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Elixir Energy Limited (“Elixir” or the “Company”) is pleased to provide an update on the preparations for the Daydream-2 appraisal well located in its 100% owned Grandis Gas Project in Queensland’s Taroom Trough.
HIGHLIGHTS
- Well site and access road civils work underway
- Water well rig on site & drilling ahead
- Long lead items procured & Tier 1 contractors appointed
- Desorption analysis laboratory ordered for deep coal targets
Construction of the well pad and upgrade of pre-existing access roads for Daydream-2 commenced within the last week and is well underway. Prior to the commencement of these civil works, the relevant ground received the appropriate cultural heritage clearance from representatives of the Mandandanji people.
The drilling of an on-site water well is underway. This well has a target depth of 1,200 metres and will provide all the water needs for the upcoming drilling and stimulation programs, not only for Daydream- 2, but also for future wells in the same area. This will be the only water well accessing the target aquifer in a wide region, and as such does not compete with water used for existing agricultural activities.
All key long lead items for Daydream-2 have now been procured, including a high pressure rated blowout preventer (BOP), casing and a well head. In addition, all Tier 1 contracts have been awarded for drilling fluids, cementing, wireline & mud logging, measurement while drilling (MWD) and drill bits.
Water well drilling at Daydream-2 wellsite
Elixir’s previously released estimates of prospective resources in the deep coal formations in the Taroom Trough were based on gas in place estimates within the coal fracture system only. A recent review of offset well cores indicates good prima facie fracturing and parting, as illustrated below.
Full-hole core of a Permian coal lithology at the nearby Dunk-1 well
The Company’s technical team now considers it feasible that additional gas in place could still exist adsorbed to the coal matrix. To that end, Elixir will mobilise an on-site desorption lab from ALS to undertake gas content measurements from cuttings taken from the Permian coal measures. If successful, this could contribute to an increase in the gas in place volumes.
In the lead up to the spudding of the well, supporting activities over the next few weeks will include:
- Finalising the construction of the pad and access road for Daydream-2
- Completing the drilling of the on-site water well
- Testing of the BOP
- Finalising with SLB the official rig release date for the contracted SLR 185 rig from the current operations – this is still expected to be in October such that the well will spud a few weeks thereafter
Elixir’s Managing Director, Mr Neil Young, said: “The countdown to the drilling of the high impact Daydream-2 well continues apace and we are pleased to report strong progress on all fronts. As indicated by our recent execution of a Data Sharing Agreement with Santos, activity in the broader Taroom Trough is growing – reflecting its great market location and very large known gas resources.”
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This article includes content from Elixir Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
EXR:AU
High grade Massive Sulphide Intercepts Confirmed at Oval
HIGHLIGHTS:
- OVD027 confirms the continution of high grade massive sulphide from OVD0211 with an intercept of 6.1 metres of 4.16% Cu, 3.51% Ni, 0.G3g/t E3, and 0.13% Co from G8.2 metres encountered between broader high grade zones of:
- A dense disseminated intercept - 26.2 metres of 0.44% Cu, 0.52% Ni, 0.12g/t E3, and 0.03% Co from 72.0 metres and
- A net textured intercept - 15.3 metres of 1.15% Cu, 0.79% Ni, 0.35g/t E3, and 0.04% Co from 104.3 metres;
- A high grade broad intersection is confirmed at the central part of the Oval area by OVD026. It includes a massive sulphide intercept in hole OVD026 of 1.8 metres of 3.21% Cu, 3.32% Ni, 0.6Gg/t E3, and 0.14% Co from 105.0 metres within broader mineralisation of:
- 19.8 metres of 1.23% Cu, 0.98% Ni, 0.36g/t E3, and 0.05% Co from 91.2 metres.
OVD026 is located 100 metres northwest of the previously announced 8.8 metres of massive sulphide identified in drillhole OVD021.
On completion of the Phase 2 exploration work and receipt of all assays, Managing Director Gan-Ochir Zunduisuren, commented:“The 2024 Phase 1 and 2 drilling and exploration programs have confirmed the broad presence of high-grade mineralisation in the Oval gabbroic intrusion. The grades intercepted in some of the drillholes are exceptional and may be indicative of broader potential over a larger area, given Oval is a greenfields discovery.
The 2025 exploration program will focus on obtaining information on the size/metal content potential of the Oval Cu-Ni-PGE mineral system as well as targeting the possible deeper magmatic sources at Oval. Broader exploration is also planned at potential extensions of Oval and nearby look-a-like prospects. We look forward to updating shareholders on progress, with drilling expected to commence in around 8 weeks”.
Summary of Phase 2 exploration drilling at Oval Cu-Ni-PGE project
The Company’s recent drilling work has predominantly focused on finding high-grade mineralisation in the olivine-amphibole gabbro at the Oval project. The multiple intercepts of massive sulphide mineralisation with different ratios of metal contents throughout the Oval gabbroic intrusion is highly encouraging for the presence of one or more deeper sources of high grade mineralisation in the opinion of ABM.
Figure 1. Plan view of drillhole locations on high resolution magnetics map (RTP)
Drillhole OVD02c
Drillhole OVD026 was designed to test the Down-Hole Electromagnetic (DHEM) conductor plate identified as OVD007_L2_B (reinterpretation of OVD007_L2_A2 by Southern Geoscience Consultants), which exhibits a conductance of 1,000 siemens. The drilling intersected a total of 1G.8 metres of mineralisation with 1.23% Cu, 0.G8% Ni, 0.36g/t E3, and 0.05% Co from G1.2 metres including;
- 4.8 metres of @ 0.45% Cu, 0.43% of Ni, 0.14g/t E3, and 0.02% Co of dense disseminated mineralised gabbro from 91.2 metres,
- 6.6 metres of @ 1.56% Cu, 0.G0% Ni, 0.50g/t E3, and 0.04% Co of net textured mineralisation from G6.0 metres,
- 2.4 metres of @ 1.52% Cu, 1.3G% Ni, 0.43g/t E3, and 0.07% Co of semi massive sulphide mineralisation from 102.6 metres,
- 1.8 metres of @ 3.21% Cu, 3.32% Ni, 0.6Gg/t E3, and 0.14% Co of massive sulphide mineralisation from 105.0 metres, and
- 4.2 metres of @ 0.57% Cu, 0.45% of Ni, 0.21g/t E3, and 0.02% Co of dense disseminated mineralised gabbro from 106.9 metres (Table 1 provides a detailed breakdown of mineralisation intervals).
OVD026 is located in the Oval area, which is approximately 100 metres northwest of the previous intersection identified in drillhole OVD0213. This intercept may represent an extension of the known massive sulphide mineralisation in the Oval area and highlights the potential for further expansion of massive sulphide zones within the broader prospect area (Figures 1 and 3).
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This article includes content from Asian Battery Metals PLC, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
