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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.
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Elixir Energy
Overview
Elixir Energy (ASX:EXR) is a gas exploration and development company currently focused on its portfolio of natural gas and hydrogen assets in Mongolia and in Queensland, Australia. As an early mover in Mongolia, Elixir Energy is the first company ever to flow gas in the country.
The clean hydrogen market is rapidly emerging and is expected to become an ever-expanding part of the global energy mix by 2030. This projection sets the stage for Elixir Energy to reach production from its in-development Gobi H2 hydrogen project in Mongolia and have an early mover advantage in a sector that is attracting global attention from the world’s largest companies.
Elixir Energy recently began developing the Gobi H2 green hydrogen project in Mongolia. The project has exceptional renewable resource inputs and the potential to become a world-class hydrogen asset. The company has a maturing 50/50 partnership with Japan’s Terras Energy in this project which earlier this year moved to the point of Term Sheet execution.
There are two compelling advantages to developing hydrogen assets in Mongolia: access to very high quality renewable energy and proximity to the emerging hydrogen market in China – likely to be the world’s largest. In addition, Elixir Energy has the long-term potential to deliver hydrogen to China by pipeline rather than by boat, a significant cost advantage as development progresses.
In addition to the Gobi H2 hydrogen project, Elixir Energy’s Nomgon coal-bed methane (CBM) project is also located in Mongolia.
The Nomgon CBM project is in the South Gobi region of Mongolia and on the Chinese/Mongolian border. The ideal location of the asset provides access to excellent infrastructure, including planned pipelines and local mines as customers. The Nomgon project includes a CBM pilot production plant, which earlier this year passed an important milestone of 200,000 standard cubic feet per day (SCFPD)
Recent flare at the Nomgon plant.
In Queensland, Elixir Energy acquired the Grandis Gas project last year and is currently moving towards drilling the Daydream-2 appraisal well in October 2023, that will seek to materially increase contingent resources, possibly book initial reserves and confirm liquids content.
The company is led by a team of managers with direct experience in Australia and Mongolia and expertise in the natural resources industry, community engagement and working with government stakeholders.
Company Highlights
- Elixir Energy (ASX:EXR) is an exploration and development company with energy assets in Mongolia and Australia, targeting both natural gas and renewable energy/hydrogen.
- The company was the first to flow natural gas in Mongolia, pioneering production in the country.
- Elixir has two projects in Mongolia and a growing gas resource in Australia that cover a range of ever-cleaner energy sources of the type global markets are increasingly demanding.
- The market for clean hydrogen has been steadily growing as technology has improved and carbon reduction goals have increased, allowing Elixir’s Gobi H2 hydrogen project to potentially commence production just as demand skyrockets.
- The Gobi H2 project is also near China – allowing delivery by pipeline rather than boat, facilitating much lower-cost deliveries.
- Elixir’s confidential pre-feasibility study (PFS) results led to an expanded memorandum of understanding with Terras Energy (now majority-owned by a member of the Toyota group), providing a framework to enter into a binding 50/50 joint venture.
- Elixir Energy’s Nomgon CBM asset’s pilot plant surpassed the initial milestone of 200,000 square cubic feet per day and has recently been expanded with another well being added.
- The company’s Grandis Gas project in Queensland is located in an established gas and oil region and is moving towards a very high-impact appraisal next month.
- A management team with a range of expertise in the natural resource sector leads Elixir Energy towards capitalizing on its assets.
Key Projects
Gobi H2 Hydrogen Project
The Gobi H2 project aims to capitalize on emerging opportunities in the clean hydrogen market. The project is ideally located for cost-effective transportation, and the company is aiming to enter into FEED for an initial pilot plant.
Project Highlights:
- Pre-feasibility Study (PFS): Elixir Energy has procured a PFS to support the development of a pilot plant as the project takes steps forward to reach full production.
- Partnership with Terras Energy (renamed from SB Energy following its acquisition by Toyota Tsusho): The company recently signed a Term Sheet with SB Energy to explore and develop the asset mutually. Terras Energy is already operating a world-class wind farm in the region and will lend its expertise to Elixir’s future plans for the asset.
- Ideal Hydrogen Delivery Cost: A significant advantage of the project is the potential for much lower delivery costs once production begins. The project would facilitate delivery by pipeline, allowing the company to transport hydrogen by land, rather than sea, creating significant cost savings.
Nomgon CBM Project
Elixir Energy’s 100-percent-owned coal-bed methane (CBM) project is ideally located in the South Gobi region of Mongolia. This location gives the asset access to robust local infrastructure and close access to Chinese energy markets – the world’s largest.
Project Highlights:
- CBM Pilot Project In Production: The pilot plant has passed a key production milestone of 200,000 square cubic feet per day earlier this year. Water production has also remained stable at ~150 barrels per day. Both of these results are promising as the asset continues to move forward – with another pilot well currently being added to the Project.
- 2023 Drilling Program Underway: Exploration began in 2019, and the first CBM discovery was made in 2020. The 2023 drilling program is currently underway.
