Anson ready to start resource expansion drilling at Paradox lithium project

Anson Resources has been granted approval by the Utah Division of Oil, Gas and Mining (UDOGM) for the commencement of its western resource expansion drilling program at the Paradox Lithium Project in Utah, USA.

UDOGM has approved the company’s plan to conduct a re-entry and sampling program at the Sunburst No.1 and Mineral Canyon Fed 1-3 wells in the western region of the project area.

It’s another solid step in Anson’s (ASX:ASN) resource expansion program, with the Bureau of Land Management (BLM) already approving the new drilling and sampling program of all horizons at Sunburst No.1 and Mineral Canyon Fed 1-3 late last year.

The company will start reinstating historic drill pads at the drill targets in the next few weeks ahead of drilling, which is expected to start in the current quarter.

Targeting a ‘very large reservoir’

Sampling of brine from the Sunburst and Mineral Canyon wells will be tested for lithium and other minerals including bromine, iodine and boron concentrations in clastic horizons 17, 19, 29, 31 and 33 as well as the thick Mississippian units.

The wells are located approximately 1km from historic lithium-rich assayed brines previously sampled from several wells in the ‘Big Flat’ area.

Anson says it can be seen from the thicknesses of the Mississippian units that it is a very large reservoir which may result in a significant increase in the JORC resource at the project once the sampling program is completed.

To date, the sampling of the Mississippian units has proven successful, as evidenced by the resource expansion program at the Long Canyon Unit 2 and Cane Creek 32- wells which resulted in a large increase in the JORC resource for the project last year.

Western strategy could result in a resource upgrade

The plan is to convert the existing Inferred Resource of 1,037,900t of Lithium Carbonate Equivalent (LCE) and 5.27Mt of bromine and Exploration Target of 2.10-2.56Bt of brine grading 108–200ppm lithium and 2,000–3,000ppm bromine to Indicated and Inferred resources.

The company also believes some of the area located west of the targeted Sunburst and Mineral Canyon wells may be included in a future resource upgrade when the drilling and sampling programs are completed.

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.