Exhibit 96.1

 

 

INITIAL ASSESSMENT FOR THE EL1

Initial Assessment and Technical Report Summary for the EL1 Cook Islands Polymetallic Nodule Deposit, South Pacific Ocean

 

Report prepared for (Registrant) :		CIC LIMITED
		Airport Authority House 2
		Nikao, Rarotonga
		Cook Islands
Prepared by:		RSC Consulting Ltd
		Dr Simon Nielsen, PhD, MAusIMM
Effective date:		December 31, 2025

 

Date & Signature Page

Report prepared by

RSC Consulting Ltd

24 Smith Street, Dunedin 9016, New Zealand

Postal Address: PO Box 5647, Dunedin, 9054, New Zealand

Report prepared for

 

Client name		CIC LIMITED
Project name		EL1 COOK ISLANDS POLYMETALLIC NODULE DEPOSIT
Contact name		Adam Stemm
Contact title		Chief Operations Officer
Contact address		CIC Limited. Airport Authority, House 2, Nikao, Rarotonga, Cook Islands.

Report Information

 

File name		260112 RSC CIC SK1300 Technical Report
Effective date		December 31, 2025
Report status		Final

Date & Signature

 

Contributing author		Signature		Signature Date
Prepared by Qualified Persons from the following Third-Party firm:   RSC Consulting Ltd		/s/ RSC Consulting Ltd		February 9, 2026
Dr Simon Nielsen, PhD, MAusIMM (Qualified Person)		/s/ Dr. Simon Nielsen		February 9, 2026

		INITIAL ASSESSMENT FOR THE EL1 CIC LIMITED.

 

Contents
Date & Signature Page			1
List of Tables			7
List of Figures			9
Acronyms			12
1. Executive Summary			15
1.1 Property Description & Ownership			15
1.2 Geology & Mineralization			17
1.3 Status of Exploration			17
1.4 Mineral Resource Estimate and Initial Assessment			18
1.4.1 Cut-Off Abundance & RPEE			19
1.4.2 Initial Assessment Summary			20
1.5 Conclusions & Recommendations			20
1.5.1 Conclusions			20
1.5.2 Recommendations			21
2. Introduction			25
2.1 Registrant Information			25
2.2 Sources of Information			25
2.3 Qualified Persons			26
2.3.1 RSC Consulting Ltd: Third-Party Consulting Firm			26
2.3.2 Dr. Simon Nielsen			26
2.4 Site Visit & Personal Inspection			27
3. Property Description			28
3.1 Location of Property			28
3.2 Exploration Licenses & Mineral Rights			29
3.3 Royalties & Encumbrances			29
3.4 Environmental Liabilities & Permits Required for Work			30
3.4.1 Exploration Environment Programs & Impacts			31
3.4.2 Environmental Impacts from Minerals Harvesting			31
3.4.3 Environmental Baseline Studies			32

 

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3.5 Significant Encumbrances to the Project			32
3.6 Other Significant Factors or Risks			32
4. Accessibility, Climate, Local Resources, Infrastructure & Physiography			33
4.1 Accessibility			33
4.2 Climate			33
4.3 Seafloor Bathymetry (Physiography)			34
4.4 Local Resources & Infrastructure			35
5. History			36
5.1 Tenure & Operating History			36
5.2 Exploration History			36
5.2.1 Cook Islands			36
5.2.2 EL1			36
5.3 Production History			40
6. Geological Setting, Mineralization & Deposit			41
6.1 Regional Geology			41
6.1.1 Global Distribution of Nodules			41
6.2 Local Geology			42
6.2.1 Tectonic Setting			42
6.2.2 Ocean Currents			43
6.2.3 Seabed Morphology			45
6.3 Property Geology			46
6.4 Mineralization			49
6.5 Mineral Deposit Model & Known Comparable Deposits			50
7. Exploration			53
7.1 CIC Expeditions			53
7.1.1 Expedition 1 Leg 1			53
7.1.2 Expedition 1 Leg 2			53
7.1.3 Expedition 2			55
7.1.4 Expedition 3			56
7.1.5 Expedition 4 Leg 1			56
7.1.6 Expedition 4 Leg 2			56

 

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7.1.7 Expedition 4 Leg 3			58
7.2 Exploration Procedures and Parameters			58
7.2.1 Location Determination			58
7.2.1.1 Surface Location Determination			58
7.2.1.2 Submarine Location Determination			58
7.2.2 MBES Surveying			59
7.2.3 Box Core Sampling Procedures			59
7.2.3.1 Equipment Specifications			59
7.2.3.2 Deployment & Sampling Procedure			60
7.2.4 Freefall Grab Sampling Procedures			62
7.2.5 Multi-Core Sampling Procedures			64
7.2.6 Bulk Sampling Procedures			65
7.2.7 ROV Surveying Procedures			66
7.3 Exploration Results			67
7.3.1 MBES Surveying			67
7.3.2 Box Core Sampling			72
7.3.3 Freefall Grab Sampling			78
7.3.4 Nodule Size Distribution & Morphology			79
7.3.5 ROV Surveying			83
7.4 Drilling			84
7.5 Hydrogeology			84
7.6 Geotechnical			84
7.6.1 Shear Strength Results			84
7.6.2 Other Geotechnical Measurements			86
8. Sample Preparation, Analyses & Security			87
8.1 Sample Preparation			87
8.1.1 Onboard Sample Processing			87
8.1.1.1 Nodule Removal			87
8.1.1.2 Nodule Washing			88
8.1.2 Onshore Sample Processing			89
8.1.2.1 Sample Processing at CIC facilities			89
8.1.2.2 Sample Processing at ALS Brisbane			90
8.2 Analysis			91

 

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8.2.1 Wet Nodule Weight			91
8.2.2 Wet Nodule Abundance			92
8.2.3 Dry Nodule Weight & Moisture Content			93
8.2.4 Laboratory Analysis			93
8.3 Density & Moisture Content			94
8.4 Sample Security			95
8.4.1 Offshore Sample Handling			95
8.4.2 Onshore Sample Handling			96
8.5 Data Quality and QAQC			98
8.5.1 CIC Data			98
8.5.1.1 Data Quality Objective			98
8.5.1.2 Quality Assurance			98
8.5.1.3 Quality Control			105
8.5.1.4 Quality Acceptance Testing			117
8.5.1.5 Summary			123
8.5.2 Historical Data			124
8.6 Qualified Person’s Opinion			126
9. Data Verification			127
9.1 Site Visit Details			127
9.1.1 2022 MV Seasurveyor Mobilization & Expedition 1 (2022)			127
9.1.2 Expedition 2 (2023)			127
9.1.3 Environmental Research Survey 1 AUV Operations (2024)			127
9.1.4 Expedition 4 (2025)			128
9.2 Database Verification			128
9.3 Qualified Person’s Opinion			129
10. Mineral Processing & Metallurgical Testing			130
11. Mineral Resource Estimate			132
11.1 Informing Data			132
11.1.1 Data Handling			132
11.1.1.1 Sample Compositing/Averaging			132
11.1.1.2 Sample Quality			132
11.1.1.3 Exclusion of Repeat Samples			133
11.1.2 Location Data			133

 

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11.2 Interpretation & Model Definition			133
11.2.1 Geological Domains			133
11.2.2 Estimation Domains			135
11.2.2.1 Abundance			135
11.2.2.2 Geochemistry			136
11.2.3 Extrapolation			137
11.2.4 Alternative Interpretations			137
11.3 Summary Statistics & Data Preparation			137
11.3.1 Sample Support			137
11.3.2 Estimation Domain Statistics			137
11.4 Spatial Analysis & Variography			140
11.4.1 Variogram Analysis			140
11.5 Block Model			142
11.6 Search Neighborhood Parameters			143
11.7 Estimation			143
11.7.1 Domain			143
11.7.2 Grade			144
11.7.3 Density			144
11.7.4 Moisture			144
11.7.5 Slope			144
11.8 Validation			145
11.9 Sensitivity Testing			146
11.10 Multi-Factor Scorecard Modeling			148
11.11 Mineral Resource Estimate Classification			151
11.11.1 Nodule Cut-Off Abundance			153
11.11.2 Mining & Metallurgical Methods & Parameters			154
11.11.3 Reasonable Prospects for Economic Extraction			156
11.12 Initial Assessment Summary			157
11.13 Risks			157
12. Mineral Reserves Estimates			164
13. Mining Methods			165
14. Processing & Recovery Methods			166

 

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15. Project Infrastructure			167
16. Market Studies			168
17. Environmental Studies, Permitting & Plans, Negotiations, or Agreements with Local Individuals or Groups			169
18. Capital & Operating Costs			170
19. Economic Analysis			171
20. Adjacent Properties			172
20.1 Moana Minerals Limited			172
20.2 Cobalt Seabed Resources Limited			173
21. Other Relevant Data & Information			174
22. Interpretation & Conclusions			175
23. Recommendations			177
24. References			180
25. Reliance on Information Provided by the Registrant			184
26. Forward-Looking Statement			185

 

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List of Tables
Table 1-1: Status of CIC’s license			16
Table 1-2: Mineral Resource statement at nodule abundance cut-off of 13 kg/m2			19
Table 1-3: Initial assessment summary for the CIC polymetallic nodule project			20
Table 1-4: Proposed Phase 1 and 2 expenditures in USD			24
Table 3-1: Status of CIC’s license			29
Table 5-1: Summary of historical sample type by year			38
Table 5-2: JICA-MMAJ navigation systems			39
Table 6-1: Chemical compositions of nodules from different areas of the global ocean			42
Table 7-1: MV Seasurveyor vessel characteristics			53
Table 7-2: MV Anuanua Moana vessel characteristics			55
Table 7-3: Summary of nodule abundance and geochemistry data collected by BC samplers			73
Table 7-4: Summary of nodule abundance and geochemistry data collected by FFG samplers			79
Table 8-1: Summary of the sampling tools and their sampling areas			93
Table 8-2: Summary of the analytical methods performed at ALS Brisbane			93
Table 8-3: ME-XRF26s analytes, units, and detection limits			94
Table 8-4: ME-MS81 analytes, units, and detection limits			94
Table 8-5: ME-GRA05 and OA-GRA05g analytes, units, and detection limits			94
Table 8-6. Nodule minimum moisture content, measured at ALS Brisbane using method OA-GRA05g			95
Table 8-7: Primary sample quality assessment designators and ranking			106
Table 8-8: Primary sample quality assessment comparison			107
Table 8-9: CGL-131 certified values and standard deviations for CoO, CuO, MnO and NiO			115
Table 8-10: Performance summary of the Exp 4 Ryco 820 scales’ reference weight data			118
Table 8-11: Second-split repeat pair data performance summary for selected analytes			121
Table 8-12: Third-split repeat pair data performance summary for selected analytes			123
Table 8-13: Summary of QA/QC review of the CIC data considering an Inferred classification			124
Table 8-14: Historical data quality assessment summary			124
Table 10-1: Metallurgical bench test results to date			131
Table 11-1: Summary statistics of abundance estimation domains			138
Table 11-2: Summary statistics of geochemistry domains			138
Table 11-3: Abundance variogram parameters			140
Table 11-4: Variogram parameters for Cu, Mn, Ni, Co, and Fe			141
Table 11-5: Block model description			143
Table 11-6: Search neighborhood parameters			143
Table 11-7: Estimated block summary statistics			144
Table 11-8: Mean comparison of sample and estimate block grades			146

 

