SASKATOON, Saskatchewan, Sept. 04, 2019 (GLOBE NEWSWIRE) -- Royal Helium Ltd. (“Royal” or the “Company”) (TSXV: RHC) announces that it has completed the first phase of exploration at its Climax property in southwest Saskatchewan which has identified seven (7) drill targets for primary helium production.
In early 2019, the Company completed geotechnical studies utilizing current and past-producing helium well data, seismic, government data, geological data, and mapping. The studies specifically target known fields and formations that are currently producing or have produced primary helium in Saskatchewan.
In June of this year, Royal Helium purchased 77.6 line-kilometers of 2D seismic at its Climax land holdings and contracted RPS Group of Calgary (“RPS”) to reprocess and evaluate the data. After reprocessing, the data review identified the deeper, basement-rooted structures that are known to be prospective for helium. RPS’s work resulted in delineating a basement structure of approximately 3,094 hectares of 4-way structural closure – i.e. the structure necessary to trap and contain the helium that was formed deeper in the Precambrian basement.
Steve Halabura, Royal’s VP Exploration states, “The results of the 2D seismic program have established a proper understanding in the Climax area of the deeper basement structures known to be prospective for helium. Royal’s 2D seismic work has demonstrated the presence of basement structures with 4-way structural closure underlying our Climax lands. This provides the ideal structural setting to trap the deeper originating helium and confirms the company’s plan to drill at Climax.”
Helium is created by the natural decay of radioactive elements such as uranium and thorium, deep beneath the earth’s surface. Saskatchewan is endowed with some of the world’s highest concentrations of uranium and therefore one of the few places on the earth that produces primary helium. Most of the world’s existing helium is produced as a by-product of natural gas production in lower grade quantities.
Further, Royal Helium intends to continue the same program completed at Climax at its other helium properties in southwestern Saskatchewan including Swift Current, Shaunavon, Cadillac, Val Marie and the remainder of Climax. Initial geological and seismic data review show that these areas are also highly prospective for similar basement formations and structural traps for helium.
Andrew Davidson, President and CEO states, “This program has proven to be an efficient and cost-effective approach to evaluate our existing land holdings and generate prospective drill targets. The Company fully intends to use this approach in the upcoming programs throughout our extensive land holdings to create a large inventory of targets for drill testing. Although Helium is not yet well known to the investment community, its rarity, dwindling supply and increased demand is certainly garnering more interest lately, especially from the high-tech sectors. We intend to drive shareholder value by being at the forefront of this high-value commodity and be a leading North American helium producer.”
Royal Helium Ltd.
Royal has over 300,000 acres of prospective helium land in south western and south-central Saskatchewan. All of Royals’ lands are in close vicinity to highways, roads, cities and importantly, close to existing oil and gas infrastructure, with a significant portion of its land in close proximity to existing helium producing locations. With stable, rising prices and limited, non-renewable sources for helium worldwide, Royal intends to become a leading North American producer of this high value commodity.
For more information, please contact Andrew Davidson, the Chairman, President and CEO of the Company.
Andrew Davidson, CEO
Royal Helium Ltd.
1 (306) 653-2692
davidson@fnr.ca
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This release includes certain statements that may be deemed to be “forward-looking statements”. All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expects, are forward-looking statements. Although management believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance, and actual results or developments may differ materially from those in the forward-looking statements. The Company undertakes no obligation to update these forward-looking statements if management’s beliefs, estimates or opinions, or other factors, should change. Factors that could cause actual results to differ materially from those in forward-looking statements, include market prices, exploration and development successes, continued availability of capital and financing, and general economic, market or business conditions. Please see the public filings of the Company at www.sedar.com for further information.