Table 1 

 CAPITAL REQUIREMENTS 



Norton Sound 



Sheltered Coast 



Equipment 



Dredge, 54 cubic feet 

 Support vessel 



(2) Development 



Property acquisition costs— 5,000 acres 



Expenditure for initial exploration and 

 development— 5,000 acres 8 miles^ 

 geophysical 1,000/mile^ 

 drilling 50,000 feet at $20 



(3) Working Capital 



Inventories and Receivables 



(3 per cent of Major Equipment) 



Working Cash Balance 

 Pre-operating Expense 25 per cent 

 Start-up Costs 

 Annual Operating Cost 

 Initial Operating Loss 



Total 



32,000,000 

 250,000 



32,250,000 



50,000 



8,000 

 1,000,000 



1 ,058,000 



968,000 



463,150 



1,431,150 



34,739,150 



32,000,000 

 250,000 



32,250,000 



50,000 



8,000 

 1,000,000 



1,058,000 



968,000 



646,425 



1,611,425 



34,922,425 



metals (Mn, Fe, Co, Cu, Ni) from the nodules. The development of excavating equipment wiU require 

 considerable knowledge of the characteristics of the deposit. Little information of this type is available 

 for any area at the present time. 



The following is an economic evaluation of a hypothetical manganese nodule deposit:^ 



The deposit is located in the area between the Clipperton and Clarion fracture zones in the East 

 Pacific at a depth of 15,000 feet. Los Angeles is 1 ,200 miles to the north, and Hawaii, 2,500 miles to the 

 west. 



An analysis of the more critical metals and minerals content is given as Mn 24.0 per cent, Ni 1.4 per 

 cent, Cu 1.2 per cent, Co 0.25 per cent, Si02 16 per cent, and CaCOs 3.5 per cent. This is consistent 

 with known deposits located in the East Pacific. The Ume content is low compared to the silica content. 

 This has a considerable effect in reducing the cost of the metallurgical processes. A nodule density of 

 two pounds per square foot is assumed as being typical of this area and a shallow surface layer is 

 assumed. 



It is assumed that reserves are equal to the life of the mine system. For the purposes of amortization 

 of capital equipment, a Ufe of 10-50 years is estimated, but an actual working life of 20 years may be 



Evaluation by Bureau of Mines Marine Mineral Technology Center, Tiburon, California. No research on which to 

 base this study is available, but the overall approach is believed to be sound. 



VII- 180 