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Table 11-9: Comparison of mean abundance block grade			147
Table 11-10: Comparison of mean abundance block grade			148
Table 11-11: Data quality multi-factor rankings applied to the samples			148
Table 11-12: Weighting system used to determine overall score			149
Table 11-13: Mineral Resource statement at nodule abundance cut-off of 13 kg/m2			152
Table 11-14: Sensitivity of tonnes and grade at cut-off abundances of 8, 10, 12, 13, and 15 kg/m2			153
Table 11-15: Parameters of conceptual nodule collector			155
Table 11-16: Average LOM commodity prices. From AMC Consultants (2025)			156
Table 11-17: Initial assessment summary for the CIC polymetallic nodule project			157
Table 11-18: Risk assessment criteria			158
Table 11-19: List and analysis of risks			160
Table 23-1: Proposed Phase 1 and 2 expenditures in USD			179

 

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List of Figures
Figure 1-1: EL1 Project location		16
Figure 3-1: EL1 Project location		28
Figure 4-1: Bathymetric map of the Project area		34
Figure 5-1: Historical samples within the Project area		37
Figure 5-2: Standard survey station layout used by JICA		38
Figure 5-3: Standard station sampling layout used by JICA		39
Figure 5-4: Cook Islands nodule sampling expeditions		40
Figure 6-1: Fe-Mn crust and nodule samples collected from around the world		41
Figure 6-2: Tectonic setting of the Cook Islands EEZ and surrounding seabed		42
Figure 6-3: Volcanic chains and hotspot tracks		43
Figure 6-4: Schematic of ocean currents in and near the EEZ		44
Figure 6-5: Seabed geomorphology for the Cook Islands and surrounds		46
Figure 6-6: Stratigraphic column from gravity cores collected by JICA-MMAJ in the 16-159 Area		47
Figure 6-7: Sub-bottom profiles from (JICA-MMAJ, 2001)		48
Figure 6-8: Nodule section showing a couple of shark teeth as nuclei surrounded by concentric growth bands		49
Figure 6-9: (a) Schematic illustrating the formation of Mn-oxides and Fe-oxyhydroxides		52
Figure 7-1: Samples collected in CBG04		54
Figure 7-2: Samples collected in CBG01		54
Figure 7-3: Ship track for Exp 2, including dredge lines (light green) and ROV track (dark green)		55
Figure 7-4: Sample distribution and nodule abundance for Exp 4 Leg 1		57
Figure 7-5: Multicore locations, Exp 4 Leg 2		57
Figure 7-6: Original BX-635 BC design used in 2022		60
Figure 7-7: Examples of nodules photographs taken offshore		62
Figure 7-8: Recovered FFG sampler on deck		63
Figure 7-9: Example of nodule samples from an FFG launch during Exp 3		64
Figure 7-10: MC-400 multicorer recovered to deck with samples		65
Figure 7-11: Benthic sled unloading nodules on the back deck		66
Figure 7-12: ROV launching on starboard side of the MV Anuanua Moana during Exp 2		67
Figure 7-13: Bathymetric (50 m resolution) data collected within CBG04		68
Figure 7-14: Backscatter (50 m resolution) data collected within CBG04		68
Figure 7-15: Slope map displaying areas with a slope >10°		69
Figure 7-16. Interpreted seafloor geomorphology		70
Figure 7-17: BTM-derived geomorphological domains (Morgan, 2024)		71
Figure 7-18: Geological interpretation of the bathymetric and backscatter data		72
Figure 7-19: Map of BC nodule geochemistry within CGB04: surface abundance, Co, Cu, Fe, Mn, and Ni		76

 

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Figure 7-20: Map of BC nodule geochemistry within CGB01:		77
Figure 7-21: Back deck images of (A) BC051 sample surface		78
Figure 7-22: Nodule size distribution in CBG4 West		80
Figure 7-23: Nodule size distribution in bulk sample DR001		80
Figure 7-24: Nodule size distribution for CBG04 East, FFG samples from Exp 3		81
Figure 7-25: Nodule descriptors used by CIC		81
Figure 7-26: Modelled examples of nodule morphologies and textures.		81
Figure 7-27: Nodule morphologies		82
Figure 7-28: Distribution of nodule morphologies in CBG04 by the end of Exp 3		83
Figure 7-29: Screenshot of ROV footage showing a high-abundance nodule field		83
Figure 7-30: Box-and-whisker plot of soil strength results from Exp 1 in western CBG04		85
Figure 7-31: Box-and-whisker plot of soil strength results from Exp 4 in eastern CBG04		85
Figure 7-32: Remolded soil strength measured during Exp 4 Leg 1, in eastern CBG04		86
Figure 8-1: Removing surface nodules and sediment from BC samples		87
Figure 8-2: FFG basket in the cradle, ready to dump the nodule sample into the bucket below		88
Figure 8-3: Nodule processing on the MV Seasurveyor back deck		89
Figure 8-4: Sample photography of BC052, from BC sample surface (left)		90
Figure 8-5: Offshore weighing of a sample during Exp 4 using the Ryco 820 scale (left)		92
Figure 8-6: Workshop container on the MV Seasurveyor, with sample buckets in storage		96
Figure 8-7: CIC’s processing laboratory in Rarotonga		97
Figure 8-8: Samples from Exp 4 Leg 1 inside the refrigerated container by the Processing Laboratory		97
Figure 8-9: Flowchart of RSC’s QA review process		99
Figure 8-10: Passive heave compensator on the back deck of the MV Seasurveyor		102
Figure 8-11. Example of camera locations vs. ship locations during operations		105
Figure 8-12: Video still of seafloor (A) and on-deck top shot (B) for BC021		106
Figure 8-13: Exp 4 – 5,000-g calibration weight results		111
Figure 8-14: Exp 4 – 2,000-g calibration weight results		111
Figure 8-15: RDP plots of second-split repeat samples for CoO (A), CuO (B), MnO (C) and NiO (D)		112
Figure 8-16: PUL-21 sizing test results		113
Figure 8-17: RDP plots of third-split repeat samples for CoO (A), CuO (B), MnO (C) and NiO (D)		114
Figure 8-18: Control plot CGL-131 CoO results. Certified value in purple and +/- 1 standard deviation in green		116
Figure 8-19: Control plot CGL-131 CuO results. Certified value in purple and +/- 1 standard deviation in green		116
Figure 8-20: Control plot CGL-131 MnO results		116
Figure 8-21: Control plot CGL-131 NiO results. Certified value in purple and +/- 1 standard deviation in green		117
Figure 8-22: Scatter plot (left) and QQ plot (right) of second-split repeat pair CoO data		120
Figure 8-23: Scatter plot (left) and QQ plot (right) of second-split repeat pair CuO data		120

 

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Figure 8-24: Scatter plot (left) and QQ plot (right) of second-split repeat pair MnO data		120
Figure 8-25: Scatter plot (left) and QQ plot (right) of second-split repeat pair NiO data		121
Figure 8-26: Scatter plot (left) and QQ plot (right) of second-split repeat pair CoO data		122
Figure 8-27: Scatter plot (left) and QQ plot (right) of second-split repeat pair CuO data		122
Figure 8-28: Scatter plot (left) and QQ plot (right) of second-split repeat pair MnO data		122
Figure 8-29: Scatter plot (left) and QQ plot (right) of second-split repeat pair NiO data		123
Figure 11-1: Abyssal plains mapped by SBMA		134
Figure 11-2: Estimation domains for nodule abundance		135
Figure 11-3: Outline of the region with increased Ni grade		136
Figure 11-4: Histogram of High Abundance estimation domain (left)		138
Figure 11-5: Histogram of Co (left) and Cu (right) estimation domains.		139
Figure 11-6: Histograms of Fe (left) and Mn (right) estimation domains		139
Figure 11-7: Histogram of Ni estimation domains		139
Figure 11-8: Experimental semi-variogram models for High Abundance domain		140
Figure 11-9: Experimental semi-variogram models for Co (left) and Cu (right)		141
Figure 11-10: Experimental semi-variograms models for Fe (left) and Mn (right)		142
Figure 11-11: Experimental semi-variograms models for Ni		142
Figure 11-12: Contact analysis plots		144
Figure 11-13: Plan view of estimated block grades and sample data for abundance		145
Figure 11-14: Swath plots comparing sample (blue) and estimated (red) abundance grades		146
Figure 11-15: Scatter plot comparing block abundance grade		147
Figure 11-16: Plan view of estimated multi-factor scorecard		150
Figure 11-17: Abundance block model defining the Inferred Mineral Resource within the CIC Project area		152
Figure 11-18: Conceptual design of the nodule harvesting system, from CIC Limited (2024)		155
Figure 11-19: RSC’s risk score matrix		159
Figure 20-1: Map of licenses and reserved areas in the Cook Islands EEZ		172

 

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Acronyms

 

 

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Tm		thulium
TMS		tether management system
TRS		Technical Report Summary
U		uranium
USBL		ultra-short baseline
UTM		Universal Transverse Mercator
V		vanadium
W		tungsten
XRD		X-ray diffraction
XRF		X-ray fluorescence
Y		yttrium
Yb		ytterbium
Zn		zirconium

 

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1. Executive Summary

CIC Limited (the Company, CIC, or the Registrant) is completing exploration work on the EL1 property (the Property), located in the EEZ of the Cook Islands in the South Pacific Ocean. This Initial Assessment and Technical Report Summary (TRS or Report) was prepared for CIC by RSC Consulting Ltd (RSC). The purpose of this Report is to support CIC’s disclosure of a Mineral Resource Estimate (“MRE”) for the EL1 property, effective as of December 31, 2025, for use in CIC’s fiscal year 2026 disclosures. No Mineral Reserve estimate is reported in this Report. This TRS has been prepared in accordance with the U.S. Securities and Exchange Commission’s (SEC) Subpart 1300 of Regulation S-K, Disclosure by Registrants Engaged in Mining Operations and Item 601(b)(96) of Regulation S-K, Technical Report Summary.

All currency amounts are in United States dollars (USD) unless otherwise stated.

The effective date of this TRS report is December 31, 2025. RSC confirms that there are no known material changes impacting the MRE.

The interpretations and conclusions reached in this Report are based on current scientific understanding and the best evidence available to RSC at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high the probabilities might be, make no claim for absolute certainty.

The ability of any person to achieve forward-looking production and economic targets depends on numerous factors beyond RSC’s control and that RSC cannot anticipate. These factors include, but are not limited to, site-specific mining and geological conditions, management and personnel capabilities, availability of funding to properly operate and capitalize the operation, variations in cost elements and market conditions, developing and operating the mine efficiently, unforeseen changes in legislation, and new industry developments. Any of these factors may substantially alter the performance of any mining operation.

1.1 Property Description & Ownership

The Project is located within the economic exclusion zone (EEZ) of the Cook Islands, in the South Pacific Ocean (Figure 1-1). While the Project is confined to the boundary of EL1, the Project is part of a wider known deposit of polymetallic nodules found within the Cook Islands EEZ. The Project is located on the seabed, more than 5,000 m below sea level.

The Project is centered at 17.5° S latitude and 160.5° W longitude (WGS 84), which is 261 miles (420 km) north from Rarotonga, Cook Islands, 105 miles (170 km) north from Aitutaki, Cook Islands, and ~2,300 miles (3,700 km) northeast from Wellington, New Zealand. While the Project is confined to the boundary of EL1, which covers an area of 81,678 mi2 (211,545 km2), the Project is part of a wider known deposit of polymetallic nodules found within the Cook Islands’ EEZ.

