Anson’s exploration efforts at its Paradox lithium project in Utah paid off with a massive 324% increase in resources to 788,300 t lithium carbonate equivalent.
The excitement doesn’t stop there, with the company now having a greater degree of certainty due to a 378% increase in Indicated Resources to 239,000 t LCE, while bromine resources have also received a boost. 248% to 3.5 Mt (1.2 Mt in the indicated category).
And if that’s not enough to get your pulse racing, there’s plenty of room for further growth given that this increase is entirely due to the result of one well – the Long Canyon No.2 well which produced grades of stronger than expected and proof that the brine tank can flow without pumping.
In particular, this has allowed the company to estimate the resources of recently discovered Mississippian units.
Anson Resources (ASX:ASN) notes that results from the Cane Creek 32-1 resource expansion pit will only be included in a future resource upgrade, as will results from its upcoming western expansion strategy which includes the newly discovered Mississippian units.
Further drilling in the western expansion is aimed at creating additional indicated resources and increasing the current ratio of indicated resources to inferred resources as previously delineated inferred resources are converted to indicated resources.
The results of the resource upgrade will now be incorporated into the detailed feasibility study for the Paradox project, which is currently being completed by global engineering firm Worley, for publication in the near future.
The 167 km2 Paradox lithium project is located in a mature oil and gas district with brines that historically contain high published concentrations of lithium.
Its position is likely to make it attractive to the growing electric vehicle and battery storage sectors in the United States, especially in light of the new Inflation Reduction Act which provides significant funding for investments in clean energy.
Anson had reinstated four historic oil wells that had been drilled to depths of up to 8,300 feet (2,529.8 m) and at an average spacing of about 1.6 km.
Drilling delineated an aquifer containing hyper-saline lithium brine with sampling in clastic zones of the Paradox Formation yielding concentrations of up to 253 ppm lithium and 5,041 ppm bromine.
Flow tests have also confirmed that aquifers can flow without pumping, which is likely to reduce the cost of extraction.
This article was developed in conjunction with Anson Resources, a Stockhead advertiser at the time of publication.
This article does not constitute advice on financial products. You should consider obtaining independent advice before making any financial decisions.