Gold Hydrogen Ltd (ASX:GHY) is encouraged by the results of an experimental Stage 1 soil gas survey by the Commonwealth Scientific and Industrial Research Organisation (CSIRO) across the mainland part of the Ramsay Project on South Australia’s Yorke Peninsula.
Results from the first stage of the soil gas testing survey indicate that the CSIRO has detected hydrogen in soil in multiple locations.
Measured levels of hydrogen have been described as potentially indicating natural hydrogen seeps, with measured values noted as moderate at a few locations.
About Gold Hydrogen
Gold Hydrogen is focused on the discovery and development of world-class natural hydrogen gas in a potentially extensive natural hydrogen province in South Australia. This region has only recently had its natural hydrogen potential identified by the company.
The domestic and global demand for hydrogen, combined with new natural hydrogen exploration techniques and experienced personnel, provides the company with an opportunity to define and ultimately develop a new natural hydrogen gas province.
South Australian focus
Gold Hydrogen Group tenement and areas under application in South Australia.
The combined natural hydrogen permit area of the Gold Hydrogen group is about 75,332 square kilometres, which includes one granted petroleum exploration licence – PEL 687, the Ramsay Project.
Two 100%-owned subsidiary companies - White Hydrogen Australia and Byrock Resources - hold an additional seven applications for natural hydrogen exploration within South Australia.
In addition, Gold Hydrogen is also the preferred applicant for four gas storage exploration licence applications (GSELA) covering 8,107 square kilometres within the Yorke Peninsula portion of PEL 687.
Stage 1 survey
The first stage of the two-stage research and development soil-gas survey was undertaken to determine whether hydrogen gas can be detected in soils at surface above potentially prospective natural hydrogen locations.
Historical drilling activities recorded occurrences of up to 90% hydrogen (air corrected) in PEL 687 from depths >240-metres.
Independent technical experts have noted that the survey results at strategic locations are particularly encouraging since they are near geological faults that extend down into the basement rocks expected to be the source of the hydrogen.
These specific faults delineate the area used to determine the P90 Prospective Resource for the Ramsay Project, which ranges from a 1U low estimate of 207,000 tonnes to a 3U high estimate of 8.82 million tonnes with a mean estimate of 4.187 million tonnes.
Supports company’s belief
After reviewing the CSIRO report the technical experts have a view that the seepage along these faults could imply that hydrogen has been generated in the subsurface, migrated upwards and may have filled a suitable subsurface reservoir covered by a seal preventing escape of the accumulation.
This finding supports the company’s belief that there is a naturally occurring hydrogen accumulation in its Ramsay Project area.
While the results are encouraging, the company notes that the only sure way to determine if there is a hydrogen accumulation in the area is to drill one or more wells, the first of which it plans to drill in October 2023.
Results from the well(s) will be integrated with the interpretations of the reprocessed seismic, airborne magnetic surveys and the soil test results to assist with further exploration planning.
Presence of helium
Also providing encouragement for Gold Hydrogen was the presence of helium in multiple locations on PEL 687. Further studies will be undertaken to further understand the implications of this result.
When the company drills in October, its gas analysing system will check for helium as well as hydrogen.
Further CSIRO research and development is continuing and this data will be used to help identify further leads and prospects for the Ramsay Project.
The second stage soil-gas survey exploration technique will involve long-term measurement, and this has been tentatively scheduled for late 2023-early 2024.
Planning is in place to accelerate a second well at the company’s option.