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Elixir Energy Limited (“Elixir” or the “Company”) is pleased to provide an update on its 100% owned Grandis Gas Project located in Queensland’s Taroom Trough, which is proximate to the Wallumbilla gas hub.
HIGHLIGHTS
- Land access agreement executed
- Contractor selection process well supported
- Daydream-2 appraisal well on track for drilling year end 2023
- Evolving Federal Government emissions policies support Grandis
Elixir and a local landowner have executed the land access agreement for the Daydream-2 well (called a Conduct and Compensation Agreement – a CCA – in Queensland). Well-site access has been designed to minimize the environmental footprint and requires minimal civil works.
Elixir’s Managing Director recently visiting the Daydream-2 well location
Elixir will shortly proceed to drill a water well at the location to both provide water for the drilling operations and deliver the means to monitor local ground-water quality via an independent laboratory, to ensure the drilling of the well and its completion do not cause any environmental issues. Post Elixir’s oil and gas operations, the well will be provided to the landowner for agricultural purposes.
A process of canvassing of expressions of interest from drilling and ancillary service providers has recently closed and interest has been strong. In parallel Elixir is negotiating with a drilling service company and a significant local operator about various forms of cooperation such as sharing mobilization costs.
The timing of the Daydream-2 well potentially hinges on the timing of the drilling activities of this other local operator and the rig becoming available. At this stage Elixir still assesses that Daydream-2 should be ready to spud at around the end of 2023.
Earlier this week the Federal Government announced changes to the Safeguard Mechanism -
This mechanism regulates the emissions from certain larger industrial ventures in Australia (including gas developments). In this context Elixir notes:
1. The very low CO2 (around 1%) in the raw gas in the Taroom Trough (as evidenced from open file data for producing assets in the region for which the Taroom Trough provided the source rocks). Such levels of CO2 meet gas pipeline specifications - as such they are not removed as part of the gas development - and hence are not scope 1 or 2 emissions of the gas supplier.
2. Grandis’ close proximity to existing transmission infrastructure allows for a lower emissions profile than for more distant supply options.
3. The existing electrical infrastructure in the region will facilitate the electrification of future gas developments, ranging from compressor stations to the drilling of wells. Backed by renewable energy power purchase agreements (PPAs), that option (not available in more remote areas) will facilitate a future gas development project with minimal scope 1 and 2 emissions.
4. The Government’s agencies such as the ACCC and AEMO have recently noted a rapidly emerging shortfall between gas demand and supply on the East Coast. The new policy does not change demand – but arguably does reduce supply options. Advantaged projects such as Grandis are therefore placed in an even stronger competitive position.
Elixir’s Managing Director, Mr Neil Young, said: “Our Grandis Gas Project is proceeding well as we progress towards the drilling of the Daydream-2 appraisal well by the end of this year. This is a very high impact well where success will add material volumes of now even more competitive gas resources to a gas market that Government bodies such as the ACCC and AEMO notes will very soon be desperate for new gas supplies.”
Click here for the full ASX Release
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.
IND Establishes HPQ Exploration Target at Pippingarra Project
Highlights
- IND’s recent RC drilling program informs a Maiden High Purity Quartz (HPQ) Exploration Target at the Pippingarra Quarry Project.
- Drilling is planned for the exploration target area and to test several quartz occurrences mapped across the wider Mining Lease area.
- IND plans to commence work on a HPQ Mineral Resource Estimate in parallel with metallurgical testwork being conducted by potential offtake partners and third-party mineral processing laboratories.
- A 300kg Pippingarra quartz sample crushed from existing quarry stockpiles sent to China in late 2023 produced a >GG.GG4% SiO2 end product following standard HPQ processing1.
- A further 24 tonne bulk sample comprising crushed quartz rock has been shipped to China for processing, metallurgical test work, and assessment by potential offtake partners.
Figure 1: IND Pippingarra Quarry Project location and infrastructure.
