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Anson Resources Limited (Anson or the Company) is pleased to announce continued high pressure along with higher flow rates than initially tested at the Long Canyon Unit 2 well within the priority Mississippian Units, at the Company’s Paradox Lithium Project (“the Project”) in Utah, USA.
Highlights:
- Test work during current exploration program at Long Canyon Unit 2 confirms continued high-pressure and flow rates
- Similar high-pressure results in a radius up to 12km from Long Canyon Unit 2 indicate flow rates will likely be maintained throughout production period
- Paradox Project extraction location at the Intersection of Robert’s Rupture and Cane Creek Anticline provides three key unique features;
- High pressure
- Vertical porosity; and
- Shallow depth
- This is expected to result in artesian flow of brine to surface without the need for pumping – delivering lower production costs and positive ESG attributes
Anson is currently drilling the Long Canyon Unit 2 well and is targeting the large Mississippian supersaturated brine aquifer which hosts a substantial lithium-rich zone of ~100m-250m thickness. Drilling aims to convert the existing Exploration Target into an Indicated and Inferred Resource (see ASX Announcement 17 January 2022).
This phase of the Company’s resource expansion drilling program has made excellent progress, with drilling reaching the target depth of 2,334 metres (7,670 feet) at the top of the Mississippian units and achieving first brine flow, with samples being collected for assaying (ASX announcements, 23 and 26 May 2022).
Commentary - High-Pressure and Flow Rates at Shallow Depth
Anson is pleased to advise that further test work on the Long Canyon Unit 2 well has confirmed continued high pressure and high flow rates. This is a highly positive outcome and is of significant importance.
One of the key considerations in Anson’s resource expansion drilling program is to monitor and test the well pressure over distance and time. Strong and consistent pressure would have a positive impact on brine extraction economics.
The Company’s test work has confirmed that over-pressure extends for more than 12 km from the Long Canyon Unit 2 well, and will likely take many years to exhaust.
Anson is in a unique, and ideal, location for brine extraction at the intersection of Robert’s Rupture and the Cane Creek Anticline (raised area, at the Paradox Project. Robert’s Rupture provides vertical porosity, and the Cane Creek Anticline provides a shallower depth to the target extraction horizon.
These three factors; high pressure, vertical porosity and shallow depth are key attributes of the Paradox Project area and are not present anywhere else in the area. In combination, they provide strong indicators of low extraction costs and beneficial ESG outcomes.
The wells Anson has re-entered have delivered artesian flow from the Clastic Zone 31 horizon (see previous ASX announcements) due to the constant higher pressures (see Table 1) and the porosities of this clastic zone.
Strategic Location of Production Pads to Deliver Optimal Outcomes
The pressures recorded across the project area in the Clastic Zone 31 horizon are shown to be uniformly high (see Figure 1), which should result in continuous artesian flow once the extraction process begins. To date, artesian flow has been recorded from Clastic Zone 31 over a distance 12km east-west and 8km north-south.
This uniform pressure across the project area indicates that pressure will be maintained throughout the life of the project, and support continuous extraction without the need to pump.
Anson has strategically located the production pads where the two major geological structures in the area - Roberts Rupture and the Cane Creek Anticline – intersect (see Figure 1).
Data from historical downhole geophysical logs carried out on the Utah State 16-1 well shows that this area has very high porosity, which along with the high pressures will result in artesian flow of the extracted brine. This unique situation is expected to reduce the extraction costs of the lithium-rich brines as fossil fuels will not be needed to power the pumps, providing ESG positive attributes to the project.
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ASN:AU
Anson Resources: Developing a Near-Term Clean Energy Project in Utah
Anson Resources (ASX:ASN) focuses on the resources necessary to meet the energy demands of the future. The company’s flagship project, the Paradox Lithium Project, has the potential to become a world-class lithium producer and is located near Tesla’s massively productive gigafactory in the United States. Additional projects target nickel, copper, and uranium.
The company's flagship Paradox Project is located in Utah, a mining-friendly and politically stable jurisdiction. The asset holds significant lithium brine deposits, and the company has identified an extraction method that has delivered an extraction rate of 91.5 percent. This technique calls for passing the lithium through the resin, which captures the resin, and can then be separated from the resin with water. From that state, it can be processed into lithium carbonate. The company is currently undertaking a major JORC resource expansion drilling program, the results of which will feed into a Detailed Feasibility Study being carried out by global engineering firm, Worley.
Company Highlights
- Anson Resources is focused on developing its flagship project, the Paradox Lithium Project, into a significant lithium producing operation.
- The company is currently undertaking a major JORC Resource expansion program at Paradox, which will form part of a Detailed Feasibility Study which is being undertaken by leading global engineering consultants, Worley.
- The Paradox Project contains multiple lithium brine targets, and the company has identified an extraction method that produces an impressive return rate of 91.5 percent. Also, the project’s Direct Lithium Extraction (DLE) method is expected to deliver significant ESG benefits
- In addition, the project’s brine also contains bromine, creating a valuable second potential revenue stream for the asset.
- Anson Resources’ other projects target nickel, copper, vanadium and uranium. The company aims to supply energy markets with the mineral resources necessary to power the future.
- The company has an experienced management team with a mix of technical, corporate and commercial skills driving the project towards its ambitious goals.
This Anson Resources company profile is part of a paid investor education campaign.*