Metals Creek and Benton Complete Hydrogen-Helium Soil Gas Sampling at Smoking Gun and Parson's Pond in Newfoundland and Acquires Addition Ground
Metals Creek Resources Corp. (MEK) and Benton Resources Inc. have entered into a purchase agreement to jointly acquire a 100% interest in two mineral licenses, encompassing 30 claim units in the Deer Lake Basin and Parsons Pond area of Newfoundland, from G2B Gold. The transaction structure designates Metals Creek and Benton as equal 50% partners in the acquisition, with G2B Gold serving as the arms-length seller. The acquisition consideration includes the issuance of 120,000 common shares of Metals Creek and 82,500 common shares of Benton to G2B, along with a 2% Net Smelter Royalty (NSR) on the properties. The companies retain an option to buy down the NSR to 1% by paying $1 million to G2B. The deal is subject to TSXV approvals and is scheduled to close five business days after regulatory approval is received, with no finders' fees paid.
Concurrently, the companies announced the completion of large-scale soil gas sampling programs at the Parsons Pond and Smoking Gun Hydrogen-Helium projects. Over 700 samples were collected by Rudiger Re-Chem of Neuanlage, Saskatchewan, using a methodology designed to prevent contamination. Vials were evacuated to an absolute pressure of 20 pascals, and a cordless rotary drill drive was used to insert a stainless steel hollow probe to approximately one meter depth to avoid barometric pumping. A 30cc sample was extracted and injected into a 12cc vial via septum. Rudiger Re-Chem utilized a proprietary probe and detailed field notes to avoid hydrogen artifacts, with samples subsequently shipped to a Saskatoon laboratory for analysis via state-of-the-art gas chromatographs. Results from these samples are expected within the next two weeks.
The acquisition targets the Deer Lake Basin Property, specifically the Smoking Gun Project, where recent research into historical data has revealed highly anomalous helium values. In water collected from historic drill hole 79-67, helium concentrations reached up to 8,900 parts per billion (ppb). This hole is located approximately 11.8 km from Mills No. 1 in the Southwest, which encountered high-pressure gas that flowed for a minimum of 12 months in a basin prospective for uranium-thorium. Additionally, Claybar No. 3 in the Northeast, located 32 km northeast of hole 79-67, has several historical mentions of gas. The companies interpret these findings as indicative of a potential expansive system with favorable geological conditions for the generation and entrapment of gas.
The Parsons Pond Property is underlain by thrust faulted rocks of the Humber Arm Supergroup, featuring unique sedimentary units including shales, sandstones, and fragments of serpentine and chrome. The presence of glauconite suggests a highly prospective environment for white hydrogen (natural hydrogen) to form within the basin. Historical drill logs, located 14.2 km apart, recorded significant gas hits with C1 methane gas levels reaching 72%. Surface areas within the project boundaries have also been noted to vent gas, with references to Nalcor Energy Final Well Reports for Seamus #1 and Finnegan #1.
Market context for these projects includes increased demand for hydrogen, used in fuel, fertilizer, clean trucks and ships, and rocket propulsion, as well as helium, which is critical for cooling MRI machines, computer chips, and AI-driven chip manufacturing. Neighboring Nova Scotia companies, such as Quebec Innovative Metals Corp, have shown success in natural hydrogen searches. However, the companies note that the presence of gas or methane does not guarantee the presence of hydrogen or helium, and further studies are required.
"The Companies are excited about this new acquisition, as recent research from historical data has revealed highly anomalous helium with values up to 8,900 parts per billion (ppb) (see Table 1) in water collected from a historic drill hole (79-67)," the companies stated. "Of particular interest is the presence of the mineral glauconite, which, combined with these geological indicators, suggests a highly prospective environment for white hydrogen (natural hydrogen) to form within the basin."