Anson’s exploration efforts at its Paradox lithium project in Utah has paid off in spades with a massive 324% increase in resources to 788,300t of lithium carbonate equivalent.

The excitement doesn’t end there, with the company now having a greater degree of certainty due to an accompanying 378% increase in Indicated resources to 239,000t of LCE while bromine resources have also received a 248% boost to 3.5Mt (1.2Mt in the Indicated category).

And if that isn’t enough to get your pulse racing, there is plenty of room for further growth given that this increase is due entirely to the result from one well – the Long Canyon No.2 well which returned stronger than expected lithium grades and proof that brine reservoir can flow without the use of pumping.

Notably, it allowed the company to estimate resources from the recently discovered Mississippian Units.

Anson Resources (ASX:ASN) notes that results from the Cane Creek 32-1 resource expansion well will only be included in a future resource upgrade, as will the results from its upcoming Western Expansion strategy that includes newly discovered Mississippian Units.

Further drilling in the Western Expansion is aimed at creating additional Indicated Resources and increased the current Indicated to Inferred resources ratio as already delineated Inferred resources are converted in Indicated resources.

The results from the resource upgrade will now incorporated into the Paradox Project’s Detailed Feasibility Study, which is currently being completed by global engineering firm, Worley, for release in the near future.

Paradox project

The 167km2 Paradox lithium project is located within a mature oil and gas district with brines that historically contain high published concentrations of lithium.

Its position is likely to make it attractive to the growing electric vehicle and battery storage sectors in the US, particularly in light of the new Inflation Reduction Act that sets aside significant funding for clean energy investments.

Anson had re-entered four historical oil wells that were drilled to depths of up to 8,300ft (2,529.8m) and an average spacing of about 1.6km.

The bores delineated an aquifer containing hyper-saline lithium brine with sampling from the clastic zones of the Paradox Formation yielding concentrations up to 253 ppm lithium and 5,041 ppm bromine.

Flow tests have also confirmed that the aquifers can flow without pumping, which is likely to reduce the cost of extraction.

 

 

 

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.

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