In October 2023, IND announced the agreement of binding terms2 with North West Quarries Pty Ltd (NWQ) for an exclusive option to acquire an 80% interest in the non-construction material mineral rights.
Jeff Sweet, Managing Director of Industrial Minerals, commented:
“Following on from one of our potential offtake partners in China achieving a processed High Purity Ǫuartz product grading >SS.SS4% SiO2, we are extremely positive about the potential to supply Pippingarra quartz into high-end quartz markets.
“The Pippingarra Exploration Target is limited to an area where IND completed RC drilling in late 2023, to the east of the existing open pit. There are several quartz outcrops mapped across the broader Mining Lease area that will also be drilled with the intention to include these untested HPǪ target opportunities in the upcoming Mineral Resource Estimate (MRE) for Pippingarra.
“Our motivation to commence work towards a MRE is to leverage our unique position of having an active mining operation at the Pippingarra Ǫuarry. We believe this will give potential offtake partners the confidence to enter into offtake agreements with IND, knowing that we can rapidly advance to be mine ready and have a suitable mine life to support long term supply needs.”
Maiden High Purity Quartz Exploration Target
Table 1: Pippingarra HPQ Exploration Target range.
The potential quantity and grade of the Exploration Target is conceptual in nature, and there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target has been prepared and reported in accordance with the 2012 edition of the JORC Code.
The Exploration Target is based upon the Reverse Circulation (RC) Drilling program completed by IND in December 2023. Drilling was conducted on a 50m x 50m spacing. From this, holes INRC003 – INRC009 recorded thicknesses of white crystalline quartz over widths from 12m to 20m as reported in the Table 2 below.
Click here for the full ASX Release
This article includes content from Industrial Minerals Limited, 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.
Positive Findings from Newmont Ti Benchmarking Study
Highlights
- Titanium industry expert TZMI completes titanium benchmarking study on the Salazar Critical Minerals Project
- Study identifies Newmont as a standout from its peers in terms of Ti and TREO in-situ grade
- Benchmarking study is highly encouraging and supports validating flowsheet for production of titanium minerals from Salazar
Salazar Critical Minerals Project Ti Benchmarking Study
Following successful characterisation testwork of Ti mineralisation at the Newmont Deposit area1, West Cobar Metals engaged international titanium expert TZ Minerals International Pty Ltd (TZMI) to complete a benchmarking study of the Newmont resource.
TZMI is a global, independent consulting and publishing company which specialises in all aspects of the mineral sands, titanium dioxide and coatings industries2.
The Newmont resource3 and characterisation data was used by TZMI to benchmark the Salazar project deposit against several existing operations and potential new projects under development using publicly available information and TZMI estimates. The outcomes of the benchmarking are shown in Figure 1.
The benchmarking study shows that the Ti contained within the Newmont deposit has promising potential for economic extraction and that the Newmont resource is positioned favourably amongst peer resources in respect of both Ti and rare earth element content.
Figure 1 : Salazar Project (Newmont deposit) benchmarking
The relative positioning of the Newmont Inferred Ti and rare earth element resource is very positive for West Cobar, with relatively high insitu TiO2 grades and TREO grades compared to its peers. The Ti levels of the resource (on a whole rock basis) compare very favourably to both developing and operating projects.
TZMI concluded that “In terms of final ilmenite product quality, the composition of the magnetic fraction (comprising predominantly ilmenite) shows some promise with TiO₂ levels as high as 48.5%. This suggests the ilmenite is likely present as primary ilmenite … the CaO, MgO, V₂O₅, Cr₂O₃ in the magnetic fraction all seem relatively low which is positive and likely to be within the accepted levels for ilmenite used in sulfate pigment production.”
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This article includes content from West Cobar Metals Limited, 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.
High Grade Copper Rock Chips to 18% on New Targets at Ti-Tree
- Two new prospects, Tiberius and Claudius, have returned high-grade copper and significant silver assays in rock chips from recent field work
- High grade assays up to 17.8% Cu and 282g/t Ag have been discovered on the Tiberius zone, currently 3m wide and extending for over 200m along strike.
