Nautilus Increases Mineral Resources in Papua New Guinea

A successful exploration drilling campaign conducted at Nautilus Minerals’ tenements in the Bismarck Sea of Papua New Guinea has enabled the company to increase the resource estimate at its Solwara 1 project, and to declare a maiden Inferred Resource at the nearby Solwara 12 deposit.

The key features of the resource update, prepared by independent consultant Golder Associates Pty Ltd in accordance with National Instrument NI 43-101, and stated at a copper equivalent cut-off grade of 2.6%, are as follows:

* The company’s total Indicated Resources have increased 18% to 1.03 million tonnes.

* Total Inferred Resources have risen 36% to 1.8 million tonnes.

* Contained copper in Indicated Resource at Solwara 1 has increased 25% to approximately 74,000 tonnes.

* Contained copper in Inferred Resource at Solwara 1 has increased 28% to approximately 125,000 tonnes.

* Contained gold in Indicated Resource at Solwara 1 has increased 23% to approximately 166,000 ounces.

* Contained gold in Inferred Resource at Solwara 1 has increased 5% to approximately 317,000 ounces.

* A maiden Inferred Resource has been declared at Solwara 12, 25 km to the north-west of Solwara 1, of 230,000 tonnes, grading 7.3% copper and 3.6 g/t gold.

The increases in contained metal within the resource are a 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 CEO Steve Rogers said the notable increase in the company’s resource base demonstrated 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,” Mr 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 program 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.

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Subsea World News Staff , November 25 , 2011; Image: Nautilus Minerals