Nautilus Minerals. presentation to AFTP. Paris, October

Transcription

1 Nautilus Minerals RALS Project presentation to AFTP Paris, October

2 Contents II. Seafloor Massive Sulphide (SMS) Exploration IV. Nautilus Minerals presentation VI. Riser and Lifting System (RALS) project 2

3 I. Seafloor Massive Sulphide (SMS) Exploration 1. Seafloor Massive Sulphide (SMS) Advantages 3. A potential massive market 5. Why now? 3

4 1. Seafloor Massive Sulphide (SMS) Advantages First analyses show a high grade base & precious metals: 5 to 20 times more concentrated than onshore deposit average Offshore Onshore* Gold 2 20 g/t g/t Silver g/t 10 50g/t Copper 5-15% 0.25% - 1.5% Lead 3-25% 1 4% Zinc 5-50% <5% Metal Value USD$ /ton compare to USD$ /ton for Onshore deposit Massive resource potential of SMS deposits Several sampling campaign ongoing in Papua New Guinea Preliminary tests indicate 2 to 10 Mt of SMS deposit per attractive field which is equivalent to 5 to 10 years of operation No mining waste or overburden Minimal mining infrastructure and disturbance * Typical current project 4

5 2. A potential massive market The resource potential of seafloor massive sulphide (SMS) deposits is massive Oceans and seas cover 71% of Earth, with the surface area of the Pacific Ocean twice that of all the continents With 97% of the ocean floor yet to be extensively explored, it is likely that numerous deposits remain undiscovered. 5

6 3. Why now? SMS deposits now provide a compelling opportunity against the backdrop of robust commodity pricing and depletion of resources from traditional sources Pacific region is stable political environment Government legislations support offshore mineral exploration Well recognized offshore oil and gas marine industry Active marine contracting sector which includes ships, platforms and remotely operated seafloor vehicles (ROV) Seamount sites at depths of 120 metres to 1,800 metres under water at well within the operating range for existing technologies 6

7 II. Nautilus Minerals Presentation 1. Main figures 3. Offshore fields location 5. Project details 7. Mining concept details 7

8 1. Main figures Listed TSX & London (Symbol NUS in May, 06), AIM (December, 06) Main Industry Shareholders Epion Holdings (22,4%) Anglo American (5,7%) Teck Cominco (7,2%) Cash on Hand US$310 million as at December 31, 2007 Additional potential cash from full dilution - US$133 million 365,000 km2 of tenement licences and exploration applications in the territorial waters of PNG, Fiji, Tonga, the Solomon Islands and NZ Project Team in Brisbane Remarks: First development with NUS as operator Location: 1st deposit: Solwara 1 (WD 1,700m) - Bismarck Sea, PNG Product: Cu/Pb concentrate (+ possibly Zn concentrate and pyrite) 8

9 2. Offshore fields locations 9

10 3. Project details Mining of Seabed Massive Sulphides Strength 5-35Mpa avg. 18Mpa Dry density t/m3 avg. 3.2t/m3 Production 1.8MTPA (5000t/day) Mining and processing Concepts Process 1 : Mining The first step in the mining process involves cutting the seafloor material and drawing it into the suction mouth of the Seafloor Mining Tool (SMT) as slurry. It is then transported to a pumping module and lifted up a steel riser pipe by pumping (RALS) At the surface, the Mining Support Vessel (MSV) receive the material for dewatering. After dewatering, the ore is transferred to barges on a continuous cycle for shipment to a nearby port facility. Process 2 : Processing Treatment by flotation cell Concentrating plant installed on a spread-moored floating support Export of Concentrate to existing smelters on land 10

11 4. Mining concepts details Subsea mining tool (SMT) details Awarded to Soil Machine Dynamics (Newcastle). The 33 million fixed price contract is for the design and production of two identical 190 tonne SMTs. The system is designed to operate at production rate of 6,000 tonnes/day. Riser and Lifting System (RALS) details A second contract with a US $116 million target price was awarded on April 3, 2008 to Technip USA Inc. to provide EPCM services for the RALS components comprising Subsea pumps, Riser pipe, Riser handling system and associated deck equipment. Mining Support Vessel (MSV) details The third contract, was awarded on June 20, 2008 with North Sea Shipping Holding AS to provide the specialist Mining Support Vessel ("MSV"). They will provide a 160m DP new build ship, on a five year charter basis The value of the MSV contract is approximately US$125 million over the initial five year period as operating expense to Nautilus. 11

