The Conversation (0)
Elixir Energy Limited (“Elixir” or the “Company”) is pleased to provide an operations update on the work currently underway in its 100% owned Nomgon IX Coal Bed Methane (CBM) Production Sharing Contract (PSC) in the South Gobi Basin, Mongolia.
HIGHLIGHTS
- Nomgon-10 Pilot well drilled, completed and on line
- CBM discovery declared at Yangir
- Successful 2023 Drilling program near completion
The Nomgon-10 pilot production well has now been successfully drilled, completed and brought into production (with water flowing initially and gas due to follow). The time from spud to first water production was 19 days, with work proceeding on time and on budget. The well is being brought into production slowly to minimize the risks of formation damage and shocks to the coal reservoir.
Nomgon-10 is an additional pilot well that will be connected to the Nomgon Pilot Production plant. The Nomgon-8 and 9 pilot wells remain suspended whilst the Company monitors pressure communication between the wells.
Nomgon-10 Production Skid
In the Yangir region, Elixir is pleased to announce that it has performed a successful Drill Stem Test (DST) on the Yangir West-2 well. The DST over the interval 269-282 metres recorded a permeability of 2 milliDarcies (mD). The results of this well therefore constitute a CBM gas discovery under the Petroleum Resources Management System (PRMS) guidelines (Appendix 1), having proved the presence of gas saturated coal with adequate permeability.
Excelsior Energy (see company description below) conducted the DST by undertaking considerable pre-planning with Elixir and around the clock wellsite and remote supervision to ensure a successful outcome. Yangir core holes and chip holes have intersected coal thicknesses of up to 60 metres of coal, even though the full stratigraphic section is yet to be intersected. Elixir has measured gas contents of up to 10 cubic metres per ton (on a raw basis) in the Yangir sub-Basin.
At Big Slope, the Big Slope West-1 well has been successfully drilled. The well reached a total depth of 620 metres and intersected more than 27 metres of coal.
The Company’ 4 rig program is now winding down, with now one rig still drilling. The remaining Erdene Drilling rig is drilling Yangir Far West-1, and is currently at a depth of 425 metres, which is still above the coal targets.
Excelsior Energy personnel operating Drill Stem Testing tools
With Nomgon-10 on production, and CBM discoveries declared at both Big Slope and Yangir, Elixir has now met all its major drilling objectives for 2023. The drilling program for 2023 will now be finalised once the Nomgon Far West-1 well is completed. Planning for the 2024 program has commenced and will have a primary focus on de-risking the discoveries made to date.
Elixir’s Managing Director, Mr Neil Young, said: “The drilling of the Nomgon-10 pilot well has gone to plan and we look forward to growing production of water – and then gas – from this well. Favourable results will put the Nomgon Pilot Project back on the intended pathway of determining commerciality. Our other appraisal and exploration drilling in 2023 – completed safely and within budget - has added new discoveries in the key South West region of our PSC. We expect in 2024 to focus on moving these discovered resources into reserves.”
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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.
