Anson Resources reports that its Paradox lithium brine is flowing to the surface without pumping. Pic doulos via Getty Images.
Mining
Anson is collecting its first brine sample from the Long Canyon Unit 2 well at its Paradox lithium project, which rather encouragingly flowed brine to surface without pumping.
The supersaturated bulk brine sample from the target Mississippian units will be used for future metallurgical test work, a planned small-scale pilot plant in Salt Lake City, and to determine brine flow rates.
Collected brine samples will also be assayed by Anson Resources (ASX:ASN) for lithium, bromine and other minerals and will be incorporated in the upcoming JORC resource upgrade.
The flow of brine without pumping – as flagged late last month when the company reported high pressure in a 12km radius around the well – is significant as it could potentially shave off the operating costs and emissions associated with pumping.
Paradox covers 95km2 in Utah on the doorstep of Tesla’s US Gigafactory across the state border in Nevada.
The project has a current resource of 186,000t of lithium carbonate equivalent in deep lithium rich brines.
A preliminary economic assessment last year put a US$203m price on a first stage development.
This will produce 2674t of lithium carbonate (and 15,000t of sodium bromine) a year at an attractive NPV of US$468 million and post-tax internal rate of return of 31%.
Anson is currently undertaking a major Resource expansion drilling program, the results of which will be incorporated into a Detailed Feasibility Study (DFS) being undertaken by Worley. In addition to the expanded resource, the DFS will be based on the prevailing strong lithium price, and is aimed at enhancing the robust project economics set down in the PEA.
Downhole geophysics will be carried out when the drilling is completed to determine rock unit parameters such as porosity.
This will also mark the start of the next phase of Anson’s resource expansion program, at the high-priority Cane Creek well.
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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