Anson Resources has taken another crucial step towards the development of one of only a handful of US lithium projects set to address a major domestic lithium shortage in the near term.

Anson (ASX:ASN) has appointed leading engineering firm Worley Group to undertake front end engineering and design for a proposed 13,000tpa lithium carbonate plant to turn lithium rich brines into chemical for battery and electric vehicle producers.

Anson has also appointed its own team to support Worley in delivering the study which will build off a robust DFS completed in 2022 and is expected to be completed by the fourth quarter of 2023.

The FEED study is a major milestone, with results to factor in the financial model Anson uses to support project financing proposals to commercial banks, export credit agencies and US Government agencies for its Paradox lithium project in Utah.

DLE tech

Anson’s Paradox project is unique in that it does not rely on traditional brine evaporation or hard rock processing to deliver a battery grade lithium carbonate.

Instead Anson is completing a literal energy transition for the oil fields in the Paradox Basin.

It will enter old hydrocarbon producing wells to pump highly pressurised brines to surface,  containing high concentrations of lithium and bromine.

Paradox contains 1.0379Mt of lithium carbonate equivalent and 5.27Mt of bromine across both indicated and inferred resources, with further resource growth expected from its Western Expansion wells.

There’s also future growth on the cards for the company’s Green River project, which contains an exploration target of 2-2.6Bt at 100-150ppm Li and 2000-3000ppm Br and would be funded from Paradox cashflows.

READ: The Salton Sea, Direct Lithium Extraction tech and why O&G players are eyeing old oily brines

Last year’s DFS, based only on the old indicated resource of 239,000t LCE (now 346,109t LCE and 1.84Mt bromine indicated), demonstrated a project with a 23-year life generating in excess of US$5 billion in revenue on annual lithium carbonate production of 13,074tpa.

Paradox’s first stage would come in, according to that study, at a competitive cost of US$495 million using Sunresin New Materials Co.’s patented and proven direct  lithium extraction processing technology.

“Anson’s chosen Direct Lithium Extraction (DLE) process, by Sunresin New Materials Co. Ltd (Sunresin), will be incorporated into the design and engineering work, and the FEED team will work closely with Sunresin and its independently appointed design and engineering consultants in the delivery of the FEED Study,” Anson said today.

“Sunresin is the process package owner and technology provider for the proposed LCE plant at Paradox, processing raw brine into sellable product (considered as Inside Battery Limits, or ISBL), and will be responsible for the design and engineering work to applicable US standards.

“Worley will provide the engineering for the supporting infrastructure and utilities for the broader site development (considered outside battery limits, or OSBL).”

Getting ready to finance

The FEED study is an important step for Anson to secure financing and offtake partners.

It is in the process of building a supplier’ list for the production plant, focusing on North American firms to maximise its opportunity to secure debt finance from government agencies, export credits agencies and the US Department of Energy, which has signalled its intention to extend low cost loans to boost domestic lithium production.

Anson says there are several financing pathways open to the company, which aims to be in production at Paradox in 2025.

“The Company has been working on a financing structure for the total required investment amount for the proposed 13,000tpa lithium carbonate plant since the completion of the DFS,” Anson said.

“This includes potential off-take partners as well as government agencies. This work has identified several options for financing which have now been accessed, and the pathway to securing this finance has been determined.

“This work determined the procurement strategy which focused the scope of work to be conducted in the FEED Study.”




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.