Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME) is pleased to announce that it has now acquired a further tranche of 12,228 acres under lease for helium, oil & natural gas from the Arizona Department of Land within the prolific Holbrook Basin of Eastern Arizona. The new leases are situated in Navajo, Apache and Coconino Counties. This now brings the Company’s total acreage under lease in the Basin to 36,702 acres. The Company initiated its exploration and land acquisition program in the Basin in the 4th quarter of 2017.
As noted in the Company’s PR dated February 28, 2018, two of the world’s richest historic producing helium gas fields, the Pinta Dome and the Navajo Springs, are situated in this region. They are noted for their exceptionally high grades of helium gas produced ranging up to 8%-10% versus the industry benchmark of 0.3% to 1% for commercial grade. The new leases are highly prospective for helium as well as oil & natural gas. They bring to six the total number of distinct areas over which leases have now been secured by the Company in the Holbrook Basin. This latest tranche of leases adds acreage to the Company’s flagship Heliopolis area in Coconino County, as well as adding three additional areas in the NE portion of the Basin in the vicinity of the Pinta Dome Field. The new areas are characterized by anticlinal features, monoclines and other geological structures with surface expression, together with reservoir rocks and salt and anhydrite caprocks, giving them potential to serve as trapping mechanisms for commercially significant helium reservoirs.
Approximately 800 acres of the new leases are in Apache County in an area called the Chambers Area, which is situated in the NE corner of the Holbrook Basin approximately 9 miles NE of the prolific Pinta Dome Field and below the Defiance Uplift. This area is characterized by stratigraphic traps and appears to be highly prospective.
Approximately 6428 acres of the new leases are in Navajo County in an area called the Woodruff East Area, which is situated in the NE corner of the Holbrook Basin approximately 12 mi S-SW of the Pinta Dome Field. It is characterized by the presence of one anticlinal feature.
Approximately 2400 acres of the new leases are in Navajo County in an area called the Woodruff Southeast Area, which is situated in the NE corner of the Holbrook Basin approximately 15 mi SW of the Pinta Dome Field. It is characterized by the presence of one anticlinal feature. This area underwent some Potash exploration decades ago. According to published reports, a potash test well in this area called Arkla Exploration No. 7-State blew out while drilling, suggesting high gas pressure attributed to salt movement in the Basin.
The remainder of approximately 2600 acres of the new leases are in Coconino County contiguous to the Company’s existing leases in the area called Heliopolis. This area, which is the Company’s flagship area for helium exploration, now comprises an aggregate of 18,234 acres. It has two large anticlinal features, excellent cap rock and is characterized by the prolific Coconino sandstone reservoir rocks.
According to Irwin Olian, CEO of the Company, “We are extremely gratified to have been able to acquire three major tranches of leases for helium, oil & gas in the Holbrook Basin, which now cover 36,702 acres in six discreet structural areas throughout the Basin. Headed by our flagship Heliopolis area, these areas are highly prospective for helium gas and appear to possess the structural prerequisites to serve as effective trapping mechanisms. In assembling our land package in Arizona, we have been mindful to avoid all National Parks, National Monuments and State Parks, as well as areas of sensitivity to the Native-Americans, including known Indian ruins, caves, burial grounds and other archeological sites. The Company was originally a spin-off from Pan African Mining Corp., which had the largest mineral exploration portfolio in Madagascar, where our management team successfully developed three projects in one of the world’s most sensitive eco-systems in concert with the local communities. That experience has given our team considerable sensitivity to environmental and social issues and we are committed to bringing that same conscientious approach to working in harmony with Arizona’s environment and indigenous peoples.”
About Desert Mountain Energy
The Company is an exploratory resource company engaged in exploration and development of helium, oil & gas and mineral properties in the Southwestern United States. In addition, the Company owns the Yellowjacket Gold Project in Atlin, British Columbia, which it has recently been developing. The Company has its executive offices in Vancouver, Canada.
The Company was incorporated under the laws of the Province of British Columbia, on April 30, 2008, and was formerly named African Queen Mines Ltd. It initially received certain southern African assets in a spin off transaction related to the acquisition of Pan African Mining Corp. by Asia Thai Mining Co., Ltd.
On Behalf of the Board of Directors of Desert Mountain Energy Corp.
Chairman & CEO
For more information, contact:
President and CEO
Dubai: +971 55 997 0427
London: +44 (0) 7780 602 788
Germany: +49 (0) 21141 740411
U.K.: +44 (0) 870 490 5443
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company’s expectations.