Exhibit 96.1

AMC Consultants Pty Ltd ABN 58 008 129 164   Level 21, 179 Turbot Street
Brisbane Qld 4000  Australia       T             +61 7 3230 9000 E              brisbane@amcconsultants.com W            amcconsultants.com

Technical Report Summary

Initial Assessment of the NORI Property, Clarion-Clipperton Zone

Deep Green Metals Inc.

In accordance with the requirements of SEC Regulation S-K (subpart 1300)

AMC Project 321012

17 March 2021

Unearth a smarter way

Initial Assessment of the NORI Property, Clarion-Clipperton Zone
Deep Green Metals Inc.	320041

1 Summary

1.1 Introduction

A very large resource of polymetallic nodules, containing nickel, manganese, cobalt, and copper is located on the seafloor in the Clarion-Clipperton Zone (CCZ) of the north-east Pacific Ocean. DeepGreen Metals Inc. (DeepGreen) has identified the potential to recover metals from polymetallic nodules to support increasing demand from battery and electric vehicle production. Unlike most mining processes, the proposed mineral processing flowsheet seeks to make by-products rather than substantial waste streams and is not expected to require tailings ponds or other large-scale waste storage on-site.

Nauru Ocean Resources Inc (NORI), a wholly-owned subsidiary of DeepGreen, holds exploration rights to four areas (NORI Area A, B, C, and D, the Property) in the CCZ that were granted by the International Seabed Authority (ISA) in 2011. NORI is sponsored to carry out its mineral exploration activities in the Property by the Republic of Nauru, pursuant to a certificate of sponsorship signed by the Government of Nauru on 11 April 2011. DeepGreen commissioned AMC Consultants Pty Ltd (AMC) to undertake an Initial Assessment (IA) of the Mineral Resource contained in NORI Area D (the Project) and compile a Technical Report Summary compliant with SEC Regulation S-K (subpart 1300).

Four consortia of off-shore development companies demonstrated the technical feasibility of collecting, lifting, and converting nodules into metals in the 1970s, but development of the industry was frustrated by the absence of regulation and a governing body. In 1994 the United Nations established the ISA pursuant to the United Nations Convention on the Law of the Sea (UNCLOS). The ISA governs the development of seabed resources in the territories beyond the exclusive economic zones governed by coastal states. This international territory is known as the Area. The ISA is in the process of finalising the regulations for development of seabed resources from the CCZ and other resources in the Area. The ISA had declared a target of 2020 to have the regulations approved but the COVID-19 pandemic disrupted the ISA program.

A phased development is outlined for NORI Area D. Offshore collection systems, comprising collector vehicles on the seafloor, a riser and lift system (RALS), and a production support vessel would collect polymetallic nodules. The nodules would be transferred to transport vessels and shipped to on-shore processing facilities where established processing technology would be used to produce copper cathode, nickel sulphate and cobalt sulphate suitable for Li Ion battery cathode feedstock, nickel-copper-cobalt alloy, manganese silicate, and ammonium sulphate.

A drillship, the Hidden Gem, will be converted to undertake a pre-production Collector Test in which a collector vehicle, RALS and other systems will be tested. The first phase of commercial production (Project Zero) would then commence after the upgrading of the Hidden Gem to produce a production support vessel that can produce up to 1.3 Mtpa (wet) of nodules. The nodules would be processed through existing third-party facilities on a tolling basis. In Project One, production will be expanded with an additional converted drillship (Drill Ship 2), a second upgrade to the Hidden Gem, and construction of a bespoke production support vessel (Collector Ship 1). Ultimately, the fleet of three production support vessels, each with a dedicated seafloor collection system, would produce an average of ~12.5 Mtpa of wet nodules during steady state production. In Project One, the majority of nodules would be processed at a new facility to be constructed by NORI, with the balance of production going to toll treatment.

This phased approach to development allows for management of risk and for progressive improvement of engineering and operating systems. It will also enable NORI to adopt an adaptive management approach to environmental management.

The IA indicates a positive economic outcome. Undiscounted post-tax net cash flow of US$30.6 billion is expected. An internal rate of return of 27% has been modelled. Discounted cash flow analysis of unleveraged real cash flows, discounting at 9% per annum, indicates a current project net present value of US$6.8 billion. The analysis indicates that the Project will generate approximately US$7.2 billion in undiscounted royalties payable to the ISA and Nauru and US$9.1 billion in on-shore corporate tax payable to the host nation of the process plant.

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An IA is a conceptual study of the potential viability of Mineral Resources. This IA indicates that development of the NORI Area D Mineral Resource is potentially technically and economically viable, however, due to the preliminary nature of project planning and design, and the untested nature of the specific seafloor production systems at a commercial scale, economic viability has not yet been demonstrated.

1.2 Location

The NORI Property is located within the CCZ of the northeast Pacific Ocean (Figure 3.1). The CCZ is located in international waters between Hawaii and Mexico. The western end of the CCZ is approximately 1,000 km south of the Hawaiian island group. From here, the CCZ extends over 4,500 km east-northeast, in an approximately 750 km wide trend, with the eastern limits approximately 2,000 km west of southern Mexico. The region is well-located to ship nodules to the American continent or across the Pacific to Asian markets.

The NORI Property comprises four separate blocks (A, B, C and D) in the CCZ with a combined area of 74,830 km². These areas were previously explored by three Pioneer Investors. The NORI Area D Project covers 25,160 km² and is the easternmost of the four NORI exploration areas. Its centre point is at latitude 10° 29’ N and longitude 116° 57’ W, approximately 850 km due west of the nearest land—the uninhabited Clipperton Island.

1.3 The ISA and the NORI tenements

The international seabed area (otherwise known as the Area) is defined as the seabed and subsoil beyond the limits of national jurisdiction (UNCLOS Article 1). The principal policy documents governing the Area include:

- The United Nations Convention on the Law of the Sea, of 10 December 1982 (The Convention).

- The 1994 Agreement relating to the Implementation of Part XI of the United Nations Convention on the Law of the Sea of 10 December 1982 (the 1994 implementation Agreement).

Part XI of the Convention and the 1994 Implementation Agreement deals with mineral exploration and exploitation in the Area, providing a framework for entities to obtain legal title to areas of the seafloor from the ISA for the purpose of exploration and eventually exploitation of resources.

The Convention entered into force on 16 November 1994. As of 20 August 2020, the Convention had been signed by 167 states (countries) and the European Union. The United States of America is currently not a party to the Convention.

The ISA is an autonomous international organisation established under the Convention and the 1994 Implementation Agreement to organise and control activities in the Area, particularly with a view to administering and regulating the development of the resources of the Area in accordance with the legal regime established in the Convention and the 1994 Implementation Agreement.

All rules, regulations, and procedures issued by the ISA to regulate prospecting, exploration, and exploitation of marine minerals in the Area are issued within a general legal framework established by the Convention and the 1994 Implementation Agreement.

To date, the ISA has issued regulations on prospecting and exploration for polymetallic nodules in the Area. In March 2019, the Council of the ISA released the advance and unedited text (English only) of the Draft Regulations on Exploitation of Mineral Resources in the Area (ISBA/25/C/WP.1) (ISA, 2019).

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In July 2011, NORI was granted a polymetallic nodule exploration contract by the ISA. The contract was granted pursuant to the Regulations on Prospecting and Exploration for Polymetallic Nodules in the Area (adopted 13 July 2000) and formalises an exploration area, a term of 15 years for the contract, and a program of activities for the first five-year period (NORI Exploration Contract). The contract also formalises the rights of NORI around tenure. Pursuant to the Regulations, NORI has the priority right to apply for an exploitation contract to exploit polymetallic nodules in the same area (Regulation 24(2)).

The NORI Exploration Contract may be extended for periods of five years at a time beyond the initial 15-year period, provided NORI has made efforts in good faith to comply with the requirements of the plan of work.

In 2020, NORI acquired the polymetallic nodule exploration contract awarded by the ISA to Tonga Off-shore Mining Limited (TOML). TOML Area F is immediately west of NORI Area D.

1.4 Geology and Mineral Resources

Seafloor polymetallic nodules occur in all oceans but the CCZ hosts a relatively high abundance of nodules. The CCZ seafloor forms part of the Abyssal Plains, which are the largest physiographic province on Earth.

The average depth of the seafloor in the Project Area is 3,800 to 4,200 m. Overall, the seafloor slopes at approximately 0.57˚ (1 m per km) but the Abyssal Plains are traversed by ridges, with amplitude of 50 to 300 m (maximum 1,000 m) and wavelength of 1 to 10 km. The Abyssal Plains are punctuated by extinct volcanoes rising 500 to 2,000 m above the seafloor.

Seafloor polymetallic nodules rest on the seafloor at the seawater - sediment interface. They are composed of nuclei and concentric layers of manganese and iron hydroxides and are formed by precipitation of metals from the surrounding seawater and sediment pore waters. Nickel, cobalt and copper are also precipitated and occur within the structure of the manganese and iron minerals.

Nodules are abundant in abyssal areas with oxygenated bottom waters and low sedimentation rates (less than 10 cm per thousand years). Nodules generally range from about 1 to 12 cm in their longest dimension. Nodules of 1 to 5 cm are typically the most common in NORI Area D, where they have been classified as Type 1 nodules.

The specific conditions of the CCZ (water depth, latitude, and seafloor sediment type) are considered to be the key controls for the formation of polymetallic nodules.

Information on the mineralisation within NORI Area D comprises a combination of sampling undertaken by NORI as well as free-fall grab sampler (FFG) and box core sampler (BC) data supplied by the ISA at the time of the NORI application and also supplied by the ISA to NORI in 2012. Additional regional data, assembled by the ISA as part of its Geological Model Project during 2008 to 2010 (ISA 2010), are available. The data provide significant coverage over NORI Area D and indicate a high abundance of nodules in this region, as has been confirmed by NORI's exploration.

NORI completed off-shore exploration campaigns in 2012, 2013, 2018, 2019 and 2020. During these campaigns a variety of data was collected including:

● Bathymetric mapping of the whole of NORI Area D using a hull-mounted Kongsberg Simrad EM120 12 kHz, full-ocean depth multibeam echo-sounding system (MBES). This system also provided backscatter data with which seafloor characteristics could be interpreted.

● Detailed seafloor survey work with an autonomous underwater vehicle (AUV), utilising an MBES, Side Scan Sonar (SSS), Sub-Bottom Profiler (SBP), and camera payload.

● A total of 252 box core samples collected using a 0.75 m² box corer, mainly on a 10 km by 10 km square grid.

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The nodules in the box cores were collected, and their characteristics measured and recorded in detail. Samples of nodules were collected in duplicate and assayed at two reputable, well-qualified laboratories: ALS and Bureau Veritas. Certified reference material, and blank samples were inserted to provide additional levels of quality control. No significant issues were identified with the assay results.

The backscatter data and the sidescan sonar and seafloor photography indicate strong continuity of nodule abundance across NORI Area D. There is a clear relationship between nodule long axis length and nodule weight and therefore it is possible to estimate nodule abundance from photographs. Several estimation techniques were tested, and methodologies were developed that are suitable for closely packed (Type 1) and less closely packed (Type 2 and 3) nodules.

Mineral Resources were estimated using a two-dimensional block model. Estimates of nodule abundance and nickel, manganese, cobalt, and copper grades were performed using kriging. A variety of methods was used to validate the estimates, including conditional simulation. The estimates of nodule abundance were used to calculate the tonnage of the Mineral Resources.

The bathymetric mapping enabled the interpretation of parts of seafloor that are possibly too steep for recovery of nodules using the systems considered in this IA. Seafloor areas with slopes steeper than 6° were excised from the 2020 Mineral Resource estimate.

The Mineral Resource was classified on the basis of the quality and uncertainty of the sample data and sample spacing, in accordance with SEC Regulation S-K (subpart 1300).

The Measured Mineral Resource was assigned to the area within NORI Area D where box-core sampling was conducted on a nominal 7 km by 7 km spacing and infilled with estimates of nodule abundance from seafloor photography to a spacing of 3.5 km by 3.5 km.

The Indicated Mineral Resource was assigned to the area within NORI Area D where box-core sampling was conducted on a nominal spacing of 7 km by 7 km or 10 km by 10 km but without additional photo-estimates of nodule abundance.

The Inferred Mineral Resource was assigned to the areas of abyssal plain in the southeast corner of NORI Area D that are largely unsampled. The volcanic high in the southeast corner was excluded from the mineral resource estimate due to the high level of uncertainty about nodule abundance and grades in this domain.

The new Mineral Resource estimate for NORI Area D, with an effective date of 31 December 2020, is reported in Table 1.1 at a 4 kg/m² abundance cut-off. This cut-off is derived from the estimates of costs and revenues presented in this Initial Assessment.

Whilst the IA focusses on the development of mining operations in NORI Area D, NORI holds another three areas in the CCZ under the same title. These Areas (NORI Area A, B and C) are estimated to contain Inferred Mineral Resources of 510 Mt (wet) at 1.28% Ni, 0.21% Co, 1.04% Cu, 28.3% Mn, at an average abundance of 11 kg (wet)/m² at a 4 kg/m² abundance cut-off (Golder, 2013) (effective date of 31 December 2020). The polymetallic nodule mineralisation in Areas A, B and C has similar characteristics to NORI Area D and it is reasonable to assume that the technology proposed in the IA would be suitable for development of these additional areas.

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Table 1.1 NORI 2020 Mineral Resource estimate for NORI Area D at 4 kg/m² abundance cut-off

NORI Area	Category	Tonnes (Mt (wet))	Abundance (wet kg/m2)	Nickel (%)	Copper (%)	Cobalt (%)	Manganese (%)	Silicon (%)
D	Measured	4	18.6	1.42	1.16	0.13	32.2	5.13
D	Indicated	341	17.1	1.40	1.14	0.14	31.2	5.46
D	Measured + Indicated	345	17.1	1.40	1.14	0.14	31.2	5.46
D	Inferred	11	15.6	1.38	1.14	0.12	31.0	5.50

1.5 Development plan

NORI proposes to implement the project in multiple phases that will allow the seafloor mining systems to be tested and then nodule production to be gradually ramped up. The phased approach will facilitate de-risking of the project for relatively low initial capital investment. Additionally, this phased development will allow for an adaptive approach to environmental management providing learning at small-scale which would be applied as the development increases scale.

The proposed seafloor production development phases are as follows:

● The Collector Test is designed to perform proof of concept for the methods of collecting and lifting the nodules while acquiring sufficient data to design a commercial system. Nodules collected during the test would be stored on the Hidden Gem and brought to shore for use in large scale process pilot testing. The Collector Test would use a converted sixth generation drillship, the Hidden Gem. The test would not demonstrate the transhipment of nodules to a shore-based facility.

● Project Zero would be an extension of the Collector Test using an upgrade of the Hidden Gem to produce a sufficient and continuous quantity of nodules to support a relatively small commercial operation of about 1.3 Mtpa (wet) nodules delivered to a shore-based facility. This operation would demonstrate a more continuous mining operation at a larger scale than the Collector test and would demonstrate the transhipment of nodules to a processing facility. It would also allow for the implementation and testing of adaptive management systems to ensure environmental compliance.

● Project One would increase production in a further three steps: 1) introduction of a second converted drillship (Drill Ship 2) with a capacity of up to 3.6 Mtpa (wet), 2) a further upgrade of the Hidden Gem to up to 3.6 Mtpa (wet) and 3) construction of a new purpose-built production support vessel (Collector Ship 1) with capacity of up to 8.2 Mtpa (wet). Project One would benefit from lessons learned on the Collector Test and Project Zero.

The processing of the polymetallic nodules would also be ramped up in phases:

● In Project Zero, NORI proposes to toll treat polymetallic nodules at existing RKEF smelters, utilizing excess industry capacity. NORI advises there is significant interest from many parties in China to utilise RKEF plants which may become stranded as a result of the Indonesian government nickel laterite ore export ban restricting supply of the nickel laterite feedstock that they currently utilise. These RKEF plants were originally built to convert nickel laterite to nickel pig iron and could be converted to smelt polymetallic nodules.

● In Project One, a purpose-built process plant would be constructed, including pyrometallurgical and hydrometallurgical circuits. Nodule production would be increased in phases by treatment in this new plant.

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1.6 Mining concept

The main items of off-shore infrastructure are the nodule collector vehicles, the riser, and three production support vessels (PSV): Hidden Gem, Drill Ship 2 and Collector Ship 1. Collector Ship 1 will be supported by a collector support vessel. 

The nodules will be collected from the seafloor by self-propelled, tracked, collector vehicles. No rock cutting, digging, drill-and-blast, or other breakage will be required at the point of collection. The collectors will be remotely controlled and supplied with electric power via umbilical cables from the PSV. The collectors will traverse the seabed at a speed of approximately 0.5 m/s. Suction dredge heads on each collector will recover a dilute slurry of nodules, sediment, and water from the seafloor. Each collector will yield about 254 t/hr (dry) nodules to the process plant. A hopper on each vehicle will separate sediment and excess water, which will pass out of the hopper overflow, from the nodules, which will be pumped as a higher concentration slurry via flexible hoses to a riser.

The riser is a steel pipe through which nodules will be transferred to the surface by means of an airlift. The riser will consist of three main sections. The lower section will carry the two-phase slurry of nodules and water from the collectors to the airlift injection point. The mid-section will carry a three-phase mixture of slurry and air. This section will also include two auxiliary pipes: one to carry the compressed air for the airlift system, and one to return water from dewatering of the slurry to its subsea discharge point. The upper section of riser will have a larger diameter to account for the expansion of air in the airlift.

The airlift works by lowering the average density of the slurry inside the riser to a level lower than seawater. The difference between the hydrostatic pressure of the seawater at depth and the pressure caused by the weight of the low-density three-phase slurry column inside the riser forces the slurry column to rise. The energy to achieve the lift will be supplied by compressors housed on the PSV, which will be capable of generating very high air pressures—up to 15 MPa.

The PSVs will each support a RALS and its handling equipment, and will house the airlift compressors, collector vehicle control stations, and material handling equipment. All power for off-shore equipment, including the nodule collecting vehicles, will be generated on the PSVs. The PSVs will be equipped with controllable thrusters and will be capable of dynamic positioning (DP), which will allow the vessels and risers to track the collectors. The Collector Ship 1 PSV will be similar in size to an Aframax or New Panamax class of tanker, displacing approximately 103,000 t, and housing a crew of around 120 personnel. Nodules will be discharged from the RALS to the PSVs, where they will be dewatered and temporarily stored or transferred directly to a transport vessel.

A separate collector support vessel will remain at sea to support Collector Ship 1. It will be configured as a subsea support platform, as commonly used in oil industry, with a displacement of around 17,250 t. The function of the collector support vessel will be to facilitate collector maintenance and repair.

This IA assumes transportation of nodules will be by chartered vessels, with deadweight capacities of 35,000 to 100,000 tonnes. The vessels will require dynamic positioning capability to enable them to be loaded at sea alongside the PSV. Hydraulic offloading of the nodules from the PSV to the transport ships is assumed in this IA, but future studies will confirm the offloading mechanism.

1.7 Mineral processing and metallurgical testing

A combined pyro-metallurgical and hydro-metallurgical flowsheet was evaluated for these IA. Similar flowsheets were investigated at various times over the last several decades. NORI has undertaken bench-scale test-work and is in the process of completing pilot-scale testing of the proposed flowsheet. This work has confirmed or improved the flowsheet that was initially developed from extensive information available in the literature.

Pyrometallurgical processing of nodules has been extensively studied from the early 1970s until the present day and appears to be the preferred process for most of the other currently active nodule processing research groups. Many groups including: Kennecott; Inco; Cuban / Bulgarian; German; Indian; Japanese; and Korean have studied pyrometallurgical processing of nodules at a laboratory scale. The nodule samples for these tests were collected from their respective license areas in the CCZ. The nodules used in each of the studies have similar compositions but there are subtle variations that can have significant implications for pyrometallurgical processing. Of particular importance is the ratio of MnO:SiO₂ in the nodules as this impacts the choice of process operating parameters for the electric furnace smelting operation.

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For Project Zero, NORI proposes to toll treat polymetallic nodules at existing RKEF smelters. During Project One, NORI proposes the progressive construction and expansion of a new pyrometallurgical and hydrometallurgical process plant for the recovery of nickel, manganese, cobalt, and copper from polymetallic nodules. This will allow for the proportion of toll treatment to be reduced.

Four rotary kiln and electric furnaces lines (RKEF) and two hydrometallurgical refineries would be required to meet the production demand for the life of the project.

The pyrometallurgical front end of the plant will use RKEF lines that calcine and smelt the nodules to form an alloy. The alloy would then be sulphidised to form a matte and then partially converted in a Peirce-Smith converter operation to remove iron. The matte from the sulphidation step would then be sent to the hydrometallurgical refinery. The pyrometallurgical process is similar to that successfully used to process some nickel laterite ores.

The hydrometallurgical refinery concept is based on a sulphuric acid leach flowsheet. A two-stage leach would be used to produce copper cathode and a pregnant leach solution rich in nickel and cobalt, while low in copper. Further processing of the pregnant leach solution is based on mixed-sulphide precipitate processing flowsheets employing solvent extraction. The final production of battery-grade nickel and cobalt sulphates would use crystallisation.

