Royal Helium Ltd. (“Royal” or the “Company”) (TSXV: RHC) is pleased to announce that initial gas sample test results have returned elevated and economic levels of helium concentration from multiple formations at the Climax helium project, with tests returning levels ranging from 0.33% to 0.94% from the Deadwood, Souris River and Duperow formations. The company will now commence long term production testing of the most prospective zones to confirm flow rates and ultimately resource size.
The high graded production zones that are being tested range in thickness from five meters to in excess of 30 meters, with the ability to expand to even larger intersections. While these results are preliminary in nature and require additional confirmation, they do confirm the presence of economic helium grades on the Climax project, along with indicating that nitrogen will be the primary gas drive, though elevated levels of carbon dioxide are also present in certain tests. To date, testing has been focused on testing helium concentrations across the prospective zones with the highest level of helium detected during the drilling process. This initial concentration testing at Climax is expected to be completed over the next 10 days, following which the Royal will begin full flow testing and analysis which is expected to take an additional 30- 40 days.
Andrew Davidson, President and CEO of Royal comments “We are pleased with these initial results on our Climax helium project. Helium detection during drilling identified multiple zones of elevated helium in all three of the wells and follow-up completions testing confirmed economic helium concentrations. We look forward to the full flow testing results across all zones of interest in each of the three wells to confirm resource size and project commerciality. The fact that we have identified elevated and economic helium concentrations across significant pay zones as large as 30 meters speaks to the potential of the Climax Project.”
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