Navasota continues its search for Saskatchewan helium
Navasota Resources Ltd NAV
Shares issued 5,111,378 Jul 9 close $2.20
Mon 12 Jul 99 News Release
Mr. William Sanesh reports
In May, 1999, the company announced that it had secured exclusive rights
for three years to explore for helium and associated gases in east-central
Saskatchewan over more than 300 square miles of area. Helium has been
reported in anomalous concentrations of from 2.0 per cent to 89.5 per cent
in the area. Helium is usually a byproduct of natural gas production,
economic to recover when the helium content is as low as 0.3 per cent.
Worldwide demand for helium is robust. At U.S. plants, pure helium
presently sells for more than 40 times the same volume equivalent of
natural gas at the wellhead in Canada.
Navasota's search of records of previous exploration in the region
continues. All available cores from the nearest 17 test holes previously
drilled (16 looking for oil and gas and one for minerals) were examined.
This action confirmed that potential reservoirs exist in several formations
in the region. A compilation of results of all previous work of any sort,
on or near Navasota's permits, is under way. A summary of past reported
helium occurrences will be provided on the company's Web site,
www-navasota.com. The company's investigation shows that previously
conducted search for helium in near-surface showings was inhibited by the
high cost of in lab analyses and by sample handling delays. Therefore,
Navasota has ordered a special, highly portable, helium gas detecting and
measuring device. It permits analysis of helium in soil gas with a high
degree of accuracy which can be done in minutes and on site. The instrument
is Micro Gas Chromatograph (GC). It is made by Hewlett Packard. Nothing
like it existed when earlier exploration was done. The company will use a
strict protocol for maintaining accuracy of field results. It will do
frequent calibrations of its instrument and submit, at random but as
specified by independent labs, duplicate samples for confirming analysis by
independent conventional labs/
Navasota's soil gas sampling is only intended to better guide where seismic
should be done or more area taken. Seismic should identify specific
prospects to be tested by the drill. If all goes according to plan, testing
with the drill should occur in the winter of 1999/2000.
In late June and early July, Navasota's technical adviser made an aerial
reconnaissance of the entire permit area and did a ground inspection of key
past activity sites. He also represented the company at a general assembly
of the community that may be most affected by the company's intended
operations and explained to them what actions are planned. Navasota
considers it important that all such facts be known to forestall possible
future controversy based on rumour and gossip in this area where resource
extraction is not a familiar activity.
The company is beginning an aggressive campaign to increase investor
awareness of the company and its projects. Starting in early July, it will
conduct a large, sustained, direct mail program directed to investors who
regularly invest in small-cap stocks. The company will also increase its
presence on the Internet and will make spokespersons readily available for
radio and newspaper interviews. This investor awareness campaign is
intended to enlarge the shareholder base, a long-standing goal of the
company. |