The pyrometallurgical process generates a manganese silicate stream that can be sold to the manganese industry and small converter slag stream that can be sold for industrial applications. No value has been ascribed to converter slag in this IA. The hydrometallurgical plant produces an ammonium sulphate by-product for sale to the fertiliser industry. Thus, together with the ability to recycle other hydrometallurgical side-streams to the pyrometallurgical process, the flowsheet has neither tailings ponds nor permanent slag repositories and does not generate substantial waste streams.

The average targeted processing rate for the new processing plant at full capacity is 6.4 Mtpa of nodules (dry basis). The location and host country of the processing operation has not yet been determined. Engineering design has not yet been undertaken.

Expected metallurgical recoveries are summarized in Table 1.2.

Table 1.2 Metallurgical recoveries

Process Step	Nickel Recovery (%)	Cobalt Recovery (%)	Copper Recovery (%)
Final matte	94.6%	77.4%	86.5%
Hydrometallurgical products before recycle	98.9%	98.0%	96.2%
Recycled residue	94.6%	77.4%	86.5%
Overall recovery	94.6%	77.2%	86.2%

In addition to the above base metals, 98.9% of the manganese contained in the feed will be recovered to the manganese silicate product, containing 52.6% MnO. Approximately 7.3 Mt of manganese silicate will be produced per annum (from steady state operation from 2030 onwards).

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1.8 Market studies

CRU International Limited (CRU) was commissioned by NORI to provide market overviews for the four main products from the NORI Area D Project: nickel sulphate (NiSO₄), cobalt sulphate (CoSO₄), copper cathode, and a manganese product (CRU, 2020).

CRU expects NiSO₄ and CoSO₄ markets to undergo extreme growth from a relatively small current level of 181 kt nickel in sulphate and 35 kt of cobalt in sulphate in 2019, with markets to increase to 138 and 178 times their 2018 sizes respectively to 1.6 Mt nickel in sulphate and 500 kt cobalt in sulphate by 2035, with much of this growth occurring post-2025. Electric vehicle production is the driver of this forecast growth.

Copper and manganese markets are forecast to grow by 25% and 20% of their 2020 sizes by 2035 respectively. Copper and manganese demand will benefit from electric vehicle penetration, however the primary driver of growth for manganese ore will be steelmaking, and a variety of end use applications generally related to economic health for copper.

CRU expects copper and NiSO₄ prices to rise in real terms by 2035, while manganese and CoSO₄ prices are forecast to remain flat, due to current prices being at or near a high point in the cycle, recent fall in prices, and expected modest growth in the global steel industry after the COVID 19 epidemic. The long-term cost of production is expected to rise for both copper and NiSO₄, helping to support prices.

1.9 Environmental studies, permitting, community, or social impact

Historically, a significant amount of technical work has been undertaken within the CCZ by the Contractors and a significant body of information has been acquired during the past 40 years on the likely environmental impacts of collecting nodules from the sea floor.

NORI’s off-shore exploration campaigns have included sampling to support environmental studies, collection of high-resolution imagery and environmental baseline studies. A number of future campaigns are planned to collect data on ocean currents and water quality to assist plume modelling, environmental baseline studies, box core and multicorer sampling focussed on benthic ecology and sediment characteristics.

NORI has commenced the ESIA process in support of an application for an exploitation license for the commercial mining of deep-sea polymetallic nodules. A comprehensive program of metocean and biological data acquisition is in progress to characterize the baseline conditions at a designated Collector Test site and control sites in the mining lease area.

NORI intends to manage the Project under the governance of an Environmental Management System (EMS), which is to be developed in accordance with the international EMS standard, ISO 14001:2004. The EMS will provide the overall framework for the environmental management and monitoring plans that will be required.

An Environmental Monitoring Plan (EMP) will be required. The plan will specify the objectives and purpose of all monitoring requirements, the components to be monitored, frequency of monitoring, methods of monitoring, analysis required in each monitoring component, monitoring data management and reporting. The plan will be submitted to the ISA as part of the exploitation contract application. This plan will involve an ecosystem approach incorporating an adaptive management system.

The social impacts of the off-shore operation are expected to be positive. The CCZ is uninhabited by people, and there are no landowners associated with the NORI Area D nodule project. No significant commercial fishing is carried out in the area. The Project will provide a source of revenue to the sponsor country, Nauru, and to the ISA.

The on-shore environmental and social impacts have not yet been assessed because the process plant has not been designed in detail, and the location and host country (and hence regulatory regime) not confirmed. The planned metallurgical process will not generate solid waste products, and the deleterious elements (for example, cadmium and arsenic) content of the nodules is very low, indicating that with careful management the environmental impacts of the processing operation could be very low.

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1.10 Conceptual production schedule

AMC cautions that the estimates in the production case and economic analysis are preliminary and further studies and engineering design are required before technical feasibility and economic viability can be demonstrated.

The production schedule is shown in Table 1.3.

Table 1.3 Production summary

Section	Units	Total
Nodule tonnage	Mt (wet)	254
Abundance	kg/m2	16.9
Ni Grade	%	1.39
Cu Grade	%	1.14
Co Grade	%	0.14
Mn Grade	%	31.0
Nickel recovered to Ni Sulphate	kt	2,593
Copper cathode produced	kt	1,936
Cobalt recovered to Co sulphate	kt	206
Manganese silica produced	kt	60,398
Ammonium sulphate produced	kt	7,677
Alloy product produced	kt	377
Matte product produced	kt	688

1.11 Capital cost

The capital cost estimates for the Project are summarised in Table 1.4. Pre-project items include data gathering and studies that will occur prior to construction. Off-shore project costs include the procurement and integration of the PSVs, the collector support vessel, the fabrication of the collectors, and the RALS. On-shore project costs consist principally of the construction of the minerals processing pyrometallurgical plant and hydrometallurgical refinery. Sustaining costs are for both on-shore and off-shore assets, and closure costs are principally for rehabilitation of the on-shore minerals processing site.

Table 1.4 Capital cost estimates

Section	Cost estimate (US$ million)
Pre-project costs	237
Project costs
Off-shore project costs
Project Zero	204
Project One	2,244
Total	2,448
On-shore project costs
Project One	4,786
Total	4,786
Total project costs	7,234
Sustaining capital costs (on-shore and off-shore)	2,637
Closure costs	500
Total	10,607

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1.12 Operating cost

Operating costs have been estimated at US$1.8 billion per annum during steady state production (from 2030 onwards). Expenditure of a total of $37.5 billion over the life of the project on operating costs is expected. On-shore processing is the most significant operating cost.

Table 1.5 Average operating cost estimates during steady state operation (from 2030 onwards)

Section	Average Operating Cost over Life of Mine (US$ million pa)	Average Unit Cost (US$/t - wet tonne nodules recovered)	Average Unit Cost (US$/t - dry tonne processed)
Off-shore	$240.74	$19.31	$25.40
Shipping	$254.37	$20.40	$26.84
On-shore	$1,286.19	$103.14	$135.71
Other	$25.00	$2.00	$2.64
Total	$1,806.31	$144.85	$190.59

1.13 Initial Assessment

The IA used product prices forecast by CRU (CRU, 2020). The averages of the forecast prices used (from 2024 onwards) are listed in Table 1.6.

Table 1.6 Average product prices assumed in IA

Parameter	Unit	Value
Ni metal	US$/t	$16,106
Ni contained Ni sulphate	US$/t	$17,711
Mn contained in SiMn product	US$/dry metric tonne unit	$4.53
Cu metal	US$/t	$6,787
Co metal	US$/t	$46,416
Co contained in Co sulphate	US$/t	$56,991
Ammonium sulphate	US$/t	$90

Note: Manganese ores are priced in dmtu (dry metric tonne units). A unit is 10 kg, or 1/100th of a tonne. For example, a tonne of material grading 45% Mn priced at US$4.00/dmtu would be worth US$180/t.

The IA indicates a positive economic outcome. Undiscounted post-tax net cash flow of US$30.6 billion is expected. An internal rate of return of 27% has been estimated from the financial model. Discounted cash flow analysis of unleveraged real cash flows, discounting at 9% per annum, indicates a pre-tax project net present value (NPV) of US$11.2 billion and a post-tax project NPV of US$6.8 billion. The discounted cash flows and progressive NPVs are shown in Figure 1.1.

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Figure 1.1 Project NPV₂₀₂₁ and discounted cash flow

The date of the investment decision is expected to be 30 June 2023. NORI expects to spend $237 million on pre-project activities between 2021 and 2024. The future value of the project on 30 June 2023 (after the pre-project expenditure is sunk and time has elapsed) will be
US$8.6 billion and the IRR from that point will be 29%.

The sensitivity of project economics to changes in the main variables was tested by selecting high and low values that represent a likely range of potential operating conditions. The variables with the biggest negative impact on NPV are all metal prices, total OPEX, collector speed, nickel sulphate price and development capex. In general, revenue drivers have the biggest impact, followed by OPEX variables and then CAPEX variables (Figure 1.2).

Figure 1.2 Tornado diagram of NPV sensitivity to variables

The Qualified Persons caution that this IA is preliminary in nature, and that further planning, engineering studies, design, cost estimation and seafloor tests are required before Mineral Resources can be converted to Mineral Reserves. There is no certainty that the proposals and results presented in this IA will be realized. A prefeasibility study has not yet been undertaken. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

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Contents

1	Summary			i
	1.1	Introduction		i
	1.2	Location		ii
	1.3	The ISA and the NORI tenements		ii
	1.4	Geology and Mineral Resources		iii
	1.5	Development plan		v
	1.6	Mining concept		vi
	1.7	Mineral processing and metallurgical testing		vi
	1.8	Market studies		viii
	1.9	Environmental studies, permitting, community, or social impact		viii
	1.10	Conceptual production schedule		ix
	1.11	Capital cost		ix
	1.12	Operating cost		x
	1.13	Initial Assessment		x
2	Introduction			30
	2.1	Purpose of the Technical Report Summary		30
	2.2	Sources of information and data		30
	2.3	Field involvement		30
	2.4	Personnel		30
	2.5	Reliance on other experts		31
3	Property description and location			31
	3.1	Tenements and permits		31
		3.1.1	United Nations Convention on the Law of the Sea	32
		3.1.2	International Seabed Authority	34
	3.2	NORI obligations and sponsorship		35
		3.2.1	Work program	35
		3.2.2	Royalties and taxes	36
4	Accessibility, climate, local resources, infrastructure, and physiography			36
	4.1	Accessibility and infrastructure		36
	4.2	Climate		36
5	History			37
	5.1	Overview		37
	5.2	Pioneer Investors		37
	5.3	Sampling methods		39
	5.4	Sample preparation and analysis		41
		5.4.1	Ocean Minerals Company	41
		5.4.2	Yuzhmorgeologiya	41
		5.4.3	IOM	42
		5.4.4	Preussag	42
	5.5	QA/QC procedures		43
	5.6	Pioneer Investor sample data supplied to NORI		43
6	Geological setting and mineralisation			45
	6.1	Global distribution of nodules		45
	6.2	Tectonic setting and topographic features		45
		6.2.1	Sedimentation and nodule formation	46
	6.3	Polymetallic mineralisation		47
		6.3.1	Nodule grades	47
		6.3.2	Nodule abundance	47
	6.4	Seafloor polymetallic nodule facies		50
	6.5	Topographic / bathymetric facies		53
	6.6	Nodule morphology and formation		54

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7	Exploration				55
	7.1	NORI 2012 campaign			55
	7.2	NORI 2013 campaign			56
	7.3	NORI 2018 campaign			58
		7.3.1	Objectives and approach		58
		7.3.2	AUV survey		59
		7.3.3	Box coring		61
			7.3.3.1	Sample processing	67
		7.3.4	NORI sampling		69
		7.3.5	Image classification and size measurement		71
		7.3.6	Biological sampling		72
		7.3.7	Geotechnical sampling		72
		7.3.8	Exploration results		74
			7.3.8.1	Box core abundance	74
			7.3.8.2	Buried nodules	75
			7.3.8.3	AUV data	76
		7.3.9	Nodule abundance estimation derived from AUV camera data		79
	7.4	NORI 2019 campaign			84
		7.4.1	Box coring		84
		7.4.2	Nodule sampling		85
		7.4.3	Biological sampling		87
		7.4.4	Geotechnical sampling		87
		7.4.5	Exploration results		89
		7.4.6	Analysis of grade distribution by size fraction		94
8	Sample preparation, analysis, and security				97
	8.1	Security			97
		8.1.1	Box core samples		97
		8.1.2	Camera imagery		98
	8.2	Sample preparation and assaying			98
	8.3	Quality assurance and quality control procedures 2018			100
		8.3.1	Certified reference materials		100
		8.3.2	Blanks		100
		8.3.3	Duplicates		101
	8.4	Quality assurance and quality control procedures 2019			104
		8.4.1	Certified reference materials		104
		8.4.2	Blanks		105
		8.4.3	Duplicates		105
	8.5	Moisture content			107
9	Data verification				109
10	Mineral processing and metallurgical testing				110
	10.1	Introduction			110
	10.2	Literature review (from KPM concept study, 12 October 2017)			110
		10.2.1	Studies on the pyrometallurgical processing of polymetallic nodules		110
			10.2.1.1	Inco	111
			10.2.1.2	Sumitomo	113
			10.2.1.3	German Federal Institute for Geosciences and Natural Resources	114
			10.2.1.4	United States Bureau of Mines	116
			10.2.1.5	Indian National Metallurgical Laboratory	117
		10.2.2	Ni, Cu, and Co partition coefficients		117
			10.2.2.1	Experimental test work	117
			10.2.2.2	Commercial furnace operation	118
			10.2.2.3	Partition coefficients assumed for plant design criteria	120
		10.2.3	Mn reduction during smelting		120
		10.2.4	Processing of the EF alloy in Peirce-Smith converters		120
		10.2.5	Hydrometallurgical processing of Ni-Cu-Co matte		122

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	10.3	NORI Test Work and Piloting			123
		10.3.1	Preliminary Work at FLSmidth		124
		10.3.2	KPM Work		124
		10.3.3	Small Scale Work at XPS		125
			10.3.3.1	Converting of Artificial Matte	125
			10.3.3.2	Manganese Removal and Sulphidation	125
11	Mineral Resource estimates				127
	11.1	Polymetallic nodule sample data			127
		11.1.1	Historic sample data		127
		11.1.2	TOML sample data		128
		11.1.3	NORI 2018 sample data		128
		11.1.4	NORI 2019 sample data		129
		11.1.5	Representativeness of sampling		129
		11.1.6	Data integration		130
	11.2	NORI Area D			131
		11.2.1	Geological domains		131
		11.2.2	Nodule type and sediment drift		133
		11.2.3	Backscatter		133
		11.2.4	Bathymetry		133
		11.2.5	PRZ areas		134
		11.2.6	Data processing		134
		11.2.7	Declustering		135
		11.2.8	Outliers within the sample data		136
		11.2.9	Top-cuts		138
		11.2.10	Missing value imputation		142
		11.2.11	Domain modelling		142
		11.2.12	Data transformations		147
		11.2.13	Summary statistics of processed sample data		148
			11.2.13.1	Spatial continuity	149
			11.2.13.2	Polymetallic nodule abundance and nodule grades	149
			11.2.13.3	Backscatter	154
		11.2.14	Estimation of nodule abundance and grades		154
	11.3	Cut-off grade			156
		11.3.1	Mineral Resource classification		157
		11.3.2	Estimation results		160
		11.3.3	Comparison with previous resource estimates		163
	11.4	NORI Area A, B and C			165
		11.4.1	Boundaries and geological domains		166
		11.4.2	Nodule sample data		166
		11.4.3	Data processing		166
		11.4.4	Declustering		168
		11.4.5	Top-cuts		168
		11.4.6	Spatial continuity		169
		11.4.7	Geological block model		170
		11.4.8	Estimation of nodule abundance and grades		171
		11.4.9	Mineral Resource classification		172
		11.4.10	Estimation Results		172
12	Mineral Reserve estimates				176
13	Mining methods				176
	13.1	Development plan			176
	13.2	Off-shore system concept			179
	13.3	Geotechnical considerations			179
	13.4	Collector Test and Hidden Gem conversion			181
	13.5	Project Zero			182
	13.6	Project One			183
		13.6.1	Upgrade of the Hidden Gem		184
		13.6.1	Conversion of Drill Ship 2		188
		13.6.2	Collector Ship 1		188

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		13.6.3	Collector vehicle		190
		13.6.4	Plume mitigation		193
		13.6.5	RALS		194
			13.6.5.1	Riser	194
			13.6.5.2	Airlift system	195
		13.6.6	PSV operations		199
		13.6.7	Collector support vessel		200
	13.7	Life of Mine nodule production			202
		13.7.1	Introduction		202
		13.7.2	LOM basis of design		203
		13.7.3	LOM production summary		211
		13.7.4	Inferred Mineral Resources		219
14	Processing and recovery methods				220
	14.1	Process design basis			220
		14.1.1	Plant throughput and availability		220
		14.1.2	Feed properties		221
		14.1.3	Nodule composition, speciation, and assay reconciliation		221
		14.1.4	Final product specifications		222
	14.2	Project Zero			223
	14.3	Project One			223
		14.3.1	Process description		223
			14.3.1.1	Pyrometallurgical processing	223
			14.3.1.2	Pyrometallurgical process steps	224
			14.3.1.3	Hydrometallurgical processing	225
			14.3.1.4	Hydrometallurgical process steps	226
		14.3.2	Key process parameters		227
			14.3.2.1	Pyrometallurgical plant	227
			14.3.2.1.1.	Calcining	227
			14.3.2.1.2.	Electric furnace smelting	227
			14.3.2.1.3.	Converter aisle	228
			14.3.2.2	Hydrometallurgical refinery	228
			14.3.2.2.1.	Matte storage and grinding	228
			14.3.2.2.2.	Atmospheric leaching	229
			14.3.2.2.3.	Pressure oxidative leaching	229
			14.3.2.2.4.	Impurity removal and copper electrowinning	230
			14.3.2.2.5.	Iron removal	231
			14.3.2.2.6.	Cobalt solvent extraction	231
			14.3.2.2.7.	Cobalt purification	232
			14.3.2.2.8.	Nickel solvent extraction	232
			14.3.2.2.9.	Cobalt sulphate crystallisation and packaging	233
			14.3.2.2.10.	Cobalt Precipitation	233
			14.3.2.2.11.	Nickel sulphate crystallisation and packaging	234
			14.3.2.2.12.	Ammonium sulphate crystallisation and packaging	234
			14.3.2.2.13.	Effluent Treatment	235
		14.3.3	Recoveries		235
		14.3.4	Plant footprint		236
		14.3.5	Infrastructure requirements: utilities, transportation and production		236
		14.3.6	Process plant ramp-up		237
15	Project infrastructure				238
	15.1	On-shore infrastructure			238
	15.2	Nodule transport			238
16	Market studies				241

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17	Environmental studies, permitting and social or community impact				242
	17.1	Permitting process			242
		17.1.1	Role of sponsoring state		243
		17.1.2	Compliance status		244
	17.2	Previous environmental studies			244
	17.3	Seabed physical environment			247
	17.4	Sediment geochemistry and composition			248
	17.5	Climate			248
	17.6	Large-scale oceanography			248
		17.6.1	Oceanic currents in NORI Area D		249
		17.6.2	Oceanographic studies		249
			17.6.2.1	Surface currents	251
			17.6.2.2	Water column vertical structure	252
			17.6.2.3	Suspended sediments, transmissivity and fluorescence	256
			17.6.2.4	Water column chemistry	257
			17.6.2.5	Sediment chemistry	257
	17.7	Ocean ecosystems			258
		17.7.1	Overview of ecosystem compartments		258
		17.7.2	Size classes of organisms		259
			17.7.2.1	Benthic megafauna	259
			17.7.2.2	Benthic macrofauna	260
			17.7.2.3	Benthic meiofauna	260
			17.7.2.4	Benthic microbial communities	260
			17.7.2.5	Benthic nodule fauna	260
			17.7.2.6	Benthic fish	263
			17.7.2.7	Pelagic micro-organisms	263
			17.7.2.8	Pelagic Phytoplankton	263
			17.7.2.9	Pelagic zooplankton and micronekton	263
			17.7.2.10	Pelagic nekton	263
			17.7.2.11	Marine mammals, reptiles and birds	264
	17.7.3	Ecosystem biodiversity			264
	17.7.4	Ecosystem trophic interaction			264
	17.7.5	Ecosystem interaction with existing economic activities			264
		17.7.5.1	Shipping		265
		17.7.5.2	Fisheries		265
	17.8	Environmental and Social Impact Assessment (ESIA)			267
		17.8.1	Environmental Impact assessment scoping		267
		17.8.2	Project environmental impacts		271
			17.8.2.1	Impacts to surface waters	271
			17.8.2.2	Impacts to midwater column	271
			17.8.2.3	Impacts to seafloor	272
			17.8.2.4	Benthic disturbance and recovery studies	272
		17.8.3	Scopes of work and terms of reference		272
		17.8.4	Social license / stakeholder engagement		273
		17.8.5	Project environmental impact assessment process		276
		17.8.6	Ecosystem Based Management		278
		17.8.7	Serious Harm		278
		17.8.8	Precautionary Approach		279
		17.8.9	Mitigation		279
		17.8.10	Environmental management and monitoring plans		280
		17.8.11	Environmental Management System		280
		17.8.12	Reporting		281
		17.8.13	Permitting risks		281
	17.9	Closure			282
	17.10	Onshore environmental and regulatory			282

