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Helium One Global (LSE:HE1), a leading helium exploration company, has achieved a significant milestone in its Tanzanian operations with the submission of a Mining Licence (ML) application for the Itumbula-Tai area in southern Rukwa. This move follows the completion of the company’s comprehensive feasibility study and a six-month Environmental and Social Impact Assessment (ESIA).
The feasibility study, which serves as the foundation for the ML application, evaluates the technical, economic, and environmental viability of a helium development project in the region. According to the company, the study integrated findings from the extended well test (EWT) conducted at the Itumbula West-1 (ITW-1) discovery well. With the ML application submitted, Helium One is optimistic about forming a strong partnership with the Tanzanian government to establish a flagship helium industry in the country.
Completion of Feasibility Study
Helium One's feasibility study spans various disciplines, ensuring a robust approach to the future development of southern Rukwa's helium resources. The study outlines a commercial development plan that would potentially bring southern Rukwa to the forefront of global helium production. The company has been dedicated to this study for several months, incorporating critical data from the ITW-1 well, which has demonstrated promising results.
Once the ML is granted, Helium One is expected to advance its operations into the development and production stages, solidifying Tanzania's role as a key player in the global helium market.
Expiration of Prospecting Licences in Eastern Rukwa and Beyond
In a strategic move, Helium One has allowed several prospecting licences (PLs) outside southern Rukwa to lapse. These licences, located in Eastern Rukwa, Eastern Eyasi, and the Balangida Rift Basin, have reached the end of their second and final renewal term. As of 17th September 2024, they will automatically expire, enabling the company to save approximately US$177,600 in annual license fees.
The decision to relinquish these licences is part of a broader strategy to focus on higher-potential areas. The company has fully relinquished its expired PLs covering 233 km² on the eastern side of Lake Rukwa, which was deemed to have limited prospectivity and accessibility challenges. Additionally, the Balangida Rift Basin PL, covering 134 km², has also expired following a partial relinquishment earlier this year.
Helium One retains a 286 km² PL in the central Eyasi Rift Basin, which remains under review for future exploration. However, two PLs in the eastern Eyasi Rift Basin, totalling 521 km², will also expire on 17th September, as the area offers limited potential for helium discovery.
Next Steps: Awaiting Licence and Expanding Partnerships
With the ML application now in the hands of Tanzanian authorities, Helium One is preparing for the next phase of its helium project in southern Rukwa. The company’s drilling rig, the Epiroc 220, remains operationally ready and “hot stacked” in the region, awaiting further developments.
In addition to its Tanzanian operations, Helium One is progressing with its acquisition of a 50% stake in the Galactica-Pegasus helium project in Colorado, USA, through a partnership with Blue Star Helium. This acquisition, expected to be finalized soon, will pave the way for a Q4 2024 drilling campaign on the US-based project, further diversifying the company’s global helium exploration portfolio.
