Earth Heat Resources (ASX: EHR) has received a very positive outcome at the Copahue project in Argentina, after a review by Sinclair Knight Merz (SKM).
Copahue received a 150% jump in total resources interpreted from SKM, under the new Canadian Geothermal Code (CanGEA) classified resource estimate, in terms of electricity generating capacity and stored heat in place (based on P50 probability).
The new Copahue resource under CanGEA is:
- Measured Resource; 19 generating capacity (MWe), 700 stored heat in place (PJ);
- Inferred Resource, Vapour Zone; 55 generating capacity (MWe), 2500 stored heat in place (PJ); and
- Inferred Resource; deep liquid zone 190 generating capacity (MWe), 7300 stored heat in place (PJ).
The outcome provides for significant additional scope for development at the project, with the potential energy generated for consumers in the Neuquen Province of Argentina.
Of particular significance is the 'behind pipe' verification which provides a boost to the certainty of the stage 1 plant size and reduces the immediacy of resource extension drilling.
Earth Heat said that the scope and objectives of the Stage 1 concept study will be released this week, in light of the new resource figures.
Copahue Project - strategically located
The Copahue project is strategically placed 55 kilometres to the national electricity market interconnector, with a sealed bitumen road to the site from Neuquen City.
Other infrastructure includes power lines connected from the site to the nearby town of Caviahue, a plentiful water supply with oil field services and equipment in the Province.
The population of the Neuquen Province is 475,000.
Copahue Project - Technical Summary
Vapour Based Reservoir; Discovered by steam at surface, high temperature over 235°C at depth with favourable chemical characteristics.
Thick Reservoir; at least 600 metres thick at a shallow depth of 600 to 900 metres below the surface extending to at least 1400 metres deep.
History of exploration; JICA Feasibility Study 1987 - 1992, P90 42MW over a 13 square kilometre area of 100MW potential over 30 square kilometres.
Four deep wells drilled that produced steam production\deep wells from COP 1, 2, 3, 4, with past production from COP1.
High MW resource in COP 3, 4 (~7MW per well).