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18	Capital and operating costs				283
	18.1	Project scale-up			283
	18.2	Pre-project capital cost estimates			285
	18.3	Project-period capital cost estimates			285
		18.3.1	Off-shore capital costs		285
			18.3.1.1	Project Zero: Hidden Gem Upgrade	285
			18.3.1.2	Project One: Hidden Gem Upgrade	286
			18.3.1.3	Project One: Drill Ship 2 Conversion	288
			18.3.1.4	Project One: Collector Ship 1 construction	289
			18.3.1.5	Collector support vessel	291
			18.3.1.6	Project management	291
		18.3.2	On-shore capital cost for Project One		291
	18.4	Sustaining capital cost estimates			293
	18.5	Closure cost estimates			293
	18.6	Operating cost estimates			293
		18.6.1	Off-shore operating costs		294
			18.6.1.1	Project Zero operating costs	294
			18.6.1.2	Project One operating costs	295
		18.6.2	Transportation costs		295
		18.6.3	Programme management and logistical costs		296
		18.6.4	Other operating costs		296
		18.6.5	On-shore operating costs – Project Zero		297
		18.6.6	On-shore operating costs – Project One		297
		18.6.7	Sulphidization costs		300
19	Economic analysis				301
	19.1	Inputs			303
		19.1.1	Commodity prices		303
		19.1.2	Tax		304
		19.1.3	Production schedule		305
	19.2	Results			305
	19.3	Inferred Mineral Resources			323
	19.4	Sensitivity analysis			323
20	Adjacent properties				325
21	Other relevant data and information				326
22	Interpretation and conclusions				327
	22.1	Mineral Resources			327
	22.2	Development plan			328
	22.3	Off-shore operations			328
	22.4	On-shore operations			329
	22.5	Environmental status			330
	22.6	Economic analysis			330
23	Recommendations				332
24	References				333
25	Reliance on information provided by the registrant				346

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Tables

Table 1.1	NORI 2020 Mineral Resource estimate for NORI Area D at 4 kg/m2 abundance cut-off	v
Table 1.2	Metallurgical recoveries	vii
Table 1.3	Production summary	ix
Table 1.4	Capital cost estimates	ix
Table 1.5	Average operating cost estimates during steady state operation  (from 2030 onwards)	x
Table 1.6	Average product prices assumed in IA	x
Table 2.1	List of Qualified Persons responsible for each Section	31
Table 2.2	Reliance on other experts	31
Table 3.1	NORI Area block details	32
Table 3.2	NORI Area extents	32
Table 5.1	Summary of historical FFG samples in the NORI Area	44
Table 7.1	Assay results for NORI Area A and B nodule samples	58
Table 7.2	Weight loss of samples after drying	58
Table 7.3	Summary of data types collected by the AUV during the 2018 NORI campaign	61
Table 7.4	Nodule size distribution for samples recovered during the 2018 NORI campaign	69
Table 7.5	Sampling protocol	70
Table 7.6	Box core sample coordinates and polymetallic nodule weights	90
Table 8.1	CRM assays from NORI 2018 campaign	100
Table 8.2	Blank sample assays from NORI 2018 campaign	101
Table 8.3	Duplicate average sample grades by laboratory	103
Table 8.4	CRM assays from NORI 2019 campaigns	104
Table 8.5	Blank sample assays from NORI 2019 campaign	105
Table 8.6	Duplicate average sample grades from ALS	106
Table 8.7	Duplicate average sample grades from ALS and BV	107
Table 10.1	Comparison of sea nodule composition	110
Table 10.2	Results from Inco smelting tests	112
Table 10.3	Distribution of Elements During Reduction Smelting (Inco)	113
Table 10.4	Results of Sumitomo smelting tests	114
Table 10.5	Composition of matte produced by Sumitomo	114
Table 10.6	Results from the German smelting tests	115
Table 10.7	Partition coefficients from the German smelting tests	116
Table 10.8	Results of USBM Smelting Tests	116
Table 10.9	Results of Indian smelting tests	117
Table 10.10	Partition coefficients from sea nodule smelting tests	117
Table 10.11	Partition coefficients from various Cu and Ni slag reduction electric furnaces	119
Table 10.12	Converter mass balance from Soroako nickel smelter	121
Table 10.13	Comparison of partition coefficients during matte converting	121
Table 11.1	NORI 2020 Mineral Resource estimate for the NORI Areas within the CCZ at 4 kg/m2 nodule cut-off.	127
Table 11.2	Summary statistics of historic polymetallic nodule data within NORI Areas A, B, C and D used for the 2012 Mineral Resource estimate	127
Table 11.3	Summary statistics of TOML Area F polymetallic nodule assays	128
Table 11.4	Summary statistics of the 2018 NORI Area D primary assay data.	129
Table 11.5	Summary statistics of the 2019 NORI Area D primary assay data.	129
Table 11.6	Summary of all manganese nodule data within NORI Area D	130
Table 11.7	Spatially weighted mean assays for NORI Area D samples	136
Table 11.8	Detected polymetallic nodule sample outliers	137
Table 11.9	Potential top-cut values for abundance, nickel, copper, manganese and cobalt values	138
Table 11.10	Top-cut values applied to abundance, nickel, copper, manganese and cobalt values	139

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Table 11.11	Summary of samples within NORI Area D used for resource estimation	148
Table 11.12	Summary statistics of historic (declustered) samples within NORI Area D and TOML Area F	148
Table 11.13	Summary of NORI 2018 nodule box-core and photo samples within NORI Area D used for resource estimation	148
Table 11.14	Summary statistics of NORI 2019 nodule box-core samples within NORI Area D used for resource estimation	149
Table 11.15	Summary statistics of TOML Area F nodule box-core samples adjacent to NORI Area D used for resource estimation	149
Table 11.16	Variogram models	151
Table 11.17	NORI Area D grid model extents	154
Table 11.18	2020 Mineral Resource estimate for NORI Area D at 4 kg/m2 abundance cut-off	162
Table 11.19	Summary statistics of samples within the NORI Area used for the 2012 Mineral Resource estimate.	166
Table 11.20	Minimum and maximum UTM coordinates for NORI Exploration Areas	167
Table 11.21	NORI Areas A, B, C and D declustered statistics (historic data only).	168
Table 11.22	NORI Areas A, B, C and D top cuts used for NORI 2012 Mineral Resource estimate.	168
Table 11.23	Variogram models, NORI Area A, B and C	169
Table 11.24	NORI Area A, B and C block model framework (UTM coordinates).	171
Table 11.25	NORI Area A, B and C model variables.	171
Table 11.26	NORI Area A, B and C Mineral Resource estimate at 4 kg/m2 abundance cut-off	173
Table 13.1	Key design data for off-shore systems	179
Table 13.2	Geotechnical properties of clays defined by UTEC, 2015.	180
Table 13.3	Available Volume for storage of nodules on the Hidden Gem	187
Table 13.4	Specifications for Collector Ship 1 PSV for Project One	189
Table 13.5	Collector vehicle specifications	191
Table 13.6	Riser pipe stack up	195
Table 13.7	Nominal airlift compressor specifications	196
Table 13.8	Relevant airlift experience and tests	197
Table 13.9	Collector support vessel specifications	201
Table 13.10	Nominal engineering parameters for Hidden Gem and Drill Ship 2	204
Table 13.11	Nominal engineering parameters - Collector Ship 1	204
Table 13.12	Seafloor production basis of design – Hidden Gem	205
Table 13.13	Seafloor production basis of design – Drill Ship 2	205
Table 13.14	Seafloor production basis of design - Collector Ship 1	205
Table 13.15	Collector system turning parameters basis of design	206
Table 13.16	Mineral Resource modifying factors	209
Table 13.17	Hidden Gem summary	212
Table 13.18	Drill Ship 2 summary	213
Table 13.19	Collector Ship 1 summary	214
Table 13.20	NORI Area D production summary	215
Table 14.1	Nodule assay for use in process modelling	221
Table 14.2	Preliminary Ni, Co product specifications	222
Table 14.3	Kiln parameters	227
Table 14.4	Electric furnace parameters	228
Table 14.5	Converter aisle parameters	228

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Table 14.6	Atmospheric Leaching Parameters	229
Table 14.7	Pressure oxidative leaching parameters	230
Table 14.8	Impurity removal and copper electrowinning parameters	231
Table 14.9	Iron removal parameters	231
Table 14.10	Cobalt SX Parameters	232
Table 14.11	Cobalt purification parameters	232
Table 14.12	Nickel SX parameters	233
Table 14.13	Cobalt sulphate crystallisation and packaging parameters	233
Table 14.15	Cobalt precipitation parameters	234
Table 14.15	Nickel sulphate crystallisation and packaging parameters	234
Table 14.16	Ammonium sulphate crystallisation and packaging parameters	235
Table 14.17	Effluent Treatment Parameters	235
Table 14.18	Pay metal recoveries for combined plant	236
Table 14.19	Estimated Power, Natural Gas and Water Requirements	236
Table 14.20	Major consumable requirements	236
Table 14.21	Annual product quantities	237
Table 17.1	Summary of outputs from June 3-5 workshop, San Diego, USA	270
Table 18.1	Summary of all capital costs	284
Table 18.2	Pre-project capital costs	285
Table 18.3	Project Zero: CAPEX for Hidden Gem upgrade	286
Table 18.4	Project One: CAPEX for upgrade of Hidden GEM	288
Table 18.5	Project One: CAPEX for conversion of Drill Ship 2	289
Table 18.6	Project One: CAPEX for Collector Ship 1	291
Table 18.7	Summary of project period on-shore capital costs	291
Table 18.8	Summary of project period on-shore capital costs by plant area	292
Table 18.9	Operating costs at steady state production	293
Table 18.10	Project Zero - Annual Off-shore operating cost	294
Table 18.11	Project One - Summary of annual off-shore operating costs for Hidden Gem and Drill Ship 2	295
Table 18.12	Project One - Summary of annual off-shore operating costs for Collector Ship 1	295
Table 18.13	Project One - Summary of annual off-shore operating costs for CSV	295
Table 18.14	Summary of parameters and costs for transport between vessels and transhipment	296
Table 18.15	Programme management and logistical cost	296
Table 18.16	Annual corporate and administration costs	297
Table 18.17	Summary of on-shore annual operating costs for Project One	297
Table 18.18	Summary of pyrometallurgical operating costs for Project One (4.88 Mtpa of dry nodules)	299
Table 18.19	Summary of hydrometallurgical operating costs for Project One (62 ktpa of produced nickel)	300
Table 19.1	Economic inputs	303
Table 19.2	Commodity prices	304
Table 19.3	Comparison of IA mine plan to Mineral Resource for NORI Area D	305
Table 19.4	Summary of cash flows	306
Table 19.5	Project revenues by year, over life of project	308
Table 19.6	Capital costs by year, over life of project	309
Table 19.7	Operating costs by year, over life of project	310
Table 19.8	Taxes and royalties by year, over life of project	311
Table 19.9	Undiscounted cash flows by year, over life of project	312
Table 19.10	Sensitivity analysis inputs	314

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Figures

Figure 1.1	Project NPV2021 and discounted cash flow	xi
Figure 1.2	Tornado diagram of NPV sensitivity to variables	xi
Figure 3.1	Location of NORI Project and other exploration areas within the Clarion-Clipperton Zone	31
Figure 3.2	Detail of location of NORI Areas A, B, C and D, from Figure 4.1	32
Figure 3.3	Map of seafloor jurisdictions	33
Figure 3.4	Maritime space under the 1982 UNCLOS	34
Figure 4.1	Global cargo shipping network	36
Figure 5.1	Schematic of Lockheed Group’s 1970s trial mining system	38
Figure 5.2	Remote operated collector used by the Lockheed Group in 1970s trial mining	39
Figure 5.3	Free fall grab sampler operation	40
Figure 5.4	Box core sampler operation	40
Figure 5.5	Box plots of sample grades within the NORI Area compared with all other data from the Reserved Blocks	44
Figure 6.1	Schematic diagram of average abundance of polymetallic nodules in four major locations	45
Figure 6.2	Bathymetric map of the Clarion-Clipperton Fracture Zone	46
Figure 6.3	Results from ISA Geological Model Project in the CCZ - combined cobalt, nickel, and copper grades	48
Figure 6.4	Results from the ISA Geological model project in the CCZ estimated nodule abundance	49
Figure 6.5	Polymetallic nodule facies in NORI Area D	50
Figure 6.6	Camera imagery showing change from Type 3 nodules (left), to Type 2 (right)	51
Figure 6.7	Map of nodule facies classification in NORI Area D	52
Figure 6.8	Polymetallic nodule types (ISA 2010)	54
Figure 7.1	NORI Area D bathymetry data	55
Figure 7.2	Subset of nodule samples recovered during NORI’s 2012 exploration campaign	56
Figure 7.3	Photos showing the operation of the epibenthic sled collecting nodules during the NORI 2013 campaign	57
Figure 7.4	Photos of nodules collected from NORI Area A during the NORI 2013 campaign	57
Figure 7.5	Reprocessed EM122 backscatter data from NORI Area D 2012 survey	59
Figure 7.6	Deployment ESVII Kongsberg Hugin AUV from the stern of the Maersk Launcher	60
Figure 7.7	AUV geosurvey data acquired during the 2018 NORI campaign	61
Figure 7.8	KC Denmark 0.75 m² box corer	63
Figure 7.9	Box core locations for 2018 NORI campaign shown by green circles with black centre-dot	64
Figure 7.10	Sequence of box core land-out footage from GoPro camera	66
Figure 7.11	On deck sample processing	68
Figure 7.12	Examples of nodules recovered during the 2018 NORI campaign	69
Figure 7.13	Coning and quartering process	71
Figure 7.14	Comparison of image classifier results vs caliper measurements	72
Figure 7.15	NORI Area D box core locations, showing those with biological sampling (in green)	73

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Figure 7.16	Box core abundance (in kg/m²)	74
Figure 7.17	Box core size-texture classification	75
Figure 7.18	Profile of nodule weight by depth in BC043	76
Figure 7.19	Comparison of AUV MBES data (ribbon) against EM122 vessel-based MBES	77
Figure 7.20	Examples of AUV MBES data showing detailed-scale geological features	78
Figure 7.21	Example of AUV camera photo mosaic showing nodules	79
Figure 7.22	Comparison of nodule long axis measurements, taken using digital callipers, and individual nodule wet weight for BC001, BC002, BC003, and BC005	80
Figure 7.23	Detail of image processing	81
Figure 7.24	Comparison of mean long axes lengths from AUV camera imagery and box cores	81
Figure 7.25	Comparison of Felix method and multiple linear regression method	82
Figure 7.26	Multiple linear regression model for nodule abundance	83
Figure 7.27	Nodule abundance estimates at 3.5 × 3.5 km node spacing within the Collector Test Site	84
Figure 7.28	Box corer on deck showing the USBL beacon mounting position	85
Figure 7.29	Box core processing flow sheet for Campaign 6B	86
Figure 7.30	Photographs of geotechnical plate load test (left) and CPT (Right)	88
Figure 7.31	Photographs of biological & geotechnical tube sampling	88
Figure 7.32	Map of NORI Area D showing box core sample locations and bathymetry	93
Figure 7.33	Relative difference of grade by size fraction – NiO (%)	94
Figure 7.34	Relative difference of grade by size fraction – CuO (%)	95
Figure 7.35	Relative difference of grade by size fraction – CoO (%)	95
Figure 7.36	Relative difference of grade by size fraction – MnO (%)	96
Figure 7.37	Proportions of size fractions by mass (relative percentage)	96
Figure 8.1	Sample storage	97
Figure 8.2	Comparison of primary samples assayed at ALS and duplicate samples assayed at ALS	102
Figure 8.3	Comparison of primary samples assayed at ALS and duplicate samples assayed at BV	103
Figure 8.4	Comparison of primary samples assayed at ALS and duplicate samples assayed at ALS	106
Figure 8.5	Comparison of primary samples assayed at ALS and duplicate samples assayed at BV	107
Figure 10.1	Schematic flow diagram of the Inco process for treating polymetallic nodules	112
Figure 10.2	Estimated Slag Liquidus as a function of MnO2/SiO2 ratio	115
Figure 10.3	Relationship between Co and Fe recoveries to alloy from Co smelting tests (Barnes)	118
Figure 10.4	Relationship between Ni and Fe yields in laterite smelters, actual vs theoretical	119
Figure 10.5	Metal recovery versus iron content in alloy during converting  (Japanese study)	122
Figure 11.1	Cumulative probability plots of abundance and assays for the integrated sample data	131
Figure 11.2	Map of NORI Area D geological domains	132
Figure 11.3	Proportions of geological domains in NORI Area D	132
Figure 11.4	NORI Area D nodule type domains	133
Figure 11.5	NORI Area D slope angle	134

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Figure 11.6	Plan showing location of data points and the NORI Area D boundary.	135
Figure 11.7	Pairs plot showing correlations between NORI Area D sample values	137
Figure 11.8	Location of identified outliers	138
Figure 11.9	Histogram, cumulative probability and mean-variance plots of abundance and grades for NORI Area D nodule samples	140
Figure 11.10	Histogram and cumulative probability plots of MnO:SiO2 ratio for NORI Area D nodule samples	142
Figure 11.11	Frequency of NORI Area D nodule samples by geological domains	142
Figure 11.12	Frequency of NORI Area D nodule samples by nodule type domains	143
Figure 11.13	Boxplots of NORI Area D nodule abundance and assays by geological domain	144
Figure 11.14	Boxplots of NORI Area D nodule abundance and assays by nodule type domain	145
Figure 11.15	Scatter plots of NORI Area D nodule abundance versus backscatter, slope and aspect and manganese and silicon versus slope.	146
Figure 11.16	Boxplots of NORI Area D nodule abundance versus backscatter, slope and aspect and manganese and silicon versus slope.	147
Figure 11.17	Variogram maps of NORI Area D nodule sample assays	150
Figure 11.18	Abundance omni-directional, 065° and 165° directional variograms	151
Figure 11.19	Nickel omni-directional, 065° and 165° directional variograms	151
Figure 11.20	Copper omni-directional, 065° and 165° directional variograms	152
Figure 11.21	Cobalt omni-directional, 075° and 165° directional variograms	152
Figure 11.22	Manganese omni-directional, 075° and 165° directional variograms	152
Figure 11.23	Silicon omni-directional, 075° and 165° directional variograms	153
Figure 11.24	Iron omni-directional, 075° and 165° directional variograms	153
Figure 11.25	Phosphorus omni-directional, 075° and 165° directional variograms.	153
Figure 11.26	Backscatter omni-directional, 065 and 155 directional variograms	154
Figure 11.27	NORI Area D 500 m by 500 m grid model, showing percentage coverage of nodules	155
Figure 11.28	Cumulative probability plots comparing nodule samples with IDW and SK estimates.	156
Figure 11.29	Abundance: Probability of exceeding 15% of mean at 90% confidence for quarterly and yearly production.	158
Figure 11.30	Mineral Resource classification boundaries	159
Figure 11.31	Nodule abundance and nodule grades 3.5 km by 3.5 km SK panel estimates for NORI Area D	161
Figure 11.32	NORI Area D abundance-tonnage curve.	162
Figure 11.33	2020 Mineral Resource model coloured by abundance, in seven 40 Mt (wet) increments	163
Figure 11.34	Ratio 2020:2018 abundance estimates, showing the 2018 resource classification boundaries	165
Figure 11.35	NORI Areas A, B, C and D, showing location of historic data	167
Figure 11.36	Variogram map for nickel, NORI Areas A, B and C	169
Figure 11.37	Major and semi-major variograms for nickel (red line is actual data and blue line is modelled curve)	170
Figure 11.38	NORI Area A, B and C Mineral Resource abundance tonnage curves	172
Figure 11.39	Map of sample distribution and block model estimates of nickel, NORI 2012 estimates	174
Figure 11.40	Map of sample distribution and block model estimates of abundance, NORI 2012 estimates	175

