 ppm in those saturated with As-bearing minerals. The aim of the paper is a comparison of precious metal mineralization in ores from the Paleozoic and modern ultramafic-hosted massive sulfides.

Aug 24, 2006

By Jerry Hanua Naime

Papua New Guinea has permitted its first underwater mine. Nautilus Minerals (PNG) Limited is the company permitted to operate the Solwara 1 project. The project is located 30km off the nearest island of New Ireland in the Bismarck Sea. The successful permitting of the activity was due to the existence of a broad legislative framework and the collaborative efforts of stakeholders. Challenges faced included the lack of specific guidelines or policies for underwater mining; lack of existing technology and/or mining method; lack of benefit sharing mechanism for such a project and management of the perceptions of local communities that fear environmental degradation by the mining project. This presentation shares the experience of Papua New Guinea?s first under water mine. A background of the country, the project and the legislative framework are presented. Followed by the challenges and approach taken to permit the project.

Jan 1, 2010

By Kaihui Yang

Volcanogenic massive sulfide deposits are generally considered to have been formed by hydrothermal fluids that leach ore metals out of footwall rocks. However, the necessity for a metal-rich magmatic component in the ore-forming fluid of "giant" ore deposits has been debated over the decades. The solution to this issue is important not only for metallogenic models but also for the mineral exploration. In the hydrothermal leaching model, massive sulfides at mid-ocean ridges are deposited from hydrothermal fluids containing 80 ppm Fe, 6 ppm Zn, 2 ppm Cu, 350oC, and 0.7 g/cm3 density (average data for 21oN East Pacific Rise). A simple calculation demonstrates that such a dilute fluid is unlikely to have been responsible for the formation of the largest ancient massive sulfide ores of greater than 100x106 tonnes, such as Kidd Creek, Brunswick No. 12, Neves Corvo, and Rio Tinto. For such a deposit consisting primarily of pyrite, sphalerite, galena and chalcopyrite (other minerals, including gangue, might account for an additional 10-20%) and even assuming 100% precipitation and retention of the sulfides, more than 790 km3 of vent fluid would be required. For typical water-rock reaction ratios of about 2, this fluid would have to have reacted with about 395 km3 of rock to acquire its metals by conventional leaching processes. This estimate, however, conflicts with the observation that even a giant massive sulfide ore body is usually underlain only by a few cube kilometers of obviously altered rocks. Moreover, this model is not consistent with the observation of hanging wall alteration in many large massive sulfide deposits. The close spatial association between massive sulfides and volcanic rocks, in both ancient and modern sea floors, suggests that direct magmatic contribution should be taken into account in the genetic model. Magmatic fluids, capable of carrying abundant ore metals and volatiles and escaping from magma by depressurization, are well known from modern active volcanoes on land. High concentrations of metals occur in CO2-rich magmatic fluid trapped in felsic volcanic rocks nearby large presently-forming VMS deposits in the eastern Manus Basin (Pacmanus, Suzette) and also in the footwall rocks of Ordovician giant Brunswick #12 deposit in the Bathurst district, New Brunswick. Only 1% of such metal-rich magmatic fluid mixed with heated sea water, that has leached its metals from rocks, would contribute 85% of the total metals to form an orebody. Such magmatic fluids are most likely to be formed from volatile-rich felsic magmas that are prevalent in back arcs, and, if added to the normal circulation system, the fluids could be responsible for the formation of "giant" ore deposits. If this is true, then the study of magmatic fluids in the seafloor volcanic rocks may provide criteria for the exploration of large ore deposits.

Jan 1, 2011

By Kokichi Iizasa

Modern Kuroko-type deposits have been much reported in submarine calderas and cauldrons in the EEZ of Japan since 1988. Some of them have been found based on heavy mineral analysis of sediments in which sulfide particles may be derived from hydrothermal sources in the ambient areas. From the end of August to early September 2007, in the middle Izu-Ogasawara arc south of Tokyo, ROV expeditions were carried out in submarine calderas in order to examine mineralogical features between intact heavy particles spouting out from sulfide chimneys and heavy minerals such as sulfides in sediments around sulfide mounds in Kuroko-type deposits, and to find more newly formed hydrothermal sulfide fields in those areas. Some preliminary results from the ROV expeditions are reported here.

Oct 15, 2007

By Alexander Malahoff

Six active Kermadec arc submarine volcanoes located between 34°S and 36°30’S were mapped and sampled by an interdisciplinary inter-institutional research team between April and July 2005 using submersibles Pisces V and Pisces IV aboard the mother ship the R/V Ka’imikai-o-Kanaloa. The purpose of the expedition was to study the relationship between hydrothermal activity, formation of hydrothermal mineral deposits, and the biodiversity of life associated with the hydrothermal vents. Of the volcanoes examined, all showed evidence of hydrothermal activity, including metal-rich plumes and helium anomalies. Only two of the volcanoes, namely Brothers and Clark, showed chimneys and surficial polymetallic sulfide deposition. Hydrothermal venting at a water depth of approximately 1,650 meters near the base of the northwest caldera wall of Brothers volcano has produced a field of chimneys, some of them seven metres high and discharging black smoker venting. Temperatures up to 300°C were measured from the active vents. Clark volcano has a double cone summit at a water depth of 875 meters. The shallowest cone has a near-summit hydrothermal vent field with five-meter tall venting chimneys with smaller structures around the periphery.

Aug 24, 2006

By Glen Smith

Nautilus Minerals, the world?s leader in exploration and development of deep ocean seafloor resources, is today focused on the recovery of high-grade copper and gold in seafloor massive-sulphide mineralization. These targeted mineralized belts, analogous to land-based volcanogenic massive sulphide deposits, are located near plate boundaries in the back arc basins of the Western Pacific. The first deposit to be developed by the company is located at a depth of 1,600 meters at Solwara 1, in the benign waters of the Bismarck Sea. This location lies within the territorial waters of Papua New Guinea. From 2006 to 2009 the company completed detailed environmental and geological studies at Solwara 1, culminating in a number of world firsts, including the first Environmental Permit granted for the extraction of seafloor massive sulphide deposits and the first NI 43-101 compliant seafloor massive sulphide deposit resource statement. Nautilus has relied heavily on proven deepwater technologies from the oil and gas industry in the design of its production system. Pipeline trenching units, workclass ROVs, deepwater production risers and drill cuttings removal systems will be adapted to initiate this new and exciting industry. Key contractors used by Nautilus on this innovative project have all been selected for their deepwater experience (gained in the oil and gas industry), creativity and determination to launch this new industry successfully. Innovation is at the forefront of Nautilus? success to date. This paper summarizes the progress to date of this development which will provide a new source of minerals for the world and which will contribute to sustainable growth for the future.

Jan 1, 2010