Gold Hydrogen Ltd (ASX:GHY) has advanced exploration of natural hydrogen and helium on its Ramsay Project on the Yorke Peninsula of South Australia at pace this quarter, completing Stage 1 testing and launching straight into the next phase of exploration.
The company confirmed high concentrations of both gases in the Ramsay 2 well, with hydrogen purity levels (air-corrected) reaching up to 95.8% across seven zones within the well, and best grades identified at about 531 metres deep.
Helium levels during this phase of testing reached 17.5% (air corrected) but recent results have already exceeded those levels handily, reaching 20% to 25%.
Read: Gold Hydrogen registers helium purities among highest levels recorded in exploration well testing at Ramsay
Stage 2 exploration well testing begins
GHY identified a large 180-metre-thick helium pay zone in Stage 1 testing, offering high potential for commercial extraction levels of the gas.
The company is now focused on Stage 2 testing, dewatering the well to facilitate flow of gas to surface.
Gold Hydrogen also completed a 2D seismic survey during the quarter, which will inform future drilling targets and well designs alongside the geological insights gleaned from Stage 1 tests.
Confident the Yorke Peninsular is prospective for its target gases, GHY now has one granted petroleum exploration license (PEL 687) and seven additional applications in the region – the combined project covers about 75,332 square kilometres, offering plenty of opportunity for future exploration.
The company held A$15.6 million at the end of the quarter, a strong cash position from which to pursue its exploration and development goals, which will include producing a contingent estimated gas resource for Ramsay.
The project’s 2U (best estimate) prospective hydrogen resources (a lower confidence category) currently sit at a total of 1.313 million tonnes with a commercialisation probability (PC) of 10%.
It’s helium resource (2U prospective) sits at 41 billion cubic feet (bcf) with a PC of 10%.
The company notes these resources should be understood as conceptual targets concerning undiscovered accumulations that require further exploration, appraisal and evaluation.