This map shows estimated nodule abundance (kg/m2) in explored parts of the abyssal plains within the Cook Islands exclusive economic zone (EEZ).

The Seabed Minerals Authority (SBMA) is pleased to announce a new mineral resource estimate (MRE) for the Cook Islands polymetallic nodule field [1]. Specialist consultants, RSC, produced the estimate, with assistance from SBMA staff.

The full technical report and model for the MRE, along with supporting documentation are available on the SBMA website at the following link: https://www.sbma.gov.ck/useful-study-links. Summary information is presented below.

The MRE report captures the current understanding of the nodule field and will provide further support for new discoveries and developments by exploration licence holders and research institutions. It presents a more accurate representation of the value of the nodule field to all stakeholders.

While past estimates have been carried out for Cook Islands nodules, this is the first MRE to be classified and reported in accordance with the JORC Code (2012), which is a reporting code widely accepted by minerals sector professionals worldwide, and a requirement for stock exchanges in New Zealand and Australia.

This is also the first MRE within the Cook Islands to include a portion of Indicated Mineral Resources, the second level of confidence in the JORC Code (2012) Mineral Resource classification framework. An Indicated Mineral Resource has a higher level of confidence than an Inferred Mineral Resource (as shown in the diagram below).

While most of the nodule field only had enough information to reach the Inferred level of confidence, a small area north of Aitutaki has sufficient information to support an Indicated level of confidence. This was supported by the first-ever seabed geological map of any part of the Cook Islands, interpreted from a seabed scanning survey completed back in the year 2000.

General relationship between exploration results, classes of mineral resources and classes of ore reserves.

Importantly, confidence in the Indicated Mineral Resources is sufficient to allow the application of modifying factors to support mine planning and evaluation of the economic viability. Following the formal assessment of modifying factors through engineering, environmental and marketing studies, Indicated Mineral Resources may be able to be converted to a ‘Probable Ore Reserve’ estimate.

Currently, only exploration activities are permitted in the Cook Islands. Critical environmental research and studies are needed before Government can contemplate any decision to undertake minerals harvesting activities.

An important aspect of Mineral Resources reported in accordance with the JORC Code (2012) is the requirement for reasonable prospects of eventual economic extraction (RPEEE). RPEEE is important to reassure stakeholders that it is more likely than not that economic development may be able to proceed. This includes specific consideration of all environmental, social and governance (ESG) issues. In other words, a Mineral Resource is a realistic inventory of mineralisation which, under assumed and justifiable technical, economic and development conditions, might, in whole or in part, become economically extractable.

“The team takes great pride in seeing our hard work come to fruition”, said Senior Technical Officer Rima Browne. “RSC did an excellent job working with, and checking the quality of, the available information and applying a very wide range of statistical tests.”

“The process of detailed analysis really brought out the sheer quality of the nodule deposit in the Cook Islands” said Technical Director John Parianos. “The systematic nature and high quality of work completed by Japanese researchers between 1980 and 2000, with support from other researchers in 2019, was also key to the project’s success”.

The Mineral Resource statement is shown in the table below.

Information relating to the geological interpretation, sampling and sub-sampling techniques, sample analysis methods, classification criteria, estimation methodology, the basis of the cut-off grade, mining and metallurgical methods and parameters, and comments related to the relevant sections of JORC Table 1 are contained within the full technical report available at https://www.sbma.gov.ck/useful-study-links.

Competent Persons Statement

The information in this website posting is summarised from the full technical report ‘Cook Islands polymetallic nodule deposit Technical Report and supporting documentation’ available to view at https://www.sbma.gov.ck/useful-study-links.

The information in this release and website posting that relates to Mineral Resources is based on information compiled by Mr René Sterk, a Competent Person who is a Fellow of The Australasian Institute of Mining and Metallurgy and member of the Australian Institute of Geoscientists. Mr Sterk is employed by RSC, an independent international consulting group, as Managing Director. The full nature of the relationship between Mr Sterk and SBMA has been declared, including any issue that could be perceived by investors as a conflict of interest. Mr Sterk has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Mr Sterk consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

The information in this website posting that relates to Exploration Results is based on information compiled by Dr John Parianos, a Competent Person who is a member of the Australian Institute of Geoscientists. Dr Parianos is a full-time employee and Technical Director at Cook Islands Seabed Minerals Authority under the Australia-Pacific Partnerships Platform. The full nature of the relationship between Dr Parianos and SBMA has been declared, including any issue that could be perceived by investors as a conflict of interest Dr Parianos has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Dr Parianos consents to the inclusion in this release of the matters based on his information in the form and context in which it appears.

Other report contributors below:

Reference(s):

[1] A Mineral Resource Estimate (MRE) is an estimate of the concentration or occurrence of solid material of economic interest in or on the Earth’s crust in such form, grade, and quantity that there are reasonable prospects for eventual economic extraction.

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Seabed Mineral Resource Estimate completed for the Cook Islands