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Figure 13.1	Overall extraction operation	178
Figure 13.2	Flow of nodule material	179
Figure 13.3	Hidden Gem drillship (courtesy Allseas)	181
Figure 13.4	Hidden Gem – original drillship profile	185
Figure 13.5	Hidden Gem - original drillship deck plan	185
Figure 13.6	Hidden Gem - converted for Project Zero - profile	186
Figure 13.7	Hidden Gem - converted for Project Zero - deck plan	186
Figure 13.8	Hidden Gem - converted for Project Zero - sections	187
Figure 13.9	Material handling, dewatering and offloading systems	188
Figure 13.10	Collector Ship 1, production support vessel	189
Figure 13.11	Preliminary design for the collector vehicle	190
Figure 13.12	Normal collecting operations	192
Figure 13.13	Collector change-out operations concept	193
Figure 13.14	Illustration of collector vehicle with plume mitigation (patent pending)	194
Figure 13.15	Main air compressor (Elliott Group model 46M6I)	196
Figure 13.16	Nodule and air discharge concept	198
Figure 13.17	Continuous Flow Pressure Let-down System shown with dewatering equipment (patent pending)	198
Figure 13.18	Schematic of buffer storage and material handling on Collector Ship 1	200
Figure 13.19	Semi-submersible subsea oilwell support vessel, Q4000	201
Figure 13.20	Deck plan for collector support vessel	202
Figure 13.21	NORI 30-year potential production areas	203
Figure 13.22	Conceptual nodule collection path sequencing	207
Figure 13.23	Impact of collector mean time between repair on overall utilisation - Collector Ship 1	208
Figure 13.24	NORI Area D LOM production summary	211
Figure 13.25	LOM operational parameters	216
Figure 13.26	Variation in grades of nickel, copper, cobalt and phosphorus across LOM	216
Figure 13.27	Variation in grades of manganese, iron, silicon and MnO:SiO2 ratio across LOM	217
Figure 13.28	Cumulative LOM nodule production	217
Figure 13.29	Histogram of nodule abundance	218
Figure 13.30	Hidden Gem collector speed nodule abundance relationship	218
Figure 13.31	Drill Ship 2 collector speed nodule abundance relationship	219
Figure 13.32	Collector Ship 1 collector speed nodule abundance relationship	219
Figure 14.1	Pyrometallurgical process block flow diagram	224
Figure 14.2	Hydrometallurgical process block flow diagram	226
Figure 15.1	Unloading bulk minerals at Mexican port of Lazaro Cardenas (Terminales Portuarias de Pacifico)	239
Figure 15.2	Offloading Operation: (left) with a conventional tanker; (right) with a DP tanker	240
Figure 17.1	Simplified surface sediment facies in the CCZ	247
Figure 17.2	NORI Area D mooring and water quality sampling locations	250
Figure 17.3	Equipment configuration on the mooring array	251
Figure 17.4	Surface currents recorded by SOFAR drifters	252
Figure 17.5	Temperature (°C) profile of NORI Area D during Campaign 4A	253
Figure 17.6	Salinity (psu) profile of NORI Area D during Campaign 4A	254

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Figure 17.7	Dissolved oxygen (mg L-1) profile of NORI Area D during Campaign 4A	255
Figure 17.8	pH profile of NORI Area D during Campaign 4A	256
Figure 17.9	Profiles of turbidity (NTU) (Left); percent transmissivity (centre) and fluorescence (mg m-3 Right), in NORI Area D during Campaign 4A	257
Figure 17.10	Type 1 nodules coloured by their placement within the 8-Cluster geoform map of NORI Area D	261
Figure 17.11	Examples of megafauna from NORI Area D (Note Each scale square is 1x1 cm)	262
Figure 17.12	Average annual distributions of the purse-seine catches in the Eastern Pacific Ocean of yellowfin tunas	266
Figure 17.13	Average annual catches of bigeye (BET) and yellowfin (YFT) tunas in the Pacific Ocean	267
Figure 17.14	Potential impact zones through the water column	269
Figure 17.15	Communications and Stakeholder Engagement objectives (scoping phase)	275
Figure 17.16	Qualitative, semi-quantitative and fully quantitative risk assessments	277
Figure 19.1	Gantt chart showing proposed schedule of main project phases	302
Figure 19.2	Cumulative undiscounted cash flows	306
Figure 19.3	Project NPV2021 and discounted cash flow	307
Figure 19.4	Tornado diagram of NPV sensitivity to variables	313

Distribution list

1 e-copy to DeepGreen Metals Inc.

1 e-copy to AMC Brisbane office

OFFICE USE ONLY

Version control (date and time)

25 March 2021 17:00

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List of acronyms

AAS	Atomic absorption spectroscopy
ALS	ALS Laboratory Group
AMC	AMC Consultants Pty Ltd
AMR	Arbeitsgemeinschaft Meerestechnisch Rohstoffe
APEI	Area of Particular Environmental Interest
AUV	Autonomous underwater vehicle
BC	Box core
BGR	German Federal Institute for Geosciences and Natural Resources
BV	Bureau Veritas laboratory
CCZ	Clarion-Clipperton Zone
CIM	Canadian Institute of Mining, Metallurgy and Petroleum
CV	Coefficient of variation
The Convention	United Nations Convention on the Law of the Sea 1982
DeepGreen	DeepGreen Metals Inc.
DGE	DeepGreen Engineering Pte. Ltd.
DISCOL	Disturbance and Recolonisation Experiment
DOMES	Deep Ocean Mining Environmental Study
DP	Dynamic positioning
EF	Electric furnace
EIA	Environmental Impact Assessment
EIS	Environmental Impact Statement
EMP	Environmental Management Plan
EMS	Environmental Management System
EW	Electro-winning
FFG	Free-fall grab samplers
FV	Finishing vessel
Glencore	Glencore International Ag
Golder	Golder Associates Pty Ltd.
ICP-MS	Inductively coupled plasma mass spectrometry
ID	Inside diameter
IDW	Inverse Distance Weighting – an estimation method utilising distance-weighted local averages
IFREMER	lnstitut Français de Recherche pour l'Exploitation de la Mer (French Research Institute for Exploitation of the Sea)
Inco	International Nickel Corporation
IOM	lnteroceanmetal Joint Organisation
IRR	Internal rate of return
ISA	International Seabed Authority
IX	Ion exchange
LED	Light-emitting diode
LME	London Metal Exchange
MBES	Multi-beam echo sounder
NI 43-101	Canadian National Instrument 43-101
NOAA	National Oceanic and Atmospheric Administration
NORI	Nauru Ocean Resources Inc.
NN	Nearest neighbour estimation method
NPV	Net present value
OD	Outside diameter
OK	Ordinary kriging – an estimation method utilising distance-weighted local  averages
OMI	Ocean Mining Inc.

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OMCO	Ocean Minerals Company
PEA	Preliminary economic assessment
PFS	Pre-feasibility study
PLS	Pregnant liquor/leach solution
POX	Pressure oxidative leaching
PSV	Production support vessel
QAQC	Quality assurance and quality control
QP	Qualified Person, as defined by Canadian National Instrument 43-101
RALS	Riser and lift system
R-type	Rough type nodules
Regulations	Regulations on Prospecting and Exploration for Polymetallic Nodules in the Area
ROV	Remotely operated vehicle
RKEF	Rotary kiln and electric furnace
SBP	Sub-bottom profiler
S-R-type	Smooth-rough type nodules
SSS	Sidescan sonar
S-type	Smooth type nodules
SV	Sulphidation vessel
SX	Solvent extraction
TOC	Total organic carbon
TOML	Tonga Off-shore Mining Limited
UNCLOS	United Nations Convention on the Law of the Sea
USBL	Ultra-short baseline
UTM	Universal Transverse Mercator Cartesian coordinate system
UTP	Underwater transponder array
Var WROV	Variance Work Class remotely operated vehicle
XRF	X-ray fluorescence analysis
Yuzhmorgeologiya	State Enterprise Yuzhmorgeologiya (Russian Federation)

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List of elements

Al	Aluminium
As	arsenic
Ba	barium
Ca	calcium
Cd	cadmium
Ce	cerium
Cl	chlorine
Co	cobalt
Cu	copper
Fe	iron
H2O	hydrogen dioxide
H2S	hydrogen sulphide
K	potassium
La	lanthanum
Mg	magnesium
Mn	manganese
MnO	manganese oxide
MnO2	manganese dioxide
Mo	molybdenum
Na	sodium
NaHS	sodium hydro sulphide
Na2S	sodium sulphide
Nd	neodymium
Ni	nickel
P	phosphorus
Pb	lead
REE	rare earth elements
S	sulphur
SiO2	silicon dioxide
Sr	strontium
Ti	titanium
V	vanadium
Y	yttrium
Zn	zinc
Zr	zirconium

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List of units

°	degree
°C	degrees Celsius
%	percent
% w/w	% mass/mass or weight
µm	microns
cm	centimetre
cm/s	centimetre per second
dmtu	dry metric tonne unit
G	gram
GWh	gigawatt-hours
kg	kilogram
kg/m²	kilograms per square metre (surface abundance)
km	kilometre
km²	square kilometre
kPa	kilopascal
kt	kilotonne (metric)
kt/a	kilotonnes (metric) per annum
kWh/h	kilowatt hours per hour
kWh/t	kilowatt hours per tonne
Lb	pound
M	metre
m/h	metres per hours
m/s	metres per second
m2	square metre
m3	cubic metre
m³/y	cubic metres per year
mbsl	metres below sea level
mg/L	milligrams per litre
mm	millimetre
MPa	megapascal
Mt	million tonnes(metric)
Mtpa	million tonnes (metric) per annum
mV	millivolt
MW	megawatt
nm	nautical mile
Nm3	cubic metre of gas at standard temperature and pressure
ppm	parts per million
ppmw	parts per million weight
S	second
T	tonne (metric)
t/d	tonnes (metric) per day
t/h	tonnes (metric) per hour
US$	United States dollar
y	year

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2 Introduction

A very large nickel, manganese, cobalt, and copper resource occurring as polymetallic nodules is located in the Clarion-Clipperton Zone (CCZ) of the northeast Pacific Ocean between Hawaii and Mexico. The nodules are located at depths of between 4,000 to 6,000 m and have been explored with considerable success between the mid-1960s and the present day using a variety of deep-sea technologies. Successful trial extraction in the CCZ has also been carried out to demonstrate that the nodules can be collected and pumped to a surface platform and processed for recovery of metals.

Interest in seafloor mineral deposits grew through the 1960s. Several commercial and government funded organisations and consortia started exploring the oceans as part of a cooperative program known as the International Decade of Ocean Exploration. These organisations became known as Pioneer Investors.

Exploration of the seafloor in international waters is now administered by the International Seabed Authority (ISA) and regulated by the United Nations Convention on the Law of the Sea (UNCLOS). These institutions operate on the principle that the ocean floor beyond the limits of national jurisdiction, known as the Area, is the common heritage of mankind.

In July 2011, Nauru Ocean Resources Inc. (NORI), a subsidiary of DeepGreen Metals Inc. (DeepGreen), was granted an exploration contract over 74,830 km² (the NORI Area or the Property) in the CCZ consisting of four exploration areas (Area A, B, C and D). NORI’s contract for exploration of polymetallic nodules was approved by the Council of the ISA on 19 July 2011, for a term of 15 years and then signed with the ISA on 22 July 2011.

DeepGreen commissioned AMC Consultants Pty Ltd (AMC) to undertake an Initial Assessment (IA) of the Mineral Resource contained in one of these blocks, NORI Area D, (the Project) and compile a Technical Report Summary compliant with SEC Regulation S-K (subpart 1300).

2.1 Purpose of the Technical Report Summary

AMC understands that DeepGreen may file this Technical Report Summary with Securities Exchange Commission as part of an S-4 filing to support the merger between Sustainable Opportunities Acquisition Corporation and DeepGreen Metals Inc.

2.2 Sources of information and data

This Technical Report Summary is based on information and reports supplied by NORI or in the public domain. Section 27 lists background documents that are referenced by the higher-level reports.

2.3 Field involvement

Ian Stevenson, an independent consultant trading as Margin - Marine Geoscience Innovation participated in the 2018 off-shore campaign (Campaign 3) on the Maersk Launcher which carried out surveys and sampling in the NORI Area D from 26 April - 4 June 2018. Ian Lipton, Principal Geologist, AMC, was involved in the development of sampling strategies and procedures and was in daily contact with the off-shore campaign as it was implemented, providing input as required to ensure data quality and veracity.

2.4 Personnel

The Sections that each of the Qualified Persons (QPs) were responsible for are summarised in Table 2.1. In addition, each of the QPs contributed to Sections 22 to 24, where relevant to the Sections for which they were primarily responsible.

AMC has relied upon information provided by the registrant in preparing its findings and conclusions regarding some aspects of modifying factors, as set out in Section 25.

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Table 2.1 List of Qualified Persons responsible for each Section

Qualified Person	Responsible for the following report Sections:
AMC Consultants Pty Ltd	Sections 1-5, 8.2, 8.3, 9, 11, 12, 13.3, 13.7, 14.2, 15.1, 16, 17, 18 (except 18.3.1, 18.3.2, 18.6.1, 18.6.6), 19, 20-25
Margin - Marine Geoscience Innovation	Sections 6, 7, 8.1
Canadian Engineering Associates Ltd	Sections 10, 14.1, 14.3, 18.3.2, 18.6.6
Deep Reach Technology Inc	Section 13.1, 13.2, 13.4, 13.5, 13.6, 15.2, 18.3.1, 18.6.1

2.5 Reliance on other experts

The QPs have relied upon other experts for some sections in this report. These are summarised in Table 2.2.

Table 2.2 Reliance on other experts

Expert	Report Sections:
Picton Group Pty Ltd	Section 17

3 Property description and location

The NORI Property is located within the CCZ of the northeast Pacific Ocean Figure 3.1. The CCZ is located in international waters between Hawaii and Mexico. The western end of the CCZ is approximately 1,000 km south of the Hawaiian island group. From here, the CCZ extends over 4,500 km east-northeast, in an approximately 750 km wide trend, with the eastern limits approximately 2,000 km west of southern Mexico. The region is well-located to ship nodules to the American continent or across the Pacific to Asian markets.

Figure 3.1 Location of NORI Project and other exploration areas within the Clarion-Clipperton Zone

Source: https://www.isa.org.jm/map/clarion-clipperton-fracture-zone, downloaded 18 February 2021

3.1 Tenements and permits

In July 2011, NORI was granted a polymetallic nodule exploration contract by the ISA (NORI Exploration Contract). The contract was granted pursuant to the Regulations on Prospecting and Exploration for Polymetallic Nodules in the Area (adopted 13 July 2000) and formalises an exploration area, a term of 15 years for the contract, and a program of activities for the first five-year period (NORI Exploration Contract). The contract also formalises the rights of NORI around tenure. Pursuant to the Regulations, NORI has the priority right to apply for an exploitation contract to exploit polymetallic nodules in the same area (Regulation 24(2)).

The NORI Exploration Contract may be extended for periods of 5 years at a time beyond the initial 15-year period, provided NORI has made efforts in good faith to comply with the requirements of the plan of work.

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The NORI contract area comprises four separate blocks (A, B, C and D) in the CCZ with a combined area of 74,830 km² Figure 3.2, Table 3.1 and Table 3.2. These areas were previously explored by three Pioneer Investors.

Figure 3.2 Detail of location of NORI Areas A, B, C and D, from Figure 4.1

Source: https://www.isa.org.jm/map/clarion-clipperton-fracture-zone, downloaded 18 February 2021. Legend as in Figure 4.1

Table 3.1 NORI Area block details

Area	Size (km2)	ISA block number	Pioneer investor
A	8,924	13	Yuzmorgeologiya
B	3,519	15	Yuzmorgeologiya
C	37,227	22	Interoceanmetal Joint Organisation (IOM)
D	25,160	25	Arbeitsgemeinschaft Meerestechnisch Rohstoffe (AMR)

Table 3.2 NORI Area extents

Area	Minimum Latitude (DD)	Maximum Latitude (DD)	Minimum Longitude (DD)	Maximum Longitude (DD)	Minimum UTM X (m)	Maximum UTM X (m)	Minimum UTM Y (m)	Maximum UTM Y (m)	UTM Zone
A	11.5000	13.00000	-134.5830	-133.8330	545220.4	627276.0	1271339	1437255	8
B	13.5801	14.00000	-134.0000	-133.2000	607995.7	694759.8	1501590	1548425	8
C	12.0000	14.93500	-123.0000	-120.5000	500000.0	769458.3	1326941	1652649	10
D	9.8950	11.08333	-117.8167	-116.0667	410465.2	602326.1	1093913	1225353	11

DD – Decimal degrees, UTM - Universal Transverse Mercator map projection

To date, no exploitation licences for extracting minerals from the seafloor within the Area have been granted.

3.1.1 United Nations Convention on the Law of the Sea

The international seabed area (otherwise known as the Area) is defined as the seabed and subsoil beyond the limits of national jurisdiction (UNCLOS Article 1). Figure 3.3 shows a map of the Area (blue zone) as well as 200 nautical mile exclusive economic zones (grey zone) and extended continental shelf zones (orange zone). Figure 3.4 shows the relationships between depth, distance and jurisdiction.

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The principal policy documents governing the Area include:

● The United Nations Convention on the Law of the Sea, of 10 December 1982 (The Convention).

● The 1994 Agreement relating to the Implementation of Part XI of the United Nations Convention on the Law of the Sea of 10 December 1982 (the 1994 implementation Agreement).

The Convention deals with, among other things, navigational rights, territorial sea limits, exclusive economic zone jurisdiction, the continental shelf, freedom of the high seas, legal status of resources on the seabed beyond the limits of national jurisdiction, passage of ships through narrow straits, conservation and management of living marine resources in the high seas, protection of the marine environment, marine scientific research, and settlement of disputes.

Part XI of the Convention and the 1994 Implementation Agreement deals with mineral exploration and exploitation in the Area, providing a framework for entities to obtain legal title to areas of the seafloor from the ISA for the purpose of exploration and eventually exploitation of resources.

The Convention entered into force on 16 November 1994. A subsequent agreement relating to the implementation of Part XI of the Convention was adopted on 28 July 1994 and entered into force on 28 July 1996. The 1994 Implementation Agreement and Part XI of the Convention are to be interpreted and applied together as a single instrument.

As of 20 August 2020, the Convention had been signed by 167 States (countries) and the European Union. The United States of America is currently not a party to the Convention.

Figure 3.3 Map of seafloor jurisdictions

 

Note: International seabed area map (blue zone) as well as 200 nautical mile exclusive economic zones (grey zone) and extended continental shelf zones (orange zone). Source: Marine Geospatial Ecology Lab, Duke University (2011).

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Figure 3.4 Maritime space under the 1982 UNCLOS

Source: DeepGreen - adapted from UNCLOS, 1982

3.1.2 International Seabed Authority

The ISA is an autonomous international organisation established under the Convention and the 1994 Implementation Agreement to organise and control activities in the Area, particularly with a view to administering and regulating the development of the resources of the Area in accordance with the legal regime established in the Convention and the 1994 Implementation Agreement.

All rules, regulations, and procedures issued by the ISA to regulate prospecting, exploration, and exploitation of marine minerals in the Area are issued within a general legal framework established by the Convention and the 1994 Implementation Agreement.

To date, the ISA has issued (https://www.isa.org.jm/mining-code/ Regulations):

● The Regulations on Prospecting and Exploration for Polymetallic Nodules in the Area (adopted 13 July 2000; the Regulations).

● The Regulations on Prospecting and Exploration for Polymetallic Sulphides (adopted 7 May 2010).

● The Regulations on Prospecting and Exploration for Cobalt-Rich Ferromanganese Crusts in the Area (July 2012).

The ISA is currently working on the development of a legal framework to regulate the exploitation of polymetallic nodules in the international seabed area.

In 2014, the ISA completed a study looking at comparative extractive regulatory regimes. This was followed in March 2014 with a stakeholder survey seeking comments on what financial, environmental, and health and safety obligations should be included under the framework
(ISA 2014).

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In March 2019, the Council of the ISA released the advance and unedited text (English only) of the Draft Regulations on Exploitation of Mineral Resources in the Area (ISBA/25/LTC/WP.1) (ISA, 2018). The revised draft incorporated the consideration of requests addressed to the Legal & Technical Commission by the Council during the first part of the 24th Session in March 2018, comments by the Commission, and also reflected the responses to the first draft from stakeholder submissions. The ISA declared a target of July 2020 to have the regulations approved, however the July session was deferred as a result of COVID-19 pandemic.

Pursuant to paragraph 15(a) and (b) of Section 1 of the annex to the 1994 Implementation Agreement, which relates to article 162 (2)(o)(ii) of the Convention, the ISA Council must also adopt such exploitation regulations within two years of a formal request being made by any State which intends to apply for approval of a plan of work for exploitation.

3.2 NORI obligations and sponsorship

During exploration NORI, is required to, among other things:

● Submit an annual report to the ISA.

● Meet certain performance and expenditure commitments.

● Pay an annual overhead charge (currently US$60,000) to cover the costs incurred by the ISA in administering and supervising the contract.

● Implement training programs for personnel of the ISA and developing countries in accordance with a training program proposed by NORI in its licence application and
five-year work plans.

● Take measures to prevent, reduce, and control pollution and other hazards to the marine environment arising from its activities in the Area.

● Maintain appropriate insurance policies.

● Establish environmental baselines against which to assess the likely effects of its program of activities on the marine environment.

● Establish and implement a program to monitor and report on such effects.

NORI is sponsored to carry out its mineral exploration activities in the Area by the Republic of Nauru, pursuant to a certificate of sponsorship signed by the Government of Nauru on 11 April 2011. Sponsorship of an entity requires the sponsoring State to certify that it assumes responsibility for the entity's activities in the Area in accordance with the Convention. NORI is a Nauruan incorporated entity and is subject to applicable Nauruan legislation and regulations.

In 2015 the Republic of Nauru enacted the International Seabed Minerals Act, which establishes the Nauru Seabed Minerals Authority to administer Nauru’s sponsorship of activities carried out in the Area by companies sponsored by Nauru.

In June 2017, the Republic of Nauru and NORI entered into a Sponsorship Agreement formalising certain obligations of the parties in relation to NORI's exploration and potential exploitation of the NORI Contract Area of the CCZ.