 

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EL1 was granted to CIC Limited, a Cook Islands registered company whose primary shareholder is CIC LLC, a Florida Limited Liability Company, on 23 February 2022 by the Seabed Minerals Authority (SBMA) on behalf of the Cook Islands Government (Table 1-1). The exploration license (EL) is valid for a term of five years and expires on 23 February 2027. An application for license renewal can be made at least 90 days before the expiry of the license in line with Section 63 of the Seabed Minerals (Exploration) Regulations (Seabed Minerals (Exploration) Regulations, 2020). -1

 

Figure 1-1: EL1 Project location.

The license area comprises 2,592 5’ x 5’ blocks, grouped into ten Contiguous Block Groups (CBG) (Figure 1-1).

Table 1-1: Status of CIC’s license.

 

License

License Name

Ownership

Commodities

Grant Date

Expiry Date

Size (mi2)

EL1

Exploration License 1

CIC

Polymetallic nodules

23 February 2022

23 February 2027

81,678

The conditions for CIC’s exploration license EL1 include a relinquishment schedule as follows:

 

•

20% of the total license area must be relinquished after 3 years of exploration activities.

 

•

Up to an additional 40% of the total license area must be relinquished by the end of the 5-year license period.

 

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The first relinquishment is currently being negotiated between CIC and SBMA. Relinquishment of an area less than the proposed relinquishment area in the schedule by the stated times is possible and will be subject to discussion between CIC and SBMA.

1.2 Geology & Mineralization

Polymetallic nodules are part of a spectrum of ferromanganese precipitates that are found throughout the world’s oceans. The Cook Islands are distinctive in having relatively ancient and stable ocean crust, coupled with very low-modelled net export of organic material to the seabed, and the interpreted influence of a long-lived deep-water ocean current.

Most of the Project area consists of relatively flat abyssal plains, with sea knolls, seamounts, depressions, hills, valleys, and horst-and-graben structures scattered across the area.

Polymetallic nodule abundance and element grades vary throughout the Project area. ‘Nodule abundance’ is the term used to describe the number of nodules found in a given sample area; it is measured in kilograms per square meter because nodules typically form on the seabed as a single layer, several centimeters thick, so are, in effect, a two-dimensional deposit. The nodule abundance in the Project ranges from 0.0–48.0 kg/m², with an average abundance of 17.7 kg/m². Nodule abundance is typically higher in areas of abyssal plains compared to other parts of the seafloor.

Polymetallic nodules in the Cook Islands are geochemically unique, compared to other deposits, due to their low Mn/Fe ratio and elevated Co grades. The average Mn/Fe ratio is 0.92, which indicates that the nodules are formed via hydrogenetic processes. This is supported by nodule morphology (relatively smooth texture), and the low number of buried nodules recovered — most nodules are found on the surface of the seabed.

1.3 Status of Exploration

CIC has conducted exploration across two of the ten contiguous block groups (CBGs), including CBG01 and CBG04. Most exploration work has been conducted in CBG04, with sample spacing based on an 11-km dice-five grid. All ten CBGs were sampled historically (pre-2000).

Since 2022, CIC has conducted four expeditions. CIC used box core (BC), freefall grab (FFG), multicore (MC), and benthic sled (BS) sampling tools to collect polymetallic nodule samples, supported by both remotely operated vehicle (ROV) and autonomous underwater vehicle (AUV) surveys.

Geotechnical work was conducted during Exp 1 and Exp 4, mainly shear vane measurements of seafloor sediment shear strength as observed in the BC samples. Other geotechnical work on Exp 4 Leg 1 subcores was subsequently undertaken onshore, but not yet fully reported on.

No hydrogeological studies have been conducted on the Project.

Further details are discussed in section 7 of this TRS.

 

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1.4 Mineral Resource Estimate and Initial Assessment

A Mineral Resource Estimate (MRE) for the Project is summarized in Table 1-2. The data informing the MRE consists of declustered samples collected by JICA, as well as BC and FFG samples collected by CIC during Exp 1, Exp 3, and Exp 4. All sample coordinates were transformed into a custom reference system using Lambert azimuthal equal-area projection, with the origin at 160°W, 16°S. The reprojection is necessary as the Project extends across two different Universal Transverse Mercator (UTM) zones. The reduced level (RL) was set to 0. No corrections were applied to either the geochemical or the nodule abundance data. In RSC’s opinion, the quality of the data set provided by CIC is fit for purpose and suitable for use in the mineral resource estimation.

The MRE has been prepared and reported in accordance with Item 1300 of Regulation S-K (Subpart 229.1300) under the United States Securities and Exchange Commission (SEC). The Mineral Resource category of Inferred Mineral Resource used in this Report follows the definitions set out in §229.1300 Definitions. The estimation methodology and classification criteria have been reviewed by RSC and are consistent with the requirements of S-K 1300, including the criteria set forth in §229.1302(d)(1). The MRE classification is based upon an assessment of geological understanding of the deposit, geological and grade continuity, BC and FFG sample spacing, QC results, search and interpolation parameters, and an analysis of available density information. The Inferred Mineral Resource has not been significantly extrapolated beyond the limits of the samples collected.

Confidence in the estimate of Inferred Mineral Resources is not sufficient to allow the results of the application of any technical and economic parameters to be used for detailed mine planning as part of either pre-feasibility or feasibility studies.

The MRE has an effective date of December 31, 2025 and has been reported at a cut-off of 13 kg/m² nodule abundance, which was selected based on the consideration of previous studies of comparable deposits and assumed mining parameters. The MRE tonnage is stated as wet tonnes, and no material has been classified as Indicated or Measured mineral resources.

Geological evidence is sufficient to imply but not verify geological and grade continuity. The MRE is based on exploration, sampling, and assaying information gathered through appropriate techniques from BC and FFG sampling.

The consideration of modifying factors, in particular seafloor slope, has been considered in the classification of the Mineral Resources.

In general, it is reasonably expected that a portion of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration by CIC. For the CBG04 E area, closer-spaced BC sample data and higher-resolution multibeam data are available. Upgrading the Inferred Mineral Resources within the CBG04 E area to Indicated Mineral Resources might be feasible once the geochemical data for the samples collected in this area have been received. Future work throughout EL1 should seek to decrease sample spacing, to improve geological evidence to verify geological continuity (including bathymetric survey of the entire license area), and to decrease waste components of the model.

 

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Table 1-2: Mineral Resource statement at nodule abundance cut-off of 13 kg/m² with an effective date of December 31, 2025.

 

Resource Classification		Abundance (wet) kg/m2		Nodules (wet) Mt		Metal Grade										Metal Content
						Co (%)		Cu (%)		Fe (%)		Mn (%)		Ni (%)		Co (kt)		Cu (kt)		Fe (kt)		Mn (kt)		Ni (kt)
Inferred		19.9		1,950		0.46		0.19		17.8		15.7		0.33		7,000		3,000		290,000		256,000		5,000

Notes:

1.	Mineral Resources are reported using definitions set out in Regulations S-K 1300 and have an effective date of December 31, 2025.

2.	Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

3.	The third-party firm responsible for the MRE is RSC.

4.	Numbers have been rounded as required by reporting guidelines and may result in apparent summation differences.

5.	The estimate of tonnes and abundance is contained within the Exploration License 1 (EL1) area.

6.	Abundance is the wet weight (kilograms) of polymetallic nodules per square meter.

7.	The estimate of tonnes and abundance is provided at a cut-off of 13 kg/m2.

8.	The metal content has been estimated using dry nodule tonnes. Dry nodule tonnage was estimated using the average moisture content of 25%.

9.	The estimate is reported where the modifying factor of slope has been considered, and the proportion of slope >10° is applied locally to each block in CGB04, where bathymetric data are available. The estimate is restricted to areas of inferred abyssal plains and excludes known seamounts.

1.4.1 Cut-Off Abundance & RPEE

The MRE has been reported at a cut-off of 13 kg/m² nodule abundance. This cut-off abundance was selected based on the consideration of previous studies of comparable deposits (Tay et al., 2023b), as well as considering assumed mining parameters with respect to reasonable prospects for economic extraction (RPEE).

CIC is yet to conduct an economic assessment due at this stage of the project. In order to determine RPEE, RSC has assessed economic assessments from comparable projects and the proposed mining parameters including a project production rate of 259 t/hr, a 16-m wide collector, harvesting nodules at a rate of 0.4 m/s and an efficiency of 75–90%, which would require a nodule abundance of 12–15 kg/m².

The controls on mineralization are consistent across the Project area and fit in with the wider EEZ geological framework. At deposit scale, RSC did not identify any sub-populations in the metal grades. Variations in nodule abundance were identified, with an area of high abundance associated with a north–south trend in the north, and a northeast trend in the south of the Project area.

Experimental semi-variograms were modelled with relatively low–moderate g₀ values and two-spherical structures. All variograms display reasonable structure for global estimation and are compatible with the classification of Inferred Mineral Resources. A block size of 50 km × 50 km was selected for estimation, based on sample spacing and existing mineral resource models. Sub-blocking of 25 km × 25 km and 12.5 km × 12.5 km was applied to gain a better definition of the license boundary and of the geomorphological domain, and the tighter sample spacing in CBG04. Estimation was done using ordinary kriging. Validation methods included visual review and comparison of means as well as validation plots. Sensitivity testing through variance of the parameter settings found the estimate to be robust. A multi-factor scorecard was also applied to data quality to support the classification of the estimate.

 

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The MRE is supported by consideration of potential minerals harvesting (mining) and metallurgical processing methods. In assessing the reasonable prospects for economic extraction (RPEE), RSC has considered conceptual mining, metallurgical, and economic parameters as well as environmental and social aspects. Further details are disclosed in section 11 of this TRS.

1.4.2 Initial Assessment Summary

RSC has conducted an Initial Assessment of the CIC polymetallic MRE reported in this TRS to determine its economic potential. The results are summarized in Table 1-3. As the Project is still at an early stage, neither an economic and cash flow analysis nor cash flow analysis have been completed on the MRE disclosed in this TRS. However, RSC has completed a high-level preliminary technical and economic study of the economic potential of either all or parts of mineralization to support the disclosure of Mineral Resources.

Table 1-3: Initial assessment summary for the CIC polymetallic nodule project.

 

Factor		Initial Assessment
Site Infrastructure		The project is located in the middle of the Cook Islands EEZ and ~5,000 m below the sea surface. Therefore, all exploration and potential extraction occur from vessels. The vessels have their own power and water supplies and provide accommodation for all crew. Access to the Project is through the waters of the Cook Islands rather than access roads.
Mine Design & Planning		Any future mining would take place from production and support vessels. Mining would occur on the surface of the seafloor. CIC has not conducted a scoping study or preliminary economic assessment to design a mine plan, but is working with Boskalis to develop concept nodule collectors. The current nodule collector designed is assumed to operate at a production rate of 259 t/h.
Processing Plant		Currently, no polymetallic nodule project has reached extraction; therefore, no processing plants to handle polymetallic nodules are in operation. New processing plants would have to be designed and built, or existing facilities would need to be repurposed. CIC has conducted initial metallurgical test work, is reviewing a hydrometallurgical and a combined pyrometallurgical/hydrometallurgical flowsheet and is looking at ways to optimize the process to have the lowest environmental impact.
Environmental Compliance & Permitting		The Seabed Minerals (Minerals Harvesting and Other Mining) Regulations (2024) have been formally enacted and establish the regulatory framework for minerals harvesting and other mining activities under the Seabed Minerals Act (2019). However, no commercial harvesting or mining activities have been authorized or commenced to date.
Other Relevant Factors		For activities including (trial) mining and mineral harvesting, CIC needs to undertake an environmental risk assessment, environmental scoping exercise and EIA, and provide an Environmental Impact Statement (EIS), Environmental Management System including an Environmental Management and Monitoring Plan (EMMP), and closure plan. Environmental and compliance permitting is managed by the National Environment Services and the Seabed Minerals Authority.
Capital Costs		Due to the nature of mineralization, no tailings will be produced during nodule harvesting. Any seawater collected during the harvesting process will be returned to the sea.
Operating Costs		It is the opinion of RSC that all material information has been stated in the above sections of this TRS.
Economic Analysis		No capital costs have been estimated for the Project.

