The new leases were acquired for a total of US$849,492 at the Federal Bureau of Land Management’s (BLM) land auction last week, with Blue Star now holding total acreage of around 164,000 gross acres (108,000 net acres).
This large net lease position now held over six priority prospects, including Enterprise and Galileo, is expected to lead to an expanded maiden drilling program of multiple wells.
“Dominant acreage position”
Blue Star managing director Joanne Kendrick said: “I am delighted with the outcome of the latest BLM auction.
“The new leasing adds significantly to Blue Star’s dominant acreage position in the area but more importantly we now have a high-net contiguous position over four more of our preferred helium prospects - Voyager, Prometheus, Galactica and the newly named Pegasus.
”We will now conclude in-field surveys and prospective resource assessments to get these four prospects drill-ready and to the same level of technical maturity as Enterprise and Galileo.
“We will then select a number of further prospects to add to our maiden drilling program to test structures within the Lyons Helium Play Fairway proven by the historic Model Dome helium field.”
Additional prospective resource assessments are underway prior to a final decision on expanding the program.
Shares have been as much as 10% higher to A$0.034.