3.2.1 Work program

As of the date of this Technical Report, NORI is in the ninth year of its exploration contract.

In 2016 NORI submitted to the ISA proposed activities for the second five-year period of its exploration contract. NORI indicated that work would focus on:

● Reducing project uncertainties and technical risks.

● Optimising the on-shore processing and off-shore production systems (including increasing performance and reliability).

● Improving project economics, including decreasing estimated capital and operating expenditure as well as increasing projected revenues.

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NORI forecast estimated expenditure of US$5 million over the period 2017 to 2021, however noted the figure may be revised based upon the results of the next phase of engineering work. To date NORI has exceeded this level of expenditure on the NORI Contract Area.

3.2.2 Royalties and taxes

Royalties and taxes payable on any future production from the NORI Area will be stipulated in the ISA's exploitation regulations. While the rates of payments are yet to be set by the ISA, the 1994 Implementation Agreement (Section 8[1](b]) prescribes that the rates of payments "shall be within the range of those prevailing in respect of land-based mining of the same or similar minerals in order to avoid giving deep seabed miners an artificial competitive advantage or imposing on them a competitive disadvantage."

An ad hoc ISA working group workshop held on 21–22 February 2019 discussed a number of potential royalty and taxation regimes supported by modelling conducted by the Massachusetts Institute of Technology. No formal recommendations were forthcoming however a 2% ad valorem royalty increasing to 6% after a period of five years of production was discussed as well as a 1% ad valorem environmental levy. This is what has been included in the IA model.

Under the Sponsorship Agreement between the Republic of Nauru and NORI, upon reaching a minimum recovery level within the tenement area, NORI has agreed to pay the Republic of Nauru a seabed mineral recovery payment for polymetallic nodules recovered from the tenement area, annually adjusted (from year 5 of production) on a compounding basis based on the official inflation rate in the USA.

4 Accessibility, climate, local resources, infrastructure, and physiography

4.1 Accessibility and infrastructure

The CCZ lies between Hawaii and Mexico and is accessible by ship from various ports in the United States and South America. As the CCZ deposit does not include any habitable land and is not near coastal waters, there is no requirement to negotiate access rights from landowners for seafloor mining operations. All personnel and material will be transported to the project area by ship. The region is well located to ship nodules to the American continent or across the Pacific Ocean to Asian markets. The CCZ is generally outside major shipping lanes as indicated in
Figure 4.1 which shows the global cargo shipping network, illustrating the trajectories of all cargo ships bigger than 10,000 gross tonnage during 2007.

Figure 4.1 Global cargo shipping network

Note: The colour scale indicates the number of journeys along each route.

Source: Adapted from Kaluza et al. 2010.

4.2 Climate

The CCZ has a tropical oceanic climate, with average temperatures of from 20 to 32 °C. Minimum and maximum temperatures generally occur in March and September, respectively (ISA 2001), and the average sea surface temperature is 25 °C. The CCZ is located in open ocean and is subject to tropical weather patterns.

Off-shore operations are planned to run throughout the year, with the exception of hurricane events, which are expected to occur once every three years. Tropical hurricanes are difficult to predict due to their erratic frequency but have high intensity over short periods and occur mostly during the period from May to October (Tilot, 2006, GSR 2018).

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5 History

5.1 Overview

Submarine ferromanganese concretions were first discovered in the Kara Sea off Siberia in 1868 (ISA 2010, citing Earney 1990). HMS Challenger, during its round the world expedition from 1873 to 1876, collected many small dark brown balls, rich in manganese and iron, which were named manganese nodules (ISA 2010 citing Murray and Reynard [1891], Manheim [1978], and Earney [1990]).

Since the 1960s, polymetallic nodules have been recognised as a potential source of nickel, copper, cobalt, and manganese, and have been comparatively well studied because of their potential economic importance (Mero 1965). Scientific expeditions demonstrated that polymetallic nodules have a widespread occurrence in the world's oceans although their metal content and concentration vary from region to region.

During the International Decade of Ocean Exploration and prior to the implementation of UNCLOS, many off-shore exploration campaigns were completed by international organisations and consortia. A number of at-sea trial mining operations were successfully carried out in the CCZ in the 1970s to test potential mining concepts. These system tests evaluated the performance of a self-propelled and several towed collection and mining devices, along with submersible pumps and airlift technology for lifting the nodules from the deep ocean floor to the support vessel.

The US National Oceanic and Atmospheric Administration (NOAA) monitored some of these tests as the principal effort of the Deep Ocean Mining Effects Study (DOMES II) program. The information collected during these activities provided key inputs to the impact analysis presented by NOAA in its Final Programmatic Deep-Sea Mining Environmental Impact Statement.

5.2 Pioneer Investors

For the purpose of this report the Pioneer Investors include those entities that carried out substantial exploration in the Area prior to the entry into force of the Convention, as well as those entities that inherited such exploration data. This Section describes some of the more important activities of the Pioneer Investors.

NORI Area D was originally explored by Arbeitsgemeinschaft Meerestechnisch Rohstoffe (AMR). AMR subsequently joined Ocean Management Inc. (OMI). The OMI consortium comprised Inco Ltd (Canada), AMR (Federal Republic of Germany), SEDCO Inc. (US), and Deep Ocean Mining Co. Ltd (Japan). OMI completed a successful trial mining operation in 1978. Hydraulic pumps, an air lift system, and towed collectors were tested in approximately 4,500 m of water. Approximately 800 t of nodules were recovered.

Kennecott consortium (now a division of Rio Tinto) first became seriously interested in seafloor polymetallic nodules in 1962 (Agarwal et al. 1979). In the 1970s, Kennecott developed and tested components and subsystems of a seafloor mining system, and also carried out significant polymetallic nodule metallurgical processing test work.

Using a different system to OMI, Ocean Mining Associates recovered approximately 500 t of nodules during its trial mining in the 1970s.

Between 1969 and 1974, Deepsea Ventures Inc. carried out 16 survey cruises of three to four weeks' duration each, to define the extent of the polymetallic nodule deposit discovered by them in 1969 in the CCZ. As reported by Deepsea Ventures Inc:

“These activities included the taking of some 294 discrete samples, including the bulk dredging of some 164 tons of manganese nodules from some 263 dredge stations, 28 core stations and three grab sample stations, cutting of some 28 cores, approximately 1000 lineal miles of survey of seafloor recorded by television and still photography, etc. As a result, the deposit of nodules identified with the discovery has been proved to extend generally throughout the entire area (American Society of International Law, 1975).”

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Also active in the CCZ was the Ocean Minerals Company (OMCO), comprising Amoco Minerals Co. (United States), Lockheed Missiles and Space Company Inc. (United States), Billiton International Metals BV, and dredging company Bos Kalis Westminster (Netherlands). In a program lasting 16 years, OMCO collected thousands of free-fall grab and box core samples of nodules from its claim area (Spickermann 2012) and carried out trial mining. Lockheed's design efforts resulted in over 80 patents, a seafloor production system that consisted of a remote-controlled collector and crusher, a seafloor to surface slurry riser system, the first industrial scale dynamic positioning system for a vessel, and a metallurgical processing plant (Spickermann 2012).

In 1978, OMCO used a remote controlled fully manoeuvrable self-propelled miner with conveyor and crusher Figure 5.1 and Figure 5.2 to trial mine polymetallic nodules in the CCZ at approximately 4,500 mbsl. The miner used an Archimedes screw drive system to provide traction and accurate manoeuvrability on the seafloor. Nodules were picked up by the miner and transferred to the buffer, where they were to be pumped to the surface by an airlift system.

Figure 5.1 Schematic of Lockheed Group’s 1970s trial mining system

Source: DeepGreen. Used with permission of Prof. Jin Chung.

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Figure 5.2 Remote operated collector used by the Lockheed Group in 1970s trial mining

Source: Spickerman 2012.

5.3 Sampling methods

Prior to NORI obtaining its exploration contract, sampling of seafloor nodules within the NORI Area was conducted by three Pioneer Investors; AMR, State Enterprise Yuzmorgeologiya of the Russian Federation and lnteroceanmetal Joint Organisation (IOM), a consortium formed by Bulgaria, Cuba, the Czech Republic, Poland, the Russian Federation, and Slovakia.

Nodule samples collected by the Pioneer Investors from within the NORI Area were obtained by free-fall grab samplers (FFG) along with a few from box corers. For each sample the nodule abundance (wet kg/m²) was derived by dividing the weight of recovered nodules by the surface area covered by the open jaws of the sampler or corer (typically 0.25 to 0.5 m² but in some cases as much as 1 m²). Sample splits were dried and assayed by atomic absorption spectrophotometry (AAS) and X-ray fluorescence (XRF).

Free-fall grab samplers are currently the most productive tool available for sampling nodules. This is because a number of them can be deployed at any one time from the survey vessel allowing an order of magnitude increase in collection efficiency compared to box core sampling (i.e., approximately 10 to 20 samples per day for a FFG versus 2 to 3 samples per day for a box core (BC) that is winched to and from the seafloor). Figure 5.3 shows the operation of an FFG sampler.

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Figure 5.3 Free fall grab sampler operation

Source: ISA 1999b.

The box core is the preferred sampling method for retrieving polymetallic samples for resource evaluation and environmental studies. The box core consists of a trigger, plunger, and cutting shovel. Upon land out on the seafloor, the trigger is released which allows the plunger to push a box cutter into the substrate during retraction. Upon retraction, the cutting shovel rotates under the box while cutting into the seafloor and sealing the sample box from below Figure 5.4.

Figure 5.4 Box core sampler operation

Source: KC Denmark box corer manual.

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Comparison of nodule abundance measurements by free-fall grab samplers and box cores suggests that free-fall grab samplers commonly underestimate the actual abundance. This is due to smaller nodules escaping the sampler during ascent and larger nodules around the edge of the sampler being knocked out during the sampling process. Additionally, free-fall grab samplers occasionally fail to return any nodules where nodule abundance is known to be very high because the sampler fails to penetrate the layer of nodules.

Lee et al. (2008) examined correction factors between FFG and BC in some detail. They found a wide range but consistent differences with FFG under-reporting compared to BC. They recommended an overall correction factor of 1.4 to convert FFG abundance to BC abundance. However, they acknowledged that any simple factor lacks precision. One of the key issues is the size of the FFG or BC relative to the nodule diameter.

No corrections were applied to the NORI Area nodule abundance data.

5.4 Sample preparation and analysis

Information about sample preparation and analysis by the Pioneer Investors is summarised below. Additional information is provided in the Technical Report on NORI Area D, Clarion Clipperton Zone Mineral Resource Estimate, April 2019 (AMC, 2019).

5.4.1 Ocean Minerals Company

While OMCO data are not included in the datasets used for resource estimation in the NORI Area, they are discussed here as the method described below is believed to be similar to the method practised by those contractors that did contribute to the NORI Area data.

Polymetallic nodule samples were laid out separately on a white surface marked with a scaled grid and photographed to permit determination of nodule size distribution. They were then sealed in labelled fibreglass-reinforced collection bags and stored in the ship's hold for the balance of the exploration cruise. The samples were transported from the ship to the Lockheed Ocean Laboratory in San Diego.

Prior to weighing, the samples were removed from the sample bags and placed in a single layer in labelled open trays on tables in the air-conditioned laboratory for at least 12 hours to ensure a uniform degree of air drying. The samples were then weighed using a high-capacity laboratory scale and divided into two subsamples of approximately equal weight.

The second subsample was crushed using a jaw crusher to produce a product with a maximum size of less than about 1 mm. The crushed sample was then mixed and passed through a laboratory sample splitter to produce a 5 to 10 g subsample. The subsample was further ground to a fine powder using a laboratory ball mill prior to assaying.

The powdered subsample was placed in an oven at 110 °C for at least six hours to remove adsorbed water. It was then immediately transferred to a sealed desiccator to cool to ambient temperature.

A three-acid digest was used to dissolve the samples before analysis by AAS using a Hewlett-Packard instrument. Standard analysis included determination of manganese, iron, cobalt, nickel, copper, zinc, silica, calcium, and magnesium.

Analytical accuracy was confirmed by periodic introduction of standards made from crushed, mixed, and powdered bulk nodule samples that had also been sent to three independent commercial laboratories for determination of these metal contents. Additional confirmation was achieved using standards formulated by the US Geological Survey (A-1 and P-1; Flanagan and Gottfried 1980). These standards were subjected to the entire preparation procedure to ensure that no significant contamination was occurring and that no systematic analytical errors were being included in the process.

5.4.2 Yuzhmorgeologiya

The Yuzhmorgeologiya method was very similar to the method practiced by OMCO. The Yuzhmorgeologiya data cover NORI Area A and B.

The measurement of abundance of nodules at the sample site was carried out using an "enclosed" Ocean-0.25 FFG sampler with a 0.25 m² gripped surface and a depth of sampling of approximately 30 cm. The FFG sampler was combined with GFU-6-8 photography unit. This device took ocean bottom photos at the sampling point.

The procedure for sub-sampling was as follows:

1. Extraction of all nodules from the grab sampler.

2. Crushing of all nodules to a maximum particle size of up to 10 mm.

3. Drying (approximately 24 h) of all samples at 105°C until constant weight was achieved.

4. Crushing of all samples to 1 to 2 mm particle size and splitting of 400 to 500 g using a splitting device.

5. Pulverising of the split sample (not less than 400 g) was carried out in the vibrating grinder up to 100 mesh particle size (0.074 mm).

6. Formation of analytical sample (200 g) and its duplicate (200 g).

Chemical analyses were carried out on subsamples with an approximate weight of 0.5 g, selected from the analytical sample. Determination of nickel, copper, cobalt, and iron content was carried out by AAS and the content of manganese by a method of photometric (electrometric) titration.

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5.4.3 IOM

Information regarding IOM procedures is not currently available. However, the procedures used by IOM for sample collection and assaying are likely to be similar to the sampling and assaying procedures used by the other Pioneer Investors. The results of the IOM sampling are consistent with the results obtained by other Pioneer Investors within the NORI area and within the broader CCZ.

5.4.4 Preussag

Preussag completed polymetallic nodule exploration programs in the CCZ aboard the Valdivia in the 1970s. Nodule sampling was mainly carried out using free-fall grab samplers and box corers.

After the sampling devices arrived on the working deck of the research vessel, the nodules were removed from the sediment surface (box corer) or taken from the FFG samplers and transported in plastic boxes into the geological laboratory. There, several sample treatments were carried out:

● Nodules were cleaned (if necessary) from adhering mud using filtered seawater.

● Nodules were carefully dried with paper towels.

● Nodules were photographed on a surface with a scaled grid.

● Individual nodules were measured.

● Individual nodules and the total nodules from one device were weighed with a special balance (determination of wet weight).

A detailed description including the identification of the types of nodules was conducted.

One part of the nodules was used for further investigations in the ship's laboratory. The other nodules were stored in plastic bags, which were weighed once more. Then the plastic bags were filled with seawater in order to keep the nodules in a water-saturated state. These samples were required for further studies and investigations in the home laboratories (e.g., physical properties, detailed chemical analyses, X-ray phase analysis, metallurgical tests, polished sections).

The first part of the nodules taken from one sampling device were crushed to a particle size smaller than 10 mm and then dried in an oven at ±105 °C until constant weight was achieved. Further steps of grinding in the ship's laboratory took place with a final procedure of pulverising with a ball mill producing a fine powder with a particle size of less than 100 mesh
(less than 74 µm). Then the sample was passed through a laboratory sample splitter to produce several representative subsamples.

One subsample was taken as representative archive sample. Two other subsamples were dried again for at least five hours to remove the rest of adsorbed water prior to analysis.

Two methods were used to determine the key metals nickel, copper, cobalt, manganese, iron, and zinc. The first one was the AAS analysis to measure nickel, copper, zinc, and cobalt, and the second was the energy-dispersive XRF method with ratio-isotope excitation to determine manganese and iron. A sample digestion was necessary to carry out the AAS determination. For this, the dried powder was treated with a mixture of acids in a high-pressure Teflon vessel and heated for several hours to complete the digestion. The digested fluid was diluted with distilled water and analysed with the spectrometer, and the residue was weighed. The XRF analysis was performed with the powder (pressed tablets). Data quality and analytical reliability were confirmed by intermediate introduction and measurement of reference nodule samples. These reference standards consisted of powdered material which was subjected to the same procedure as described above.

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5.5 QA/QC procedures

Free-fall grab samplers are considered to underestimate the actual abundance but provide adequate samples for determining the grade of the nodules (Hennigar et al. 1986).

QA/QC was known to be undertaken at the time of sampling as part of the scientific process used by each Pioneer Investor. However, no systematic quality assurance and quality control (QA/QC) information is available for these programs, as this information was not provided by the ISA. Nonetheless, the acceptance of the data by the ISA suggests the ISA was satisfied with the quality of the data.

The quality of the data was assessed (Golder 2015) using comparative measures between the different datasets (Section 9.1.2). The correlation of data from different sources, including Pioneer Investors and government scientific institutes, provides a satisfactory level of quality assurance to support Mineral Resource estimates at an Inferred level of confidence.

5.6 Pioneer Investor sample data supplied to NORI

Upon making an application, the Pioneer Investors were required to submit sufficient data and information to enable designation of a reserved area based on the estimated commercial value. These sample data provide the basis of a database held by the ISA and were used initially to define the areas of the NORI application.

The sample sites were sampled by a combination of grab samplers and box corers of different sizes and designs, with the full details of the sampling tools at a given site mostly being unavailable. As a result, sample quality, spacing, and assay reliability vary from contractor to contractor, sample to sample, and block to block. Average sample spacing (based on the data supplied by the ISA) varies across the CCZ, ranging from less than 1 km and averaging approximately 10 km within the NORI Area.

Statistics for the samples that contain both abundance and grade data inside the NORI Area are tabulated in Table 5.1 and illustrated as boxplots in Figure 5.5. The box plots show the range of grades; the box represents the range of grades in the middle 50% of the samples, centred on the median (middle value) and box width reflects number of samples. The dashed lines represent the range of the lowest 25% and highest 25% of the data.

Cobalt in NORI Area D is significantly lower than the other NORI areas, however, abundance is consistently higher in NORI Area D than the other NORI areas and the CCZ Reserved Blocks in general Figure 5.5.

The range of the assays (as summarized by the coefficient of variation) is remarkably low compared to most terrestrial Mineral Resources. Abundance values vary more widely, making abundance estimates the key variable of uncertainty in Mineral Resource estimation.

The abundance of buried nodules is poorly known at this time. Thus, buried nodules are not included in exploration information or Mineral Resource estimates.

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Table 5.1 Summary of historical FFG samples in the NORI Area

NORI Area	Grade	Number	Missing	Min	Max	Mean	Median	Var	cv
A	Abundance (wet kg/m2)	50	0	0	28.7	9.3	8.2	57.366	0.81
	Ni (%)	40	10	1.04	1.75	1.37	1.39	0.016	0.09
	Cu (%)	40	10	0.66	1.29	1.07	1.1	0.017	0.12
	Mn (%)	40	10	19.77	32.6	28.06	28.98	8.577	0.1
	Co (%)	40	10	0.16	0.28	0.22	0.22	0.001	0.11
B	Abundance (wet kg/m2)	31	0	0	25.55	11.24	12	50.536	0.63
	Ni (%)	26	5	1.01	1.61	1.42	1.44	0.021	0.1
	Cu (%)	26	5	0.72	1.26	1.12	1.16	0.016	0.11
	Mn (%)	26	5	20.8	32.2	28.88	29.8	9.939	0.11
	Co (%)	26	5	0.21	0.31	0.25	0.25	0.001	0.09
C	Abundance (wet kg/m2)	152	0	0	44.1	10.55	10.33	52.902	0.69
	Ni (%)	135	17	0.68	1.53	1.27	1.31	0.025	0.12
	Cu (%)	135	17	0.4	1.46	1.05	1.11	0.048	0.21
	Mn (%)	135	17	12.84	33.54	28.63	29.42	11.648	0.12
	Co (%)	135	17	0.12	0.33	0.21	0.21	0.001	0.17
D	Abundance (wet kg/m2)	159	0	0.2	52.2	14.12	13.9	72.243	0.6
	Ni (%)	159	0	1.09	1.41	1.28	1.29	0.004	0.05
	Cu (%)	159	0	0.88	1.5	1.14	1.13	0.012	0.1
	Mn (%)	159	0	23.8	33.9	30.58	31	3.12	0.06
	Co (%)	159	0	0.05	0.2	0.12	0.11	0.001	0.26

Notes: Var = variance; CV = coefficient of variation.

Figure 5.5 Box plots of sample grades within the NORI Area compared with all other data from the Reserved Blocks

Note: Box size represents 1st and 3rd quartiles centred on the median and box width reflects number of samples.

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6 Geological setting and mineralisation

6.1 Global distribution of nodules

Seafloor polymetallic nodules occur in all oceans, and the CCZ hosts a relatively high abundance of nodules. Other relatively dense zones are found in the Peru Basin in the southeast Pacific, the centre of the north Indian Ocean, and the Cook Islands Figure 6.1.

Figure 6.1 Schematic diagram of average abundance of polymetallic nodules in four major locations

Source: GRID-Arendal 2014b.

