Anson cruising ahead as Colorado River water found suitable for DLE
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Anson’s dream of leveraging Direct Lithium Extraction technology to process lithium brines from its Paradox project in Utah is another step closer to reality.
This comes after test work confirmed that water sourced from the Colorado River is suitable for use with DLE partner Sunresin’s process with only simple reverse osmosis required to remove the low levels of salts.
Additionally, the water has also been used by a nearby Potash plant for over 60 years with regular assaying showing that there are only slight seasonal changes to the water constituents.
While testing has proved that the resin used in the DLE process can selectively absorb lithium from both the Mississipian and Clastic 31 brines, the process does require large amounts of water, which makes Paradox’s location next to the river hugely advantageous over other projects that require that water be transported.
Anson Resources (ASX:ASN) added that while more than 80% of the water used in the lithium extraction and purification process is recycled inside the battery limits, studies are underway to further improve the recycling of water, which will have an impact on operating costs.
“Deionised water (DI) is an essential part of the Sunresin DLE circuit, replacing acids that are used in other DLE processes,” executive chairman Bruce Richardson said.
“The test work that Anson has completed has shown that the Colorado River water is suitable for use in the Sunresin full production process to lithium carbonate.
“The Paradox Brine Project has several competitive advantages over its competitors. Access to water from the nearby Colorado River is one of those advantages, negating the need to access groundwater or transport water from remote locations.
“In addition, water use reduction is an element of focus for the company with regard to its ESG credentials, and recycling and reduction of use of water is one of our major objectives.”
The company already has a sub-lease agreement in place with Green River Companies LLC for water rights to meet the needs of a planned 13,000tpa LCE plant at Paradox for an initial term of 23 years, with an option for another 20.
Anson recently upgraded resources at Paradox to 1Mt lithium carbonate equivalent and 5.27Mt bromine due to a significant increase in the block model grades along with product tonnages for both the clastic zones and the Mississippian units.
There is also considerable potential for further resource upside with the company planning to re-enter historical drillholes in the western areas of the project.
A Definitive Feasibility Study released last September shows attractive economics with Pre-tax NPV and IRR estimated at US$1,306 million and 47% respectively from revenues of US$5,080m over 23 years of operations.
This article was developed in collaboration with Anson Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.