1.5 Conclusions & Recommendations

1.5.1 Conclusions

RSC has completed an MRE for CIC’s polymetallic nodule project within EL1. RSC has reviewed the available data, including historical sampling collected by JICA, samples collected by CIC, SOPs and QC data.

 

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RSC conducted a data quality review (section 8). Issues with the FFG location data were identified, with malfunctioning GPS units and the ship’s logged coordinates averaging ~1,400 m away from the planned station. Early issues with BC sampling (e.g. premature triggering during Exp 1) were addressed, and a passive heave compensator was used during later expeditions to minimize the impact of the vessel’s motion. Sampling equipment included a video camera that recorded the moment of sampling; RSC reviewed the video footage to assess the quality of the primary sample.

Polymetallic nodule abundance and element grades vary throughout the Project area. The average nodule abundance in the Project is 17.7 kg/m². The nodules found in the Cook Islands are geochemically unique compared to other nodule deposits due to their low Mn/Fe ratio and elevated Co grades. The average Mn/Fe ratio is 0.92, which indicates that the nodules are formed via hydrogenetic processes. This is supported by nodule morphology (relatively smooth texture), and the low number of buried nodules recovered – most nodules are found on the surface of the seabed.

RSC estimated nodule abundance and elemental concentrations were estimated using ordinary kriging. A range of block sizes and search parameters were assessed and optimized. A range of sensitivity testing was performed which indicated the estimation was sound and robust. The Mineral Resource has been classified following S-K 1300 definitions and the accompanying TRS has been prepared in accordance with the U.S. Securities and Exchange Commission’s (SEC) Subpart 1300 of Regulation S-K, Disclosure by Registrants Engaged in Mining Operations and Item 601(b)(96) of Regulation S-K, Technical Report Summary. The classification of the resource is based on sample quality, confidence in geological understanding, and on the quality of the estimate itself, as broadly determined during the validation process. Based on the review of all the data and information provided, RSC considers the quality of the data to be fit for the purpose of classifying an Inferred Mineral Resource for the Project.

RSC as part of an Initial Assessment is of the opinion that the Inferred Mineral Resource classification is appropriate based on the informing data and underlying understanding of the mineralization and nodule abundance within the EL1 area at this stage of the Project. Furthermore, RSC is of the opinion that the EL1 area is of sufficient grade, quantity, and coherence to have RPEE at this stage of the Project development. Further work is required, particularly additional sampling at a closer spacing, to enable detailed interpretation of domaining of the mineralization to inform advanced mine studies and economic evaluation.

RSC is of the opinion that the exploration potential for the Project is high. The combination of favorable polymetallic nodule abundances and successful sample results to date from past expeditions, confirm the prospectivity of the area for discovery of additional mineral resources and eventual conversion of Inferred mineral resources to Indicated and Measured mineral resources after future sampling programs.

1.5.2 Recommendations

The exploration potential for polymetallic nodules in the Cook Islands EEZ is significant, especially within EL1, as indicated by exploration by JICA and CIC. CIC’s exploration efforts to date have focused predominantly on CBG04. Continued exploration through image surveys, and additional sampling, could provide the basis for eventually upgrading (a portion of) the Inferred Mineral Resources to Indicated and Measured Mineral Resources.

 

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The remaining CBGs remain largely unexplored by CIC and modern sampling processes. Additional exploration, particularly bathymetric mapping and infill sampling of the entire license area, should be prioritized by CIC.

RSC recommends the following actions are completed to support the ongoing Mineral Resource evaluation and expansion and to support future mining and economic studies (i.e. Scoping Study or Preliminary Economic Study) for the Project:

 

•

Undertake additional exploration (BC sampling, bathymetric mapping, ROV/AUV surveying, etc.) to further test the extent and continuity of polymetallic nodules mineralization. This includes testing parts of the EL1 area that are currently untested.

 

•

Endeavor to upgrade the MRE once;

 

○

CIC has received the Exp 4 analytical data.

 

○

CIC has completed its 2026 exploration season and all analytical results for the samples collected during 2026 have been received.

 

•

Design and create a fit-for-purpose database to ensure efficient, secure, and organized management of the exploration data.

 

•

Conduct additional ROV work to further validate nodule abundance continuity, covering representative sections of the license area.

 

•

Update sampling method and procedure documents to prescriptive SOPs that include references to the DQO and cover applicable QC procedures.

 

○

Add thresholds regarding the acceptable levels of variance in reference weight data to the SOPs. Also provide instructions for the operators regarding what steps to undertake if the reference weight data exceed the thresholds.

 

•

To send any sample that will be used to support a MRE in its entirety to the laboratory for splitting. This minimizes the introduction of additional variance or bias during the sample splitting stages. If this is undesirable due to the risk of losing an entire sample in transit, fit-for-purpose crushing and splitting equipment and procedures should be used to crush and split the samples prior to submission to the laboratory.

 

•

Using the entire sample to capture wet density, dry density and moisture content data, as this avoids having to split the sample before submission to the laboratory. RSC recommends the following process.

 

○

Capturing the wet weight of the entire nodule sample directly after the nodules have been collected from the core box, cleaned and allowed to drip-dry.

 

○

Sending the entire sample to the geochemical laboratory where the sample is dried in its entirety to determine the moisture content. The dry weight of the sample can subsequently be used to calculate the dry density of the nodules by using the sample volume of the entire sample that was determined at either CIC’s onboard or onshore laboratory.

 

○

Having the dried samples crushed and split by the laboratory.

If CIC prefers splitting the sample before sending it to the laboratory, RSC recommends equipping the vessel with an industrial oven so that the entire sample can be dried onboard the vessel after the volume determination process has been completed, but before crushing and splitting the sample at CIC’s onboard or onshore laboratory. The dry weight of the entire sample captured by CIC can subsequently be used to calculate the moisture content and dry density of the sample.

 

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•

To avoid introducing bias in the geochemistry data by also including the buried nodule component when submitting samples to the laboratory for analysis. This can be done by either combining the surface and buried nodule components after the surface and buried samples have been processed separate at CIC’s laboratories, but before submission to the geochemical laboratory, or by submitting the surface and buried nodules sample for geochemical analysis separately. In case of the latter, the geochemical composition of the entire sample can be back calculated using the surface and buried nodule sample weights.

 

•

Improve the volume determination process by (also) determining the sample volume on shore. This is particularly relevant for small samples. This recommendation is based on the assumption that the nodules do not break into small pieces during storage and transport.

 

•

Introduce strict sample security and sample custody procedures to protect the integrity of the sample. This is to avoid specific nodules from being collected by third parties, possibly biasing the sample.

 

•

Collect sample weight repeat data to test the repeatability of the scales.

 

•

Although not critical for this TRS reports, RSC recommends an independent QP partakes in at least one cruise every exploration season as this will improve the independent nature of future reports.

 

•

Design and create a purpose-built photo station, with a shroud and remote camera operation to improve the quality of the sample photographs (particularly for BC samples) taken on deck. The shroud should reduce glare and shadows on the sample.

 

•

Conduct XRF mapping and mineralogical studies of nodules to better understand the mineralogical make-up and internal structure of the nodules. This work can be completed during Phase 2 of the recommended exploration program (Table 23-1)

 

•

Submit at least 30 blind second-split repeat samples for analysis to have sufficient data for a fit-for-purpose statistical analysis.

 

•

Submit at least 30 blind pulp repeat samples for analysis to be able to independently assess the consistency of the third-split process.

 

•

Submit at least 30 blind CRM samples of one type for analysis, to allow for the statistically significant assessment of the CRM results.

 

•

Submit at least 30 pulp samples to another geochemical laboratory for umpire testing.

 

•

Conduct a sample spacing analysis to identify the sample spacing requirements to target higher-confidence mineral resources.

 

•

Ensure all sampling tools are equipped with working video equipment (including appropriate cameras and lights) to collect high quality videos of the sampling process that can be used to assess the quality of the sampling process and to quantify the sample recovery. One of the cameras ideally captures the sampling footprint on the seafloor before the sample is taken as this will allow for improving the primary sample quality assessment procedure.

 

•

If available, validate historical samples through the submission of verification samples to the laboratory.

 

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•

Conduct additional metallurgical test work to better understand the metallurgical properties of the mineralization.

 

•

Draft a conceptual mining and processing plan to better constrain the cost and limitations of the mining and processing methods.

RSC recommends the following plan of work (Table 23-1), broken down into two phases of work, where the Phase 2 program is contingent on the results of the Phase 1 program. Estimated costs are in USD.

Table 1-4: Proposed Phase 1 and 2 expenditures in USD.

 

Phase		Field		Details		Estimated Cost (USD)
1		Mineral Resource		Pending assay results from 2025 sampling, upgrade resource to Indicated in suitable areas			150,000
1		Exploration/Sampling		ROV video transects, BC and bulk sampling during 2026 cruise season.			1,250,000
Phase 1 Total							1,400,000
2		Exploration/Sampling		Multibeam mapping of entire license area			3,500,000
2		Exploration/Sampling		Sampling in wider license area based on results from multibeam mapping			2,000,000
2		Exploration/Sampling		Sampling in developed areas for environmental, geotechnical and metallurgical purposes			1,500,000
2		Mineral Resource		Update Mineral Resource based on results from Phase 2 mapping.			250,000
Phase 2 Total							7,250,000

RSC has reviewed these expenditures in the context of the work activities recommended for the Project and considers the proposed budgets consistent with the exploration potential of the Project, adequate to cover the costs of the proposed programs, and appropriate for the type and weighting of activities at the Project

 

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2. Introduction

2.1 Registrant Information

CIC LIMITED (the Company, CIC, or the Registrant), a Cook Islands company, is completing exploration work on the EL1 property (the Property), located in the EEZ of the Cook Islands in the South Pacific Ocean This Initial Assessment and Technical Report Summary (TRS or Report) was prepared for CIC by RSC Consulting Ltd (RSC). The purpose of this Report is to support CIC’s disclosure of Mineral Resource estimate (MRE) for the EL1 property for the fiscal year ended December 31, 2025. No Mineral Reserve estimate is reported in this Report. This TRS has been prepared in accordance with the U.S. Securities and Exchange Commission’s (SEC) Subpart 1300 of Regulation S-K, Disclosure by Registrants Engaged in Mining Operations and Item 601(b)(96) of Regulation S-K, Technical Report Summary.

All currency amounts are in United States dollars (USD) unless otherwise stated. Tonnages are expressed as metric tons (t), unless otherwise stated.

The effective date of this TRS report is December 31, 2025. RSC confirms that there are no known material changes impacting the MRE.

Except where noted otherwise, coordinates in this TRS are presented in degrees, using World Geodetic System 84 (WGS84) Lat Long/European Petroleum Survey Group (EPSG) code 4326. The data informing the MRE were reprojected using a custom equal area projection. This was necessary because the modelling software required cartesian coordinates and because the project spans two Universal Transverse Mercator (UTM) zones (UTM zones 3S and 4S).

