Royal Helium Ltd (TSX-V:RHC, OTCQB:RHCCF) announced that it has sampled up to 84.9 milligram per litre (Mg/L) lithium in brine underlying the Climax helium project in southwest Saskatchewan.
The Canadian explorer and developer of helium properties said it has provided notice to the Province of Saskatchewan that it intends to acquire the lithium mineral rights, with the intent to advance a lithium brine project alongside the ongoing helium development operations.
“In the Climax-1 well, drilled in January 2021, one of the zones that we tested showed significant inflows of brine water and gas,” Royal Helium CEO Andrew Davidson said in a statement.
READ: Royal Helium appoints Shayne Neigum as its chief operating officer and head of exploration
“With recorded lithium grades of 84.9 mg/litre, combined with flow rates in the range of 1.85 MMCF (one million cubic feet) per day equivalent, Climax is set to not only become a cash generative helium play, but also now presents potential additional value to stakeholders with a lithium exploration and development project,” Davidson added.
Royal Helium noted that under the provisions of mineral tenure ownership, the company is the only party who can be granted rights over the zone of interest in the Climax area, as competing rights over the same zones cannot be granted.
It added that the Climax project is about 60,000 hectares in size, which would make for one of the largest lithium exploration projects in Western Canada.
As well, Royal Helium reported that it will explore all options for developing the lithium project, such that the focus of the company will remain on exploiting the helium already discovered at Climax and elsewhere.
Royal Helium engages in the exploration and development of helium properties in Canada. It controls over one million acres of prospective helium land in southwestern and south-east Saskatchewan close to existing oil and gas infrastructure and a significant portion of its land in close proximity to existing helium-producing locations.
Contact Sean at sean@proactiveinvestors.com