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Blue Star Helium on target to deliver on high-tech North American helium play

Blue Star Helium Ltd (ASX:BNL) has played to its strengths in oil and gas with its pure-play helium strategy.

Historically, helium has been extracted as a by-product of natural gas production but with recent increases in helium prices and declines in natural gas prices, companies like Blue Star are actively exploring for the commodity – transferring its oil & gas industry knowledge in North America.

Blue Star managing director Joanne Kendrick said: “Helium is explored for and developed in almost the same way as oil and gas, so it played to our technical strengths as a company and we made a deliberate decision to diversify into helium.

“Helium was a moving market; it was a high-tech commodity with growing demand and outran our oil and gas strategy, so we decided to become a first mover pure-play in helium.”

Increased demand for helium[hhmc]
Helium is a unique industrial gas which, due to its unique chemical and physical qualities, is a vital element in the manufacture of MRIs and se..

Blue Star Helium Ltd (ASX:BNL) has played to its strengths in oil and gas with its pure-play helium strategy.

Historically, helium has been extracted as a by-product of natural gas production but with recent increases in helium prices and declines in natural gas prices, companies like Blue Star are actively exploring for the commodity – transferring its oil & gas industry knowledge in North America.

Blue Star managing director Joanne Kendrick said: “Helium is explored for and developed in almost the same way as oil and gas, so it played to our technical strengths as a company and we made a deliberate decision to diversify into helium.

“Helium was a moving market; it was a high-tech commodity with growing demand and outran our oil and gas strategy, so we decided to become a first mover pure-play in helium.”

Increased demand for helium


Helium is a unique industrial gas which, due to its unique chemical and physical qualities, is a vital element in the manufacture of MRIs and semiconductors.

The gas is also critical for fibre optic cable manufacturing, hard disc manufacturing and cooling, space exploration, rocketry, lifting and high‐level science.

Kendrick said the demand for helium which had substantially grown in the last decade, was expected to continue to grow due to the unique ways it was used.

She said: “Its also used by big tech companies like Netflix, Google and Amazon to cool their cloud-based servers.

“And another use, which has been growing more significantly of late, has been in rocketry and space exploration.

“Its a commodity that cant be substituted out – so the demand is inelastic.”

High price commodity


As a result of the demand, and the inability to artificially manufacture helium, the current contractual market for helium in the US is between US$200-US$300/thousand standard cubic feet, and Blue Star is confident there are likely spot prices above that level at around US$400/thousand.

Notably, COVID-19 is a significant disruption which adds difficulty to forecasting.

A recent report by Independent Investment Research has assumed US$200/thousand standard cubic feet in its indicative financial model, which the analyst believed is conservative enough to avoid potential for disappointment and leaves room to achieve higher prices.

Kendrick said: “Helium is an exciting commodity, its highly-priced, its in short supply and we expect that deficit in supply to continue especially as we recover from COVID.”

Sources: BLM, Edison Research, Kornbluth.

Prospective resource potential


In the June quarter, the company announced its maiden prospective resource of 3 BCF P50 prospective resource (recoverable helium, net of royalties) in its Enterprise and Galileo prospects in Colorado.

Kendrick said: “Our strategy is to be a finder and developer of new supplies of helium to deliver into the market.

“We recently had an independent prospective resource report on the first 2 of 11 prospects in our portfolio which were independently certified at 3 billion cubic feet of recoverable helium at a mid-case or P50 level.”

In addition, engineering estimates have confirmed a very low-cost proof of concept well at US$300,000 for dry hole costs.

Kendrick said: “When you put that in context of the potential in-ground value of that 3 billion cubic feet of helium, you can see theres quite a considerable uplift in value there.”

These prospects are in a prime position in North America, which has excellent infrastructure, drilling and logistical services available due to its long-standing oil and gas industry.

