Vancouver, British Columbia — DESERT MOUNTAIN ENERGY CORP. (the “Company”) (TSX.V: DME | U.S. OTC: DMEHF | Frankfurt: QM01) is pleased to announce that targeting work for its upcoming 2019 helium drill program is ongoing in Arizona’s Holbrook Basin in North-Central Arizona (the “Basin”). After preliminary review of geological, historical, cultural and environmental factors, the Company has developed seven distinct prime prospects in different areas throughout the Basin, which covers an area approximately 160 mi X 100 mi. Initially, the Company had identified 22 potential targets. The Company’s total acreage under lease in the Basin is now 39,742, of which 36,702 acres is under lease from the Arizona Department of Land and 3040 acres is under lease from the Bureau of Land Management of the U.S. Dept. of the Interior. The Company is planning to drill three helium wells in the upcoming program in different prospects in the Basin and is in the process of further prioritizing its targets. The wells are contemplated to be simple, vertical wells drilled to shallow depths between 1400 ft. and 3500 ft.
The Company has undertaken extensive geological studies of the Basin, including desktop review of all publicly available logs from wells drilled in the Basin for oil & gas, potash, water and other commodities, published engineering and geological reports from private companies and public sources including the University of Arizona, satellite spectral imaging studies and other materials from accredited sources such as the U.S. Geological Survey. In addition, the Company’s technical team has carried out extensive ground studies and mapping of key geological features throughout the Basin deemed to have the potential to serve as traps for significant commercial helium reservoirs. The Company’s prime prospects are characterized by anticlinal features, monoclines and other geological structures with surface expression, together with reservoir rocks and salt and anhydrite cap rocks typical of helium traps in the Basin. The Company initiated its exploration and land acquisition program in the Basin in the 4th quarter of 2017.
As part of its geological studies, the Company is undertaking 2-D seismic geophysical studiesof approximately 15 miles of seismic lines over five of the prime target prospects. Bird Seismic Services of Globe, Arizona, a highly experienced and well-respected local geophysics firm, is performing the seismic work under contract from the Company. In addition, Arizona-based LA Neal Consulting, LLC, a highly-qualified specialist in cultural resources and environmental regulatory matters, is performing desktop and comprehensive archaeological field studies to ensure compliance with applicable requirements of the Arizona Department of Land, Arizona State Historic Preservation Office and Arizona State Museum. The Company’s choice of drill targets is designed to focus on the best geological prospects in the Basin which at the same time involve minimal or no footprint on local communities, historic cultural resources or the environment.
According to Irwin Olian, CEO of the Company, “We are very excited by the progress of our technical team to date in developing highly prospective targets for our 2019 drilling program. We hope to complete our target selection and the permitting process to enable us to drill sometime later in the second quarter of this year.”
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. Until September 5, 2018, the Company also owned the Yellowjacket Gold Project in Atlin, British Columbia, which it had 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
E-mail: [email protected]
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.