The interpretations and conclusions reached in this Report are based on current scientific understanding and the best evidence available to RSC at the time of writing. It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high the probabilities might be, make no claim for absolute certainty.

The ability of any person to achieve forward-looking production and economic targets depends on numerous factors beyond RSC’s control and that RSC cannot anticipate. These factors include, but are not limited to, site-specific mining and geological conditions, management and personnel capabilities, availability of funding to properly operate and capitalize the operation, variations in cost elements and market conditions, developing and operating the mine efficiently, unforeseen changes in legislation, and new industry developments. Any of these factors may substantially alter the performance of any mining operation.

2.2 Sources of Information

The information in this TRS is based on data supplied by CIC. CIC provided the following information through a shared Dropbox folder:

 

 

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RSC has endeavored to confirm the authenticity and completeness of the technical data upon which the Report is based by making all reasonable enquiries within the time available.

2.3 Qualified Persons

2.3.1 RSC Consulting Ltd: Third-Party Consulting Firm

This Report was prepared by RSC, a third-party consulting firm comprising mining experts in accordance with § 229.1302(b)(1)1. CIC has determined that RSC meets the qualifications and relevant experience specified under the definition of Qualified Person (QP) in § 229.1300. With the exception of specific references to Dr. Simon Nielsen, any references to the Qualified Person or QP in this report are references to RSC and not to any individual employed at RSC.

 

•

RSC takes responsibility for Sections 1, 2.1–2.3, 8.5–8.6, 9.2– 9.3, 11–19 and 21–25 of this TRS.

2.3.2 Dr. Simon Nielsen

RSC prepared this Report in close collaboration with Dr. Simon Nielsen, who is a co-author of this TRS. CIC has determined that Dr. Nielsen also meets the qualifications and relevant experience specified under the definition of Qualified Person (QP) in § 229.1300. Dr. Nielsen is a marine geologist and Member of the AusIMM, an internationally recognized professional organization as defined in § 229.1300. He holds bachelor and candidate degrees in geology from Copenhagen University in Denmark and a doctorate in geology from the University of Tromsoe, Norway, with more than ten years of experience with marine coring and drilling for academic research in the polar regions. He has five years of experience with offshore phosphate and polymetallic nodule projects in the Pacific region, as well as more than ten years of experience with terrestrial mineral exploration, including 2D and 3D geological and geostatistical modelling for projects mainly located in Australia and New Zealand, as well as in Canada, Oman and Turkey.

Dr. Nielsen contracts as a consultant to CIC (the Registrant), filling the role of Chief Marine Geologist. He was onboard the MV Seasurveyor for Expedition (Exp) 1, Exp 4 and Environmental Research Survey (ERS) 1, as well as on the MV Anuanua Moana for Exp 2, in all cases functioning as chief scientist and offshore project manager. He prepared the SOPs, QC check points and data entry forms and templates. He also led and oversaw the back deck sample processing and the onboard lab sample processing. He holds no equity in CIC or companies affiliated with CIC.

 

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In preparation for this Report Dr. Nielsen also travelled to RSC’s office in Dunedin, New Zealand and spent approximately two weeks, from 12–25 January 2026, working closely together with RSC’s team to review and validate all supporting data and to discuss his site visits in detail.

Dr. Nielsen takes responsibility for Sections 2.4, 3–8.4, 9.1, 10 and 20 of this TRS.

2.4 Site Visit & Personal Inspection

RSC staff did not complete a site visit of the Project. However, Dr. Simon Nielsen, CIC’s Chief Scientist and co-author (QP) of this TRS, took part in most exploration cruises (Exp 1, Exp 2 and Exp 4) undertaken by CIC, with each cruise doubling as a site visit (personal inspection) as required under S-K 1300. For most cruises, Dr. Nielsen was the Offshore Project or Operations Manager, and he is therefore intimately familiar with the work that has been completed. The information that Dr. Nielsen provided with respect to the site visits aligns fully with the information and data provided to, and validated by, RSC. Underwater video footage of the sampling operations played a particularly important role, as this allowed RSC to validate the presence or absence of the mineralization at almost every sampling location. The visits took place during the periods listed below. Additional details about the site visits that Dr. Nielsen took part in are provided in Sections 9.1.1 to 9.1.4.

 

•

Exp 1: 15 June–9 September 2022, on board the MV Seasurveyor;

 

•

Exp 2: 6–31 August 2023, on board the MV Anuanua Moana;

 

•

Environmental Research Survey 1: 8–16 November 2024, on board the MV Seasurveyor; and

 

•

Exp 4: 9 June–30 September 2025 (Leg 1) and 7–27 October 2025 (Leg 2), on board the MV Seasurveyor.

 

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3. Property Description

3.1 Location of Property

The Project is situated within the EEZ offshore of the Cook Islands, in the South Pacific Ocean (Figure 3-1). The Project is located on the seabed, more than 5,000 m below sea level. The Project is centered at 17.5° S latitude and 160.5° W longitude (WGS84), which is 261 miles (420 km) north from Rarotonga, Cook Islands, 105 miles (170 km) north from Aitutaki, Cook Islands, and ~2,300 miles (3,700 km) northeast from Wellington, New Zealand. While the Project is confined to the boundary of the EL1 area, which covers an area of 81,678 mi² (211,545 km²), the Project is part of a wider known deposit of polymetallic nodules found within the Cook Islands EEZ.

 

Figure 3-1: EL1 Project location.

 

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3.2 Exploration Licenses & Mineral Rights

EL1 was granted to CIC Ltd, a Cook Islands registered company whose primary shareholder is CIC LLC, on 23 February 2022 by the Seabed Minerals Authority (SBMA) on behalf of the Cook Islands Government (Table 3-1). The exploration license (EL) is valid for a term of five years and expires on 23 February 2027. An application for license renewal can be made at least 90 days before the expiry of the license in line with Section 63 of the Seabed Minerals (Exploration) Regulations (2020).

The license area comprises 2,592 5’ × 5’ blocks, grouped into ten contiguous block groups (CBGs) (Figure 3-1).

Table 3-1: Status of CIC’s license.

 

License

License Name

Ownership

Commodities

Grant Date

Expiry Date

Size (mi2)

EL1

Exploration License 1

CIC

Polymetallic nodules

23 February 2022

23 February 2027

81,678

The conditions for CIC’s exploration license EL1 include a relinquishment schedule as follows:

 

•

20% of the total license area must be relinquished after 3 years of exploration activities.

 

•

Up to an additional 40% of the total license area must be relinquished by the end of the 5-year license period.

The first relinquishment is currently being negotiated between CIC and SBMA. Relinquishment of an area less than the proposed relinquishment area in the schedule by the stated times is possible and will be subject to discussion between CIC and SBMA.

3.3 Royalties & Encumbrances

Royalties are defined in the Seabed Minerals (Royalties) Regulations (2013). The regulations state that holders of a mining license are liable for a royalty equal to 3% of the export value of minerals recovered under a mining license. The export value of minerals recovered is the free-on-board (FOB) price received. Transfer pricing considerations are included in Income Tax (Transfer Pricing) Regulations (2014).

CIC currently holds one exploration license (EL1). To upgrade the EL to a mining license (ML), CIC must meet the terms specified under section 67 of the Seabed Minerals (Exploration) Regulations (2020), which involves the license holder having:

 

•

s67(a): collected and analyzed data and information to at least a pre-feasibility study level in all material respects;

 

•

s67(b): completed in all material respects the studies and investigations relating to an environmental impact assessment (EIA) study for a mining license application; and

 

•

s(67c): established the existence of seabed mineral resources or reserves that have the potential for commercial recovery.

 

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Under the Seabed Minerals Act (2019) (consolidated as of 2024), any royalties paid to the Crown or the Authority (SBMA) are to be managed by the Ministry of Finance and Economic Management separately from other public money within an established sovereign wealth fund.

The Income Tax Act (1997) (consolidated as of 2023) contains provisions concerning various tax issues, including:

 

•

tax payable by local companies (20%; all license holders are required to be local companies) as well as foreign contractors (28%);

 

•

deductions and exempt income (for example, deductions related to ongoing exploration and remedial work and environmental funds);

 

•

ring-fencing of accounts and income to the jurisdiction;

 

•

write-downs and capital gains tax;

 

•

withholding tax; and

 

•

additional profits tax, including adjustments and instalments.

3.4 Environmental Liabilities & Permits Required for Work

RSC is not aware of any environmental liabilities in the Project area.

Activities under the Environment Act (2003) and Environment (Seabed Minerals Activities) Regulations (2023) are managed under a tiered system: Tier 1 activities are managed under the exploration license, Tier 2 activities require Environmental Consent, and Tier 3 activities require an Environmental Permit after submission of an EIA report.

For exploration activities, CIC must provide environmental notice (e.g. environmental significance declaration) and an objectives plan prior to each cruise to the National Environmental Service and SBMA.

For activities including (trial) mining and mineral harvesting, CIC needs to undertake an environmental risk assessment, environmental scoping exercise and EIA, and provide an Environmental Impact Statement (EIS), Environmental Management System including an Environmental Management and Monitoring Plan (EMMP), and closure plan. Guidelines regarding the various environmental assessments, plans and statements are reported on the SBMA website (https://www.sbma.gov.ck/standards-guidelines); however, some plans are still in the drafting process.

CIC has undertaken several campaigns collecting data for environmental research:

 

•

Environmental Survey RC03 in 2023, completed under SBMA’s Research Permit for Small Environmental Programs (rpSEP): A single line of multibeam data recorded in CBG03 and CBG04.

 

•

Environmental Survey RC05 in 2023 (also under rpSEP): A 5-km transect imaged by ROV in CIC’s CBG04 area, commencing at station AIT024.

 

•

CIC Environmental Research Survey 1 (ERS01) in CBG10 (2024): 16 stations surveyed with an AUV recording multibeam echosounder, side-scan sonar, magnetic, and seafloor still photograph datasets.

 

•

CIC Exp 4 Leg 2 in 2025: Environmental sampling in CBG04 using a multi-corer.

 

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To maintain a social license for exploration activities, CIC frequently engages with local groups and community leaders. SBMA also tours the islands, to bring local populations up to date with exploration activities. The license holders, including CIC, will at times accompany SBMA on these journeys.

3.4.1 Exploration Environment Programs & Impacts

Exploration licenses granted in the Cook Islands require applicants to submit detailed work programs, including Environmental Management Programs (EMPs), that seek to describe the marine environment prior to any consideration of further development. The EMPs are reviewed by an independent panel (Licensing Panel) that includes selected experts in the deep-sea minerals’ marine environment. The programs are also public documents and available from the SBMA website (https://www.sbma.gov.ck/register-of-titles).

Cook Islands’ environmental legislation is broadly aligned with equivalents in other jurisdictions such as the International Seabed Authority (ISA) and New Zealand, and exploration activities are managed through a tiered system at both Act and Regulations levels. Activities expected to have minimal impact (such as MBES survey, BC and FFG sampling) are permitted under the exploration license (an expedition notice is required to be submitted beforehand). Activities likely to have greater impact (such as large-scale sample dredging) require environmental consent, and activities such as trial mineral harvesting will require an approved and fit-for-purpose EIA and a comprehensive EMMP.

Standards and guidelines developed by the SBMA (https://www.sbma.gov.ck/standards-guidelines) seek to encourage innovation, focusing on reducing exploration impacts to as low as reasonably possible, e.g. through use of lower-impact sacrificial ballast. Some of these are interim, and while carrying legal weight these are to be refined in the future.

