Initial exploration studies by Geodynamics Ltd and its joint venture partner Kentor Energy, a subsidiary of Kentor Gold, have confirmed the presence of a high quality geothermal exploration prospect at the Savo Island Geothermal Project in the Solomon Islands.
In November 2012 Geodynamics entered into an agreement with Kentor to acquire up to a 70% interest in the Savo Island project through a 2-stage earn-in agreement under which Geodynamics would earn an initial 25% through funding initial exploration and a further 45% though funding exploration drilling and completion of a feasibility study.
Since completion of this agreement a magneto telluric geophysical survey covering 77 sites on the island has been completed and results analysed to produce a 3D conceptual model and initial inferred geothermal resource. The independent resource assessment estimated a total median inferred resource of 269 PJth within the prospecting licence boundary.
Using the P50 estimate, the report concludes that Savo Island has sufficient recoverable thermal energy that if recovered and converted would be adequate to generate 37MWe for 30 years. This would be sufficient to supply more than the total current requirement of the city of Honiara and the Gold Ridge Mine, which is 25km from Honiara.
The assessment provides sufficient information and confidence to justify the progression of further exploration, including exploration drilling, to prove the reservoir conditions and the prospectivity of the project for commercial electricity generation.
In parallel to the complation of the resource assessment a scoping study has been completed to assess the viability of potential development schemes to extract and deliver the power from Savo Island. The study assessed potential for the development of a power station of up to 20MWe and identified a viable potential project scheme that would bring significant benefits to all stakeholders.
Geodynamics has now fulfilled its commitments under stage one of the earn-in which will see it take a 25% interest in the JV along with operatorship of the project.