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Investment Conferences

GLOBAL MINING
INVESTMENT CONFERENCE 2010
DAY 2 - SESSION 5: GLOBAL HOTSPOTS (PART 2)

        Mini...
GLOBAL MINING
INVESTMENT CONFERENCE 2010

Lead sponsors:


Media partners:

Other sponsors & participating organisations:
Meeting The Technical Challenges
  To Develop New Resources




                                   3
NEXT FRONTIER – MARINE RESOURCES




•   Increased Global Demand for mineral resources
•   >80% of Global mineral resource...
NEXT FRONTIER – MARINE RESOURCES




•   Transition to Marine Resource Exploration and Mining happening at
    depth up to...
NEXT FRONTIER – SMS AND SEDEX DEPOSITS




 Marine Seafloor Massive Sulphides and Sedimentary Exhalative Suphide
 Deposits...
Jiddah




Atlantis II




        POLYMETALLIC (Zn, Cu, Ag, Au, Co) SEDEX
        Red Sea Commission Mining Licence 30 Ye...
Atlantis II Deeps




           Mining Depths:
           1900 – 2200 metres
           Brine Pool:
           200 metres...
NEXT FRONTIER
             HISTORY

•Atlantis II Deposit Explored since
1969
• 1974 Red Sea Commission Formed to
jointly E...
Preussag A.G. Coring Programs

            North Basin




      West Basin
                                              ...
HISTORIC RESOURCE ESTIMATE
                                       North Basin            Bulk Resources Based on
9.4%     ...
TECHNICAL CHALLENGES

The Atlantis II Project Is A Technical Challenge
   •     Deposit is located in 2000 meters of water...
MINING SYSTEM

                      REQUIREMENTS:

                      • Mine muds in hostile environment
             ...
STAND ALONE MINING RISER

     SUBSEA PLATFORM
     Offshore Oil Industry   FPSO


     BUOYANCY CANS
    Offshore Oil Ind...
Offshore Processing Challenges

•   Ore is fine grained sulphide muds

•   Pre-Pilot Mining Operations undertaken by
    P...
SYSTEM FLOW DESIGN



                             Offshore Processing



                         Support Vessel
        ...
• Early studies by the Red Sea
  Commission show that neither
  sensitive coral reefs or fauna
  within surface layers aff...
FISCAL

FINANCIAL VIABILITY

• Project Currently in Engineering Feasibility Stage
• Project Costings Dependent on final De...
• Minimal Infrastructure
• Limited Social Disturbance
• Minimal Overburden or Stripping
• Minimal Waste
• Increased Worker...
BUSINESS STRATEGY

• 26 Other Deeps Known in Red Sea

• Vast Areas of Ridge Complex
Unexplored

• Major Potential for Mass...
GLOBAL MINING
INVESTMENT CONFERENCE 2010

Lead sponsors:


Media partners:

Other sponsors & participating organisations:
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Ian Ransome: Mining the Deep Ocean (Day 2 - Session 5: Global Hotspots)

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Day 2- Session 5: Global Hotspots

Mining the Deep Ocean

Objective Capital Global Mining Investment Conference 2010
Stationers' Hall, City of London
28-29 September 2010
Speaker:
Ian Ransome - International Council on Mining & Metals

Published in: Investor Relations
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Ian Ransome: Mining the Deep Ocean (Day 2 - Session 5: Global Hotspots)