3.4.2 Environmental Impacts from Minerals Harvesting

The exact nature of impacts (or pressures) from mining of nodules is still unknown due to limited testing and studies and because actual mining of nodules has not yet taken place. Polymetallic nodule mining has only been demonstrated at a pilot scale, with collectors with or without attached risers operating for very limited amounts of time and covering only very small areas.

Conceptual views on minerals harvesting and associated impacts usually fail to properly express scale (both globally in terms of the deposit, and locally in terms of landform and deposit internal continuity), which is understandable given the spatial complexity of any likely operation. The pilot programs of the late 1970s (Parianos et al., 2016) as well as benthic impact experiments of the time (Parianos et al., 2016; Jones et al., 2017) provide some useful information on plume extents and organism recovery, but these tests are predicated on technology that is unlikely to be used industrially in the near future.

In 2018 and 2021, BGR (2018) and Global Sea Mineral Resources (2018) tested collector prototypes. In 2022, The Metals Company (2023) conducted an integrated mining test. When post-test surveys are complete, it may prove possible to apply learnings from these to inform impact assessments in the Cook Islands (Mormede et al., 2021).

 

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Lists of potential impacts and a description of possible issues related to them are useful as checklists for modeling and monitoring programs, e.g. Flynn (2025). Cumulative impact assessment modeling (Dunstan et al., 2019) may help to put such list items in context in terms of priority and uncertainty.

At this stage, the environmental impacts associated with metallurgical processing (including generation of plant tailings) are unknown. However, it is reasonable to assume that such impacts would be roughly similar to those from existing bulk oxide metallurgical processing plants.

Under the Cook Islands governance framework, development proponents need to supply an independently reviewed EIA prior to any consideration for an application for a minerals mining license. The onus on the proponents is thus to demonstrate that the development will not lead to serious harm in the marine environment.

3.4.3 Environmental Baseline Studies

Environmental baseline research is work in progress for the CIC exploration program. Several expeditions undertaken by CIC include environmental sampling and/or data collection. As a minimum, each expedition collects marine wildlife observations. An initiative to train CIC personnel and local people as observers to international standards is in development.

During Exp 1 and Exp 4 Leg 1 environmental DNA (eDNA) samples were collected from BC sediments. The Exp 1 eDNA samples were compromised during transport and unfit for study. The eDNA samples from Exp 4 have not been analyzed at the effective date of this Report.

In addition, during Exp 4 Leg 1 subcores were collected from BCs to supply samples for environmental geochemistry, foraminiferal, and meiofaunal studies. CTD data were collected from Exp 1 and Exp 4, to be analyzed for water column properties and spatial variability.

Multicores collected during Exp 4 Leg 2 were sent to universities and institutions in Florida, USA, and in New Zealand, for further study. These studies are ongoing, and the results were not available by the effective date of this Report. Methods for quantitative analysis of datasets gathered by ROV and AUV during RC05 and ERS 1 are in development.

An Environmental Scoping Exercise Report for the CIC Project was generated by EMM Consulting in 2024. In 2025, EMM prepared An Environmental Risk Assessment for Trial Minerals Harvesting for the Project.

3.5 Significant Encumbrances to the Project

RSC is not aware of any significant encumbrances to the Project, and the exploration license remains in good standing as of the effective date of this TRS.

3.6 Other Significant Factors or Risks

RSC is not aware of any significant factors or risks that may affect access, title to the right, or ability to perform work on the Project.

 

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4. Accessibility, Climate, Local Resources, Infrastructure & Physiography

4.1 Accessibility

The Project area is in the Pacific Ocean and only accessible via ship. Exploration operations are conducted by ocean-going vessels. There are no access restrictions within the Project area. The area is open to shipping and fishing vessels; therefore, public notices to mariners are required to be filed by license holders for any deployment of equipment, moorings, or operations that could affect shipping.

Most vessel movements within the EEZ are through-traffic, typically traveling between the Americas and Southeast Asia, or Australia, or traffic moving between island groups. Large numbers of vessels are tracked to the west of the Cook Islands, in Samoa and to the east, near Tahiti. On a global scale, shipping and total vessel traffic in the EEZ is generally low, but commercial shipping is critical to the delivery of products to Cook Islands and the economy in general. Avatiu Harbour on Rarotonga is an international seaport and main commercial harbor in Cook Islands. It receives most of the SOLAS (Safety of Life at Sea Convention) vessels, including dry cargo, cruise ships and yachts.

Cook Islands Port Authority (CIPA) manages the Port of Avatiu and is a 100% state-owned entity (Asian Development Bank, 2005). Reconstruction of Avatiu Harbour was completed in 2013 to provide a deeper harbor with increased capacity for larger vessels. The Port of Avatiu is limited in size and infrastructure, which places restrictions on the size class of ships that can be accommodated. Two international shipping lines service the Cook Islands on an approximate three-week cycle.

Island Councils administer unregulated harbor facilities on the other islands, with technical support provided by the Ministry of Infrastructure Cook Islands (ICI) and CIPA. Inter-island shipping is essential and is offered by the private sector. The overall quality of inter-island shipping is of low standard.

The nearest international port to the Project is the Cook Islands and international airport on Rarotonga.

4.2 Climate

The Cook Islands lie within the extensive and persistent trade wind zone of the South Pacific. The area has a tropical, mild maritime climate (21–28°C) with a pronounced warmer, wet season during November to April, when two-thirds of the ~2,000 mm annual rain falls, and a cooler, dry season from May to October.

The warmer season coincides with the cyclone season for the South Pacific region. Cyclones tend to form to the far west of the northern Cook Islands and migrate toward the southeast, often reaching latitude 15°S if not further south.

The weather is often strongly influenced by large inter-annual variations and the El Niño Southern Oscillation phenomenon. During El Niño years, the southern Cook Islands experience a reduction of rainfall, by up to 60% of the annual rainfall, while in the northern Cook Islands rainfall increases by up to 200%. The situation reverses during the La Niña phase.

 

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A climate risk study for the Cook Islands by Asian Development Bank (2005) focused on the potential for extreme wave and wind events primarily driven by tropical cyclones. Annually, the Cook Islands receive between zero and three cyclones, with an increase in tropical cyclone frequency during El Niño conditions.

4.3 Seafloor Bathymetry (Physiography)

The CIC license area covers ~10% of the Cook Islands EEZ. Bathymetric coverage is generally poor, with GEBCO global bathymetric data being the only available bathymetry for the majority of the license area. High-resolution (50 m) bathymetry is available for ~15% of the Project area. The high-resolution bathymetry data were collected by CIC during Exp 3. The Project area comprises mainly low-lying abyssal plains of the Southern Cooks Basin, Penrhyn Basin and Samoa-Niue Basin (Browne et al., 2023). Part of the license follows the Manihiki-Palmerston Fracture Zone (Figure 4-1). Bathymetry in the license area generally varies from 4,700–5,300 m below sea level.-1

 

Figure 4-1: Bathymetric map of the Project area.

 

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4.4 Local Resources & Infrastructure

The Project area is remote and at sea, with no services available other than those provided by the exploration vessels visiting the Project area. The nearest port for logistic support is the Port of Avatiu, in Avarua, Rarotonga, ~261 miles (420 km) or 22 hours at 10 knots south of the Project centroid. Ships can also anchor at the Arutanga Port, Aitutaki, which is 105 miles (170 km) or 9 hours at 10 knots south of the center of the Project area.

The island of Rarotonga hosts the Cook Islands international airport and has facilities including a hospital, food and trade stores, and has the highest population of the Cook Islands. The regional airport on Aitutaki operates daily flights to Rarotonga. Fuel is available in Rarotonga, although ocean-going ships typically refuel in Papeete, Tahiti.

For future exploration and mining of the seafloor, CIC would require custom exploration/mining and supply vessels, including crew.

 

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5. History

5.1 Tenure & Operating History

The EL1 license area, or any part thereof, has not been held by any operator other than CIC.

5.2 Exploration History

 

5.2.1

Cook Islands

The first cruise programs dedicated to investigating nodules in the Cook Islands and adjacent regions were mounted in the mid-1970s by the New Zealand Oceanographic Institute. As a precursor to this, the Institute compiled all available data from Challenger and Eltanin cruises, completed elsewhere in the region, into maps of the nodule properties, including their Mn, Fe, Ni, Co, and Cu contents, and their distribution (Glasby et al., 1974). Further cruises were undertaken in the late 1970s, targeting polymetallic nodules in the South Penrhyn Basin and Aitutaki Passage. Between 1976 and 1981, the Committee for Coordination of Joint Prospecting for Minerals Resources in South Pacific Offshore Areas (CCOP/SOPAC) carried out several cruises in the Cook Islands region. During these cruises, nodules were collected, and the results of their analyses served to define areas of potential economic interest to be surveyed in more detail by later cruises under the Japan-SOPAC Cooperative Study on Deep Sea Mineral Resources in the South Pacific (Cronan, 2013) .

There have been several expeditions in the Cook Islands for polymetallic nodules, which are documented in Tay et al. (2023b), with multiple historical cruises taking samples from within the EL1 area.

5.2.2 EL1

The only exploration within the EL1 area that predates the exploration undertaken by CIC was carried out by the Japan International Cooperation Agency (JICA) between 1986 and 2000.

In response to the request of CCOP/SOPAC (see section 5.1), the Japanese Government conducted seabed mineral exploration in the South Pacific. Implementation and execution of the survey were consigned to JICA in cooperation with the Metal Mining Agency of Japan (MMAJ). JICA conducted three expeditions to the Project area using the RV Hakurei Maru No. 2 in 1986, 1990 and 2000 (Figure 5-1). An in-depth summary of the JICA sampling program is given in Tay et al. (2023a). A short summary is presented below. A summary overview of the JICA data quality is provided in Section 8.5.2.

Samples were collected by BC, FFG, long core (LC) and armed dredge (AD) tools. A summary is provided in Table 5-1. Survey stations were placed based on datum lines every 1° (111 km) in latitude and longitude (Figure 5-2). Infill sites were placed on a 39.3-km (21.5-mi) grid. Three samples (FFG or BC) were collected at each survey station in the form of an inverted triangle (Figure 5-3). The base sampling point of each station was set at the southern apex of the triangle, and the two other samples were collected at the remaining apexes of the triangle. Sampling points were ~2.6 km (~1.4 mi) apart. Sampling was conducted in a clockwise direction.

 

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Figure 5-1: Historical samples within the Project area.

 

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Table 5-1: Summary of historical sample type by year.

 

Year Collected		No. of FG Samples		No. of ‘Oth’ Samples		No. of SC Samples		Total Number of Samples
1976		3						3
1978		10		1				11
1983		31		2				33
1985		52		21				73
1986		21						21
1990		18				1		19
2000		34				2		36
No date		2		1				3
Total samples		171		25		3		199

 

Figure 5-2: Standard survey station layout used by JICA.

 

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Figure 5-3: Standard station sampling layout used by JICA.

Sample locations were collected by different satellite systems for each expedition, with accuracy improving with each survey (Table 5-2). Sample locations were determined by the ship’s location during deployment. It is noted that sampling equipment can drift (including tethered sampling methods). Sample location precision is estimated to be in the order of 100–500 m against a sample spacing of ~25 km.

Table 5-2: JICA-MMAJ navigation systems.