12 III. RALS project 3. xxx 12

13 SCOPE OF WORK Technip Riser And Lift System 13

14 Riser and handling system Riser and handling system fits in North Sea Shipping proposed vessel SMT Riser & Subsea pump connected to the SMT thru an S shaped flexible 14and Foo Title of presentation in Header 14

15 Riser and Lift System Sized for 6,000 tons/day 13-5/8 Riser x 8-5/8 water injection lines ~ 6.5 m x 6.5 m x 5 m x 130 tonnes subsea pump 15and Foo Title of presentation in Header 15

16 Features for accommodating deepwater fields Pump suspended above seafloor provides mobility for covering large fields Waste water discharged near sea floor S shape flexible decoupled vessel motion from SMT 16and Foo Title of presentation in Header 16

17 Design Basis Designed for 2,500 m, ordered 1,700 m with 800 m option Riser ID = 12-1/8 with a provision of 1/8 wear allowance Subsea Riser Transfer Pipe ID = m Tons/year, SG = 3, and Ct = 12% (delivered volumetric percentage) Lift System - Hydril 2 x quintuple diaphragm pump banks Hydraulic (water) power supply Exhaust water temp at seabed 9 to 15 deg C Retrieve pump and RTP without pulling riser Offloading & dewatering on MSV Slurry pumped to dewatering system Processed waste water pumped back to seabed Filtration to 6 microns Holding, mixing and by pass tanks on MSV 17and Foo Title of presentation in Header 17

18 Preliminary Pump Flow Summary Ore Production tonnes/day (24 hr days) & 2500 m depth ID Description Design Case Minimum Pressure 1700 m depth Increased SGs Reduced Ore size Increased Ct Both 5 & 6 Ct (-) SGs (-) Da (in) Qm (gpm) 3,058 5,096 3,058 2,548 3,058 2,158 2,158 TP (psi) 1, ,785 1,116 1,847 1,510 Total Power (MW) Power Change (%) 0.0% 59% -25% 6.0% -9.4% -7.2% -20% Power requirements Hydril pump 5.7 MW Cutting Tool 2.4 MW Vessel 21 MW 18and Foo Title of presentation in Header 18

19 Riser Component Quantities (62 ft Make-up Length) Item Description Quantity 1 External Tieback Connector / Transition Mandrel 1 2 Transition Joint 1 3 Water Injection Line Adapters (set of 2) 1 4 Standard Riser Joint (62 ft) 68 5 Thick Wall Riser Joint (optional for 2,500 m case) 40 6 Buoyancy Joints (62 ft) 16 7 Straked Joints (62 ft) 24 8 Pup Joint (20 ft) 4 9 Pup Joint (10 ft) 2 10 Flex Joint Assembly 1 11 Flex Joint Receptacle 1 Standard joints includes spares totaling 5% of total length. 19and Foo Title of presentation in Header 19

20 Equipment / Tool Quantities Item Description Quantity 11 Flex Joint Handling and Running Tool 1 12 Riser Spider 1 13 Gimbaled Table 1 14 Riser Handling and Running Tool 1 20and Foo Title of presentation in Header 20

21 Riser System Flex Joint Provides interface between riser and vessel Provides vertical and rotational support Standard offshore technology 21

22 Sizing of Transition Joints Technip program STRESSJ used to size transition joints Transition Joint between flex joint and riser pipe Length - 12 feet OD OD to WT to 0.75 Transition joint between riser pipe and pump module Length - 6 feet OD OD to WT to

23 Riser System 12-1/8 I.D. Dual 8-5/8 OD water injection lines FLEX JOINT API BOLTED FLANGE TO SPOOL PIECE CONNECTION RECEPTACLE PORCH ADAPTER (PROVIDED BY MSV CONTRACTOR) Vertically and laterally supported by riser joint Straked joints interchangeable with standard joints RECEPTACLE BASKET (SPECIFIED BY RALS CONTRACTOR. PROVIDED BY MSV CONTRACTOR.) FLEX JOINT LOWER EXTENSION Flexible hang-off at vessel Accounts for vessel motions 23and Foo Title of presentation in Header 23

24 Riser System Main Pipes and Water Injection Lines Conceptual Design of Riser Connector 24 24

25 Extrapolating from the Existing Technology Drill Riser with C/K lines Flange Style End Connectors Drill Riser with C/K lines Dog Style End Connectors 25 25

26 Swivel Joint Isolates riser system from rotations initiated by subsea miner 200 psi operating pressure Freely rotates 180 Capacity 50 kips tension 12 kips shear 150 ft-kips bending Installed between pumps and flexible transfer pipe. 26and Foo Title of presentation in Header 26