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Blue Star Helium’s (ASX:BNL) Colorado presence grows

Energy
ASX:BNL      MCAP $13.59M
22 December 2020 13:00 (AEST)

Helium explorer Blue Star Helium (BNL) has expanded its operational presence in the prospective Las Animas County region of Colorado.

The leases are an approximate 40,000-acre expansion across its upcoming mining projects including the Galactica and Pegasus locations. Taking BNL’s total lease position in Las Animas County to 215,000 gross (160,000 net) acres.

The new leases were acquired for US$470,253.50 (roughly A$621,00) on December 17 at the Federal Burea of Land Management auction.

Blue Star Managing Director Joanne Kendrick touted the new leases as an exciting opportunity.

In the pipeline

Maiden drilling campaigns are set to kick off in 2021 once the relevant mining permits have been approved.

The company is well-funded on the back of its $6 million capital raise earlier this year.

BNL recently announced it was expanding its maiden drilling campaign to a minimum of three wells, with scope for a further two. The drills will test several prospects in the company’s portfolio including the Enterprise tenement.

The explorer’s U.S. team completed further site visits to evaluate a potential follow-up location at Enterprise, as well as assess potential well locations at Galactica, Pegasus, Voyager, and Galileo prospects.

Blue Star is focused on helium prospects across Utah, Arizona, Colorado and New Mexico, where helium has previously produced high concentrations of between two and 10 per cent of the raw gas streams.

BNL shares are in the grey this morning, trading at 3.3 cents each at 9:28 am AEDT.

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