 

Expedition		Satellite system		Comments
1986		Navy Navigation Satellite System (NNSS) or Transit		Corrected positions between updates from the NNSS (Doppler rangefinder) indicate a surface accuracy of 200–500 m. The system likely used WGS72 as the geographic coordinate system (GCS).
1990		GPS + NNSS		GPS is likely Navstar. Accuracy of the system at the time of surveying is likely to be ~200 m. WGS84 as GCS.
2000		GPS + GLONASS		Accuracy of the system at the time of surveying is likely to be 20–60 m. WGS84 as GCS.

During the 1986 and 1990 cruises, the samples were assayed by X-ray fluorescence (XRF) onboard the vessel for Cu, Co, Fe, Mn, and Ni. Samples collected during the 2000 cruise were analyzed at ALS Laboratories, Canada, by inductively coupled plasma emission spectroscopy for Cu, Co, Fe, Mn, Ni, Ti, Si, Al, Ca, Na, K, and P.

JICA expeditions were also equipped with deep-sea cameras that collected a photograph of the mineralized seabed prior to a sample being collected.

For the 1986 expedition, the RV Hakurei Maru No. 2 was equipped with a multi-frequency exploration system (MFES) to collect high-resolution bathymetry data of an area of the Cook Islands EEZ known as the Central Area or 16-159. The area covered by this expedition does not overlap with the CIC license area.

 

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Figure 5-4: Cook Islands nodule sampling expeditions. The Project outline in white. Modified from Tay et al. (2023b)

5.3 Production History

To date, there has been no commercial production of polymetallic nodules from the Project area.

 

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6. Geological Setting, Mineralization & Deposit

6.1 Regional Geology

6.1.1 Global Distribution of Nodules

Polymetallic nodules with various grades of base metals are found in submarine settings worldwide (Monget, 2015). This widespread distribution was recognized by the early 1970s when Kennecott Exploration surveyed all the major ocean basins (Figure 6-1). Nodules form at a wide range of depths, from 4,000–6,000 m below sea level in the mid Pacific to 200 m below sea level in the Gulf of Bothnia (Boström et al., 1982) and 30 m in the Baltic Sea (Anufriev and Boltenkov, 2007). The location of nodule formation is reflected in nodule chemistry. Nodules with relatively high Co grades are found within the Cook Islands EEZ (Table 6-1) – often accompanied by high nodule abundances.

 

Figure 6-1: Fe-Mn crust and nodule samples collected from around the world. Cook Islands EEZ is outlined in red.

Sourced from Monget (2022).

 

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Table 6-1: Chemical compositions of nodules from different areas of the global ocean. Modified from Kuhn et al. (2017).

 

Element		CCZ				Eastern CCZ				Central CCZ				Peru Basin				Indian Ocean				Cook Islands				Gulf of Cadiz				Baltic Sea				Fiji Basin
Mn (%)			28.4				31.4				27.56				34.2				24.4				16.1				6.03				18.1				40.23
Fe (%)			6.16				6.3				6.1				6.12				7.14				16.1				38.58				14.5				0.48
Ni (%)			1.3				1.4				1.36				1.3				1.1				0.38				0.01				0.01				0.01
Cu (%)			1.07				1.18				1.08				0.6				1.04				0.22				0				0				0
Co (%)			0.21				0.17				0.25				0.05				0.11				0.41				0.01				0				0
∑REE (ppm)			813				701				801				403				1,039				1,678				78				—				—

6.2 Local Geology

6.2.1 Tectonic Setting

The Cook Islands include some of the oldest (90–124 Ma) known oceanic seafloor (Müller et al., 2016), compared to a global average oceanic crust age of 64 Ma (Seton et al., 2012). To the northwest, the Manihiki Plateau is dated ~123–124 Ma (Taylor, 2006; Timm et al., 2011), and might be part of a much larger submarine large igneous province that rifted apart shortly after its formation. The plateau has boundary faults and horsts on its northern and eastern sides as well as internal and broadly sub-parallel rift zones (Figure 6-2) (Winterer et al., 1974). Dating of the region is compromised by a lack of detailed seabed magnetic data. Much of the formation formed during the Cretaceous long normal period (Chron 34, 124.6–84 Ma).-2

 

Figure 6-2: Tectonic setting of the Cook Islands EEZ and surrounding seabed. The Project is outlined in black on the left.

Volcanic edifices are superimposed onto the seabed geology (Figure 6-3). These include isolated chains of seamounts and knolls as well as more continuous volcanic rises. The chains are in a variety of orientations, but predominantly west-northwest trending and some are interpreted to have resulted from hotspot activity (Wessel and Kroenke, 2008; Jackson et al., 2020). Knolls and seamounts are found on the plateau as well as the abyssal plain, not least in the western Manihiki Plateau.

 

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Figure 6-3: Volcanic chains and hotspot tracks. Tracks after Wessel and Kroenke (2008) and Jackson et al. (2020). Refer

to Figure 6-2 for the names of other features.

6.2.2 Ocean Currents

Two major oceanic currents supplying well-oxidized bottom water are thought to influence mineralization in the Cook Islands EEZ (Glasby et al., 1986). The westward-flowing Southern Equatorial Current system (Figure 6-4) is derived from a divergence along the equator that leads to the upwelling of nutrient-rich waters, stimulating high biological productivity. The current system is the northern limb of an anticlockwise-circulating gyre within which the Cook Islands EEZ sits. Biological productivity in the southern part of the Cook Islands EEZ is low (Lutz et al., 2007; Cronan, 2013).

The Antarctic Bottom Water, which flows between the seafloor and ~3,500 m, has been inferred to flow to the northeast along the Aitutaki Passage (Usui, 1983), along the ridge immediately south of the Nova-Canton Trough (Yamazaki, 1992), and around the northeastern margin of the Manihiki Plateau to enter the North Penrhyn Basin (Figure 6-4). The formation of polymetallic nodules has been attributed to increased flow of the Antarctic Bottom Water during the Paleogene or Cretaceous (Usui, 1994).

 

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Figure 6-4: Schematic of ocean currents in and near the EEZ. Source: Cronan (2013).

 

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6.2.3 Seabed Morphology

The 2021 GEBCO grid was used as the basis for a 1: 4,000,000-scale geomorphological map of the Cook Islands seabed (Figure 6-5). This was supplanted with MBES bathymetric data, regional magnetic field data, and mapping from the literature review.

Mapped units comprise the following:

 

•

Abyssal plains: areas with limited relief except for abyssal hill traces and small knolls. Typically presented as ‘basins’ bound by major features, e.g. transform fracture zones, plateaus, and volcanic rises. Interpreted to be the domain containing significant amounts of polymetallic nodules within the Cook Islands EEZ.

 

•

Abyssal plain lows: restricted areas of abyssal plains characterized by slightly greater depth (100–300 m) than adjacent plains.

 

•

Knolls: probable volcanic edifices <1,000 m high, found on plains and plateaus. Only the larger knolls were mapped, either as singular (usually circular) or compound forms. Found among seamount chains but may form their own chains.

 

•

Seamounts: probable volcanic edifices >1,000 m high, found on plains and plateaus. Typically form chains of various orientations, including the Hawaiian-Emperor orientation. Chains often grade into volcanic rises. Mapped as singular (usually circular) and compound forms. Islands within the EEZ are mapped seamounts that breach the sea surface. The existence of flat-topped edifices located on the Manihiki Plateau may support a past shallower position.

 

•

Volcanic rises: typically, elongated rises of probable volcanic origin. Merge into volcanic chains and compound forms of seamounts. Some are very extensive, including the Boudeuse Volcanic Rise at the eastern limit of the Penrhyn Basin. Volcanic chains are lineaments of interrupted alignments of seamounts and knolls.

 

•

Plateaus: extensive areas of seafloor elevated (500–2,000 m) relative to plains. Do not present evidence of abyssal hills; all units are likely to be part of the much older Manihiki Plateau, which is known to have significant sediment cover (in some places ~1 km thick). Some parts of the plateaus have more knolls; it is not known if this is due to later volcanic activity or differing amounts of sediment cover.

 

•

Tectonic rises: typically, elongate rises of probable tectonic origin along the northern and eastern edges of the Manihiki Plateau and along the Manihiki-Palmerston Fracture Zone, which trends to the southeast of the plateau.

 

•

Troughs: narrow/elongated and typically aligned depressions that are 500–1,000 m deep. Typically cut both plains and plateaus.

 

•

Mapped faults: mapped breaks in the seabed bathymetry either at a high angle to prevailing abyssal hill traces or of too great a magnitude to be the normally faulted escarpments of abyssal hills.

 

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Figure 6-5: Seabed geomorphology for the Cook Islands and surrounds. Source: Browne et al. (2023). ECS: Extended Continental Shelf application.

6.3 Property Geology

The region covered by the EL1 license is generally poorly covered by high-resolution bathymetric data. CIC has acquired 50-m resolution multibeam data covering ~15% of the license area, concentrated in the CBG04 area. The seafloor features of the CBG04 area consist of relatively flat abyssal plains, with scattered sea knolls and seamounts. In the center-west of the Project, concentration of sea knolls and seamounts is higher. There are approximately east-west striking lineations across the southern half of CBG04 resulting from the bathymetric slope differences defined as ‘hills’ and ‘valleys’ (Figure 7-4). Approximately north-south trending chains of depressions, depicted by ‘Slopes > 10deg’ in Figure 7.4, characterize the bathymetry of the east and south areas of CBG04.

Red clay is the dominant sediment in abyssal basins of the South Pacific (Glasby, 1976), described as predominantly zeolite-rich and red-brown pelagic clay, with biogenic silica and carbon increasing with decreasing latitude and at depths above 4,800 m (Heine et al., 2015).

The CBG01 area is covered only by GEBCO bathymetric data, and appears to be characterized by northeast striking linear ‘hills’ and ‘valleys’ visible in transit multibeam data embedded in the GEBCO bathymetry. There is one conspicuous seamount in the northwest of the Project area (Figure 7-2). The seamount rises to ~2,160 m below the sea surface, or ~2,600–3,000 m above the surrounding seafloor (GEBCO, 2024).

 

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Fine pelagic sediments described as red or brown clay are the predominant sediment type in CBG04 (Figure 6-6) and CBG01 (JICA-MMAJ, 2001). Deposition began during the pre-late Miocene, with the surface sediment likely to be deposited within the last 500 kyr (JICA-MMAJ, 2001). Sub-bottom profiling indicates that abyssal plains are covered by unconsolidated sediments, ≤20 m thick, and rarely exceed 40 m (JICA-MMAJ, 2001).

Seamounts are classified as acoustic Type D1, representing exposed rocks (see JICA-MMAJ, 2001), such as the large seamount in the NW corner of the CBG01 area and scattered small seamounts/knolls within CBG04. There is an acoustic transition zone (Type D2) between the flat plains and seamount/knoll zones that is inferred as exposed rocks, which may be covered by consolidated sediment or crust-like material (Figure 6-7; JICA-MMAJ (2001)). Any sediment in this area, if present, would be thin.

 

Figure 6-6: Stratigraphic column from gravity cores collected by JICA-MMAJ in the 16-159 Area or Central Area, which is directly adjacent to and north of the CBG04 area. Brown clay and insoluble brown clay are the most common types of sediment. After JICA (1984).

 

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Figure 6-7: Sub-bottom profiles from (JICA-MMAJ, 2001).

