Exploration programs undertaken
The 43 day MV Duke 2015 cruise to the 100% owned exploration licenses in the Solomon Islands was completed during the quarter. Amongst its achievements were the discoveries of two natural hydrothermal plumes which are a high priority for further work to assess their mineralisation potential. Approximately 550 line km of Tow-Yo plume hunting and approximately 31,000km2 of state-of-the-art multibeam bathymetry/backscatter mapping were completed. This resulted in 68 prospective targets being considered for the next stage of exploration.
An immediate benefit from the MV Duke 2015 cruise is the ability to significantly rationalise the large tenement position in the Solomon Islands. The 3 month RV Yuzmorgeologia 2015 resource evaluation and environmental baseline cruise to the 100% owned Tonga Offshore Mining Limited project successfully mobilised on July 22, 2015. This long cruise has exceeded all stretch targets with respect to data and sample collection and upon completion of the fieldwork on October 10, 2015 has commenced its transit to the demobilisation port. A considerable amount of geological data, resource samples and environmental baseline data/samples will be assayed and analysed as soon as is practical. In addition to the above mineral exploration cruises, the 100% owned Solwara 12 project, in the Bismarck Sea, was progressed through the acquisition of environmental baseline data and the deployment of long term environmental baseline monitoring equipment, marking the start of the company’s ongoing resource pipeline.
Solwara 1 Project advanced
During the third quarter of 2015, the Company continued to advance the Solwara 1 Project and in particular, the three key equipment contracts. Project Build Progressed Progress on the development of the Seafloor Production Tools continued to advance. Commissioning of the Auxiliary Cutter, Bulk Cutter and Collecting Machine continued at Soil Machine Dynamics premises in Newcastle, England with delivery of the three machines, following factory acceptance testing expected by the end of Q4 2015. General Marine Contractors in Houston continued with fabrication of the riser system during the quarter; all materials are on site in Houston, with completion expected by the end of Q1 2016. GE Hydril has commenced assembly of the Subsea Slurry Lift Pump in preparation for factory acceptance testing in the first half of 2016. Upon delivery, the equipment will be delivered to the shipyard for incorporation into the shipbuilding program. The Company has re-entered into a contract with Sichuan Hong Hua Petroleum Ltd to fabricate the riser handling equipment. Completion of this contract is scheduled for the end of Q3 2016 whereupon the equipment will be delivered to the shipyard for integration into the shipbuilding program. The Company has also re-engaged with SPX Clyde Union to complete delivery of seawater pumping systems, a contract that was also previously suspended during the dispute with the State. This equipment will be delivered to the shipyard in Q2 2016 where it will be incorporated into the shipbuilding program. The Company is in discussions with various other contractors to provide items of equipment required for the riser system and these will be timed for delivery to coincide with completion of shipbuilding.