Anson’s lithium costs set to drop as high pressure and increased flow rates confirmed at Paradox Project
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Anson’s testwork has confirmed continued high-pressure and higher than initially tested flow rates at the Long Canyon Unit 2 brine well within its Paradox lithium project in Utah.
With similar high-pressure results reported in a radius up to 12km from the well, this is a strong indication that lithium brine flow rates will be maintained throughout the production period.
Importantly for Anson Resources (ASX:ASN), this is also expected to result in the flow of brine to surface without the need for pumping, which will result in lower production costs and positive ESG attributes.
Long Canyon Unit 2 is being drilled to convert the previously identified exploration target of between 533,000t and 1.34Mt of lithium carbonate equivalent into an indicated and inferred resource. It reached its target depth of 2,334m and achieved first brine flows last week.
This drilling forms part of a major resource expansion drilling program by Anson at Paradox. The program is aimed at supporting a major resource upgrade and the development of Paradox into a substantial lithium producing operation in Utah.
“Unlike oil reservoirs which are located and concentrated by geological traps such as faults or anticlines, the lithium-rich brine within the Paradox Lithium Project is continuous across the layered formations of the Clastic Zones and the Mississippian Units,” executive chairman Bruce Richardson says.
“The uniform high pressure in the rock units across the 100km2 area of the project is expected to result in continuous flow for an extensive period from the LCW1 and LCW2 extraction pads which are located at the unique intersection of the two major geological structures, Roberts Rupture and the Cane Creek Anticline.
“Pressure is always looking for a pathway to release and brine extraction wells will offer that opportunity.”
Anson is in a unique, and ideal, location for brine extraction at the Paradox project, at the intersection of Robert’s Rupture and the Cane Creek Anticline.
Robert’s Rupture provides vertical porosity while the Cane Creek Anticline provides a shallower depth to the target extraction horizon.
Notably, this combination of high pressure, vertical porosity and shallow depth is not present anywhere else in the area.
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.