Gold Hydrogen Ltd (ASX:GHY) encountered significant concentrations of hydrogen and helium during drilling at the Ramsay 1 well, confirming historical findings and demonstrating the presence of an active hydrogen resource at shallow depths at the Ramsay Project on South Australia’s Yorke Peninsula.
Ramsay 1, Australia’s first dedicated natural hydrogen exploration well, was successfully drilled to a depth of 1,005 metres on October 28 and was completed on schedule, under budget and without any health, safety or environmental incidents.
Preliminary laboratory analysis has pinpointed an air-corrected hydrogen concentration of 73.3% at a depth of 240 metres below ground level, closely mirroring the 76% air-corrected hydrogen concentration documented in the Ramsay Oil Bore 1 in 1931.
Investors have reacted positively to the news, sending Gold Hydrogen shares 7.69% higher at $0.28.
There is helium too
The results have also unveiled helium at a relatively high air-corrected content of 3.6% at 892 metres, a rare and valuable resource as helium cannot be manufactured artificially.
Given its widespread usage in the medical industry as well as for scientific research, space exploration, diving and energy industry applications, the discovery of helium in commercial quantities could bring substantial value to the Ramsay Project.
Due to helium's high potential value, there are other projects globally producing helium at concentrations lower than 1%.
Further testing
As the results are preliminary in nature, further evaluation and sampling of data will be required to reduce the remaining uncertainties around the vertical and lateral distribution of the natural hydrogen at Ramsay 1, where drilling has been suspended.
Further work is also required to understand the extent of helium present within the well bore.
While these are ongoing, the company is preparing to drill the Ramsay 2 well to further appraise the project’s prospective resource.
The Ramsay 2 well is expected to spud in the middle of next month.
The company's prospective resource statement for Ramsay's natural hydrogen.
Above expectations
“It is incredibly exciting that we have replicated the results of 100 years ago at 240 metres,” Gold Hydrogen managing director Neil McDonald said.
“With the additional find of helium, which could be a significant value-add to the project, we view these results as being better than planned.”
Read more on Proactive Investors AU
