REG - 80 Mile PLC - High Concentrations of Helium Detected - Outokumpu

80 MileAnnouncement

09/09/2024 07:00

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RNS Number : 3045D  80 Mile PLC  09 September 2024

 

9 September 2024

80 Mile PLC / Ticker: 80M / Market: AIM / Sector: Mining

High Concentrations of Helium Detected at Surface at Outokumpu

 

80 Mile Plc ("80 Mile" or the "Company") is pleased to announce is pleased to
announce a significant breakthrough in its ongoing exploration program in the
Outokumpu Belt, Finland. Following the previously disclosed work program aimed
at evaluating the potential for geological hydrogen and helium, the Company
has successfully identified high concentrations of helium at surface in select
historical drill holes.

Significant Findings:

·    Helium Concentrations: Recent tests on historical drill holes have
revealed helium concentrations at the surface, with notable stabilized values
of up to 10.7% Helium in the Perttilahti Area, located in the centre of the
Companies tenement package on the belt. These findings exceed initial
expectations and underscore the substantial potential of the Outokumpu Belt
for industrial gas resources.

·    Surface Sampling Success: The surface sampling program utilized a
portable helium detector, allowing the Company to measure gas concentrations,
at surface, directly from the historical drill holes. These high surface
helium readings are a promising indicator of the deeper subsurface potential
within the region.

·    This marks the first published occurrence of helium detected flowing
to the surface in Finland. Previously, helium was identified in solution
within groundwater at depth, but this surface detection is a major
advancement. The presence of helium at surface, as opposed to being dissolved
in groundwater, is a significant result, highlighting the potential for
accessible and commercially viable helium resources in the region.

·    The results not only validate the historical data previously
collected but also position the Company to fast-track further exploration
efforts. The measurement of high helium concentrations at surface provide a
robust foundation for the continued evaluation of the Outokumpu Belt's
potential as a major source of industrial gases.

·    Gas samples from a 2480-meter-deep drill hole, analysed by the GTK,
has additionally revealed up to 46% geological hydrogen, highlighting the
belt's potential for industrial gas reserves.

·    Extensive Historical Data: >2000 historical drill holes provide
robust foundation for fast-tracking gas assessment across the 40-kilometer
licence holding

 

 

Upcoming Exploration Program:

In light of these promising results, 80 Mile plans to intensify its
exploration activities in the Outokumpu Belt. The Company will undertake
further detailed sampling and analysis, focusing on areas with the highest
helium concentrations. This will include additional surface sampling,
re-entering select drill holes for deeper testing, and integrating the
findings with historical seismic data to pinpoint the most prospective zones.

The Company has additionally begun planning a proof of concept study aimed at
assessing the commercial recovery of helium and hydrogen from existing deep
drill holes. This study will focus on evaluating the technical and economic
feasibility of extracting these gases using modern recovery techniques. The
success of this study could represent a significant step towards generating
cash flow from the project, though the Company remains cautious in its
approach and will proceed methodically to ensure all factors are thoroughly
considered.

Eric Sondergaard, Managing Director of 80 Mile Plc, commented:

"We are thrilled with the initial surface helium concentrations identified in
the Outokumpu Belt. These results exceed our expectations and provide strong
evidence of the region's potential as a significant source of helium and other
industrial gases. Our exploration strategy, supported by extensive historical
data and modern sampling techniques, is yielding tangible results that could
unlock substantial value for our shareholders."

"The detection of helium or hydrogen flowing at the surface is highly
significant due to the small molecular size of these gases. Helium and
Hydrogen are the smallest and lightest elements, with a very low molecular
weights. These characteristics make both gases extremely mobile and capable of
escaping from subsurface reservoirs into the atmosphere over time. For helium
or hydrogen to be detected at surface levels, there must be a sustained and
significant source of these gases continuously feeding upward, suggesting the
existence of large, potentially commercially viable subsurface accumulations."

"Such discoveries are rare and could potentially be tapped for commercial use,
especially in the case of helium, which is a critical resource with various
industrial applications, including in medical technology, space exploration,
and cryogenics."

"We have only begun to scratch the surface at Outokumpu. We are committed to
accelerating our work program and leveraging these findings to further
delineate the helium and hydrogen potential of the Outokumpu Belt. Our goal is
to advance towards commercial viability in the most efficient and
cost-effective manner possible"

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the
European Union (Withdrawal) Act 2018.

 

 

 

 

For further information, please contact:

 

 Eric Sondergaard                        80 Mile Plc                                                    enquiry@80mile.com
 Ewan Leggat / Adam Cowl                 SP Angel Corporate Finance LLP (Nominated Adviser and Broker)  +44 (0) 20 3470 0470
 Tim Blythe / Megan Ray / Said Izagaren  BlytheRay (Media Contact)                                      +44 (0) 20 7138 3205

 

Map of Outokumpu Tenement Belt

Figure 1. Outokumpu Belt current tenement status with historic drillhole
collar and mine locations

 

 

Helium Sampling Results from Perttilahti

 

 

Figure 2.  Outokumpu Belt showing existing drillholes, and Helium and
Hydrogen generating highly serpentinized ophiolites

Figure 3.  Helium, Argon, Lithium Results with Geophysical interpretation,
modified from "Characterisation and Isotopic evolution of saline waters of the
Outokumpu Deep Drill Hole, Kietäväinen 2013"

 

Short Standard Operating Procedure (SOP) for He Field Gas Analysis:

1.   Navigate to the Drill Collar:

o  Arrive at the specified drill collar location using GPS coordinates.