Dominant land position


Kendrick said the company was looking to consolidate its land position in the “incredibly prospective region” of Las Animas where it held around 130,000 gross acres across 11 prospects and leads.

She said: “In Las Animas, we have one confirmed field which produced pre-World War II which is what keyed us into this area.

“This is a proven play and were confident that where one has been found more will be found because its highly unusual in an oil and gas context, and even a helium context, to have just one discovery in a prospective area.

“Were looking to add to that and consolidate our land position over prospects in addition to the Enterprise and Galileo prospects.”

Blue Stars landholding across Las Animas, Colorado, USA.

Prospectivity proven

The companys prospects are in the Lyons Formation Helium Play, which is proven in theRead More – Source

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Australia

Argonaut Resources directors show faith in company by participating in oversubscribed SPP

Argonaut Resources NL (ASX:ARE) directors have demonstrated their faith in the company’s copper-zinc strategy by participating in the recently closed share purchase plan (SPP).

Independent non-executive chairman Patrick Elliot purchased more than 4.465 million shares at 0.55 cents per share in an indirect interest.

He now holds 5,876,159 shares in that interest with another 20,324,574 held in a separate indirect interest.

Independent non-executive chairman Malcolm Richmond acquired more than 5.454 million shares in a direct interest, increasing the number held in this interest to almost 15 million with another 1 million held in an indirect interest.

Overwhelming response to SPP[hhmc]
The company was overwhelmed by the response to its SPP which closed early and more than twice oversubscribed with the target subsequently increased to $2.5 million from $1.2 million.

Subscriptions in excess of $3 million were received and as a result, the SPP was closed with immediate effect.

Money ..

Argonaut Resources NL (ASX:ARE) directors have demonstrated their faith in the company’s copper-zinc strategy by participating in the recently closed share purchase plan (SPP).

Independent non-executive chairman Patrick Elliot purchased more than 4.465 million shares at 0.55 cents per share in an indirect interest.

He now holds 5,876,159 shares in that interest with another 20,324,574 held in a separate indirect interest.

Independent non-executive chairman Malcolm Richmond acquired more than 5.454 million shares in a direct interest, increasing the number held in this interest to almost 15 million with another 1 million held in an indirect interest.

Overwhelming response to SPP


The company was overwhelmed by the response to its SPP which closed early and more than twice oversubscribed with the target subsequently increased to $2.5 million from $1.2 million.

Subscriptions in excess of $3 million were received and as a result, the SPP was closed with immediate effect.

Money raised under this SPP and from the recently completed $2.7 million share placeRead More – Source

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Australia

Strickland Metals shares jump 39% ahead of drilling base metal target near DeGrussa

Strickland Metals Ltd (ASX:STK) shares surged 39% today ahead of its maiden drilling program at the Doolgunna Project, which will include a diamond drilling program that is likely to begin by the end of this month.

As a part of the program, a minimum of four diamond holes will be drilled to a depth of 500 metres to test a VMS target similar to the nearby DeGrussa deposit of Sandfire Resources (ASX:SFR).

Heritage survey[hhmc]
Exploration activity has recommenced on the Doolgunna Project following completion of heritage surveys to allow land access to areas where the company wishes to complete exploration drilling.

The target for drilling is a compelling base metal prospect that exhibits geological characteristics that are interpreted to be similar to Sandfire Resources’ DeGrussa deposit about 30 kilometres to the east of the project.

The prospect has a 3-kilometre-long electromagnetic conductor that lies below an outcropping copper-zinc gossan that has been mapped over a 1.2-kilomet..

Strickland Metals Ltd (ASX:STK) shares surged 39% today ahead of its maiden drilling program at the Doolgunna Project, which will include a diamond drilling program that is likely to begin by the end of this month.

As a part of the program, a minimum of four diamond holes will be drilled to a depth of 500 metres to test a VMS target similar to the nearby DeGrussa deposit of Sandfire Resources (ASX:SFR).