6.2 Tectonic setting and topographic features

The CCZ is defined by two major west-south-west and east-north-east trending fracture zones running through the seafloor; the Clipperton Fracture Zone to the south and the Clarion Fracture Zone to the north. These fractures zones can be seen clearly on the bathymetric map
Figure 6.2. The eastern and western limits can be defined by the Mathematicians Seamounts or Ridge in the east, and the Republic of Kiribati or Line Islands in the west.

The CCZ seafloor forms part of the Abyssal Plains, which are the largest physiographic province on Earth, covering some 70% of the area of ocean basins and 30% of the Earth's surface
(ISA 2004). The Abyssal Plains are traversed by ridges, believed to have formed from the process of seafloor spreading. Orientation is north-north-west to south-south-east (locally ±20˚), with amplitude of 50–300 m (maximum 1,000 m; Hoffert 2008) and wavelength of 1 to 10 km. The bathymetric map of NORI Area D Figure 7.1, shows these ridges clearly. The Abyssal Plains are punctuated by extinct volcanoes rising 500 to 2,000 m above the seafloor.

Depth increases from 3,800 to 4,200 m at 115˚ west to 4,800 to 5,200 m at 130˚ west, and 5,400 to 5,600 m at 145˚ west.

The sediment types exhibit trends perpendicular to the fracture zones, from predominant carbonate sediments in the south-eastern extreme to predominant siliceous red clay in the west north-west.

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Figure 6.2 Bathymetric map of the Clarion-Clipperton Fracture Zone

 

Source: ISA 2010.

6.2.1 Sedimentation and nodule formation

Seafloor polymetallic nodules are composed of nuclei and concentric layers of iron and manganese hydroxides and formed by precipitation of metals from seawater. The metal accumulation rates are slow, and it generally takes millions of years to form a nodule (ISA 2004).

Nodules are abundant in abyssal areas with oxygenated bottom waters, low sedimentation rates (less than 10 cm per thousand years), and where sources of abundant nuclei occur (Hein et al. 2013). Nodules grow on 0.1 to 1 cm nuclei (e.g., pieces of pumice and older broken nodules) and generally range from about 1 to 12 cm in their longest dimension, with the low to middle-range typically the most common (1 to 5 cm).

The specific conditions of the CCZ (water depth, latitude, and seafloor sediment type) are considered to be the key controls for its formation, along with the following factors:

● Supply of metals to the growing surface.

● Presence of a nucleus.

● The corrosive / erosive forces caused by benthic currents.

● Occurrence of semi-liquid surface layer on the seafloor (sediment water interface).

● Bioturbation.

The highest values of metals in nodules are thought to be best developed on the seabed in the equatorial regions away from land sources of sediments. In these regions surface waters have high primary productivity. Tiny plants and animals concentrate the metals from seawater and when they die, they sink to the seafloor, dissolve, and release the metals into the pore water of seafloor sediments. It is believed that the upper portion of the nodules accumulate metals that are precipitated from seawater, while the lower portion of the nodules, partially buried in sediment, accumulate metals from pore-water in the underlying sediments.

Sediments from the CCZ consist mostly of clays and siliceous biological casts. Sands and larger sediments are not generally found so far from land, and the commonly formed carbonate biological casts dissolve on the seabed in these deep-water regions faster than they accumulate.

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6.3 Polymetallic mineralisation

6.3.1 Nodule grades

Nodule chemistry varies only slightly with in the CCZ. Figure 6.3 shows that there is a general increase in combined cobalt, nickel and copper grades towards the south-east (Kazmin in ISA 2003; ISA 2010; Morgan 2009). The reason for this is not clear but may relate to proximity to metal sources from the East Pacific Rise or the American continents.

Average (mean) grades for elements of interest other than nickel, manganese, copper, and cobalt from 248 samples of nodules taken within the NORI area during the NORI 2018 and 2019 off-shore exploration campaigns are summarised as:

● Other base or alloy metals such as zinc (0.21% ZnO), titanium (0.43% TiO₂), and lead (0.03% PbO).

● Rare earth and other transition metals such as strontium (0.071% Sr), yttrium
(0.009% Y), zirconium (0.033% Zr), lanthanum (0.011% La), cerium (0.022% Ce), and neodymium (0.013% Nd).

● Other elements such as iron (6.6% Fe), magnesium (3.2% MgO), aluminium (3.95% Al₂O₃), sulphur (0.28% SO₃), calcium (2.4% CaO), potassium (1.1% K₂O), sodium
(2.9% Na₂O), phosphorus (0.36% P₂O₅), vanadium (0.049% V), and barium (0.43% Ba).

Analysis of 20 samples collected by NORI in 2012 showed that arsenic content is low (0.008% As).

6.3.2 Nodule abundance

Polymetallic nodules lie on the seafloor sediment, often partly buried. Some nodules are completely buried, although the frequencies of such subsurface occurrences are very poorly defined. Kotlinski and Stoyanova (2006) document up to five discrete layers of buried nodules, although all were within 45 cm of the surface despite using sediment cores of 250 to 380 cm depth (i.e., all of these nodules are near surface). Other images of box corers also suggest that all or most of the nodules are at the surface. Consequently, drilling is not required for definition of the Mineral Resources.

During the 2018 NORI campaign, 91% of nodules sampled were situated at surface. These include nodules on the surface and nodules with their top surfaces in the upper 1 cm of sediment. A few nodules were found at depth; most of these were usually clustered around the edges of the box core and are considered to have been pushed below surface by the box coring process. Significant nodule abundance below surface was only recorded in one out of 45 samples.

The nodules vary in abundance, in some cases touching one another and covering more than 70% of the seafloor. They can occur at any depth, but the highest concentrations have been found on abyssal plains between 4,000 and 6,000 mbsl.

Figure 6.4 shows estimated nodule abundance data from the ISA Geological model project. Data analysis in Section 9 shows that nodule abundance variability is significantly higher than metal grades, suggesting that abundance estimation will be the key variable in Mineral Resource estimation.

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Figure 6.3 Results from ISA Geological Model Project in the CCZ - combined cobalt, nickel, and copper grades

Note: The German data for NORI Area D were not included in the ISA Geological Model.

Source: provided by the ISA directly to NORI in 2008.

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Figure 6.4 Results from the ISA Geological model project in the CCZ estimated nodule abundance

Note: The German data for NORI Area D were not included in the ISA Geological Model.

Source: ISA 2008.

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6.4 Seafloor polymetallic nodule facies

Three broad classes of nodule distribution on the seafloor were identified, based on camera imagery. They are summarised in Figure 6.5.

Figure 6.5 Polymetallic nodule facies in NORI Area D

Nodule camera facies type	Description	Example
Type 1 densely packed / interconnected	>50% nodules ~1–10 cm, uncertain. Low to moderate confidence in camera imagery to resolve individual nodules
Type 2 mostly individual / locally interconnected	~20–40% Nodules ~5–20 cm Moderate to high confidence in camera imagery to resolve individual nodules
Type 3 mostly Individual / sparse	10–20% nodules ~5–20 cm Moderate to high confidence in camera imagery to resolve individual nodules
Other	Volcanic outcrop - associated with NW-SE ridges

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Type 1 nodule facies (distribution pattern) is typically characterised by >50% nodules (by area of coverage). The majority of these nodules are typically medium-sized and are closely packed, with many nodules in contact with their neighbours.

Types 2 and 3 are characterised by lower nodule abundance, larger nodules, and the nodules are typically separated (i.e., there are noticeable sediment gaps between individual nodules).

Facies boundaries are often well-defined (i.e., not gradational) and variable over short distances (<100 m), as illustrated in Figure 6.6.

Figure 6.6 Camera imagery showing change from Type 3 nodules (left), to Type 2 (right)

Nodule distributions can be mapped by measuring the backscatter (return signal) from multi-beam echo sounding (MBES) from vessels on the ocean surface. Type 1 nodule facies correlates with moderate-amplitude backscatter areas and is the most common facies. Type 2 and 3 nodule facies typically correlate with higher-amplitude backscatter areas. These correlations are shown in Figure 6.7 which shows nodule classification according to photographic traversing by autonomous underwater vehicle (AUV) (ribbon-track coloured: Type1 (green), Type 2 (yellow), Type 3 (red)) against a background of backscatter data. The backscatter responses are coloured by amplitude; high-amplitude areas associated with Type 2 and 3 nodule facies shown in warmer colours, with Type 1 represented by colder colours.

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Figure 6.7 Map of nodule facies classification in NORI Area D

Note: Box core locations are labelled with box core number and coloured by abundance. Ribbon-track coloured by facies Type: Type1 (green), Type 2 (yellow), Type 3 (red)) against a background of backscatter data. The backscatter responses are coloured by amplitude; high-amplitude areas associated with Type 2 and 3 nodule facies shown in warmer colours, with Type 1 represented by colder colours.

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6.5 Topographic / bathymetric facies

Based on analysis of bathymetric data from the 2012 and 2018 campaigns, together with the significant sampling data acquired during 2019, it was possible to refine the geological domain interpretations which characterise nodule prospectivity. Eight domains were interpreted for NORI Area D:

1. Abyssal plains – These constitute the majority of NORI Area D and are characterised by gentle slopes of 0˚ to 6˚, and nodules lying on soft sediment. Nodules were observed to be ubiquitous in this domain wherever it was surveyed and sampled. It is considered a highly- prospective domain for nodules.

The Abyssal Plains can be further divided into three sub-domains based on backscatter acoustic response and ground-truthing (box core samples and land-out video footage):

● Areas considered indicative of Type 2 and 3 nodule facies, as determined from backscatter correlation (17% area coverage).

● Sediment drift domains - characterised by a soft sediment ooze with low acoustic backscatter, and extremely low to no nodule abundance (1% area coverage).

● Volcanic cones (see below) (4% area coverage).

● The remaining area (78%) is likely indicative of Type 1 nodule facies and considered highly prospective.

2. Abyssal Hills – These are topographically higher features, oriented NNW-SSE, and are parallel to one another. Slopes of the hills are mostly gentle at the western side, while they are very steep at the eastern side, likely representing horsts bounded by inward-dipping normal faults and outward-dipping volcanic growth faults respectively.

3. Abyssal Hills (hard) – Abyssal Hills where the hill crests are associated with the occurrence of hardgrounds, caused by proximity of underlying (harder) Neogene footwall succession at seafloor, typically covered by a very thin veneer of unconsolidated sediment.

4. Slopes ³ 6° – These are associated with the flanks of Abyssal Hills, where the slope is 6° or greater, and are likely associated with hardgrounds and/or volcanic debris and volcanic outcrop development typically associated with NNW trending faults. These steep slopes are considered to have low nodule prospectivity but have not been fully tested with sampling or photography.

5. Slopes ³ 6° (hard) – These are associated with the flanks of Abyssal Hills where the slope is 6˚ or greater, and are associated with hardground development, typified by outcropping (harder) Neogene footwall succession. These steep slopes are considered to have low nodule prospectivity, based on box core sampling, AUV SBP data and photography.

6. Volcanic Outcrop – This is associated with volcanic growth-faults along the Abyssal Hill flanks, which trend NNW-SSE, and are elongated, narrow bodies mapped through integration of AUV SBP and camera data with EM 122 MBES data backscatter data.

7. Volcanic Cones – These are typically grouped in chains and follow the ‘Hawaiian Trend’. Some of these features could be classed as Knolls, as they exhibit a 500–1000 m rise from the seafloor. These are isolated features and were not sampled during the 2018 or 2019 NORI Campaigns. However, because of their volcanic origin, steep slopes (>6˚) and dominant high-intensity backscatter (typically associated with volcanic outcrop), they are also considered to have low nodule prospectivity.

8. Volcanic High – This is a macro-scale topographic feature situated in the SE corner of NORI Area D. It is interpreted as a relic volcanic intersection high, which also includes a relic transform parallel trough. Both are volcanic related features associated with the Clipperton transform zone, situated to the south of NORI Area D.

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These domains are described further in Section 11.2.

6.6 Nodule morphology and formation

A variety of nodule classification systems have been used in previous studies of the CCZ
(for example, Haynes et al. 1985), but the three-class system promoted by the ISA (ISA 2010) prevails today Figure 6.8. Nodules are classified according to their texture, as:

● S-type (smooth type)

● R-type (rough type)

● S-R-type (smooth-rough mixed type)

It is postulated that the different textures are related to the position of the growing nodule, relative to the seafloor, as shown in Figure 6.8.

Figure 6.8 Polymetallic nodule types (ISA 2010)

Source: ISA 2010.

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7 Exploration

NORI completed off-shore exploration campaigns in July–August 2012, in 2013, May 2018, August to December 2019.

7.1 NORI 2012 campaign

The RV Mt. Mitchell, which sailed from the port of Seattle, was used for the NORI 2012 campaign. NORI conducted bathymetric mapping of the seafloor within NORI Area C and D, as well as bulk nodule sampling for metallurgical test work. Due to the nature of the bulk sampling, these samples are not suitable for use in Mineral Resource estimation.

Using a hull-mounted Kongsberg Simrad EM120 12 kHz, full-ocean depth multibeam system, approximately 25,720 km² was surveyed in NORI Area C and approximately 25,439 km² in NORI Area D. Due to swath width and vessel orientation relative to course-made-good, some data were recorded beyond the bounds of those areas. Approximately 69.1% of Area C (25,720 km²) was surveyed. Area D was surveyed in its entirety (25,439 km²). An image of the bathymetric data for NORI Area D, in plan view, is shown in Figure 7.1.

Figure 7.1 NORI Area D bathymetry data

Note: The canted box is a result of projecting a large geographic area bounds (given in latitude / longitude format) into UTM 10 N, WGS 84.

MBES data was processed during the 2012 NORI Campaign and used to locate areas of high nodule density for dredge sampling, based on the bathymetric surfaces and the backscatter intensities. Overall, the geophysical interpretation of the multibeam data was remarkably successful.

Bulk samples were collected by dredging from NORI Area C (five dredge deployments) and NORI Area D (28 dredge deployments). Approximately 280 kilograms (kg) of nodules were recovered from Area C and approximately 4,500 kg from NORI Area D. Video footage was also obtained during dredge deployments and, together with the samples recovered, provided physical verification of nodules within NORI Area C and D Figure 7.2.

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Twenty (20) nodule samples (two (2) from Area C and 18 from Area D) recovered during the NORI 2012 campaign were assayed. Each sample for assaying, was a subsample of an FFG sample and weighed approximately 1 kg. Results of assaying indicated a mean grade of 1.20% nickel, 1.03% copper, 27.9% manganese, and 0.13% cobalt. These mean values are consistent with the mean grades derived from the historical grab samples within NORI Area C and D see Table 7.1. The cobalt value of 0.13% confirms the cobalt grades in the German data in Area D. A large suite of additional elements was also assayed. A drying test undertaken on a nodule sample collected during the NORI 2012 campaign indicated moisture loss of 24% at 120 °C.

Figure 7.2 Subset of nodule samples recovered during NORI’s 2012 exploration campaign

7.2 NORI 2013 campaign

In 2013, NORI carried out a second exploration campaign within NORI Area A and B. This campaign was also undertaken using RV Mt. Mitchell and focused mapping bathymetry in NORI Area A and B, identifying nodule fields based on acoustic data (including interpretation of backscatter data), and recovering bulk polymetallic nodule samples.

A hull-mounted Kongsberg Simrad EM120 12 kHz, full-ocean depth multibeam system was used to survey approximately 8,924 km² in NORI Area A and approximately 2,911 km² in NORI Area B. The Applanix Pos MV 320 V4 system was used to measure vessel position and attitude, and a dual Trimble Zephyr unit was used as the Global Positioning System (GPS) system.

Dredging for bulk nodule sampling was carried out using an epibenthic sled Figure 7.3 that was designed specifically by KC-Denmark Research Equipment for seafloor polymetallic nodules sampling. The dredge in Area A was deployed at 12° 10.2'N, 134° 11.1'W. The dredge in NORI Area B was deployed at 13° 43.5'N, 133° 35.9'W. Approximately 190 kg of nodules were recovered from NORI Area A Figure 7.4 and approximately 85 kg of nodules were recovered from NORI Area B.

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Figure 7.3 Photos showing the operation of the epibenthic sled collecting nodules during the NORI 2013 campaign

After each dredge, the nodules were retrieved from the epibenthic sled on the deck of the ship. They were collected in bags and numbered. Each dredge sample was sub-sampled for laboratory analysis using a simple random scoop sampling to obtain two 2 kg samples. During the scooping the size distribution was also considered.

Figure 7.4 Photos of nodules collected from NORI Area A during the NORI 2013 campaign

The four sub-samples from NORI Area A and B were sent to ALS Laboratories in Brisbane for preparation and analysis. The samples were dried at 120 C for 12 hours then assayed using a four-acid digest specifically designed for high-manganese samples, followed by AAS (method Mn-AA62) and four-acid digest followed by ICP-MS for concentrates (ME-MS61c). The Mn-AA62 method has a claimed precision of ±5%. The results for cobalt, copper, iron, manganese, molybdenum, and nickel are included in Table 7.2, and the calculation of weight loss after drying at 120 C for 12 hours (average 28.7%) is included in Table 7.2.

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Table 7.1 Assay results for NORI Area A and B nodule samples

ALS assay method code sample	ME-MS61c Co (ppm)	ME-MS61c Cu (ppm)	ME-MS61c Fe (%)	Mn-AA62 Mn (%)	ME-MS61c Mo (ppm)	ME-MS61c Ni (ppm)
NA1	2,250	10,800	5.27	29.0	589	13,600
NA2	2,240	11' 150	5.06	28.9	545	13,400
NB1	2,490	11,550	5.62	29.2	601	13,800
NB2	2,490	11' 100	5.60	28.2	590	13,750

ALS = ALS Laboratory Group; Co = cobalt; Cu = copper; Fe = iron; Mn = manganese; Mo = molybdenum; Ni = nickel; ppm = parts per million; % = percent.

Table 7.2 Weight loss of samples after drying

Sample	Wet weight (g)	Dry weight (g)	Loss (%)
NA1	536.8	374.3	30.3
NA2	574.3	396.0	31.0
NB1	616.1	452.5	26.6
NB2	588.3	431.5	26.7

7.3 NORI 2018 campaign

7.3.1 Objectives and approach

During April to June 2018, NORI conducted a successful survey and seabed sampling program in NORI Area D using the OSV Maersk Launcher, mobilising out of San Diego (Campaign 3). The work completed is summarised below. Additional information is provided in the Technical Report on NORI Area D, Clarion Clipperton Zone Mineral Resource Estimate, April 2019 (AMC, 2019).

The key objectives of this program were to conduct detailed bathymetric, sonar imaging – MBES backscatter, Side Scan Sonar (SSS), and photogrammetry surveys to help facilitate:

● Identification and selection of enough suitable ground for trials of a collector (the Collector Test).

● Provision of sufficient geological and geotechnical detail to ensure future sampling and Collector Test activities recovery efficiencies can be measured, and that sampling and Collector Test programs are appropriately designed.

● Provision of appropriate seafloor imagery to assist with selection of suitable environmental monitoring sites – particularly for physical oceanographic mooring studies.

● Identification of smaller environmental baseline reference zones. An important consideration is that the habitats of these reference sites are similar in character to the site that will be selected for the Collector Test.

● Demonstration of the methodology to upgrade resource confidence from Inferred to Indicated and Measured categories.

Fugro provided turnkey survey and seabed sampling support for the campaign, including:

● AUV operational support

● Hydrographic survey support.

● Data processing.

● Geoscience support for AUV survey (data compilation and preliminary data analysis).

● Geoscience support for box coring operations (core logging, nodule processing, geotechnical testing).

Biological sampling support was provided by ERIAS Group environmental consultants.

Data QA/QC, survey design and data interpretation were undertaken by Margin – Marine Geoscience Innovation, as a Client Representative on behalf of NORI.

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MBES backscatter data from the 2012 MV Mt Mitchell vessel-based MBES survey was reprocessed using the time-series data. This greatly improved the image quality Figure 7.5 compared to the original beam-averaged data and enabled geological interpretations of the data to be refined. These interpretations provided the foundation for the selection of candidate Collector Test-site targets for follow-up detailed survey by AUV.

Figure 7.5 Reprocessed EM122 backscatter data from NORI Area D 2012 survey

Note: NB – areas designated for AUV detailed survey are shown outlined in red, constituting targets deemed to have high-nodule potential and characterised by dominantly flat-lying topography.

7.3.2 AUV survey

AUV survey methods were identified as the best technological-fit for follow-up investigation at a site-survey scale. An AUV has the capability to provide co-registered multi-sensor datasets at the appropriate resolutions necessary to confidently select the most suitable site for a Collector Trial and provide a framework on which to build associated ongoing engineering and environmental studies.

Fugro’s ESVII 4500 m-rated Kongsberg Hugin AUV was used to conduct the detailed survey work, utilising an MBES, Side Scan Sonar (SSS), Sub-Bottom Profiler (SBP) and camera payload Figure 7.6. The AUV typically navigates using a combination of Inertial Navigation System (INS) housed within the AUV and an acoustic navigation system (Kongsberg HiPAP 501 Ultra Short Base Line (USBL) system) communicating between the AUV and the support vessel. The USBL acoustically tethers the AUV to the support vessel, which follows the AUV during its survey and provides the AUV with navigation corrections to counteract drift in the INS system over time. This mode of operation was used for all reconnaissance mapping with the AUV. For survey of the Collector Test Site, the AUV was positioned within an array of transponders positioned on the seafloor – termed a UTP (Underwater Transponder Protocol) array. This enabled the AUV to be left unaided by the support vessel to compete its survey, whilst the support vessel conducted other work within the exploration license area.

