Resource World Magazine

48 www.resourceworld.com j u n e / j u l y 2 0 1 4 nautilus Minerals reCeives PayMent froM PaPua new guinea Nautilus Minerals Inc. [NUS-TSX; NUSMF-OTCQX] announces that the com- pany and the Independent State of Papua New Guinea (the State) have signed an agreement, enabling the Solwara 1 Project to move toward production with the full support of the State. Under the agreement, the State shall take an initial 15% interest in the proj- ect. The State has the option to take up to a further 15% interest within 12 months of the agreement becoming unconditional. The State has paid Nautilus a non-refund- able deposit for its initial 15% interest of US $7,000,000. The agreement is conditional upon the State, (through a subsidiary of Petromin PNG Holdings Ltd.), securing by 31 July 2014, the funding for the State's 15% share of the capital required to complete the development phase of the project up to first production, being US $113,000,000 (excluding the deposit). These funds will be placed in escrow until Nautilus satis- fies the conditions for their release. The funds will be released to Nautilus, and an unincorporated joint venture between the parties (for the ongoing operation of the project) shall be formed, if within six months of the funds being placed in escrow Nautilus secures the charter of a production support vessel and secures for the State certain intellectual property rights. After first production, Petromin's subsidiary will contribute funds in pro- portion to its interest. If the conditions of the agreement are satisfied and the State completes the pur- chase of its 15% interest in the project, then the arbitration concerning Nautilus' claim for damages related to the termina- tion of the State equity option agreement dated March 29, 2011, shall be dismissed. If the State does not complete the purchase, then the position the parties were in prior to signing the agreement is reinstated. Nautilus' CEO, Mike Johnston, said the company was pleased to have achieved an amicable resolution of its issues with the State. "This step represents a major vote of confidence in Nautilus Minerals and the Solwara 1 Project. Through this joint venture, the State will provide a signifi- cant capital investment and will retain a direct interest in the long term success of the project. We look forward to working closely with the State and Petromin on Solwara 1, which will generate significant economic activity within the State and the Province of New Ireland," he said. "The company is now focusing its attention on securing a suitable vessel arrangement and is continuing its discus- sions with potential vessel partners while also undertaking a tender process with shipyards experienced in building offshore construction vessels. The company intends to have a vessel solution in place before the end of the year," he added Johnston con- tinues to have the support of the board of directors of Nautilus with his interim role as President and CEO having now been made permanent. In a follow-up press release dated May 9, Nautilus Minerals announced that the Independent State of Papua New Guinea's has placed US $113,000,000 into escrow, representing the balance of the funding for the State nominee's 15% share of the capi- tal required to complete the development phase of the Project up to first production. On April 24, 2014, the company announced it had resolved the dispute with the State and signed an agreement with the State's nominee, Eda Kopa (Solwara) Limited, a subsidiary of Petromin PNG Holdings Limited, enabling the proj- ect to move forward toward production. "The fact that the State's nominee has placed the money into escrow well in advance of the July 31 deadline demon- strates the support the State has for the project," said Johnston. Peregrine diaMonds rePorts 7.47 Million Carats at Chidliak Peregrine Diamonds Ltd. [PGD-TSX] reported an estimate for a maiden NI 43-101-compliant inferred mineral resource for the top 250 metres of the CH-6 kimberlite pipe and additional tonnage as a target for further exploration. Key ele- ments of the CH-6 estimates are: • An inferred mineral resource of 7.47 million carats of diamonds in 2.89 mil- lion tonnes of kimberlite to a depth of 250 metres • Grade of 2.58 carats per tonne • An average diamond price of US $213 per carat and a modelled price range between US $163 and US $236 per carat as deter- mined by WWW International Diamond Consultants in February 2014 • An estimate of 2.60 to 3.47 million tonnes of kimberlite classified as a target for fur- ther exploration The kimberlite is open at depth. Tonnage estimates have been completed for the CH-7 and CH-44 kimberlites. The CH-7 kimber- lite tonnage estimate is between 2.75 and 3.97 million tonnes from surface to a depth of 280 metres. The CH-44 tonnage estimate is between 1.16 and 2.05 million tonnes from surface to a depth of 230 metres. Both CH-7 and CH-44 are open at depth. The tonnage estimates that have been identified at CH-6, CH-7 and CH-44 are classified as targets for further exploration and are conceptual in nature. There has been insufficient exploration to define a mineral resource on those targets and it is uncertain if further exploration will result in the tonnage estimates being delineated as a mineral resource. The CH-6, CH-7 and CH-44 kimberlite pipes are located on Peregrine's 100%- owned Chidliak Project, 120 km from Iqaluit, capital of Nunavut, Canada. n MINING

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