GREY:DFIFF - Post by User
Comment by
hiker1on Sep 15, 2010 10:47pm
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Post# 17453969
RE: What is need to....
RE: What is need to.... Hello Quetzal, In looking at your question is comparisons between DFI and NUS, I believe
their resource estimates so far as we know now to be extremely close..........please anyone
correct me if I'm mistaken as it has been suggested that Atlantis II Deeps is larger........keep
in mind that they are still looking for a JV partner which we now have. Over $2 should become
very quick sailing.........
The latest historic resource estimates (not NI 43-101 compliant) of Atlantis II Deeps
suggest tremendous economic potential with approximately 1.83 million tonnes of zinc,
402,000 tonnes of copper, 3432 tonnes of silver contained within 89.5 million tones of
ore (Dry Salt Free).
This being the case, would amount to a total of 2,235,432 contained within 89.5mil
tonnes or ore.
The other day, an update was provided for the Nautilus's Solwara 1 project as follows:
Exploration potential Given technical limitations and the prohibitive cost associated with Nautilus’
earlier drilling campaigns, the company has only been able to define a relatively small, but very high
grade resource estimate at Solwara 1. A NI43-101 compliant resource estimate prepared in
December 2007 identified a 2.17 million tonne resource.
The company’s current mine plan outlined in its Cost Study is based on a resource estimate of 1.96
million tonnes. Our estimates assume a total resource estimate of 2.44 million tonnes, which applies
a factor of 1.25 times the resource used in the Cost Study, which we believe is justifiable given that
40% of the holes drilled at Solwara 1 terminated in mineralization.
In June, Nautilus entered into a contract with TSMarine Group of Companies valued at a minimum
of $7.5 million to provide drilling services in the territorial waters of Papua New Guinea starting
in October 2010.
The drilling program is expected to focus on increasing the confidence and size of the resource
estimate at Solwara 1 as well as drill some selective targets at other prospects on the
company’s wholly owned tenements within the Bismarck Sea. TSMarine is expected to employ
a second generation seafloor drilling system with the ability to drill 70mm core wireline holes
up to 80 m deep. The second generation technology is expected to address the company’s earlier
exploration constraints, particularly with respect to the depth of its drill holes.
Other major announcements or catalysts that we expect could materialize over H2/2010 include:
Announcement of a JV partnership; The company is currently under advanced negotiations to
form a JV partnership to develop some of its properties. While the company has not provided
any disclosure in terms of which assets are subject to a potential partnership, it is our belief that
the company is likely looking to joint venture all its tenements within the Bismarck Sea,
with Nautilus as the operator.
This would include the company’s flagship asset, Solwara 1. The company was hoping to
announce a JV some time during in H2/10, but it is now more likely this could be pushed back
until possibly late Q3/10 or early Q4/10.
Selection of a Support Vessel. We expect Nautilus to make a final decision on the vessel
sometime in the very near term, possibly in advance of the announcement of its JV partnership.
Construction Go-Ahead. Once the financing has been secured, likely through the JV, we expect the
company will give the go-ahead and begin construction.