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Figure 7.6 Deployment ESVII Kongsberg Hugin AUV from the stern of the Maersk Launcher

Source: J. Croucher.

There were four main AUV survey focus areas:

● Reconnaissance lines were collected at a 35 m AUV altitude in order to assess geological and near-surface conditions prior to acquiring low-altitude camera data. These data were also used to select the Collector Test Site location and to assess the designated Preservation Reference Zones within the NORI Area D tenement.

● Camera lines were run at a 6 m AUV altitude in order to map the distribution and abundance of the nodules. These data were also used to select the Collector Test Site location.

● Within the Collector Test Site, data were collected at a 22 m altitude and were used to evaluate geologic and near-surface conditions for future Collector Test activities.

● Within the mooring sites, data were collected at a 90 m altitude and were used to evaluate geologic and near-surface conditions for future mooring locations.

Initial reconnaissance AUV traverses were conducted over the candidate Collector Test Site Figure 7.7 using MBES, SSS and SBP payloads to provide confirmation of topographic and geological features observed in the 2012 vessel-based MBES dataset, but at a higher level of detail and confidence. There was an excellent correlation between the AUV bathymetric data and that collected by hull-based multibeam methods in 2012, providing confidence in both sets of results. These traverses were then followed-up with low-altitude surveys using the AUV’s camera payload to provide visual confirmation of nodule distribution.

The reconnaissance traverses were also designed in such as manner as to provide information on nodule continuity (through acquisition of sonar and camera data) between proposed sampling sites on a 7 km rectilinear sampling grid. A key component to the success of the campaign was the ability to conduct box coring simultaneously with the detailed survey by AUV of the selected Collector Test Site, through use of the UTP seafloor acoustic positioning array.

A total of 2286 line km of data was acquired with the AUV, covering an area of approximately 375 km² of seafloor. A summary of data types and associated data resolutions collected by the AUV during the 2018 NORI campaign is presented in Table 7.3.

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Figure 7.7 AUV geosurvey data acquired during the 2018 NORI campaign

 

All data acquired by the AUV was processed onboard the vessel to a level where preliminary interpretation could be made on the data by the Fugro Geoscience team and NORI Client Representative onboard. This was key in enabling on-site decision making for follow-up survey optimisation, particularly with regards to selecting the most suitable Collector Test Site.

Table 7.3 Summary of data types collected by the AUV during the 2018 NORI campaign

AUV altitude			Survey area
			90 m		35 m			22 m	6 m
Sensor	Data item	Details	MSS (NE)	MSS (NW)	DSAO	Recon PRZ (NE)	Recon PRZ (NW)	Test mine site	CHP	Camera PRZ (NW)
MBES	Bathy	Bin size	3 m	3 m	1 m	50 cm	50 cm	27 cm	15 cm	15 cm
	Backscatter	Bin size	3 m	3 m	1 m	50 cm	50 cm	15 cm	15 cm	15 cm
Side scan sonar	SSL	Bin size	50 cm	50 cm	50 cm	25 cm	25 cm	27 cm	N/A	N/A
	SSH	Bin size	N/A	N/A	50 cm	25 cm	25 cm	15 cm	N/A	N/A
	SSX	Bin size	N/A	N/A	N/A	N/A	N/A	N/A	7 cm	7 cm
Camera	Orthos	Bin size	N/A	N/A	N/A	N/A	N/A	N/A	3 mm	3 mm
Sub bottom profiler	Sub bottom	Frequency	N/A	N/A	1-10 khz	1-10 khz	1-10 khz	1-10 khz	3.5-20.5 khz	3.5-20.5 khz

Note: MBES operated at 200 or 400 kHz, depending on survey resolution requirements. SSS was operated at 240 kHz, 540 kHz, or 1,600 kHz.

7.3.3 Box coring

Box coring was undertaken using a 0.75 m² box corer built by K.C. Denmark A/S, deployed from a H-frame situated amidships of the Maersk Launcher Figure 7.8.

A total of 45 box cores were acquired during the campaign. All box cores were acquired within the detailed survey area on a 7 km square grid Figure 7.9. The sampling grid was designed prior to the mobilisation of the 2018 NORI campaign; therefore, the samples were selected without reference to any of the detailed geophysical data to avoid any bias.

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Each box core site was located by positioning the vessel over the proposed box core location and acoustically monitoring the box core’s position during descent using the vessel’s USBL system communicating with a USBL transponder attached to the box core frame. Once the box core was lowered to approximately 30 m above the seafloor, the surveyor monitored when it was within a 35 m target circle displayed over the proposed target location on the USBL navigation workstation monitor. Once this condition was met, the instruction was given to lower the box core to bottom. Once on bottom a series of position fixes were acquired to solve the on-bottom position. The mean distance between the proposed target location and actual box core position was 18.4 m ±7.9 m.

It is important to note that the hydrographic surveyors guiding the landing out of box cores were only supplied the expected seafloor datum at the proposed core site location. They did not have access to any geophysical data (backscatter, SSS or camera etc.) during these operations. This ensured that the sampling was conducted without any bias.

Once the position fix was taken, the cutting shovel was released to seal and secure the sample and the box corer was winched up off the seafloor. Once the sample was secured on deck, the samples follow three processing paths - environmental, geotechnical, and mineralogy.

A stand-alone GoPro camera system in a pressure-rated underwater housing and LED lights were attached to the legs of the box corer. This enabled post-recovery analysis of land-outs to be made and comparison of actual box core nodule recovery and in-situ nodule distribution on seafloor.

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Figure 7.8 KC Denmark 0.75 m² box corer

Note: Insert top right shows USBL beacon (circled top) and GoPro camera and lighting system (circled bottom).

Source: H. Hughes.

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Figure 7.9 Box core locations for 2018 NORI campaign shown by green circles with black centre-dot

Note: Historical sampling shown by stars. NORI 2018 campaign AUV geosurvey traverses shown in blue.

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Figure 7.10 shows a sequence of box core land-out footage from the GoPro camera. The top image shows the land out site visual as box core is deployed to seafloor. The middle image shows the box corer in situ on seafloor, before sample is taken (shovel open). The bottom image shows the box corer retracting from seafloor following successful closure of shovel. Loss of the laser-scale early in the campaign meant that nodule measurements could not be accurately measured from the GoPro images.

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Figure 7.10 Sequence of box core land-out footage from GoPro camera

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7.3.3.1 Sample processing

All samples were processed onboard post-retrieval of a box core sample to deck Figure 7.11. The vessel was equipped with a biology cold laboratory and geoscience laboratory.

Once the box core was landed out on deck and safely secured, the box was separated from the box corer frame. Three processing protocols for environmental, geotechnical, and resource began immediately after collection of each box core. The processing flow on deck was undertaken in the following sequence:

● The top of the sample with the supernatant water still in situ was photographed.

● The water was then carefully siphoned, bailed and / or suctioned off the sample and processed for biological analysis by the biological team onboard.

● The undisturbed surface of the retrieved material (nodule surface) was photographed.

● A 50 × 50 cm area of the retrieved material was cordoned for biological study.

● Three sub-samples were obtained from the undisturbed areas outside of the biology exclusion area for geotechnical purposes. All nodules except for possible buried nodules captured in the 2.638-inch push samples followed the Mineral Resource processing path.

● All surface nodules, when extracted from the box, proceeded to the biology wet laboratory where they were washed with cold seawater through a sieve.

● All buried nodules in the 50 × 50 cm area reserved for biologic sampling also proceeded to the biology wet laboratory. After washing, these nodules were returned to the geology wet laboratory.

● All buried nodules outside of the area of biologic investigation were washed of mud on deck and proceeded to the geology wet laboratory for description, measurement, photography, and sequestration in sample bags within gasket sealed pails.

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Figure 7.11 On deck sample processing

 

Notes:

1. Sample with supernatant water photographed.

2. Water siphoned off for biological processing.

3. Box core with water removed showing GoPro camera mount and 50 × 50 cm frame demarcating area for biological study.

4. Example of GoPro top shot showing nodule distribution.

5. Geotechnical samples being taken.

6. Each layer was excavated for nodules, which were placed in collection trays for further biological processing and mineralogical logging.

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7.3.4 NORI sampling

A classification system for nodules was developed by NORI prior to mobilisation to the worksite. This was largely based on guidelines set by the ISA (ISA, 2010) and work presented by TOML in their NI 43-101 resource report (AMC, 2016). Over 49,000 nodules were collected in the 45 box cores. Examples are shown in Figure 7.12. An image classification method was adopted to enable rapid measurement of each nodule for all remaining box core samples. However, descriptors such as shape, texture, and fragmentation were only recorded as the dominant types for each box core sub-sample layer, and not for each nodule.

An average nodule size of 2.95 cm (long axis measurement) was recorded for all samples recovered during the 2018 NORI Campaign. Table 7.4 presents a summary of the size distribution of the nodules within 0–1 cm of seafloor.Shape, texture and fragmentation descriptors were logged as dominant types for each box core layer. Logging was captured in a digital excel database on-board the vessel.

Table 7.4 Nodule size distribution for samples recovered during the 2018 NORI campaign

Long Axis
<2 cm	2-5 cm			>5 cm
s (small)	sm	m (medium)	ml	l (large)
24%	37%	23%	9%	7%

Figure 7.12 Examples of nodules recovered during the 2018 NORI campaign

Notes: Upper left – example of large nodules with rough texture. Top right – close-up of large nodule. These nodules were the least-dominant size class. More common were nodules in the 2–5 cm range, as shown by examples in lower left and right.

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Each box core was sampled by depth interval. Four intervals were used:

● 0–1 cm

● 1–5 cm

● 5–15 cm

● >15 cm

91% of nodules by weight occurred within the top layer and were exposed at seafloor and 99% occurred within the top 15 cm.

Nodules were processed through three stations - a weighing station, volume station and photography station, before division of the nodules into samples and storage in labelled, gasket-sealed 6-gallon pails. All data was collated in a series of Excel spreadsheets.

Samples for distribution to assay laboratories were prepared at sea so that the samples could be sent to their destinations upon demobilisation. The mass of nodules recovered in the box cores was generally much more than required for assaying, so it was necessary to divide the nodules in an unbiased manner, to produce samples for assay and for reference. This was done by the cone and quarter method Figure 7.13. The sampling protocol varied according to the weight of the nodules and is summarised in Table 7.5.

After samples were split, the samples were divided into series of sub-samples for marketing, primary assay, reference, duplicate primary sample and secondary primary sample. These were placed in sealed bags. Each sample was given a unique numbered zip tie placed inside the bag. Bar codes were generated from these unique numbers and adhered to the side of the bag, plus written on the side of the bag in permanent marker pen. Bar codes were linked to the Excel sampling database.

Certified blank samples were purchased from ALS laboratories in Reno, Nevada and inserted into the primary and duplicate sequence at a rate of 1 for every 10. One blank from the primary sequence and one blank in the duplicate sequence was spiked with approximately 50 g of nodules sourced from a marketing split. Certified nodule reference materials were purchased from the United States Geological Survey (USGS) and inserted randomly into the sample stream at the assay laboratory.

All samples were placed in gasket-sealed 6-gallon pails, sealed with tamper-proof tape.

Table 7.5 Sampling protocol

Total nodule weight	Procedure	Primary assay sample	Reference sample (retained)	Duplicate (primary lab)	Duplicate (secondary lab)	Marketing sample
0–4 kg	Crush oversize, cone & quarter. Combine opposite quarters to make two samples.	Yes	Yes	No	No	No
4–8 kg	Crush oversize, cone & quarter. Bag separately.	Yes	Yes	Yes	Yes	No
8–12 kg	Cone and quarter (uncrushed). Retain one quarter for marketing. Recombine the other three quarters and crush oversize, cone & quarter, bag the quarters separately.	Yes	Yes	Yes	Yes	Yes
> 12 kg	As for 8-12 kg, then combine opposite quarters, cone & quarter, bag the quarters separately.	Yes	Yes	Yes	Yes	Yes

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Figure 7.13 Coning and quartering process

 

7.3.5 Image classification and size measurement

Image classification software was used to provide an alternative automated approach to measurement of nodule dimensions, using photographs. Figure 7.14 presents a comparison between the automated image processing method and hand-held calliper measurements and shows a very good correlation between the two datasets. The average (mean) lengths of the long axes of the nodules using the classification approach and the measured approach were both 3.31 cm. The mean for short axis estimation using the classification approach was 2.68 cm, whilst the mean for the measured approach was 2.72 cm. The test demonstrated that the image classification method was a practical, accurate method for measuring two orthogonal axes of the nodules and it was used from box core BC006 onwards.

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Figure 7.14 Comparison of image classifier results vs caliper measurements

7.3.6 Biological sampling

The biological sampling was completed in 35 of the box cores Figure 7.15 and consisted of the following:

● 239 nodule biota specimens were sampled.

● 62 megafauna (>2 cm) specimens were sampled.

Samples were placed in cold storage for further analysis once ashore.

7.3.7 Geotechnical sampling

Three soil sub-samples for geotechnical study were obtained from the undisturbed areas of each box core. These consisted of one 2.125 inch inside diameter (ID) liner sampler, and two 2.638 inch ID clear polycarbonate tubes.

The focus of the geotechnical sampling was the clayey footwall sediment sequence. Basic off-shore index and strength laboratory tests, comprised of soil descriptions, wet density measurements, and undrained shear strength index tests (Torvane tests and intact and residual miniature vane tests) were conducted on the geotechnical subsamples obtained from the box cores.

Results from the field tests revealed that the shallow soil stratigraphy consists of a veneer (about 6 cm thick) of surficial, dark brown, very soft semi-liquid clay overlying very soft, dark brown clay to a maximum core penetration depth of about 0.5 m BSF. At about 0.15 m depth, typically, a colour change from dark brown to light brown occurs. Evidence of bioturbation of the light brown layer is indicated by mottling with dark brown and brown clays. It was noted on the high-resolution geophysical survey data that a reflector at about 15 cm to 20 cm depth was consistently present across all the box core sites sampled. This depth corresponds with the top of the light brown clay. Qualitative carbonate content testing typically indicates no reaction with dilute hydrochloric acid (10% concentration).

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Figure 7.15 NORI Area D box core locations, showing those with biological sampling (in green)

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7.3.8 Exploration results

The exploration results discussed herein include all data relevant to the Mineral Resource estimate. Additional data was acquired throughout the campaign for the purposes of selecting and mapping a Collector Test Site, environmental Preservation Reference Zones and oceanographic mooring site. These results are not discussed in any detail in this report.

7.3.8.1 Box core abundance

Figure 7.16 shows the spatial distribution of nodule abundance and Figure 7.17 shows the nodule type as per the ISA system outlined in Section 6.6. The box cores had an average nodule abundance of 17.8 kg/m², with the highest abundance reported at 30.9 kg/m² (BC005). The two lowest recorded abundances are BC019 (0.8 kg/m²) and BC031 (6.5 kg/m²).

Figure 7.16 Box core abundance (in kg/m²)

Note: Box cores labelled by box core number.

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Figure 7.17 Box core size-texture classification

Note: ISA size classification: small (<2 cm), medium (2 – 5 cm), or large (>5 cm) grain size, and texture is smooth (S), smooth-rough (SR), or rough (R). Box cores labelled by box core number.

7.3.8.2 Buried nodules

On average, 91% of nodules by weight were located at 0–1 cm (exposed at seafloor). This is an important consideration as it implies that a representative nodule abundance can be estimated using seafloor camera imagery to map and characterise nodule surficial distribution at seafloor.

Layers 3 and 4 logged in box cores often included a few nodules pushed down deeper from upper layers by the sides of the box core, typified by accumulation along the sidewalls of the box corer. BC043 was an exception and returned a significant weight of in-situ nodules throughout the core at all levels Figure 7.18. The buried nodules were very friable.

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Figure 7.18 Profile of nodule weight by depth in BC043

Note: Left – photo trays from layers 3 and 4, centre – nodule distribution with depth for BC43, compared to average nodule distribution with depth for all box cores (right).

7.3.8.3 AUV data

Reconnaissance AUV MBES traverses were conducted over the candidate Collector Test Sites to provide confirmation of topographic and geological features observed in the 2012 vessel-based MBES dataset, but at a higher level of detail and confidence. These traverses were then followed-up with low-altitude surveys using the AUV’s camera payload to provide visual confirmation of nodule distribution. The reconnaissance lines also enabled calibration and refinement of the NORI Area D regional geological interpretation. Based on these revised interpretations a geomorphological domain interpretation was developed and preliminary relationships between backscatter and nodule distribution facies observed in camera data were established.

Figure 7.19 shows examples of AUV MBES data (ribbon) from reconnaissance traverses, shown against a background of EM122 vessel-based MBES background. The AUV data provides much finer-scale resolution than vessel-based bathymetry and shows good spatial correlation with macro-features. Figure 7.20 illustrates the fine geological detail provided by the AUV MBES. This type of detailed data will be useful for designing the operating path of the seafloor nodule collectors.

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Figure 7.19 Comparison of AUV MBES data (ribbon) against EM122 vessel-based MBES

Note: Top – bathymetry; middle – bathymetric slope (hot colours indicate steeper slopes); bottom – backscatter.

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Figure 7.20 Examples of AUV MBES data showing detailed-scale geological features

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AUV camera data was acquired at 6 m altitude for 89% of the reconnaissance traverses, providing visual continuity of nodule distribution between the majority of the physical box core sample sites. In addition, a 3.5 × 3.5 km grid of camera data was acquired over the Collector Test Site. Camera data is near-continuous over the reconnaissance traverses. Photomosaic coverage along the 3.5 × 3.5 km spaced camera traverses over the selected Collector Test Site are continuous. Each camera frame is 6 m across-track and 4 m along-track. Figure 7.21 provides an example.

Figure 7.21 Example of AUV camera photo mosaic showing nodules

7.3.9 Nodule abundance estimation derived from AUV camera data

Although box coring is an effective method for measuring nodule abundance, it is slow and expensive. Therefore, it is advantageous if box core estimates can be supplemented by an alternative method.

There is a well-documented relationship between nodule length and wet weight (e.g., Felix, 1980). NORI confirmed this relationship by taking measurements of individual nodule length, using digital callipers, and wet weight, for nodules from box core samples BC001, BC002, BC003, and BC005 Figure 7.22.

In areas where nodules are not closely packed, image processing techniques can be used to identify each nodule unambiguously and measure its dimensions. In this case, it is possible to estimate nodule abundance from photographs. However, if nodules are closely packed and touch each other, image processing techniques are currently unable to reliably discriminate each individual nodule.

Photographic data acquired during the 2018 NORI campaign has shown the dominant nodule distribution in NORI Area D to be closely packed small-to-medium sized nodules (average long-axes length of 2.95 cm), averaging over 900 nodules per box core sample in the surface layer. It is therefore not possible to use image processing and not practical to use manual measurements of long axes for this facies.

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Several estimation techniques were tested, and an alternative methodology was developed using a combination of long-axis measurement and percentage nodule coverage which was applied to the data.

Figure 7.22 Comparison of nodule long axis measurements, taken using digital callipers, and individual nodule wet weight for BC001, BC002, BC003, and BC005

A multiple linear regression relationship between percentage nodule coverage estimated from the photographs and mean nodule long-axis measurement from six box core samples within the Collector Test Site was found to provide a good correlation with nodule abundance. The relationship is of the form:

Y = –15.20 + (0.24 X₁) + (5.19 X₂)

Where:

Y is the estimated nodule abundance

X₁ is the percentage nodule cover

X₂ is the mean Long Axis measurement

The percentage nodule coverage was determined by thresholding the image and calculating the percentage area covered by nodules in the image. Nodule long-axes were manually measured where possible, for each nodule in the image Figure 7.23.

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Figure 7.23 Detail of image processing

Notes:
1. Camera image.
2. Manual measurement of nodule long axes on calibrated image.
3. Image thresholding to determine percentage nodule coverage.

It was possible to obtain enough measurements to calculate representative mean long axis lengths which compared well with the mean long axis measurements from the actual box core samples Figure 7.24. Because photographs were not taken at the exact box core sites
(due to loss of the camera laser-calibration system mounted on the box corer), 1 × 1 m subsets of the closest calibrated AUV camera data were used for this analysis. The average offset between the camera data and the actual box core site locations was 26 m. The offsets will have introduced some imprecision to the analysis, and it is expected that, in future, collocated photographs and box core samples will produce a better correlation.

Figure 7.24 Comparison of mean long axes lengths from AUV camera imagery and box cores

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Figure 7.25 shows the estimated abundance vs. actual abundance for Felix method (top), and the multiple linear regression method (bottom) for six box cores in the Collector Test Site. Although the correlation is high for the Felix method, the multiple linear regression method provided a better correlation than the Felix method and estimates that are closer to the actual nodule abundances. This is because the method is not dependent on measurement of each-and-every nodule in the image, which is not possible with some of the images typical of Type 1 nodule facies.

