Last checked at 10 Apr 2024 07:00
10 April 2024
Helium One Global Ltd
("Helium One" or "the Company")
Rukwa Project update
Helium One (AIM: HE1), the primary helium explorer in Tanzania, is pleased to provide the following update on its Rukwa Project.
Highlights
· Itumbula West-1 extended well test ("EWT") remains on track for early Q3 2024;
· Environmental and Social Impact Assessment ("ESIA") study commenced as part of the Mining Licence conversion process;
· Appointment of production facilities management company to commence a design study for a helium production plant at Rukwa;
· The Company is continuing to work with the Tanzanian Government and the Mining Commission to move the Rukwa Project towards commercialisation; and
· Expansion and strengthening of Company's technical team in order to progress the Phase III work programme
Lorna Blaisse, Chief Executive Officer, commented:
"We are very pleased to be advancing into this next stage of the Rukwa Project - Phase III. Whilst we are preparing for the next operational phase, which includes the EWT at Itumbula West-1, we are growing the team to deliver the large amount of work that is continuing in the background and that will enable us to progress the project as quickly as possible.
The ESIA will form part of the feasibility study that will be submitted to the Mining Commission in order to convert the existing Prospecting Licences ("PL") to Mining Licences ("ML"). The newly recruited team has already commenced this workstream, and we are grateful for the continued support from the Government and the Mining Commission in Tanzania, as we move the project forward in the next phase of its development towards commercialisation.
We look forward to providing further updates in due course."
ESIA study
The ESIA is part of the feasibility study which is central to the licence conversion process that is required by the Mining Commission in Tanzania. As the ESIA is expected to take approximately six months to complete, the Company has commenced the work now so that the results can align with the EWT and, upon completion of both, will then allow the Company to complete the feasibility study ahead of submitting the ML conversion application.
The Company has appointed MTL Consulting Ltd ("MTL"), a Tanzanian company, for the ESIA and will continue to work with them to compile and deliver a detailed report to the National Environmental Management Council within the necessary timeframe. As well as the ESIA study, the Company will also undertake more detailed subsurface work and plans to establish contingent resource estimates which will form part of the Feasibility Study.
Production facility study
The Company has also commenced above-ground engineering studies and, following a detailed review of several companies, has now selected one to produce a preliminary design for a production system that will be suited to the flow rates and gas composition within the Rukwa Basin.
This study has commenced with several processing facility options already being reviewed. These will include a smaller, lower rate pilot plant that would allow for early production as well as larger, modular systems that can be scaled-up. The design work will include helium liquefaction, storage and transportation with the aim of providing a well head to off-taker processing system. This would enable the Company to streamline all downstream and mid-stream activities.
EWT and future drilling update
The Company has commenced ordering the long lead items for the Itumbula West-1 EWT and is currently reviewing the merits of re-entering and deepening the Tai-3 well or pursuing a new exploration/appraisal well. Amongst other considerations, this decision will be made on the back of delivery times for the necessary equipment and the availability of third-party service companies.
For further information please visit the Company's website: www.helium-one.com
Contact
Helium One Global Ltd Lorna Blaisse, CEO | +44 20 7920 3150 |
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Liberum Capital Limited (Nominated Adviser and Broker) Scott Mathieson Ed Thomas Nikhil Varghese | +44 20 3100 2000 |
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Tavistock (Financial PR) Nick Elwes Tara Vivian - Neal | +44 20 7920 3150
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Notes to Editors
Helium One Global, the AIM-listed Tanzanian explorer, holds prospecting licences across three distinct project areas, with the potential to become a strategic player in resolving a supply-constrained helium market.
The Rukwa, Balangida, and Eyasi projects are located within rift basins on the margin of the Tanzanian Craton in the north and southwest of the country. The assets lie near surface seeps with helium concentrations ranging up to 10.6% helium by volume. All Helium One's licences are held on a 100% equity basis.
The Company's flagship Rukwa Project is located within the Rukwa Rift Basin covering 1,900km2 in south-west Tanzania. This project is considered to be entering an appraisal stage following the success of the 2023/24 drilling campaign, which has proved an established helium system where the Itumbula West-1 exploration well successfully flowed 4.7% helium to surface in Q1 2024. Additional follow on leads and prospects are defined by a subsurface database including multispectral satellite spectroscopy, airborne gravity gradiometry, 2D seismic data, and QEMSCAN analysis.
Helium One is listed on the AIM market of the London Stock Exchange with the ticker of HE1 and on the OTCQB in the United States with the ticker HLOGF.