OFFSHORE

ROBUST AND SAFE TECHNOLOGIES

At Red Citadel Resources we strive to deploy robust and safe technologies to ensure the sustainability of our operations. Offshore mineral harvesting gives us a strong competitive advantage as:

  • Offshore harvesting of loose sediments is very low cost compared to land-based drill and blast operations;
  • Offshore harvesting is environmentally sustainable as the operation requires only a very small and localized footprint on the seafloor which minimizes the impact on marine ecosystems.

Red Citadel Resources has been actively developing its flagship projects based in Peru, which is focused on developing high quality phosphate rich deposits located in loose sediments and relatively shallow waters.

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Our team has conducted an extensive research to identify investment opportunities, minimize investors risk and support our business model.

  • Exploration: 44 seabed cores across nine sites have been recovered on the Peruvian shelf with penetration under the seafloor ranging from 100m-400m. In 35 seabed cores, the visual logging and subsequent chemical analysis outlines the presence of massive phosphatic minerals in continuous sections of 20m-100m starting from the seafloor (no overburden). In addition, numerous surface seabed samples, including box cores of undisturbed sediment, have been recovered containing consistently high grade and high quality phosphatic minerals.

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  • Engineering studies: A technical and economic scoping study has been completed and confirms that ultra-low-cost operations (OPEX US$10.2-15/t, CAPEX US$53/t) can be achieved by leveraging conventional dredging technology from a mobile processing platform. This is a unique competitive advantage which positions Deep Blue to become one of the lowest-cost producers of phosphate concentrate in the world.
  • Environmental impact assessment: Due to the thickness of the phosphate deposits, initial technical modelling suggests that a large scale 6 Mt per annum production could be sustained in a footprint of less than 40 hectares per year ensuring a minimal impact on the local marine ecosystems.
  • Mining friendly province: Peru is politically and economically stable and accommodates a large number of international mining operators and has simple, but rigorous, legal frameworks for mining and environmental approvals. Importantly offshore mining operations are explicitly covered by existing legislation.

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