Figure 7.25 Comparison of Felix method and multiple linear regression method

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The multiple linear regression method was subsequently applied to the entire box core data set with associated AUV camera imagery (a total of 29 box cores used) to derive a more representative relationship using all available data. Extracted camera imagery was within an average offset of 15 m from actual box core site locations. The results are shown in Figure 7.26. An acceptable correlation (with an R² coefficient of 0.62) was obtained.

Figure 7.26 Multiple linear regression model for nodule abundance

AUV camera transects were acquired on a 3.5 × 3.5 km grid pattern over the Collector Test Site. Subsets (1 × 1 m) of AUV camera data were extracted for each intersection point of the survey lines and the percentage nodule coverage was extracted as per the methods outlined above. Mean nodule long axis measurements were manually extracted from these images. This was necessary, as the majority of these extraction points are situated in Type 1 nodule facies, which were therefore not suited to the automated nodule detection method. Nodule abundance estimates were then derived for each of these intersection points, resulting in a 3.5 × 3.5 km grid of nodule estimation points over the Collector Test Site Figure 7.27. These estimates were used to supplement the Mineral Resource estimate.

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Figure 7.27 Nodule abundance estimates at 3.5 × 3.5 km node spacing within the Collector Test Site

7.4 NORI 2019 campaign

Exploration in 2019 was divided into two campaigns (6A and 6B) due to the maximum duration of 45 days that OSV Maersk Launcher can remain out at sea. Campaign 6A was undertaken from 19/08/2019 to 03/10/2019 and Campaign 6B was undertaken from 10/11/2019 to 21/12/2019. The vessel was mobilised out of San Diego, California, USA.

Leap Energy was sub-contracted to provide geological support for the box coring operations. Bluefield Geoservices was subcontracted to provide the geotechnical logging and testing component of the programme, and ERIAS was sub-contracted to undertake environmental biological of the box cores.

7.4.1  Box coring

A 100 x 75 x 50 cm stainless steel box corer built by KC Denmark, and a Kongsberg Maritime HiPAP 501 Ultra Short Base Line (USBL) system were used for the sampling campaigns. The box corer was operated by an MSS marine crew and was fitted with a large Kongsberg USBL beacon for positioning Figure 7.28 and a sound velocity profiler (SVP) to monitor sound velocity variations in the water column. The positioning was monitored by two certified surveyors from the Leap Energy team. Fixes were taken during each box core landing and all sample coordinates were recorded in WGS84 UTM 11N.

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Figure 7.28 Box corer on deck showing the USBL beacon mounting position

The procedures for sampling the nodules in Campaigns 6A and 6B were essentially the same as in 2018, with only minor changes in workflow to improve the efficiency of the process. The main changes were that the sampling intervals were simplified 0–1 cm, 1–15 cm, and the samples were not coned and quartered onboard the vessel. A flow chart of the sampling procedure is provided in Figure 7.29.

7.4.2  Nodule sampling

The dominant nodule shape, texture, degree of fragmentation, degree of botryoidal development together with the samples weight and nodule abundance was logged. The nodule facies classification system developed during the 2018 campaign was used. For the clay footwall succession, the sediment lithology and colour were recorded.

The dominant nodule facies in the NORI Area D license area for the samples recovered during Campaigns 6A and B was Type 1 (82%).

The nodule description and measurement procedures were the same as used in 2018.

Sample preparation procedures were the same as used in 2018, with the exception that they were coned and quartered at the on-shore laboratory, rather than onboard the vessel.

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Figure 7.29 Box core processing flow sheet for Campaign 6B

Note for Campaign 6A the processing flow was similar, with the absence of biological push-cores.

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7.4.3  Biological sampling

Biological sampling involved the collection of specimens of mega, macro, meio and microfauna from the samples of nodules and underlying sediments collected in the box cores during the 2019 campaigns. Specimens of biota were collected from a number of horizons in the box core sample, including sieving of the water layer overlying the sediments to collect motile specimens; physical removal of specimens of megafauna from sediment and attached to nodules and preserving them for later analysis; washing nodules to dislodge macro fauna; and using cores pushed into the sediment to collect meio and macro fauna from different sediment horizons. Sediment samples were also retained and preserved for environmental DNA (eDNA) analysis.

Biological material was collected and preserved from 100 box cores during Campaign 6A adding to the samples collected from 45 box cores during Campaign 3. All the samples and specimens collected during the campaigns have been appropriately preserved and are stored for identification and analysis at a later date.

Marine mammal observations were made from the bridge of the vessel and logged in a data base.

7.4.4  Geotechnical sampling

Bluefield Geoservices performed geotechnical testing on 206 box core samples to a maximum depth of 0.50 m below sea floor. These were performed as part of the work-flow once the box cores were landed out on deck. All samples were subject to cone penetrometer testing and a subset of samples were subject to a comprehensive series of tests, including shear vane and plate load tests, using a purpose-built geotechnical rig provided by Bluefield Geoservices. Coring and geotechnical logging were also completed off-shore. Three (3) push cores collected from each box core for laboratory analysis. A comprehensive campaign of laboratory testing was also undertaken.

The soils encountered were very soft clays. Off-shore geotechnical analysis consisted of cone penetration test (CPT), laboratory vane, Torvane and plate load testing Figure 7.30. Push core and bulk density samples were taken from the box core opportunistically to aid sample description. Samples were also collected for subsequent on-shore laboratory testing
Figure 7.31. In addition, eight (8) gravity cores were collected.

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Figure 7.30 Photographs of geotechnical plate load test (left) and CPT (Right)

Figure 7.31 Photographs of biological & geotechnical tube sampling

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7.4.5  Exploration results

Box core sampling was attempted at a total of 106 sites in the NORI Area D license area during Campaign 6A and 107 sites during Campaign 6B. Disturbed samples, considered to be unreliable, were omitted from the sample sequence.

A total of 106 box cores (BC046–BC151) and four gravity cores were acquired in the NORI Area D license area during Campaign 6A and 101 box cores (BC176–BC280) and four gravity cores were acquired during Campaign 6B. Disturbed samples, considered to be unreliable, were omitted from the sample sequence. Table 7.6 lists box core sample coordinates and polymetallic nodule weights and Figure 7.32 shows the location of the box cores.

The majority of the polymetallic nodules (92%) were found on the sediment surface
(0 cm to 1 cm interval), with the remainder being predominantly encountered buried in the sediment at depths between of 1 cm and 15 cm. Occasionally, nodules were found buried deeper in the box core (15 cm to 30 cm), but these were generally in advanced stages of breakdown and were very easily broken when any attempt was made to recover them. The nodules from the deeper sedimentary layers (15 cm to 30 cm) were noted but were not collected or processed along with the nodule samples destined for the assay laboratory.

The nodules collected during the sampling campaign ranged in size from 10 mm to 250 mm in diameter. The dominant nodule shape encountered were discoidal in shape, whilst polynucleic shaped nodules were confined to the smaller Type 1 nodules.

The soils encountered in the box cores generally consisted of a lower sedimentary unit of very soft, pale brown clay, becoming dark brown with depth, and showing evidence of bioturbation.

The two sampling campaigns returned similar average nodule abundances, with the NORI_D_C6A campaign at 18.1 kg/m² and the NORI_D_C6B campaign at 17.0 kg/m². In general, nodule abundance is higher in the north and west of NORI Area D and diminishes towards the southeast. Topographic or geological controls may control nodule type/nodule facies on a more local scale.

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Table 7.6 Box core sample coordinates and polymetallic nodule weights

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Figure 7.32 Map of NORI Area D showing box core sample locations and bathymetry

Note: Circles – Campaign 6A; triangles, Campaign 6B

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7.4.6  Analysis of grade distribution by size fraction

As part of the Campaign 6A and 6B box core sampling programme, a preliminary examination of the relationship between polymetallic nodule size and grade was carried out. Twenty-four (24) nodule box core samples were separated into four size fractions (+50 mm, –50 mm + 25 mm, –25 mm +10 mm, and –10 mm) using sieves.

Plots of the relative difference in grade between the assays for individual size fractions and the weight-averaged grade of the whole sample are shown in Figure 7.33 to Figure 7.36. The masses of the size fractions, in relative percentage, are shown in Figure 7.37. In general the proportion of material less than 10 mm (the -10 mm fraction) is very small.

Twenty-four samples are too few to make firm statistical conclusions, but the data is sufficient to show that distribution of nickel, cobalt, copper and manganese is not uniform across particles of different sizes. The particles may be whole nodules or abraded pieces of larger nodules. The samples show that selection of the particle size range that will be recovered by the seafloor collection system, and loss of fines by abrasion in the ore handling systems, may have small impacts on the grade of the ore recovered to the production support vessel.

Figure 7.33 Relative difference of grade by size fraction – NiO (%)

Note: Brown rectangle highlights anomalous grades in BC047

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Figure 7.34 Relative difference of grade by size fraction – CuO (%)

Note: Brown rectangle highlights anomalous grades in BC047

Figure 7.35 Relative difference of grade by size fraction – CoO (%)

Note: Brown rectangle highlights anomalous value in BC227

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Figure 7.36 Relative difference of grade by size fraction – MnO (%)

Note: Brown rectangle highlights anomalous grades in BC047

Figure 7.37 Proportions of size fractions by mass (relative percentage)

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8 Sample preparation, analysis, and security

This Section describes the methods used for preparing and assaying the box core samples from the 2018 and 2019 exploration campaigns. The methods used in 2019 were not materially different from those used by NORI in 2018. The assays produced from this programme, supplemented by Pioneer Investor data, were used for estimation of Mineral Resources in NORI Area D.

8.1 Security

8.1.1 Box core samples

The geoscience laboratory on board the Maersk Launcher was manned by a team of qualified geoscience staff rotating on 12-hour shifts during box coring operations. All samples were weighed at the weighing stations. Reference weights were used to periodically check the accuracy of the electronic scales. All weights and associated nodule descriptions were recorded in logbooks (also digitally scanned) and captured in a digital (Excel) database. A digital photographic archive of all samples was also compiled. Data was stored on a computer and backups to external disks were regularly made.

On completion of processing, samples were stored in polythene bags placed in gasket-sealed plastic pails. All nodule pails were assembled in the geoscience laboratory and temporarily stored there until they were transported to a refrigerated container (reefer). The reefer was secured with a tag-in, tag-out system.

Sample bags were prepared with triple redundancy- numbered zip tie, printed bar code, and hand-written in permanent ink. Tracking of samples was maintained with a bar-code scanner and digital database.

Following checking of the nodule count in each box core against the photographic record and reweighing of the nodules, the samples from the depth layers were recombined. These samples were assembled into respective storage pails depending on sample type and destination. Each sample was scanned and recorded on the sample master spreadsheet, and sample pails sealed with tamper-proof tape, and carried to the secured storage reefer Figure 8.1.

Figure 8.1 Sample storage

Source: NORI. Note: (Left to right) sealed pail containing samples, secured refrigerated container, tag-in tag-out logbook, and seal.

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All samples were taken out of the reefer and reweighed on land upon arrival in San Diego. The sealed pails were reopened by geoscientists, weighed, scanned, replaced in pails, sealed with tamper-proof tape and returned to the secured storage reefer. Regular email communications were conducted with the Qualified Person for the Mineral Resource estimate during the sample acquisition operations.

8.1.2 Camera imagery

Camera imagery and data acquired by the Fugro ESVII AUV in 2018 was logged to the AUV’s internal payload processing data storage disk. This data is co-registered, and time-date stamped with the vehicle’s other geophysical sensors (e.g., SSS) and navigation systems and resultant navigation data. The vehicle was positioned with a combination of INS and USBL navigation.

Once each dive was completed and the AUV returned to deck, the data was transferred across from the payload data disk bottle to the Fugro data processing server and backed-up.

Preliminary processing of the data was undertaken on board to aid follow-up survey site selection and optimisation. Review of the data was undertaken by the Fugro Geoscience team and NORI Client Representative on the vessel. The data was fully processed post campaign completion at Fugro’s Layfette offices in Louisiana.

Additional image classification and nodule long-axes automated extraction was undertaken by the same Fugro 2018 NORI campaign Geoscience members at Fugro’s offices in Houston, Texas.

8.2 Sample preparation and assaying

All samples were freighted to ALS Laboratory Group (ALS) in Brisbane, Australia. ALS has a biosecurity quarantine facility approved by the Australian Quarantine and Inspection Service (AQIS). All samples were irradiated before clearing quarantine. The samples were not heat-treated as this would have resulted in breakdown of some of the hydroxide minerals.

The samples were inspected by AMC staff to confirm that there had been no tampering since despatch from San Diego.

Each box core sample was divided into four: a primary sample, a duplicate
(primary laboratory), a duplicate (secondary laboratory) and a reference sample. For the 2018 campaign this was carried out onboard the vessel, as described in Section 9.3.8. For the 2019 campaigns, the division was carried out by cone and quartering at the on-shore laboratory.

The primary samples were submitted to ALS. For the 2018 sampling campaign, the duplicates (secondary laboratory) were submitted to Bureau Veritas laboratory in Perth, Australia. For the 2019 sampling campaigns, the duplicates were assayed at ALS and a separate set of pulps was later sent to BV for independent analysis. Reference samples were retained by NORI and stored in Brisbane.

ALS in Brisbane was selected as the primary laboratory as it has extensive experience in the analysis of high manganese samples and polymetallic nodules. ALS operates quality systems based on international standards ISO/IEC17025:1999 "General requirements for competence of calibration and testing laboratories" and ISO9001:2000 "Quality Management Systems Requirements".

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The sample preparation and assaying procedure at ALS was as follows:

● Samples were transferred to barcode-labelled aluminium trays and dried in an oven at 105 °C for three (3) days. This was a higher temperature than use in the 2018 programme but there appear to be no significant differences between the assays as a consequence. Moisture loss was measured.

● After drying, samples were jaw crushed in a Jacques jaw crusher to reduce particle size to less than 10 mm.

● The crushed samples were then pulverised in an LM5 mill to a powder with typical particle size >85% passing 75 µm. Very small samples were pulverised in a smaller bowl using an LM2 mill. A sieve test was conducted for every 20^th sample to check the particle sizes.

● Pulps were analysed by a fusion/XRF method (ME-XRF26s) using a small aliquot (0.33 g) to avoid fusion problems. The following oxides were reported:

— LOI, Al₂O₃, BaO, CaO, Cr₂O₃, CoO, Fe₂O₃, K₂O, CuO, MgO, MnO, Na₂O, P₂O₅, SO₃, SiO₂, NiO, TiO₂, PbO, ZnO.

● Pulps were fused with lithium borate to create a bead that was dissolved with acid and analysed by inductively-coupled plasma emission mass spectroscopy (ICP-MS) (method ME-MS81) for:

— Ba, Ce, Cr, Cs, Dy, Er, Eu, Ga, Gd, Hf, Ho, La, Lu, Nb, Nd, Pr, Rb, Sm, Sn, Sr, Ta, Tb, Th, Tm, U, V, W, Y, Yb, Zr.

● Pulps were analysed for:

— As, Cd, Li, Mo, Sb by four acid ICP-AES method (ME-ICP61).

— Bi, Ge, Se, Te, Tl by four acid digest ICP-MS (method ME-MS62s).

— Hg by low temperature digestion in aqua regia and ICP-MS (method Hg-MS42).

— B by ICP-MS (method B-ICP69.

— F by KOH fusion and ion selective electrode (method F-ELE81a).

— Loss on ignition (LOI) at 1000 °C.

Manganese can exist in different oxidation states. AMC checked the totals of all the oxides plus LOI for each sample. The totals were generally about 96%. The shortfall of about 4% appears to arise because some of the manganese occurs in higher-valence states. A more realistic conversion of elemental manganese to manganese oxide would be approximately MnO_1.85.

ALS also reported a calculated total, being the sum of the reportable analytes plus LOI. Manganese was included in this calculation as Mn₃O₄ but was reported on the certificate of analysis as MnO. This leads to the sum of analytes reported plus LOI, calculated by AMC, adding up to a lower value than the total calculated by ALS. The ALS calculation using Mn₃O₄ is aimed at covering the middle ground of MnO and MnO₂.

BV was used as the secondary laboratory, to provide an independent check on the accuracy of the sample preparation and assaying by ALS. BV operates quality systems based on international standards ISO/IEC17025:1999 and ISO9001:2000. Each sample batch included internal quality control samples (certified reference materials).

The sample preparation and assaying procedure at BV was as follows:

● Samples were dried in an oven at 105 °C. Moisture loss was measured.

● Samples crushed and split, if required, then pulverised in a vibrating pulveriser

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● Pulps were cast using a 12:22 flux with added sodium nitrate to form a glass bead. The beads were analysed by XRF for: TiO2, Fe, Al2O3, SiO2, Mn, CaO, MgO, S XRF, P XRF, BaO, K2O.

● Pulps were analysed by Laser Ablation Inductively Coupled Plasma Mass Spectrometry for:

— Ag, As, Ba, Be, Bi, Cd, Ce, Co, Cr, Cs, Cu, Dy, Er, Eu, Ga, Gd, Ge, Hf, Ho, In, La, Lu, Mn, Mo, Nb, Nd, Ni, Pb, Pr, Rb, Re, Sb, Sc, Se, Sm, Sn, Sr, Ta, Tb, Te, Th, Ti, Tl, Tm, U, V, W, Y, Yb, Zn, Zr.

● Pulps were analysed for LOI at 1000 °C.

8.3 Quality assurance and quality control procedures 2018

Certified reference materials (CRMs), blank samples (crushed rock samples with very low Mn, Ni, Co and Cu) and duplicate samples were used for quality control and quality assurance during the NORI 2020 campaign.

8.3.1 Certified reference materials

The CRM called NOD-P-1, manufactured by the U.S. Geological Survey (USGS), was used for the NORI 2020 campaign. Material used in the preparation of the CRM was collected from the Pacific Ocean (14°50’ N, 124°28’ W) at a depth of 4,300 m.

Six CRMs were inserted into the NORI 2018 campaign sample submissions at a rate of 1 in 14. Table 8.1 shows the assayed oxide values for manganese, cobalt, nickel and copper for the CRMs and the certified values for NOD-1-P.

There was a slight positive bias in the manganese oxide assays and the BV (Bureau Veritas Minerals Pty Ltd) assays for nickel, manganese and cobalt were slightly elevated relative to those from ALS but these differences are not significant. The CRM results indicate that the NORI 2018 assay results are satisfactory.

Table 8.1 CRM assays from NORI 2018 campaign

Sample	NiO (%)	CuO (%)	MnO (%)	CoO (%)	Laboratory
Certified value	1.71	1.44	37.6	0.28	-
0367075A	1.720	1.430	38.040	0.280	ALS
0367108A	1.730	1.450	38.240	0.280	ALS
0367175A	1.720	1.420	38.000	0.280	ALS
0367177A	1.720	1.410	37.920	0.280	ALS
0367109A	1.781	1.440	38.865	0.294	BV
0367183A	1.794	1.452	38.865	0.296	BV

8.3.2 Blanks

The blank samples were composed of dolomite gravel or granite, which were expected to have very low content of manganese, cobalt, nickel and copper. The blank material was not assayed prior to insertion in the NORI sample batches. A total of 11 blank samples were inserted into the NORI 2018 sample assay batches at a rate of 1 in 8. Table 8.2 shows the assayed oxide values for the blanks. The assays for the blank samples indicate slightly elevated manganese (deliberate as some of the blanks had manganese mixed in with the blank) and negligible nickel, copper and cobalt.

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Table 8.2 Blank sample assays from NORI 2018 campaign

Sample	NiO (%)	CuO (%)	MnO (%)	CoO (%)	Laboratory
0367116A	0.010	0.010	0.380	0.010	ALS
0367089A	0.030	0.030	0.630	0.010	ALS
0367091A	0.010	0.010	0.230	0.010	ALS
0367118A	0.010	0.010	0.380	0.010	ALS
0367200A	0.010	0.010	0.060	0.010	ALS
0367202A	0.020	0.010	0.420	0.010	ALS
0367241A	0.010	0.010	0.460	0.010	ALS
0367052A	0.006	0.004	0.181	0.001	BV
0367088A	0.010	0.007	0.232	0.001	BV
0367149A	0.009	0.009	0.284	0.001	BV
0367239A	0.003	0.002	0.142	0.002	BV

8.3.3 Duplicates

Duplicate samples were prepared by cone and quartering the box core samples, as described in Section 9.3.8.

A total of 44 samples were assayed at ALS paired with duplicate samples also assayed at ALS. Figure 8.2 presents the results. The precision of the results is very good and there is no evidence of significant biases or errors.

A total of 43 samples were assayed at ALS paired with duplicate samples assayed at BV. Figure 8.3 presents the results. The precision of the results is good. There are very small high bias for nickel and manganese compared with the ALS assays Table 8.3 but this is not significant.

These results are consistent with the observation for the assays of the NOD-P-1 standard.

The maximum half absolute relative difference for the ALS paired data is NiO = 1.95%, CuO = 4.76%, MnO = 1.99%, CoO = 4.35% and for the BV assays paired with the ALS primary samples is NiO = 3.22%, CuO = 2.49%, MnO = 2.31%, CoO = 6.35%. The precision in the nodule sample assays is acceptable.

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