- Claudius, 11km south of Tiberius, comprised of several parallel zones over a 100m by 300m area, returned grades up to 6.6% Cu and 86g/t Ag.
- The discovery of these prospects, 30km northwest from Copper Ridge which contain historic workings not marked on GSWA maps, highlights the significant prospectivity of the Gascoyne region.
- Further field work is being planned to determine the extent of these new discoveries.
Andrew Ford, GM Exploration
“These results highlight the potential of this underexplored area to host as yet undiscovered mineralisation. Less than 5% of the 3,600 sq km area of the Ti-Tree Project has had any previous exploration, and to discover unrecorded historic mining areas is very exciting. These results are a credit the Augustus geological team.”
Figure 1 Location of the Tiberius and Claudius prospects
Tiberius
Reconnaissance field work conducted on the Ti Tree Project’s northwestern tenement has discovered high grade copper and silver mineralisation (Figure 3) in two areas. Tiberius, the northern target comprises a quartz-sulphide vein system up to 3m wide and outcrops for over 200m (Figure 5).
A shallow shaft has been dug on the vein system (Figure 2). Another vein set was identified 600m along strike east-northeast of the main vein increasing the potential size of the target. The high grade veins contain both oxidized copper, high silver grades, lead sulphide and anomalous gold (Table 1).
Claudius
The Claudius prospect is located 10km to the southwest of Tiberius, comprised of quartz veined brecciated and silicified granite with mineralised veins mapped over a 100m x 300m area. The main area of outcropping mineralisation has been trenched by prospectors and rock chip sampling returned strong copper mineralisation in an iron rich siliceous vein. Silver was consistently elevated (up to 86g/t) with associated gold anomalism to 0.68g/t (Table 1, Figures 4 and 6).
Click here for the full ASX Release
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.
From the Bronze Age to the Green Revolution: Mining's Timeless Role in Shaping Humanity's Future
During his presentation at the annual Prospectors & Developers Association of Canada convention, mining industry figure Mark Cutifani recounted the role the mining sector has had in humanity's past and will play in its burgeoning future.
“I'm focused on how we might catalyze new conversations around mining and its contribution to society,” he told listeners at the annual event, which took place in early March. “It is through our great pioneers and innovators that we continue to transform our work, and its value to society in so many different dimensions”
In simple terms, everything we use and make is derived from materials like metals and minerals, noted Cutifani.
Minerals used in electric cars compared to conventional cars.
Chart via the International Energy Agency.
In his view, while technical discussions about improving industry practices are essential, it's also crucial to help people understand the significance of the mining industry in the functioning of society as a whole.
For example, the average smartphone uses 13 metals and minerals, while electric vehicles require seven, including copper, lithium, nickel, manganese, cobalt, graphite, zinc and rare earths.
Mining's key role in the world's future
Cutifani went on to highlight how metals and minerals contribute to the health of our waterways and oceans.
“The provision of clean water is an absolute necessity to sustain life as we know it. We need minerals to purify, pump, use and recycle water. (We are) an industry that uses about 3 percent of the world's water to support everything else that happens on the planet. We are overwhelmingly a positive for global water balances,” he said.
In addition to water, the mining of phosphate and potash is imperative to global food supply, according to Cutifani, because without the valuable fertilizers they produce, “we could only feed half the planet.”
Even though there may be debates about eliminating certain products like fertilizers, he said it's essential to understand the broader implications and consequences of such decisions on global food security.
Beyond food security, metals and the alloys they produce have allowed us to curb urban sprawl through skyscrapers and high-rise residential towers that require steel and concrete, both of which are produced using mined and quarried materials. While we often hear of the vast amounts of metals needed for the energy transition, Cutifani noted that the energy transition debate tends to overlook other critical global issues like water, food security and shelter.
In his view, addressing global challenges will require the consideration of all fundamental human needs. It's essential to broaden the conversation and recognize the interconnectedness of various societal issues.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
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