Anson eyes resource upgrade off the back of strategic lithium project acquisition next door to Paradox
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Anson Resources has entered into an agreement to purchase the strategically located Green Energy lithium brine project from Legacy Lithium Corp in the Paradox Basin in south-eastern Utah, USA.
The proposed acquisition consideration is US$1 million in cash and 15,060,981 ordinary shares in the company.
The Green Energy project consists of 208 placer claims covering 16.85km2 that abut Anson Resources’ (ASX:ASN) Paradox project and will result in the Paradox project becoming one contiguous mineralised block – with an 8% increase in land area.
And this increase in project area is expected to result in an increase in the exploration target by 14% to 310 million tonnes to 350 million tonnes of brine, grading 108 – 200ppm Li and 2,000 – 3,000ppm Br.
The acquisition also provides near-term resource upgrade potential without the need for further drilling, with three of the 18 historic oil and gas wells on the project having recorded lithium values of 173ppm in Clastic Zone 31, 134ppm in Clastic 19 and 81ppm in the Mississippi Units.
Anson says the historical lithium rich brines in the newly purchased area should result in an increase in both the Indicated and Inferred Resource categories of the already estimated 1.04 million tonnes of lithium carbonate equivalent (LCE) JORC Mineral Resources at the Paradox project.
The brines would be included in the development of the flow model the company is currently preparing for Paradox.
“Anson first reached out to the previous owners of this property 5 years ago to purchase these claims,” Anson executive chairman and CEO Bruce Richardson said.
“Negotiations with Legacy Lithium to acquire this strategic important property began in 2023.
“It is extremely pleasing that these negotiations have been successful as the addition of the Legacy claims forms one large contiguous block of over 230km2 of claims of the Paradox lithium rich brines and at the same time eliminates any potential dispute over ownership of the lithium that to be extracted.
“It is expected that the JORC resource will increase as the area of interest is extended over the purchased claims, upon completion of the conditions precedent, providing more project value to Anson shareholders.”
In addition, the previous owners of Green Energy lodged a Plan of Operation (POO) and an Application to Drill (APD) with the Bureau of Land Management and the Utah Department of Oil, Gas and Minerals (UDOGM) respectively to re-enter the Cane Creek Fed 11-1 well.
This article was developed in collaboration with Anson Resources Limited, 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.