- District-scale Asset: The Nomgon project covers a significant 30,000 square kilometers in Mongolia. Initial exploration campaigns have been promising and indicate the potential for the asset to become a significant producer of regional energy markets.
Grandis Gas Project
The company’s asset in Queensland, Australia, covers approximately 1,000 square kilometers in an established oil and gas province. The project is well-suited for cost-effective transportation to domestic and international oil markets.
Project Highlights:
- Strong Local Infrastructure: The region's long history of oil and gas production has resulted in a robust infrastructure, including transportation and power access – and community support for the industry.
- Adjacent to Current and Proposed Pipelines: The asset is located close to existing – and proposed gas pipelines to assist in efficient and low-cost transportation as production commences.
- Well Planning Underway: Elixir Energy is currently working towards spudding the Daydream-2 appraisal well in October this year.
Management Team
Richard Cottee - Non-executive Chairman
Richard Cottee was appointed as the non-executive chairman of the company on April 29, 2019. Cottee was the managing director of coal-seam-gas(CSG)-focused Queensland Gas Company (QGC) during its growth from a $20-million market capitalization junior explorer through to its acquisition by BG Group for $5.7 billion. QGC’s CSG assets are now operated by Shell and produce gas that is sold to China and other LNG markets.
Originally a lawyer, Cottee has spent the vast majority of his career in senior executive roles in the energy industry, including as CEO at CS Energy, NRG Europe, Central Petroleum and Nexus Energy. A 32-year veteran of the industry, Cottee is a strong business development professional and a graduate of The University of Queensland.
Neil Young - Managing Director and Chief Executive Officer
Neil Young was appointed to the board of Elixir on December 14, 2018, as its chief executive officer. Young has more than 20 years of experience in senior management positions in the upstream and downstream parts of the energy sector, focusing on business development, new ventures, gas marketing and general commercial functions. He has worked for a range of companies in the UK and Australia, including EY, Tarong Energy and Santos. Young founded Golden Horde Ltd in 2011 with a view to exploring gas on the Chinese border in Mongolia. He has also developed various new ventures in other countries including Kazakhstan, Japan and the USA. Young has an M.A. (Hons) joint degree in economics/politics from the University of Edinburgh.
Stephen Kelemen - Non-executive Director
Stephen Kelemen was appointed as the non-executive director of the company on May 6, 2019. Kelemen led Santos’ coal seam gas (CSG) team from its inception in 2004 and drove the growth in this area that allowed Santos to become one of Australia’s leading CSG companies. An engineering graduate from Adelaide University, Kelemen served Santos for 38 years in multiple technical and leadership roles.
Kelemen is currently an adjunct professor at the University of Queensland’s Centre for Coal Seam Gas and also acts as a non-executive director on the boards of Galilee Energy (ASX:GLL) and Advent Energy Ltd.
Anna Sloboda - Non-executive Director
Anna Sloboda was appointed as the non-executive director of the company on October 1, 2020. Sloboda is a joint Belarusian/Australian citizen and has more than 20 years of experience in corporate finance, and in developing junior resource companies operating around the world.
Sloboda is currently an executive director of Red Citadel Resources Pty Ltd, a privately owned mineral resources exploration company with a range of projects in Africa and South America. She also serves as an advisory committee member, maritime archaeology, at the Western Australian Museum.
Previously she was a co-founder of Trans-Tasman Resources and in that capacity had substantial experience in dealing with Chinese off-takers and partners. Other prior employers include Lehman Brothers, Clough and Curtin University.
Sloboda has a Master of Economics from Belarusian University and an executive MBA from Melbourne Business School.
Victoria Allinson - Company Secretary and Chief Financial Officer
Victoria Allinson is a fellow of The Association of Certified Chartered Accountants, a fellow of the Governance Institute of Australia and an NSX-nominated advisor. She has more than 30 years of accounting and auditing experience, including senior accounting positions in a number of listed companies and was an audit manager for Deloitte Touche Tohmatsu. Allinson has gained professional experience while living and working in both Australia and the United Kingdom.
Her previous experience has included being company secretary and CFO for a number of listed companies, including ASX-listed: Kiland, Safety Medical Products, Marmota Limited, Centrex Metals, Adelaide Energy, Enterprise Energy NL, and Island Sky Australia as well as a number of unlisted companies.
Maiden Drilling Program at Ti-Tree Completed
- 9,086m drilled in 78 holes across six project areas
- Campaign designed to test extensive surface mineralisation identified through soil sampling and rock chip analysis
- Visual observations of copper sulphide mineralisation in quartz veining in multiple holes at depth
- Assays are due back progressively over the coming weeks.
- Exploration and drilling activities to re-commence in Q1 2024
The drilling campaign included 78 holes totalling 9,086m of Reverse Circulation (RC) drilling. The program consisted of discovery drilling only and was designed to confirm historical results and to test near surface mineralisation at depth and along strike, with drilling having been limited to approximately 70m vertical depth.
Holes in the Crawfords, Nic’s Bore and Copper Ridge areas also intersected some visible disseminated mineralisation within quartz veins in the form of pyrite, malachite and chalcopyrite and assay are awaited.