 

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6.4 Mineralization

The mineralization occurs at the water-sediment interface on the seafloor, in the form of polymetallic nodules that are significantly enriched in Co, Ni, and Cu. Locally, a minority component of the nodules occurs within the sediment, up to 30 cm deep (Figure 6-6). Polymetallic nodules are ubiquitous on the abyssal plains surrounding the Cook Islands, mostly at depths between 4,800 and 5,200 m (Kenex, 2014), in the shape of nodules fields that are continuous on a scale of tens of kilometers, essentially forming 2D deposits that trace the sediment-water interface.

The continuity of the mineralization on a regional scale (10s of km) is one of the main characteristics of this deposit type and a direct result of the factors controlling the mineralization also operating a regional scale (see section 6.5). Within areas that are conducive to nodule formation, smaller-scale (several 100s of m) features can be present (e.g. knolls, escarpments, sub-circular depression and grooves) that prevent or negatively influence nodule formation. In general, within the abyssal plains, the areal extent of these smaller-scale features tends to be marginal compared to the areal extent of the nodule field.

Because the thickness of the mineralized layer (up to several decimeters) is five orders of magnitude less than the lateral extent of the nodule fields (several 10s of km), no meaningful cross sections can be drafted. The closest alternative to a cross section is formed by a series of stratigraphic columns as presented in Figure 6-6.

The nodules within the Project area are dark brown to black and measure up to ~20 cm along their long axis. Nodule shape and size are highly variable across the Project area, ranging from centimeter-sized, irregularly shaped pellets to decimeter-sized spheres and plates. See Section 7.3.4 for a detailed description of nodule morphology. The nodules exhibit concentric layering, with the nucleus often being a ‘foreign’ object (e.g. a shark’s tooth or a piece of pumice) (Figure 6-8).

 

Figure 6-8: Nodule section showing a couple of shark teeth as nuclei surrounded by concentric growth bands.

 

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The layers are composed of various amounts of Mn- and Fe-rich minerals depending on the conditions for deposition, such as buserite (diagenetic manganate) and vernadite (hydrogenetic Fe-Mn oxide) as determined by XRD analysis (Usui et al., 1993). The nodules within the Project area have elevated concentrations of several metals, mainly Fe (~16%) and Mn (~16%), but are also significantly enriched in Co (~0.4%), Ni (~0.4%), ~Cu (~0.2%) and REE (1,678 ppm on average) (Kuhn et al., 2017). The geochemical variation, including that of the elements of economic interest, is very low at the scale of the Project area. Given that the shape and size of the nodules is dependent on a combination of physical factors, the abundance of nodules (i.e. the total wet weight of nodules per square meter) tends to be laterally variable. This variability is often directly coupled with changes in seafloor morphology.

Nodules with a relatively high Co grade (>0.26% Co) are found in the central Cook Islands (including the Project area). The higher grades are likely due to a high proportion of hydrogenetic growth, promoting the relative accumulation of Co ions in the oxic vernadite crystal structure (Fe is >13%) and a highly oxygenated bottom water mass (assumed to be the Antarctic Bottom Water). Similar controls on mineralization are described for ferromanganese crusts on seamounts and guyots where Co grades are typically >0.5% and have reported >1% Co (Hein and Morgan, 1999; Hein and Koschinsky, 2014).

In the northeastern Cook Islands, higher Ni and Cu grades are associated with higher primary productivity (surface plankton). Net export of this may have also helped lead to suboxic conditions and higher Ni and Mn grades, similar to those described in the CCZ (Lipton et al., 2016).

The mineralization within the EL1 area is consistent with nodule mineralization elsewhere in the Cook Islands EEZ: The “Central Area” (JICA-MMAJ, 2001) is the only area where historical sample density is high enough to evaluate grade continuity, and the continuity there was found to be good (Tay et al., 2023b). The Central Area is also where historical resource estimates have reached Indicated: The Central Area has an Indicated Mineral Resource of 304 Mt nodules (wet), while the remaining Cook Islands EEZ has an Inferred Mineral Resource of 6,400 Mt nodules (wet) (Tay et al., 2023b).

6.5 Mineral Deposit Model & Known Comparable Deposits

Polymetallic nodule deposits form at almost all depths and latitudes in all the world’s oceans and seas, including the CCZ, Peru Basin, Central Indian Ocean, Southwest Atlantic Ocean, and the Arctic Ocean. Polymetallic nodule deposits mainly occur below the Carbon Compensation Depth (CCD, below ~3,500 m), in areas with low sedimentation rates typically associated with argillaceous and siliceous oozes in abyssal plains of oceanic basins. A sedimentation rate of <10 mm/kyr is required to prevent the growing nodules from being buried, considering their extremely slow growth rate (Hein et al., 2020). Bioturbation likely plays an important role in keeping nodules at the sediment-water interface. Nodules can also be found in the top decimeters of sediment (Heath, 1979; Piper and Fowler, 1980; Kerr, 1984; Sanderson, 1985; McCave, 1988; Banerjee, 2000; Dorgan et al., 2005; Hoffert, 2008). The accumulation and degradation of organic matter at the sediment-water interface is a source of the nodules’ elemental content (e.g. Mn, Fe, Co, Ni, Cu) (von Stackelberg and Beiersdorf, 1991; Skornyakova and Murdmaa, 1992; von Stackelberg, 2000; Hoffert, 2008).

 

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Polymetallic nodules exhibit concentric layering, which indicates a gradual accretion over time. The layers are composed of various amounts of Mn- and Fe-rich minerals of different types and textures. Manganese is very mobile in seawater and can readily oxidize to Mn2+. Polymetallic nodules usually grow around a nucleus of a variable nature, such as a rock fragment, volcanic material, bone, tooth, or other nodules (Figure 6-8). The growth rate is estimated to be ~1–10 mm/myr based on nodule geochronology (Somayajulu, 1967; Guichard et al., 1978; Macdougall, 1979; Finney et al., 1984; Anufriev et al., 1996; Bollhöfer et al., 1999). This growth rate is 1,000 times slower than the rate of sedimentation, which raises the problem of maintaining nodules at the sediment-water interface. Variations in nodule growth rate can be linked to changes in climate, including periods of glaciation (Segl et al., 1989; Han et al., 2003).

Four main parameters determine the environment of polymetallic nodule growth:

 

•

local sedimentation rate;

 

•

sedimentary facies related to the CCD and biological productivity in surface waters;

 

•

relative topography; and

 

•

bottom current activity (Halbach et al., 1981; von Stackelberg and Beiersdorf, 1991).

Variations in these parameters result in the growth of two different kinds of nodules: hydrogenetic and diagenetic. Most nodules are formed by a combination of hydrogenetic and diagenetic growth. In the first case, the minerals precipitate from cold ambient seawater, and in the second from pore water within the sediment (Hein and Koschinsky, 2014; Hein et al., 2020). The metals in seawater are concentrated by adsorption onto ultrafine particles of Fe- and Mn-oxides (nanoparticles) that are attracted electrostatically to one another in the water column. The Mn-oxide particles have a negative surface charge and so scavenge other trace elements as they form, especially positively charged ions such as Co, Ni and Cu that are also present in seawater in trace concentrations. The Fe-oxide particles, in contrast, have a slight positive surface charge and attract negative ions in seawater, such as the oxyanions Mo, V, As, and some REEs (Figure 6-9). Diagenetic precipitation within the sediment occurs under oxic or suboxic conditions from pore fluids that consist of seawater modified by chemical reactions within the sediment. In the Cook Islands, nodules that are derived from a hydrogenetic process are common, whereas nodules found in the CCZ typically represent a mixed origin. These ‘mixed’ nodules usually have an equatorial rim that separates the hydrogenetic from the diagenetic hemisphere (Halbach et al., 1981).

Sedimentary hiatuses are an important control on the formation of nodules. Hydrogenetic nodule activity typically occurs in areas of negligible rates of sedimentation (von Stackelberg and Beiersdorf, 1991; Hein et al., 2020). Nodule formation also requires operating mechanisms, like biological activity and seabed currents (Parianos et al., 2021), which prevent the nodules from being buried or becoming a solid crust. Buried nodules are rare and thought to be left behind during sedimentation (Usai et al., 1993) by the biological processes that are the most likely reason for the uplift.

 

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Figure 6-9: (a) Schematic illustrating the formation of Mn-oxides and Fe-oxyhydroxides. Positively charged ions are attracted to the negatively charged surface of Mn-oxides, whereas negatively charged ions sorb onto the surface of positively charged Fe-oxides and oxyhydroxides. (b) Schematic illustrating the formation of hydrogenic, diagenetic and mixed-type nodules and the variation in chemistry. From Hein et al. (2020).

Polymetallic nodules occur on the seafloor of abyssal plains in about 4,000–6,000 m water depth in all major oceans. The average geochemical composition of polymetallic nodules varies between different basins, as well as regionally within major basins. Compared to the main nodule occurrences in other areas (CCZ, Peru Basin and Indian Ocean), the Cook Islands nodules have high Co and REE grades, but lower Ni and Cu grades (Table 6-1). The average abundance of the Cook Islands nodules (15 kg/m²) is similar to that of the CCZ (15 kg/m²) and higher than that of the Peru Basin (10 kg/m²) and the Indian Ocean (4.5 kg/m²).

 

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7. Exploration

CIC’s exploration programs included multibeam data acquisition and box coring, focusing on CBG04 East but also included minor work in CBG01. Other work undertaken includes environmental sampling in CBG04, FFG sampling in CBG04 and an AUV seafloor survey in CBG10.

7.1 CIC Expeditions

7.1.1 Expedition 1 Leg 1

In collaboration with Odyssey, CIC leased the MV Seasurveyor in 2022 with the purpose of commencing sampling in the newly granted EL1 license area. The focus was CBG04, in an area previously indicated by JICA to have elevated nodule abundance. The main vessel characteristics of the MV Seasurveyor are presented in Table 7-1.

In March 2022, the MV Seasurveyor was mobilized in Wellington, including mounting an electric winch with 7,000 m of 8 mm synthetic rope, A-frame, as well as laboratory and workshop containers. The vessel departed Wellington for the Cook Islands on 15 June 2022. Expedition 1 Leg 1 took place from 27 June to 7 July 2022. The first leg launched eight box cores at four stations in CBG04 (Figure 7-1), six of which failed. One attempt encountered crust while five failed due to early triggers. All deployments produced seafloor video and full-depth water column CTD (conductivity temperature, depth) profiles.

Table 7-1: MV Seasurveyor vessel characteristics.

 

Characteristic		Vale
Length		39 m
Beam		10 m
Draught		3.2 m
Gross Registered Tonnage		359 t
Owner		Seaworks
Operator		Seaworks
IMO Number		8824543

7.1.2 Expedition 1 Leg 2

The second leg of Exp 1 began on 18 July 2022, after crew change, a period of equipment modifications, and a change of the sample plan to include all CBGs to allow for flexibility with respect to changing weather. Box cores were primarily launched in western CBG04, with a few BCs deployed in eastern CBG04 and CBG01. The average sample spacing is ~11 km. Odyssey did not participate in the offshore operations from Exp 1 Leg 2 and onwards.

A total of 37 BCs were launched, 32 in CBG04 (Figure 7-1) and 5 in CBG01 (Figure 7-2), collecting 24 samples in total. Of the 13 failures, four BCs landed on crust and nine BCs triggered early. Early triggers were typically caused by the BC jostling in poor sea conditions. This issue was gradually overcome by modifying the trigger mechanism to increase its tolerance to rough handling. All deployments were equipped with a CTD probe and at least one video camera. All but one deployment captured seafloor video, resulting in seafloor video being recorded at all targeted stations. Expedition 1 Leg 2 ended on 9 September 2022.

 

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