Big Star Energy shares hit a 2019 high after strong results at US helium project
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Special Report: Big Star has confirmed the existence of high-grade helium anomalies at its Enterprise prospect, which could actually be bigger than originally mapped.
Helium is a critical component in modern technology applications, from telecommunications to nuclear power stations.
It also can’t be replaced, which means demand for the gas is poised to rise exponentially in the years ahead. And in that context, the recent run of results from Big Star Energy (ASX: BNL) at its US exploration site are generating some excitement among investors, as the company positions itself with a first-mover advantage in the space.
In late August, Big Star announced it had acquired a lease on the high-grade Enterprise prospect, covering 1800 acres.
The latest soil gas sample results at Enterprise, announced today, confirmed the existence of eight helium anomalies.
This is excellent news, Big Star managing director Joanne Kendrick says.
“It confirms the presence of helium at our Enterprise prospect and our preliminary view is that this prospect is larger than originally mapped,” she says.
“We are likely to expand our leasing program to target this extended area.
“A number of other prospects and leads in our portfolio were also sampled and the presence of helium was confirmed at each of them.”
Of the 188 samples collected by Big Star across the wider focus area, 187 of them recorded helium above atmospheric levels.
Of those, “167 returned results between 10-100 per cent above normal atmospheric levels”, the company said.
“Encouragingly, the anomalies associated with our prospects are similar to those seen over other produced accumulations in the Four Corners area where the same soil gas survey technique was applied,” Kendrick says.
The lab results provide an important follow-up to previous testing over the seven prospects in the survey area, which revealed ambient helium anomalies at around 50 per cent above atmospheric levels.
Now, Big Star can establish a correlation of each ambient anomaly “with specific surface locations over the prospects”.
In addition, the equipment used in the laboratory test provided a more sensitive reading which showed elevated helium measurements in prospects that weren’t previously identified.
Big Star said it will now integrate the helium soil gas survey results into its broader geologic model, “in order to further define the prospects and leads portfolio”.
In summary, the sampling results provide confirmation of an active system with “high concentrations of helium in the subsurface”, across an area that is larger than previously thought.
Big Star plans to use the soil testing results as a basis for additional lease acquisitions, as it positions itself for the forthcoming helium boom.