Heritage survey


Exploration activity has recommenced on the Doolgunna Project following completion of heritage surveys to allow land access to areas where the company wishes to complete exploration drilling.

The target for drilling is a compelling base metal prospect that exhibits geological characteristics that are interpreted to be similar to Sandfire Resources’ DeGrussa deposit about 30 kilometres to the east of the project.

The prospect has a 3-kilometre-long electromagnetic conductor that lies below an outcropping copper-zinc gossan that has been mapped over a 1.2-kilometre strike.

Diamond core drilling


The company plans to start the diamond core drilling by the end of this month.

A multi-purpose drill rig has been contracted to enable the minimum planned program wRead More – Source

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Australia

Pan Asia Metals has positive discussions on plans for Thai lithium project

Pan Asia Metals Ltd (ASX:PAM) has had positive discussions with authorities in Phang Nga Province, Thailand, including the provincial government, for its Reung Kiet Lithium Project.

PAM has submitted a presentation covering all aspects of the project including methods of ongoing exploration, conceptual mining and concentrate production, and the potential for downstream value-adding industries in Phang Nga and Thailand.

The presentation and subsequent discussions were aimed at assisting Phang Nga Provincial Government in their considerations for the proposed mining and industrial development areas.

Provincial Government discussions[hhmc]
Pan Asia was recently invited by the chief executive officer of the Phang Nga Provincial Administrative Organisation (PAO), a Phang Nga Provincial Government coordinating body, to represent PAM and the Reung Kiet Lithium Project.

The meeting was also attended by the head of Phang Nga Provincial Industry along with the representatives of the Phang Ng..

Pan Asia Metals Ltd (ASX:PAM) has had positive discussions with authorities in Phang Nga Province, Thailand, including the provincial government, for its Reung Kiet Lithium Project.

PAM has submitted a presentation covering all aspects of the project including methods of ongoing exploration, conceptual mining and concentrate production, and the potential for downstream value-adding industries in Phang Nga and Thailand.

The presentation and subsequent discussions were aimed at assisting Phang Nga Provincial Government in their considerations for the proposed mining and industrial development areas.

Provincial Government discussions


Pan Asia was recently invited by the chief executive officer of the Phang Nga Provincial Administrative Organisation (PAO), a Phang Nga Provincial Government coordinating body, to represent PAM and the Reung Kiet Lithium Project.

The meeting was also attended by the head of Phang Nga Provincial Industry along with the representatives of the Phang Nga Provincial Public Works and Town Planning Office.

Phang Nga Provincial Industry head has been appointed by the Phang Nga governor as chairman of the Phang Nga New Town Planning Committee.

During the meeting, the chairman of the committee conveyed its support for the Reung Kiet Lithium Project.

PAO wants to ensure that the requirements of the Reung Kiet project are incorporated into the town planning committee’s zoning plans to ensure that the project can progress once exploration and feasibility results prove positive.

“Can bring opportunities”


PAM managing director Paul Lock said: “We have been working hard in Phang Nga province and we are very happy with the positive reception that the Reung Kiet Lithium Project is receiving from the Phang Nga Provincial Government and surrounding communities.

“Reung Kiet is strategically located and based on peer feasibility work the project is positioned to potentially be one of the lowest-cost suppliers of lithium chemicals in the global peer group.

“This is a project that can bring substantial opportunities and value to Phang Nga and Thailand.”

Pan Asia is planning its second Reung Kiet drilling program with expectations that this will begin in the coming months following the conclusion of the current Khao Soon drilling program.

Potential cost curve leader


Reung Kiet is a hard rock project with lepidolite rich pegmatites chiefly composed of quartz, albite and lepidolite with minor cassiterite and tantalite as well as other accessory minerals including some rare earth.

Lepidolite does not require roasting and has a suite of by-products which are recoverable at the concentrator and processing stages of the flow sheet.

Peer feasibility work has Read More – Source

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