Royal Helium Ltd. has completed the first phase of exploration at its Climax property in southwest Saskatchewan, Canada, and identified drill targets for primary helium production.
Royal has over 300,000 acres of prospective helium land in south western and south-central Saskatchewan, and intends to become a leading North American producer of helium.
Steve Halabura, Royal’s VP Exploration said, “The results of the 2D seismic programme 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 four-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.”
In June, Royal purchased 77.6 line-kilometres of 2D seismic at its Climax land holdings and contracted RPS Group of Calgary 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 four-way structural closure.
Saskatchewan has 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.
Royal intends to continue the same programme completed at Climax at its other helium properties in southwestern Saskatchewan: Swift Current, Shaunavon, Cadillac, Val Marie and the remainder of Climax.
Andrew Davidson, President and CEO of Royal, said, “This programme 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 programmes 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.”