Nautilus Minerals Inc.

Nautilus Minerals Inc.

January 25, 2011 10:04 ET

Nautilus Minerals Confirms High Grade Gold Mineralisation

TORONTO, ONTARIO--(Marketwire - Jan. 25, 2011) - Gold grades of up to 20.8 g/t and copper grades of up to 37.7% have been confirmed in assay results from seafloor drilling at the Nautilus Minerals Inc. (TSX:NUS)(AIM:NUS) Solwara 1 project in the Bismarck Sea in Papua New Guinea.

The certified assay results relate to the series of holes drilled late last year and confirm the preliminary analysis through hand held X-Ray Fluorescence (XRF), which was reported in December 2010 (see link 1).

More recent drilling, carried out as part of the on-going exploration campaign since January 6, has continued to identify high grade mineralisation. XRF analysis has revealed intersects including 12.57 metres averaging 9.4% copper (hole SD197), and 9.28 metres averaging 12.2% copper (hole SD192). (Note XRF results are subject to confirmation).

Nautilus' CEO, Steve Rogers, said the drilling results continued to show the high grade nature of the Solwara 1 deposit.

"Laboratory assay results such as these demonstrate the remarkable combination of high copper grades and gold mineralisation in this deposit. We are now drill testing additional SMS zones, both on the recently granted mining lease at Solwara 1, and on highly prospective surrounding discoveries," he said.

Table 1 provides the laboratory assay results from analysis of drilling carried out late last year. Preliminary XRF analysis of these intervals was previously released by Nautilus on December 16, 2010 (see link 1).

Table One - Mineralised intersect report from selected holes drilled at Solwara 1 (based on laboratory assay results).

Hole ID Interval From (m) Interval To (m) Interval Length (m) Recovery for Interval Copper (%) Zinc (%) Au g/t Ag g/t
SD166 1.84 2.94 1.10 100% 21.2 0.3 16.7 37.4
including 1.84 1.99 0.15 100% 37.7 BDL 12.9 26.0
1.99 2.57 0.58 100% 17.0 0.4 20.8 38.0
SD167 2.02 21.22 19.20 13% 8.6 0.7 4.3 30.5
SD169 2.08 13.57 11.49 49% 5.0 0.1 2.8 9.2
SD172 1.98 10.20 8.22 25% 12.6 0.1 9.2 24.3

Note: Certified results for hole SD171 and all holes after SD173 are pending.

BDL: Below Detection Limit

Since the drilling results announced on 6 January 2011 (see link 2), 10 additional holes have been drilled at 9 locations for a total of 163.7 meters.

Preliminary analysis of recovered drill core from the additional drilling continues to demonstrate the presence of high grade mineralisation at all drill sites. Results are summarised in table two.

Table Two - Initial mineralised intersect report from selected holes drilled at Solwara 1 (based on XRF analysis of pulp residues).

Hole ID End of Hole(m) Interval From (m) Interval  To (m) Interval  Length (m) Recovery for Interval Copper (%) Zinc (%) Comment Copper Mineralisation Intersected Below Previously Modelled Depth of Massive Sulphide (m) Note 1
SD188 29.37 0.48 4.37 3.89 79% 17.0 0.2 Intervals separated by significant zone of core loss. Hole ended in non-mineralised footwall. -2.2
6.31 7.85 1.54 26% 6.4 0.1
SD189 23.27 0.61 1.24 0.63 100% 28.5 0.1 Intervals separated by significant zone of core loss. Hole ended in non-mineralised footwall. Almost no recovery below 8.77m. 2.5
4.15 7.68 3.53 36% 13.1 0.1
SD190 14.94 3.09 7.75 4.66 29% 11.2 1.7 No core was recovered below 7.75m. Mineralisation is open to depth. Note 2
SD191 SD191 was abandoned at 1.94m due to mechanical issues and redrilled by SD192
SD192 15.53 1.00 10.28 9.28 57% 12.2 0.1 Hole ended in non-mineralised footwall. 2.0
SD193 7.00 2.07 3.00 0.93 100% 14.1 0.1 Hole ended in non-mineralised footwall. -2.7
SD194 20.81 1.56 9.36 7.80 49% 12.9 1.0 Copper mineralisation was recorded in the footwall to a depth of 14.1m. Hole ended in non-mineralised footwall. -0.9 (Note 3)
SD195 5.02 0.09 4.04 3.95 78% 18.2 0.8 No core was recovered below the reported interval. Mineralisation is open to depth. Note 4
SD196 26.12 1.45 4.57 3.12 42% 15.2 0.1 Hole ended in non-mineralised footwall. -1.5
SD197 19.69 1.79 2.51 0.72 100% 15.1 1.4 Intervals separated by zone of core loss and low-grade material. Hole ended in non-mineralised footwall. 3.7
4.00 16.57 12.57 61% 9.4 0.9