Andrew Reid, Managing Director
“Our maiden drilling campaign following the IPO in May 2023 is now completed and has been a great success. The campaign was designed to test for mineralisation both at near surface and at depth and resulted in visually identifying mineralisation/veining in the majority of drill holes at our Minnie Springs copper-molybdenum-gold project.
Minnie Springs could represent a sizeable porphyry hosted copper deposit with the next step to be the completion of drilling in the remaining 50% of the copper-in-soil anomaly yet to be tested during the next drilling campaign in Q1 2024.”
Figure 1. Location map showing prospects drilled to date, Minnie Springs, Copper Ridge,Nick’s Bore, Crawford and Crawford South and COO Creek.
Table 1. List of RC holes completed by prospect location.
Figure 2. Minnie Springs soil sampling, rock chip and drilling location map showing location of the x-section A – A’.
Figure 3. Hole MSRC012 – showing visual pyrite - chalcopyrite – chalcocite – covellite mineralisation in zones from 127 – 139m downhole at the Minnie Springs prospect1.
The second northern-most line at Minnie Springs (Figure 2. MSRC 010 – 012) intersected multiple zones of copper sulphide mineralisation1 co-incident with chlorite-epidote alteration in hole MSRC012, which is characteristic of propylitic alteration commonly seen in in porphyry copper-molybdenum-gold deposits.
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This article includes content from Augustus Minerals, 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.
EMU Records Gold Assays to 36.1 g/t - Georgetown, Queensland
HIGHLIGHTS*
- Camp Oven Creek area historic surface rock assay results ranging from 12.9 g/t up to 224 g/t gold and 24 g/t to 135 g/t silver from rock samples in broad rhyolite breccia hosted veins in the NW1.
- 15.4 g/t gold assay results recorded from EMU’s first reconnaissance rock samples in the NE Dagworth area, ~19km east from Camp Oven Creek, along Delany Fault extension2.
- 15 historic rock values greater than 31.1 g/t gold (> 1 Ounce) identified from zones in the Camp Oven Creek, 130 Quartz Vein and Quartz 250 Prospects (“new historic information”)3.
- Three historic rock samples in the Quartz 130 prospect returned values ranging from 51 g/t gold up to 73 g/t gold4.
- Limited historic drilling at Rhyolite Breccia/Turtle Arm returned values to 2m at 15.8 g/t Au and 3m at 2.8 g/t Au.( See table 3).
- 86 historic surface rock samples greater than 1 g/t gold with a weighted average of 17.3 g/t within Georgetown EPM 27667 - NW Camp Oven Creek/Turtle Arm quadrant5.
- 2 EMU first reconnaissance rock samples returned 36.1 g/t gold and 25.6 g/t gold respectively from the Sandy Creek prospect just south of Georgetown6.
- Limited historic drilling at Munitions Creek (EPM 27642) returned values to 4m at 2.73 g/t Au and 1m at 10.85 g/t Au. (see table 3).
- EMU’s geological teams currently in field undertaking follow up sampling from these areas.
Commenting on the high gold values historically reported in the project area coupled with EMU’s latest results, EMU’s Chairman Mr Peter Thomas commented:
“It is quite remarkable that the Georgetown tenements and surrounding areas have not been comprehensively subjected to a modern and systematic exploration effort previously. EMU’s initial “first pass” reconnaissance field survey comprised the collection of a limited number of samples from rock outcrop, termite mounds and stream sediments in multiple areas targeted for gold, base metals, lithium and critical minerals. In addition to the recently reported copper, silver and lead values, the gold assay results and historic exploration results support EMU’s view that the project has the potential to deliver world-class discoveries which underpinned its decision to farm into the project”.
Further to the recent announcement7 confirming a substantial high-grade copper and silver system at Fiery Creek and high-grade lead and silver assays results from Snake Creek, EMU reports high grade gold values from rock chip samples collected from a number of prospective areas at Georgetown.
Recently compiled historic gold and base metal drill hole and surface outcrop sampling values from the Georgetown area and from within the three tenements which comprise the project, confirm the outstanding prospectivity of the project.
EMU is currently undertaking a new, limited and targeted follow-up exploration programme with teams in the field over areas not previously sampled to investigate zones which have historically reported high-grade gold and base metal values.
Figure 1 - Identified current and historic Gold Occurrences at Fiery Creek and Georgetown Tenements
Table 1. Emu’s Significant Gold Sample Assay Results (>1 g/t Au in bold text)
Historical Gold Reported:
Fiery Creek EPM 27667 (Gold + Base Metal Targets)
Based upon significant results that have emerged from the compilation of historic data and the limited field work already completed by EMU, the significant northern portion of the Fiery Creek tenement (EPM 27667) is emerging as a high priority for both precious and base metals. The higher priority targets include structural settings for gold in the Camp Oven Creek, Quartz 130, Quartz 250 and Dagworth Prospect areas, whilst the Fiery Creek prospect within the Yataga Granodiorite demands further attention due to the high-grade outcrop sample assay values for copper and silver.
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This article includes content from EMU NL, 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.
Elixir Energy Investor Kit
- Corporate info
- Insights
- Growth strategies
- Upcoming projects