Western Sierra Resource Corporation Enters Negotiations for Acquisition of a Majority Stake in a 25,000 Acre Helium Production Project
STEAMBOAT SPRINGS, Colo., July 08, 2021 (GLOBE NEWSWIRE) -- WESTERN SIERRA RESOURCE CORPORATION (OTC: WSRC) In keeping with the Company’s broad based natural resource development plan, which includes the implementation and beneficial use of the Company’s $40+ million in water assets for industrial hemp and affordable housing project now underway with GHG; and the Sage Hen Gold Reserve acquisition by way of its majority (70%) common stock ownership interest in Silver State Mining Group (SSMG) finalized and announced last week, WSRC is pleased to announce that it has entered into substantive negotiations with a third party exploration company to develop the 25,000 acre FCHPA Helium Project in the Four Corners Area.
Based on information gathered from existing wells and utilizing proprietary methodologies for interpretation of 2D and 3D seismic data, it is anticipated that Helium-rich gas is present and recoverable to varying degrees within the property’s underlying five geological formations (strata). It is ultimately hoped that a Helium content of between 1% and 5% may be recoverable if the project is successful. If, in fact, Helium is present and recoverable in the quantities suggested by the data, and if 100% ownership of the Project may be acquired, the following preliminary range of projections may be possible:
Estimated Economics
| Assumptions: | |||||
| Lease Acquisition | $1,250,000 | ||||
| Drill and Complete | $1,500,000 | ||||
| Total Cost | $2,750,000 | ||||
| Helium % | Raw Gas (MCF)/Month | Helium Price/MCF Net Back | Potential Net Revenue/Month | ||
| 1% | 100,000 | $320 | $234,000.00 | ||
| 1.5% | 100,000 | $320 | $351,000.00 | ||
| 2.0% | 100,000 | $320 | $468,000.00 | ||
| 2.5% | 100,000 | $320 | $585,000.00 | ||
| 3% | 100,000 | $320 | $702,000.00 | ||
| 4% | 100,000 | $320 | $936,000.00 | ||
| 5% | 100,000 | $320 | $1,170,000.00 | ||
These projections are to the 100% ownership.
The Company expects these negotiations to be successful, however the FCHPA remains subject to prior sale or withdrawal at any time and for any reason. The right to replace this project with a similar helium-based project is reserved.
WSRC will post specific FCHPA project detail on its website as contract negotiations are finalized.
About Western Sierra Resource Corporation:
Founded in 1907, Western Sierra Resource Corporation (a Utah corporation), has historically been a gold and silver mining company which continues to own several historical precious metal reserves in Arizona. In 2014 the Company broadened its vision to include natural (and renewable) resources with its acquisition of water rights and associated infrastructure assets in Colorado for purposes of irrigating and cultivating industrial hemp; processing hemp for manufacture of various building products; and construction of affordable homes utilizing hemp-based materials—among other beneficial uses. Commercial, Industrial, and Agricultural land for these purposes has been recently acquired (closed as of 06.15.21) at a price of $1,400,000, with additional agricultural and residential land also now under a $250,000 non-refundable earnest money purchase contract. WSRC’s intent is to become a broad-based resource company with high value and high-income generating assets including water, agriculture, precious metals, and related technologies.
WSRC is not a subsidiary of any other company. WSRC and Global Hemp Group (GHG) have formed an association through a swap of Preferred Stock to utilize WSRC's $40+ million in Water and Infrastructure Assets and GHG's extensive experience with industrial hemp (and financial resources) in a collaborative effort to develop a Hemp Agro-Industrial Zone ("HAIZ") in Northwest Colorado. WSRC has acquired a 70% common stock ownership interest in Silver State Mining Group (SSMG) to develop the Sage Hen Gold project in Western Nevada. The Company owns six other precious metal reserves and natural resource related projects.
Forward Looking Statements:
This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Such statements include any that may predict, forecast, indicate, or imply future results, performance. or achievements, and may contain the words “estimate”, “project”, “intend”, “forecast”, “anticipate”, “plan”, “planning”, “expect”, “believe”, “likely”, “should”, “could”, “would”, “may” or similar words or expressions. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those in such statements, which involve risks and uncertainties, including those relating to the Company’s ability to grow. Actual results may differ materially from those predicted and any reported should not be considered an indication of future performance. Potential risks and uncertainties include the Company’s operating history and resources, together with all usual and common economic, competitive, and equity market conditions / risks.
Contact:
Western Sierra Resource Corp
Website:
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@WSRCorp
