Eyasi Project update

RNS Number : 2272M

Helium One Group Ltd

20 January 2021

 

20 January 2021

Helium One Global Ltd

Mobilisation of Geochemical Surface Exploration at Eyasi Project,

Publication of new Corporate Presentation and Issue of Shares

Helium One Global (AIM: HE1) ("Helium One" or "the Company"), is pleased to announce that work has commenced to mobilise surface geochemical exploration at the Eyasi Project (Helium One 100%) in southern Tanzania.

Highlights:

· Surface exploration work to commence at the 804km² Eyasi Project, ~600km to the north of the Rukwa Project.

· Eyasi Project has numerous geological similarities to the Rukwa Project showing potential to host a helium deposit.

· Fieldwork will focus on evaluating historic seep locations as well as identifying potential new seep locations at the southern end of the project area.

· Desktop analysis utilising Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER) data has identified anomalous features which may correspond to previously unknown helium-nitrogen macro and micro seep locations.

· Mobilisation of field crew equipped with a MiniRUEDI portable mass spectrometer to test the potential seep locations and extend the known helium-rich geochemical fairway over the Eyasi Project.

David Minchin, Chief Executive Officer, commented:

"The Eyasi Project has potential to add significant volume to Helium One's prospective resource base.  The project is not as advanced in its exploration as the Rukwa Project, however high-grade helium has been measured at surface and structural leads identified from published FALCON Airborne Gravity Gradiometry (AGG) data. 

"The presence of surface helium seeps is a key geochemical fairway indicator for sub-surface helium. The identification and testing of several possible undiscovered macro and micro seep locations at Eyasi could provide further confidence that our portfolio can potentially contain several helium deposits."

Eyasi Fieldwork Mobilisation

Helium One is preparing to commence surface exploration work at the 804km² Eyasi Project.  The Eyasi Project, situated ~600km to the north of the Rukwa Project, has demonstrated helium gas concentrations as well as ideal geology for source, reservoir, trap and seal.  The project is not as advanced in its exploration as the Rukwa Project, however high-grade helium has been measured at surface and structural leads have been identified from published FALCON Airborne Gravity Gradiometry (AGG) data.  The Eyasi Basin is thought to be analogous to Rukwa Rift Basin with half-graben style traps expected to occur.

Surface exploration will focus on geochemical sampling of potential macro and micro seep locations using a MiniRUEDI portable mass spectrometer to return on-site helium gas measurements from samples in the field. The instrument can be used to determine gas compositions for a suite of compounds including helium, carbon, nitrogen, oxygen, argon and methane.

Helium One's geologists have used a combination ASTER multispectral imagery, SRTM digital elevation modelling and geological mapping to identify thermal anomalies, potentially associated with warm-water springs, in the vicinity of several identified helium leads.  Eyasi contains mapped hot springs at the north-eastern end of the project area with historical samples showing nitrogen rich gas with 4.25% - 5.7% helium.  Current fieldwork will focus on evaluating the historic seep locations as well as identifying potential new seep locations at the southern end of the project area.

The presence of surface helium seeps is a key geochemical fairway indicator for sub-surface helium accumulations. The discovery of the Rukwa Project was initially based on surface seeps sampled at 4.2% helium by Dr T.C. James during the 1950s.  These surface helium concentrations were confirmed and upgraded by a joint study with Oxford University in 2016 which measured macro-seep gas composition of up to 10.5% helium at Rukwa and 10.8% helium at Balangida, Helium One's third project area.  Follow up studies on micro-seeps at Rukwa have identified anomalous helium in soil gas at a number of locations across the project, indicating sub-surface helium migration across the basin.

Preparation for fieldwork has already begun with on the ground activity expected to commence late next week once all pre-mobilisation checks have been completed.

Publication of New Presentation

Helium One advises that a new presentation is available on its website:

http://www.helium-one.com/presentations/

The new presentation provides updates on helium macro-economics, Helium One's corporate ESG goals and progress towards drilling in Q2 2020.  The Company reports that drill planning continues on-schedule for commencement in Q2 2020 with rig-selection and contract negotiations already well advanced. 

Drilling will follow the processing of data from an infill seismic campaign over shallow structures identified within the 310km² drilling area.  Infill seismic over high priority targets will allow better delineation of trap structures ahead of drilling, refining collar locations and improving drill targeting.  The seismic survey is fully permitted and, dependent on favourable ground conditions, is due to commence as the rainy season subsides in mid-Q1 2021.

Drilling is targeting shallow, stacked, trap structures from 300m to a maximum depth of ~1200m.  Once commenced, each hole is anticipated to take ~30 days to complete.  Returns of helium gas within drilling mud will be constantly monitored with updates on helium shows provided as appropriate as drilling advances.

Issue of Shares

Helium One will issue 2,868,954 Ordinary Shares (the "Shares") to certain existing shareholders to correct an error in the calculation of shares to be allotted on the conversion of the Convertible Loans (as defined in the AIM Admission Document) at the time of the Company's admission to AIM on 4^th December  2020.

The Shares, representing approximately 0.58% of the Company's issued share capital on Admission, will rank pari passu in all respects with the existing ordinary shares of no par value in the capital of the Company.  Application will be made to the London Stock Exchange for the Shares to be admitted to trading on AIM ('Admission').  It is expected that Admission will become effective on or around 26 January 2021. 

As a result of the issue of the Shares as described above, the issued share capital of the Company now consists of 499,762,065 ordinary shares of no-par value.

Market Abuse Regulation (MAR) Disclosure

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

For further information please visit the Company's website: www.helium-one.com  

Contact

David Minchin	Helium One Global Ltd	[phone]
James Biddle and Roland Cornish	Beaumont Cornish Ltd	[phone]
Lucy Williams	Peterhouse Capital Limited	[phone]
Callum Hill	Pello Capital	[phone]
Nick Elwes	Tavistock PR	[phone]

Notes to Editors

Helium One has identified a globally unique, large-scale, high-grade, primary helium project in Tanzania with the potential to become a strategic asset in resolving a supply-constrained market.

Helium One's assets are located within the rift basins on the margin of the Tanzanian Craton. Through Helium One's subsidiary companies Gogota (Tz) Limited, Stahamili (Tz) Limited and Njozi (Tz) Limited, the Company has secured 18 Prospecting Licences covering more than 4,512 km² in three distinct project areas: the Rukwa, Balangida and Eyasi projects. These are located near surface seeps with helium concentrations ranging up to 10.5% He by volume. 

The Rukwa Project is located within the Rukwa Rift Basin covering 3,448km² in south-west Tanzania.  The project is considered to be an advanced exploration project and the company has identified 21 prospects and 4 leads based on historical drilling, reprocessed seismic lines, high resolution gravity survey, and surface seeps analysis.

SRK Consulting have reported a 'Best Estimate' Un-risked Prospective Resource of 138 Bcf (2U/P50) for the Company's Rukwa Project, meaning that the project has potentially strategic global implications with the ability to significantly resolve helium supply/demand issues.

All Helium One's licences are held on a 100% equity basis and are in close proximity to the required infrastructure.

Helium One is listed on the AIM market of the London Stock Exchange with the ticker of HE1.

 

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