Anson’s latest lithium assay points to potential resource growth

Anson has wrapped up resource drilling at the Cane Creek 32-1 well at its Paradox lithium project with initial assays outlining potential resource expansion.

The initial assays of 108 parts per million (ppm) lithium from the 29.6m thick Clastic Zone 43 is 40% higher than the average grade of the lithium brines in Clastic Zones 17, 19, 29 and 33 which were included in the recently upgraded JORC resource.

And if this wasn’t enough to put a smile on faces around Anson Resources’ (ASX:ASN) office, exploration drilling has confirmed the additional Clastic Zones, which are much thicker than previously sampled zones, also contain a supersaturated brine.

Assays are pending from the remaining Clastic Zones and Mississippian units, which have the potential to deliver a large increase in a further planned resource upgrade.

The data and samples collected from these horizons will provide additional geological information on the brine horizons in the project area which can be sampled in future exploration programs.

Paradox currently has a resource of 788,300t lithium carbonate equivalent.

Big lithium brine potential

The massive brine aquifer in the Mississippian Units at Paradox have a thickness between 70m to 170m and is situated approximately 500m below the clastic zones.

Cane Creek 32-1 did not drill completely through the Mississippian units, and at the completion of the drilling program it was still open at 121.3m.

Assays from both the earlier Long Canyon Unit 2 and the Cane Creek 32-1 wells may indicate a connectivity between the Mississippian and Paradox Formation Clastic zones, due to the geological feature, Robert’s Rupture, which has resulted in the Mississippian rocks being faulted against the Paradox salt beds.

These structures have caused higher pressures and porosity in the project area resulting in artesian flow to occur, which means that no pumping is required to get the lithium brines to flow.

That additional resources remain to be added bodes well for the Paradox project given that the recent Definitive Feasibility Study for its Phase 1 development has already outlined some attractive economics including pre-tax net present value and internal rate of return – both measures of a project’s profitability – of US$1,306m and 47% respectively.

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.