The Company has signed a seismic services contract with Mongolian company Micro Seismic. The contract will cover a ~120 km 2D program that targets specific drilling leads (rather than prospects – as advised to the market on 8 May 2019) and is scheduled to commence post final regulatory approvals.

Microseismic have prior experience in acquiring seismic in Elixir’s licence area (for mining companies) and the Company looks forward to working with them over the coming months.

The Company has also recently received formal responses to its drilling tender process which closed last Friday. There were five respondents, which comprised one international drilling company and four Mongolian companies.

In recent days, a number of non-complying approaches have also been received. These responses are currently under review and the Company aims to select a drilling contractor by the end of June.

The drilling campaign, comprising up to three fully tested coal bed methane (CBM) coreholes, will closely follow the seismic program and is currently expected to commence in or around September 2019.

The approvals process continues to progress, with the Company recently completing a Detailed Environmental Impact Assessment (DEIA) for the Nomgon IX area and which has now been lodged it with the Ministry of Environment and Tourism for review and approval. The Ministry’s sign-off of the DEIA is the final regulatory approval Elixir requires prior to the commencement of physical exploration activities.

Elixir’s Managing Director, Mr Neil Young, said:

'Our exploration program in Mongolia is progressing in line with our plans for 2019, which are of course now fully funded. Our engagement processes with local contractors continues to identify strong in-country capabilities. We are targeting specific CBM drilling targets and the seismic program not only supports the refinement thereof but is also designed to support the resource upgrading a successful drilling campaign will deliver'.