Anson approved to re-enter Mt Fuel-Skyline Geyser well

• Anson Resources’ application to re-enter the Mt Fuel-Skyline Geyser 1-25 well approved by USA BLM
• Anson is working towards a sufficient JORC resource based on the drilling results as well as a DFS
• The approval of the re-entry program is a major step forward on this pathway

Special Report: Anson has received the green light to re-enter the Mt Fuel-Geyser 1-25 well at the Green River lithium project to carry out a drilling program and prove up a JORC resource.

The company’s Plan of Operation was approved by the USA Department of Interior Bureau of Land Management (BLM) after it was lodged in early May.

Anson Resources’ (ASX:ASN) Mt Fuel-Skyline Geyser 1-25 is a historic oil well roughly 4km east of the Green River in Utah, where targeted zones have no recorded historical lithium and bromine assays, but supersaturated brine had been intercepted during historical oil and gas drilling.

One assayed sample earlier this year demonstrated salt concentrations from the Mississippian units like that of the recently drilled Bosydaba#1 well completed by ASN, confirming lithium-rich brines at the north end of the Green River asset.

ASN’s exploration program plans to target the highly porous horizons which have resulted due to the geological structures in the region.

This includes the Ten Mile Graben (a dropped-down block of rock bordered by two parallel fault lines) that passes east-west through the Green River BLM claims.

Developing a sustainable project

The Mt Fuel-Skyline Geyser drill pad remains in place as only minor rehabilitation had been carried out and the drill hole identified by a marker pole, resulting in minor re-establishment work having to be completed prior to drilling.

The historical oil well abuts the existing road, which means no new access routes will need to be created.

Both these factors will contribute to minimal impact on the environment, social and recreational activities within the project area.

The use of areas where there has already been ground disturbance is consistent with Anson’s aim of developing a sustainable project and minimising environmental impact.

High permeability

Drill Stem Tests data from historic wells within the project region indicate that the Mississippian strata have a high permeability across a large area.

This permeability indicates that flow rates required to support a planned lithium plant may be achievable, as well as indicating that the pressure may remain constant over the life of the lithium project.

The fractured rock of these units forms an excellent reservoir for supersaturated brines, ASN said.

Due to the presence of the above attributes, when brine is removed at an extraction point it may flow into the voids from where it was removed.

This would assist in maintaining high reservoir pressure and help deliver a high ultimate recovery of brine.

‘Major step forward’

ASN executive chairman Bruce Richardson said the company greatly appreciates the speech in which BLM provided the re-entry approval, demonstrating the significance attached to this project.

“The USA is progressing to becoming self-reliant in critical minerals, including lithium,” he said.

“This is reflected in recent Executive Orders and other government directives.

“We note that the Trump administration has taken decisive action to expedite the permitting process for projects requiring federal permits,” Richardson added.

“With the granting of the approval to drill the Mt Fuel-Skyline Well, Anson does not have any current applications requiring federal government approval for the Green River Lithium Project, other than the final approval from Export-Import Bank of the United States (EXIM) for financing.”

The application to EXIM can only be submitted once Anson has completed a DFS, including appropriate test work and a sufficient JORC Resource estimate based upon drilling results.

Approval of the re-entry program is a major step forward on this pathway, Richardson said.

“The benefit of this strategic shift to Green River and purchasing land on a brownfields site that in an area that is administered by the State of Utah is demonstrated by the speed at which the project has developed over the past year and a half due to the strong support that the company has received from all levels of government,” he said.

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.