Note 1: Negative values indicate a base of mineralisation closer to the surface than the previously modelled Base of Massive Sulphide

Note 2: No core was recovered in the interval necessary to make an assessment

Note 3: Does not include copper mineralisation in footwall units separated by significant zones of core loss

Note 4: Hole was abandoned due to mechanical issues above the previously modelled base of massive sulphide

REM Etive Drilling Program

Nautilus has been drilling since mid November on board the vessel Rem Etive, using the ROVdrill3 drilling system (see link one and two). TSMarine is providing the vessel, operating crew, Remotely Operated Vehicles (ROVs) and drilling equipment required for the project. The ROVdrill3 drilling system is a wireline diamond drill designed to recover up to 80 meters of 70mm diameter core.

A full listing of all intersections and core recovery can be seen in Table 3 and Table 4.


Link 1:

Link 2:

Figure 1:

Table 3: Laboratory assays available to date for Au, Ag, Cu, Zn and Pb

Table 4: Initial XRF results for all holes drilled to date

Technical Information

Detailed information on the drilling program, selection of Reported Intervals, drilling details, treatment of core loss, sampling procedures,XRF analysis and QAQC was reported previously in the news release of December 16, 2011 (see link 1).

Laboratory Analysis

Sample assaying was completed by laboratories of SGS Australia Pty Ltd.. SGS operates quality systems based on international standards ISO/IEC17025:1999 "General requirements for competence of calibration and testing laboratories", and ISO9001:2008 "Quality Management Systems -- Requirements". SGS's Australian Mineral Services are also accredited by Australia's National Association of Testing Authorities (NATA).

Gold is determined by fire assay using a lead collection technique with a 30g sample charge weight. Previous homogeneity studies carried out on material from Solwara 1 indicate that this is a suitable sub-sample size to avoid any "nugget effect" for gold.

Copper, zinc and silver are analysed by ICP-OES after a high-temperature aqua regia digest. Samples returning values above the upper limit of this technique are re-analysed by an AAS method. Field duplicate pairs and a range of externally check samples (CRMs) with certified values of gold and base metals are inserted within the sample sequence by Nautilus before sample submittal. Analysis results for these check samples indicate acceptable precision and accuracy for the purpose of reporting exploration results.

Qualified Person

The exploration results reported in this announcement have been compiled under the supervision of Nautilus' Resource Leader Thomas Sant. Mr Sant a Fellow of the Geological Society of London, a UK Chartered Geologist and a registered European Geologist, has over 16 years experience in mineral exploration seeking hydrothermal systems, and is a qualified person as defined by National Instrument 43-101. Mr. Sant has reviewed and approved the technical disclosure contained in this news release.

About Nautilus Minerals Inc.

Nautilus is the first company to commercially explore the ocean floor for polymetallic seafloor massive sulphide deposits and is currently developing its first project. The company's main focus is the Solwara 1 Project, which is located in the territorial waters of Papua New Guinea in the western Pacific Ocean. Nautilus is listed on the TSX and AIM stock exchanges, and has among its largest shareholders two of the world's leading international resource companies Anglo American (11.1%) and Teck Resources (6.8%), as well as Metalloinvest, one of the largest and fastest growing mining and metallurgical holding companies in Russia, which beneficially owns 21.0% of the company's issued shares through Gazmetall Holding (Cyprus) Limited.

Neither the TSX nor the London Stock Exchange accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Nautilus Minerals Inc. (Toronto)
    Investor Relations
    +1 (416) 551 1100
    Nautilus Minerals Inc.
    Joe Dowling
    Vice President Investor Relations and Communications
    +61 (7) 3318 5544 or Cell: +61 431 365 741
    Numis Securities Limited
    John Harrison
    Nominated Adviser
    + 44(0) 20 7260 1000
    Numis Securities Limited
    James Black
    Corporate Broking
    + 44(0) 20 7260 1000