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DME Commences Helium Production in New Mexico

Desert Mountain Energy (DME) commenced operations at its helium processing facility in the West Pecos Field, New Mexico. Based on its past track record we would be cautious about the ramp-up. The plant extracts helium from natural gas and began with an initial capacity of just 960 mcf/d, which is expected to be optimised and reach maximum capacity in 120-180 days, accommodating various gas mixtures and aiming for a final product of 99.9995% pure helium. Previous press releases have mentioned that DME plans to achieve a capacity of 1.5mmcf/d and historical data suggest an average of 0.50% helium grades implying less than 3mmcf/y. Additionally, DME has enhanced the infrastructure at this site and others in Arizona, collaborating with Beam Earth to support hydrogen production. DME also granted 5.9mm stock options at a strike of C$0.36, exercisable over three years.

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