  1. 1. Investment Conferences GLOBAL MINING INVESTMENT CONFERENCE 2010 DAY 2 - SESSION 5: GLOBAL HOTSPOTS (PART 2) Mining the deep ocean Ian Ransome – CEO, Diamond Fields International Ltd STATIONERS’ HALL CITY OF LONDON TUESDAY-WEDNESDAY, 28-29 SEP 2010 www.ObjectiveCapitalConferences.com
  2. 2. GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:
  3. 3. Meeting The Technical Challenges To Develop New Resources 3
  4. 4. NEXT FRONTIER – MARINE RESOURCES • Increased Global Demand for mineral resources • >80% of Global mineral resources beneath the Oceans • Rise in Metal prices combined with development in deep water technology now make Marine mining feasible • Land Resources becoming scarcer 4
  5. 5. NEXT FRONTIER – MARINE RESOURCES • Transition to Marine Resource Exploration and Mining happening at depth up to 5 000 metres NOW…. • Marine Mineral Resources reserved by major countries such as China, Russia, Germany, France etc……. • Witnessing the birth of a NEW industry……. 5
  6. 6. NEXT FRONTIER – SMS AND SEDEX DEPOSITS Marine Seafloor Massive Sulphides and Sedimentary Exhalative Suphide Deposits formed at Ocean Ridge Spreading Ridges at depths between 1 500 – 3 000 metres 6
  7. 7. Jiddah Atlantis II POLYMETALLIC (Zn, Cu, Ag, Au, Co) SEDEX Red Sea Commission Mining Licence 30 Years 7
  8. 8. Atlantis II Deeps Mining Depths: 1900 – 2200 metres Brine Pool: 200 metres thick 62°C – 45°C LIMIT OF BRINES 2km 8
  9. 9. NEXT FRONTIER HISTORY •Atlantis II Deposit Explored since 1969 • 1974 Red Sea Commission Formed to jointly Explore Atlantis II • 1977 – 1982 Preussag AG German MV VALDIVIA Exploration Company contracted to undertake Feasibility Study of Atlantis II Deeps • Resource, Processing, Metallurgical, Pre-Pilot Mining and Environmental Studies Successfully Completed (US$28 Million) FLOATATION PLANT • Largest known marine SEDEX MV SEDCO 445 ABOARD SEDCO 45 Deposit in the World 9
  10. 10. Preussag A.G. Coring Programs North Basin West Basin •Total 628 core samples East Basin •Sampling Density 0.091km² •Average Sampling depth 1 metre 8.5m Southwest Basin 10
  11. 11. HISTORIC RESOURCE ESTIMATE North Basin Bulk Resources Based on 9.4% top 8.5 metres Average •91 700 000 tonnes DSF • 1 890 000 tonnes Zn • 425 000 tonnes Cu • 3 750 tonnes Ag East Basin • 47 tonnes Au Zinc • 5 368 tonnes Co Minimum Resource West Basin 0.2% Southwest Basin 11
  12. 12. TECHNICAL CHALLENGES The Atlantis II Project Is A Technical Challenge • Deposit is located in 2000 meters of water • 70km from nearest shore • New processing and mining technology required • No existing infrastructure • Elevated Brine Pool temperatures 45 C – 62 C • Fine Particle Size Distribution (PSD) of Ore 80% < 2 microns A Commercial risk • Worlds Deepest mining operation and First deep sea mud deposit to be mined But: Largest known and only tested Marine SEDEX in the World. It has the potential to focus expertise and innovation on a new frontier -- deep sea mineral resources 12
  13. 13. MINING SYSTEM REQUIREMENTS: • Mine muds in hostile environment • Transport material 2000 metres to surface • Geodynamic Positioning CONVENTIONAL DRILL SHIP • Integrated Design • Capital Intensive • Operating Costs 13
  14. 14. STAND ALONE MINING RISER SUBSEA PLATFORM Offshore Oil Industry FPSO BUOYANCY CANS Offshore Oil Industry RISER PIPES Offshore Oil Industry RISER BUOYANCY Offshore Oil Industry RISER LIFT PUMP (RLP) Offshore Oil Industry SYSTEM MINING TOOL (SMT) Dredging Industry 14
  15. 15. Offshore Processing Challenges • Ore is fine grained sulphide muds • Pre-Pilot Mining Operations undertaken by Preussag (1980’s) successively concentrated offshore using floatation to 30% Zn @ 70% Recoveries • New processing techniques using sea water are being developed to achieve recoveries up to 85% • Filtration using Rotary Vacuum Filters or Disc Nozzle Filters – Slurry Transport 15
  16. 16. SYSTEM FLOW DESIGN Offshore Processing Support Vessel Offloading and Stockpiling Concentrate Transport Integrated Mining Tool Hydrometallurgy Product 16
  17. 17. • Early studies by the Red Sea Commission show that neither sensitive coral reefs or fauna within surface layers affected • The Atlantis II Project can be developed with minimal environmental impact • The environment at Atlantis II is naturally variable • Possibility of Pumping Tailings under brine layer by return riser 17
  18. 18. FISCAL FINANCIAL VIABILITY • Project Currently in Engineering Feasibility Stage • Project Costings Dependent on final Design Selection • Initial Financial Viability Assessment undertaken using updated Preussag A.G. Feasibility Study (1981) • Variable IRR returns calculated ranging from 16.1% - 22% Production Model Dependent • Expected IRRs to range from 25%-35% from new Feasibility study using improved technologies, improved resource base and recoveries 18
  19. 19. • Minimal Infrastructure • Limited Social Disturbance • Minimal Overburden or Stripping • Minimal Waste • Increased Worker Safety – Remote Controlled at the “Mine Face” 19
  20. 20. BUSINESS STRATEGY • 26 Other Deeps Known in Red Sea • Vast Areas of Ridge Complex Unexplored • Major Potential for Massive SEDEX , SMS Deposits • Technology developed from Atlantis II Project will be applied to developing these further prospects • Operational Cost Advantages working from Saudi Arabia • Diamond Fields set to Be at forefront in Deep Water Marine Resources – the Next Frontier 20
  21. 21. GLOBAL MINING INVESTMENT CONFERENCE 2010 Lead sponsors: Media partners: Other sponsors & participating organisations:

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