2.   Initialize Equipment:

o  Power on the FD-311 He analyzer.

o  Allow the units to complete their pre-startup checks.

o  Ensure all units display a 0.00 reading upon startup completion.

3.   Document Location and Hole ID:

o  Record the Hole ID from the cap on the casing.

o  Cross-reference the Hole ID with GPS data.

o  Take a photograph of the Hole ID, GPS coordinates, and collar location.

4.   Insert Collection Tube:

o  Insert the gas collection tube into the collar, avoiding any contact with
water.

o  Insert the tube to a depth of up to 20 cm or a safe depth as deemed
necessary.

Figure 4: Helium Detector being prepared for casing vent test

5.   Conduct Initial Gas Measurement:

o  Take an initial 3-minute reading using the analyzer.

6.   Clear and Reset Analyzer (If Gas is Detected):

o  If gas readings are detected, complete the initial 3-minute measurement.

o  Remove the analyzer from the collar.

o  Clear the analyzer of any residual gases by pumping fresh air through the
device for 30 seconds.

o  Ensure the unit returns to a 0.00 reading.

7.   Repeat Measurement:

o  Reinsert the collection tube and conduct a second 3-minute reading.

o  Record any changes in the readings, noting whether they increase, peak,
remain consistent, or decrease over time.

8.   Finalize and Move to Next Location:

o  After completing the measurements, securely replace the cap on the drill
collar.

o  Proceed to the next designated location.

This format provides a clear and structured SOP for field gas analysis,
ensuring all steps are performed consistently and accurately.

 

 

 

 

References

Riikka Kietäväinen, L. A. 2013. Characterisation and isotopic evolution of
saline waters of the Outokumpu Deep Drill Hole, Finland - Implications for
water origin and deep terrestrial biosphere. Applied Geochemistry, Volume 32,
37-51.

Kukkonen, I. T., Rath, V., Kivekäs, L., Šafanda, J. & Čermák, V. 2011.
Geothermal studies of the Outokumpu Deep Drill Hole. Geological Survey of
Finland, Special Paper 51, 181-198.

Kukkonen, I. T. 2011. Outokumpu Deep Drilling Project 2003-2010. Geological
Survey of Finland, Special Paper 51, 252 pages.

 

About 80 Mile Plc:

80 Mile Plc, listed on the London AIM market, Frankfurt Stock Exchange, and
the U.S. Pink Market, is an exploration and development company focused on
high-grade critical metals in Tier 1 jurisdictions. With a diversified
portfolio in Greenland and Finland, 80 Mile's strategy is centred on advancing
key projects while creating value through partnerships and strategic
acquisitions.

The Disko-Nuussuaq nickel-copper-cobalt-PGE project in Greenland is a primary
focus for 80 Mile, developed in partnership with KoBold Metals. 80 Mile,
through its wholly owned subsidiary Disko Exploration Ltd., has a definitive
Joint Venture Agreement with KoBold Metals to guide and fund exploration
efforts. The JV has completed intensive analysis and interpretation of the
extensive geochemical, geophysical, and geological data collected during the
previous exploration campaigns. Leveraging KoBold's proprietary artificial
intelligence and machine learning platforms, this comprehensive analysis has
resulted in the identification of seven initial priority targets within the
project area. These seven priority targets exhibit spatial characteristics
indicative of potential deposits on a scale comparable to renowned mining
operations such as Norilsk, Voisey's Bay, and Jinchuan. The JV is now planning
a focused ground-loop electromagnetic survey to refine and prioritize each
locality appropriately.

In Finland, 80 Mile currently holds three large scale multi-metal projects
through its wholly owned subsidiary FinnAust Mining Finland Oy. 80 Mile's
Finland portfolio includes the Outokumpu project, where the discovery of
industrial gases like helium and hydrogen adds significant economic potential
to the already prospective copper-nickel-cobalt-zinc-gold-silver targets. 80
Mile is conducting further exploration to fully assess these resources.

80 Mile's recent acquisition of White Flame Energy expands its portfolio into
the energy sector, adding large-scale licenses for industrial gas, natural
gas, and liquid hydrocarbons in East Greenland. Approved by shareholders in
July 2024, this acquisition diversifies the Company's assets and aligns with
its strategy to contribute to sustainable energy solutions, while also
exploring conventional energy resources.

The Dundas Ilmenite Project, 80 Mile's most advanced asset in northwest
Greenland, is fully permitted and progressing towards near-term production.
With a JORC-compliant Mineral Resource of 117 Mt at 6.1% ilmenite and an
offshore Exploration Target of up to 530 Mt, Dundas is poised to become a
major supplier of high-quality ilmenite. Recent discoveries of hard rock
titanium mineralization, with bedrock samples showing nearly double the
ilmenite content of previous estimates, further enhance the project's
world-class potential. 80 Mile owns 100% of the Dundas Ilmenite Project under
its subsidiary Dundas Titanium A/S in Greenland.

The Thule Copper Project is a significant component of 80 Mile's portfolio in
northwest Greenland, focused on exploring and developing high-grade copper
deposits within the Thule Basin in northwest Greenland. Leveraging existing
infrastructure and exploration credits, the project is strategically
positioned in an underexplored region with substantial mineral potential. 80
Mile's established basecamp at Moriusaq will support cost-effective
exploration, aligning with the Company's broader strategy to secure
high-quality copper and industrial gas projects.

 

 

 

 

 

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