Companies Turning To Seafloor In Advance Of Next Great Metals Rush

Nautilus Minerals and Neptune Minerals are betting that the next great metals rush will take place more than 1,500 m (5,000 ft) below the sea. Nautilus is the first company to commercially explore the ocean floor for gold and copper seafloor massive sulfide (SMS) deposits. Its main focus is the Solwara 1 Project, a polymetallic copper, gold, zinc, silver deposit that is under 1,600 m (5,200 ft) of water off the coast of Papua New Guinea in the western Pacific Oceans? Rim of Fire. Nautilus Minerals, in a joint venture with Placer Dome (now Barrick Gold), began its exploration of what would become the Solwara 1 area in 2005 with side scan sonar and dredge sampling. The dredge and grab sampling confirmed the grade tenor of earlier sampling by scientific research programs. The 45 dredge samples aver-aged 10.8 percent copper, 3.7 percent zinc, 224 g/t (6.5 oz/st) silver and 13.7 g/t (0.4 oz/st) gold. Nautilus has since staked out more than 300,000 km2 (115,800 sq miles) of tenement licenses and exploration applications in the waters off Papua New Guinea, Fiji, New Zealand, Tonga and the Solomon Islands. That is an area about the same size of the United Kingdom. Interest in Nautilus and its projects has grown tremendously since its inception. The company is now listed on the Toronto Stock Exchange. It has raised more than $300 million and spent more than $23 million on exploration. The company has gained the backing of mining majors such as Teck Cominco, Epion, Anglo American and Barrick Gold. It is positioned to become an emerging producer in 2010. Teck Cominco recently agreed to exercise share purchase warrants to acquire three million additional common shares of Nautilus at a price of US$15 million. This will take Teck Cominco?s shareholding to approximately 7.2 percent of the issued shares. Teck Cominco will conduct and manage a ship-based exploration program that will run in addition to the exploration that was already planned for 2008.